The lingo for all things real estate
Buying and selling a property is very fulfilling yet can feel scary and confusing at the same time. Real estate agents, accountants and lawyers are sure around to guide and help you through the process however having the knowledge yourself is the best way to understand and save yourself from any confusion and trouble.
Here are few of the most used terms in real estate and what they mean:
Appreciation – an increase in the value of the property over time.
Buyer’s Agent – the agent who represents the purchaser in the buying process
Caveat – a type of statutory declaration preventing the registration of particular dealings on a property
Contract of Sale – a legal contract for the purchase of the property
Depreciation – a decrease in the value of the property over time
Easement – a section of land registered on the property that gives someone the right to use the land for a specific purpose even if they might not be the owner.
Encumberance – an obstruction or hindrance to the use of the property that are registered on the title.
Equity – the value of how much your property has in the asset over the debt owned
Exclusive Listing – an agreement to make an agent solely responsible for the sale a property during a certain period. The exclusive agent is entitled to commission if another agent sells the property within that period.
Fittings – items in a property that can be removed without damaging the item in which they are placed
Fixtures – fixed items in a property that would usually damage the structure of the property when removed
Interest – the amount paid by the borrower to a lender in addition to the main amount borrowed
LVR(Loan-to-value ratio) – the amount of your loan compared to the value of your property
Negative Gearing – where money is borrowed to invest and the income from the investment is less than the expenses
Purchaser – the ‘buyer’ of the property
Settlement Date – the date on which the title is transferred to the purchaser and the final adjustments and payments are made
Stamp Duty – is a duty or tax charged by the government, you generally need to pay it when buying real estate.
Title – an official record which shows a party’s legal interest in a property.
Vendor – the ‘seller’ of the property
Zoning – a way the government to determine the use of a land to which type of property may be built.
*Definitions are in general terms only and are not in any way a real estate legal advice. For more detailed explanation, please consult to your professional real estate consultant.