The A to Z of Real Estate Sales Terms
Addendum: An addition or variation to an existing contract.
Agent: An individual who is licensed to negotiwate and arrange real estate sales.
Appraisal: The process of developing an estimate of price, given by a real estate agent.
Auction: A process which allows interested parties to make competitive bids on a property in an open and public forum utilising the skills of an experienced auctioneer.
Bid: A verbal or written offer to purchase at an auction.
Building Inspection: An inspection to ensure that the property is in accordance with building control provisions.
Buyer's Agent: Represents a property buyer in negotiations with a vendor of his/her agent.
Capital Value: The price that would have been paid for land or property if it had been purchased when it was evaluated.
Caveat: A notice on title proclaiming a possible interest other than that of an owner.
Certificate of Title: A state or municipal-issued document that identifies the owner of property.
Chattels: Any fixed asset other than freehold land such as furnishings and fittings.
Contract of Sale: Formal contract by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties.
Community Title: The division of land into at least two lots and an area of common property.
Conveyancer: A person who carries our the process of conveyancing; the transfer of legal title of real property from one person to another.
Cooling Off: A short statutory period after the contract is made, during which the purchaser may cancel the contract unconditionally. This does not apply if the property is purchased through auction.
Counter Offer: A new offer as to price or terms and conditions, made in reply to a prior unacceptable offer.
Counter Sign: An amendment of the sale and purchase agreement.
Deposit: Percentage of total consideration, or an agreed amount, paid on exchange of contract for purchase of an asset.
Default: When one party to the contract fails to fulfil the terms of the agreement.
Easement: Permission by a property owner allowing another to legally cross their land.
Encroachment: Refers to an intrusion on another person's property.
Encumbrance: A right to, interest in, or legal liability on a property that does not prohibit passing title to the property.
Form 1: The basis of the formal statement by the vendor about certain details relating to the property being conveyed.
Market Price: The price at which something is sold.
Market Value: The price at which something will sell within a reasonable period of time.
Offer: A verbal or written offer to purchase property via private treaty.
Private Treaty: The agreement for the sale of a property at a price negotiated directly between the vendor and purchaser or their agents.
Purchaser: The person/entity who acquires the title to the property or is in the process to do so.
Settlement: The official process of legally transferring a property from one person to another.
Stamp Duty: The tax imposed by state governments on certain contract, calculated as a percentage of the contract value.
Strata Title: The formal ownership of property held within a strata plan where property is defined within horizontal and vertical boundaries.
Strata Plan: The registered plan of a strata title property showing the boundaries of lots and unit entitlements. Pursuant to legislation on strata or unit titles.
Valuation: The prediction of the value of an asset at a point in time, depending on the purpose for which the valuation is required.
Vendor: The people, person or entity selling a property.