Do you ever feel intimidated by qualified professionals when you don’t understand what they are talking about? Well we understand that! Below is some real estate “Jargon” with explanations to help you feel more confident when beginning your real estate journey.
Will be listed on the certificate of title. An Easement is a barrier or drawback to the land by a person who is not the landowner, that can prevent full enjoyment of the land & gives the non-owner the right to use the land. This could be an easement, mortgage, deed restrictions or encroachments.
An easement is a limited interest that an owner of land acquires over land belonging to someone else. It is a non-possessory right which allows landowner A to use certain rights over landowner B’s land in addition to the rights A already enjoys over their own land. Common easements include drainage/sewerage, public utility lines, rights-of-way,
gives someone the right to use a section of land for a specific purpose, even though they are not the owner of that land. This could be for drainage, utilities or access purposes
Gives someone else the right to use a section of land for specific purpose even they are not the owner of the land. This could be for drainage, utilities or access purposes
Restrictive covenant burden
Limits or restricts the use of land in a specified way. Will be registered on the certificate of title and may be limitations such as house style, roof colour, use of premises (residential or commercial)
A notification registered on the certificate of title that a claim has been lodged against the owner of the property/land.
Under offer/under contract
A seller has accepted an offer for a buyer to purchase a property. The offer may be subject to conditions. For example finance
The are no outstanding conditions to be met for the sale of the property and the property is awaiting settlement.
Exchange of ownership of the property from one party to another.
variation made to a contract which could be the price, settlement date or terms & conditions. Counter offer terminates original offer to continue with the offer all parties must agree to the changes by initialling all necessary changes.
Free hold land
Sole owner of the property & land with no limitations on time of ownership, leasing or selling
Refers to a property tenure. Property that is owned by the State (or Crown) and is a landholding that is leased to a person or a company for an agreed period of time. The State (or Crown) remains the owner of the land and gives the land to builders, to develop projects on a leasehold basis
Certificate of Title
Official land ownership record. Shows the ownership of the land & any encumbrances noted. If the property has a mortgage the bank will retain the original copy.
An investment property when sold has increased in value. There is a portion that is paid to the Statue Revenue Department. This is to be advised by an accountant.
Breach of Contract
Contract obligations have not been met. IE payment of deposit on the due date.
A notice recorded on the certificate of title which may prohibit the title from being transferred into another new owners name. For example a third party may have a financial interest which needs to be repaid prior to the property exchanging hands.
An agreement made between two parties with legal obligations & commitments
Legally binding agreement between two parties with specified conditions and amounts payable.
Lessee Or tenant
The person who occupies the property in return for payments of rent & other agreed monies payable to the lessor under a tenancy agreement (lease)
Lessor or Landlord
The person who agrees to allow other parties to occupy their premises in exchange for rent & other agreed monies payable as agreed in the lease agreement
Lot (under the strata titles act)
Is defined as the cubic space that is privately owned by a particular lot as outlined on the strata plan
Agent that holds a written agreement or authority for an owner of a property to manage a property, collect rent etc
Original Proprietor (Under the Strata Titles Act)
The person/company who was the registered proprietor (owner) of the land at the time when the strata plan was registered
Operating expenses such as rates, taxes, utilities, insurance, management fees, maintenance & repairs
Fixed term tenancy
A tenancy or lease agreement for a specified period of time which is legally binding. The tenant has the right to remain at the property for the full term unless there is a breach tenancy ie non payment of rent.
A non-specified agreement that has either rolled over from a fixed term tenancy or an agreement between to the two parties to allow the lessees to occupy the premises until either party gives notice to vacate the premises.
Power of Attorney
A legal agreement where by one party gives another party the right to perform certain duties on their behalf. Ie signing of contracts. Must be lodged with Landgate
When a selling is willing to accept a deposit towards the purchase of a property and is prepared to carry out the outstanding amount as a loan.
Local Government or Planning Authority that has control over the use of land for such as residential commercial etc. Also controls the redevelopment options or density and improvements
Would you like to learn about the different types of titles? Click here to view our post.
Need more info on the types of properties? View our post explaining them all!