November 21, 2021 5:04 pm

Natalie Hatton

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.

Encumbrance

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.   

Easement

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, 

Easement benefit

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 

Easement burden

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) 

Caveat

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 

Unconditional

The are no outstanding conditions to be met for the sale of the property and the property is awaiting settlement. 

Settlement

Exchange of ownership of the property from one party to another. 

Counter offer

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 

Lease hold

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. 

Capital Gain

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. 

Caveat

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. 

Contract

An agreement made between two parties with legal obligations & commitments 

Lease

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 

Managing Agent

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 

Outgoings

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. 

Periodic tenancy

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

Vendor Terms

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. 

Zoning

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!

Property Uncut is a company that empowers people to buy and sell real estate with confidence. Our mission is to make the process fun and exciting – rather than stressful and overwhelming. To learn more, head to our homepage propertyuncut.com

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