Before you commit to buying a property, do you fully understand the process and the terms that the agent and your solicitor may be using? As leading property buyers agents, we have compiled this simple gloassary of property terms for you.
Deposit: An amount (usually 10%) of the Purchase Price paid by the Purchaser upon Exchange of Contracts. The Deposit is normally held in the trust account of the selling agent or Vendor’s solicitor until Settlement.
Deposit Bond: Instead of paying the Deposit in cash, a Deposit Bond is a form of guarantee by the issuer of the Deposit Bond that they will pay the Deposit if the Deposit is to be forfeited to the Vendor.
Due Diligence: The process carried out by or on behalf of the Purchaser to research and investigate all aspects of a property which the Purchaser is planning to buy.
Easement: A property right to use a property for a particular purpose where the property is owned by someone else. A common example is a right of way. If you are looking to buy a property, check the Title to see if the property is affected by the benefit or burden of an Easement.
Encumbrance: A general term for anything which may impact upon the ownership of a property. Examples would include mortgages, leases and easements. Check the Certificate of Title of the property you’re buying to see if it is affected by any Encumbrances.
Exchange of Contracts: Once the negotiations have been finalised and offer and acceptance have been achieved, the Contract to buy or sell a property is not binding until the Contract has been signed by both the Purchaser and Vendor and the Contracts have been exchanged. It is known as an Exchange of Contracts because normally the Vendor signs their copy of the Contract and the Purchaser signs their copy before the Contracts are physically exchanged – the Vendor’s copy is sent to the Purchaser’s solicitor and vice versa.
Buyers Domain property buyers agents are the leading buyers agents for Sydney’s Inner West, Eastern Suburbs, North Shore and Northern Beaches . If you are considering to buy a new home or investment property, make sure that you are buying the right property at the right price.
To avoid making an expensive mistake, talk to Buyers Domain property buyers agents today. Call them on 02 9568 6330