Buying real estate can sometimes be a long and confusing process, particularly if you are not familiar with all the different property terms. As leading Sydney property buyers agents, we have prepared this glossary to help you with your real estate needs.
FIRB: The Foreign Investment Review Board examines applications by foreigners wishing to buy property in Australia. Most foreign citizens must obtain approval before purchasing real estate in Australia.Final Inspection: The last chance for the Purchaser to inspect the property before Settlement. This usually occurs immediately before Settlement.
Final Inspection: The last chance for the Purchaser to inspect the property before Settlement. This usually occurs immediately before Settlement.
Gazump: Where a Vendor has agreed to sell the property to a Purchaser for an agreed price and then sells to another Purchaser who has offered a higher price. Gazumping is legal because until Exchange of Contracts, either party is free to change their mind even if a verbal or written offer and acceptance of a Purchase Price has been agreed. Only a signed and exchanged Contract for Sale is legally binding on the parties. However, once Contracts have been exchanged a Vendor cannot accept another offer from a different Purchaser.
House and Land Package: Where land is bought from a developer and the house is built by a builder as a package for a set price. Common on the edge of metropolitan areas where the land is still being developed.
Investor: A person who buys a property for investment reasons rather than as a home.
Joint Tenants: Two or more people who own the same property. Joint tenancy is a special form of property ownership which is distinct from Tenancy in Common. The main features of joint tenancy are that the owners share equal undivided shares in the property. If one of the Joint Tenants dies, their share of the property is automatically transferred to the survivors. This is the most common form of property ownership between a husband and wife.
Land Tax: A tax imposed upon land owners in NSW. In general, your principal place of residence is exempt from land tax. Land tax may be applicable if the property is an investment property. For further information, please see: http://www.osr.nsw.gov.au/
Mortgagor/ Mortgagee: A Mortgagor is the borrower. In contrast, the Mortgagee is the bank or lender.
Off Market Properties: Properties for sale but not advertised on the open market. Sometimes called “silent listings”.
Owners Corporation: This is the body charged with the administration and management of a strata building. It is made up of each of the owners of the strata lots within the building. Formerly known as the Body Corporate.
Passed in: This occurs at auction either when there are no bids or if the last bid made is lower than the Reserve.
Pre-Approval: Conditional approval for finance provided by a bank or lending institution. It is based upon a person’s capacity to meet the loan repayments up to a certain limit.
Private Treaty: The sale of a property at a negotiated price rather than by auction.
Purchaser: Buyer of a property.
Purchase Price: Otherwise known as the sale price or the agreed price of the property.
Rescind: Literally means “unwinding” a Contract and should not be confused with “terminating”. There are legal consequences so check with your solicitor or conveyancer. As a Purchaser, if you rescind during the Cooling off Period, you will forfeit 0.25% of the Purchase Price.
Reserve: The minimum amount a Vendor will accept for the sale of their property at auction.
Based in Sydney’s Inner West, Buyers Domain are leading Sydney property buyers agents. Acting exclusively for the property buyer and not the seller, Buyers Domain property buyers agents will help you to source and purchase your next home or investment property.
For all your real estate needs, call Buyers Domain property buyers agents today.