As a Melbourne Buyers Agent, I am conscious I am operating in an industry that uses a lot industry specific terms, jargon and acronyms.
To help you get a better understanding of what they mean, I thought I will share insights into some of the more common terms you will come across as you go about looking for your property, starting with A to G.
A/C
Air-conditioning
Acceptance
When the seller (vendor) accepts the buyer’s offer (i.e. price and terms). For the acceptance to be binding, it needs to be on a contract of sale (Section 32).
Agent (“Real Estate Agent”)
A person given permission to act on behalf of a client in the sale, purchase, letting or management of real estate. Agents must be licensed from the relevant state agency.
Allotment
An area of land that is subdivided into smaller pieces.
Amenity
Is a feature of a neighbourhood. For example a public swimming, school or park can be considered as amenities.
Appraisal
An estimation of the value of a property performed by a real estate agent. Often the estimation of value is inflated to entice the property owner to list the property for sale.
Appreciation
The increase in the value of property over time.
Apt
Apartment
Architrave
A moulding surrounding a door or window opening.
Asking price
The amount that a seller wants a buyer to pay to purchase the property.
Auction
A public sale in which property is offered for sale through a competitive bidding process.
3B/2B
Three bedrooms, two bathrooms.
Beam
A horizontal, load-bearing piece of timber or metal that has structural properties.
Bearer
A sub-floor timber or steel beam that supports floor joists.
BIR
Built-in robes.
Body corporate (“body corp”)
A body of owners in a block of units. The council of the body corporate – elected by property owners in the block – meets at regular intervals to discuss various matters of administration, including repairs, maintenance and security.
Boundary
A line (not necessarily a straight one) separating adjoining properties.
Br
Bedroom
Breach of contract
Breaking the conditions of a contract.
Brick veneer
A wooden or steel framed property is hidden wh a single layer of bricks as the exterior layer.
Bridging finance
Finance that is obtained for a short period of time as a "bridge" to long-term finance. This funding may be required if a home purchase completes before the owner’s sale. Generally it is more expensive than a mortgage.
Building regulations
Rules which are designed to maintain public safety, health and minimum acceptable standards of construction.
Buyer’s market
Market conditions which favour the buyer (for example high supply of property, lack of market confidence).
CAC
Central air-conditioning
Capital growth
The increase in property value over time.
Caveat
A notification on the properties making a person buying a property aware that a third party has some right or interest in the property.
Certificate of title
A document that confirms the ownership of land. It shows who owns it and whether there are any outstanding mortgages or loans against it.
Chattels
Property other than real estate that is included in a sale, including items of furniture.
Clear title
A title that isn’t encumbered with outstanding mortgages or loans.
CMA
Comparative Market Analysis – a report estimating a property’s value based on recent sales of comparable type properties.
Commission
A fee or payment made to a real estate agent on completion of the sale of a property. Generally it is based on a percentage of the sale price or a flat fee.
Common area
A shared area that is available for use by more than one owner or occupant. For example stairwells, garden spaces, swimming pools, tennis courtyards, laundry rooms, paths, entrance areas of an apartment block.
Compulsory acquisition
The power of central or state governments to purchase property from without the owner agreeing to sell. For example compulsory acquisition order could be used for the acquisition of properties required so a new road or railway line can be built.
Contract of sale
A document that lists the terms and conditions of a property sale between the vendor and the purchaser. The document is generally provided by the sellers conveyancer or solicitor.
Conveyance
The legal process of transferring the ownership of property from the seller’s name to the purchaser’s.
Conveyancer
A conveyancer is responsible for ensuring the title to the property is transferred from seller to purchaser, and advising on any legal issues along the way.
Cooling off period
A period of time after the signing of a sale contract where the buyer can cancel the agreement. Cooling off periods, however, do not apply three business days before residential property auctions in Victoria.
Covenant
A requirement noted on the title of a property that forces the property's owner to adhere to named terms, conditions and restrictions regarding the property.
Cover note
A document issued by an insurance company to temporarily prove that a property has current insurance.
Deed
A legal document that is a record of an agreement, obligation or conveyance of property.
Deposit
Paid by the buyer at the time of exchanging contracts. In Melbourne it is generally 10 percent of the sale price.
Dual occupancy (“dual occ”)
An area of land or an existing dwelling that is zoned in such a way that allows the owner to construct a building that has two separate living arrangements.
Drug money price
A price so high that only a drug cartel could afford to pay it!
Duplex
A residential property with two dwellings apartments, each of which have their own entrance.
EPR
Estimated price range
ESR
Estimated sales range
Fittings
Goods or articles such as paintings and curtains Items that not be removed from a property without causing damage or an obvious reduction in its value.
Fixtures
Items such as baths, toilets and walk-in wardrobes that form part of the property and cannot be removed without causing damage.
FF
Fully furnished.
FMV
Fair market value.
Free standing
A property that stands independent of other properties (for example a terrace house is not free standing).
Gazumping
The withdrawal from a verbally agreed sale by the vendor in favour of a quicker or more profitable sale. This practice is perfectly legal before contracts are exchanged and real estate agents usually act in the vendor’s best interest and take the higher offer. Any deposits are refundable but no compensation is owed.
Guarantor
A person who guarantees to pay a borrower’s debt in the event that the borrower defaults on loan obligations.
Stay tuned for the next series of real estate terms – H-Z.
