Glossary

Deposit

The amount of money paid by way of consideration to initiate the contract. Traditionally, the deposit is set at 10% although where the property is an expensive one, the amount received may be lowered. Usually the agents allow for the deposit to be at least equal to the agent’s commission.

   

Deposit

The amount of money paid by way of consideration to initiate the contract. Traditionally, the deposit is set at 10% although where the property is an expensive one, the amount received may be lowered. Usually the agents allow for the deposit to be at least equal to the agent's commission.

 

   

Discharge of Mortgage

See “Release of Mortgageâ€. Leasehold, Freehold and Strata Title.

   

Easement

One of the most common forms of encumbrance -see “Encumbranceâ€- see also separate brochure on “Easementsâ€.

   

Encroachments

This is where one neighbor builds across the boundary line so that the improvements of one property are actually built upon another.

   

Encumbrances

A formal burden or charge on a property such as an easement, mortgage, or lease.

   

Equity

This is the cash amount contributed to a purchase by the purchaser.

   

Fee Simple

Sometimes commonly referred to as “freeholdâ€. It is the absolute form of ownership a registered proprietor can have in property.

   

Fixtures and Fittings

These refer to ancillary items that are sold with a house such as clothes lines, stoves, light fittings.

   

Improvements

These are improvements on the property normally by way of buildings. Improvements can however include all such other things as landscaping, swimming pools etc.

   

Inclusions

These are items which are of a moveable nature. They are chattels which are specifically included in the contract -see “Chattelsâ€.

   

Legal Description

This is the method of describing and identifying all property. Each legal description for each property is unique.

   

Mortgage

A loan to finance the purchase of real estate, usually with specified payment periods and interest rates.

   

Possession

This is the date that the property is taken over by the purchaser. It is sometimes separate from completion. Sometimes possession is given upon undertakings. See “Completionâ€.

   

Private Treaty

This is the most common method for selling a property. This is when the vendor and purchaser negotiate between themselves or via an agent to sell and transfer the property at a fixed price.

   

Property

This is a generic term which is used to mean both the freehold property and/or fixtures, fittings and chattels which are sold. It is the entire subject of the sale agreement.

   

Purchase Price

Often referred to as “sale priceâ€. This is the total amount to be paid for the property by the purchaser, whether the purchaser has raised these funds by finance or by cash equity.

   

Purchaser

The Buyer.

   

Rates Adjustments

The amount adjusted as between vendor and purchaser for the rates.

   

Rates Notice

The notice issued by the Council for the appropriate shire or city relating to the property. It sets out the details of all rates which are payable by the owner of the property.

   

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