Glossary

Adjustment

The apportion between buyer and vendor of expenses like council and water rates.

Agency agreement

Selling or managing agreement must be in writing under section 42aa of Property Stock & Business Agents ACT, or s50 of the Estate Agents ACT where the vendor legally engages the services of an agent for a negotiated fee. A compulsory document.

Agistment

Where a land owner allows cattle, horses or similar animals to come upon his land for grazing purposes in return for the payment of a fee.

Agreement for lease

Formal written agreement for lease, but generally part oral and partly embodied in exchange of letters between solicitors for the parties; determined by the ordinary rules of contract.

Allotment

A lot or block subdivided from a larger portion of land. A small area of land sufficient for building a house. An allotment is also referred to as a building block, lot or block of land.

Alluvion

The addition made to land by the washing of the sea, a navigable river or other streams, when the increase is so gradual that it cannot be perceived in any one moment of time.

Amortisation period

The number of years it will take to repay a home loan completely. Maximum period is usually 25 years.

Appellant

The person instituting an appeal.

Appraisal

An agent's view of the reasonable selling expectation of a property.It is not a valuation in NSW.

Assets

What you own.

Auction

Sale by auction, subject to any reserve price decided by the owner. Either "knocked down" or "passed in", in favour of the highest bidder.

Bond

With residential properties, any security received by a landlord (or his/her agent) against failure by a tenant to comply with any terms or conditions of a lease (lodged with the rental bond board and subject to the provisions of the act).For non-residential properties, it may take many forms, according to the lease.

Breach

Failure to honour a contractual agreement or an equitable duty.

Brick veneer

A system of building in which a structural timber frame is tied to a single brick external wall.

Bridging finance

A short-term loan, usually at a higher rate of interest, taken out by people who have bought a house while waiting for theirs to be sold, or when a normal mortgage and their savings fall below the asking price.

Building certificate

Basically, a certificate of 'non action' issued by the council under section 149d of the environmental Planning and Assessment ACT 1979, NSW.

Building regulations

Designed to uphold the standards of public safety, health and construction, these regulations are in place and have been formulated by the local councils to control the quality of buildings.

Caveat

An encumbrance on title lodged with the land titles office claiming an interest in land and which acts as warning.

Caveat emptor

Consumer legislation and common law duties offer some protection, but ultimately "let the buyer beware".

Certificate of title

Legal proof of ownership of a property, carrying the owner's name and other information.

Chattel

Property which is not land (ie which is movable and tangible) including personal property.

Civil action

Any legal action other than criminal.

Cluster housing

Detached group of houses which share open space.

Cluster title

Each cluster title holder has a certificate of title which specifies ownership in terms of a particular area for which the owner is responsible, and defines the common property.

Commission

The fee payable to the agent by the vendor for sales, leasing or management of property. Must be subject to negotiation and be expressed in the agreement under s42aa of property, Stock and Business Agents ACT, NSW 1941 and s50 of the Estate Agents ACT Vic.

Common property

Areas in strata-title properties shared by owners.

Conjunction

An agreement between agents, whereby the agreed fee is split between the listing and selling agent.The split usually favours the listing agent.

Consumer price index

An index provided quarterly for each capital city, listing changes in the cost of a basket of goods and services - often used in non-residential rent adjustments.

Contract

An agreement made between two or more parties and intended to be enforceable at law.

Contract of sale

Written agreement setting out the terms and conditions of a property sale.

Conveyance

Legal instrument by which land or interest in land change ownership.

Conveyancing

Legal process of transferring the ownership of a property from one person to another.

Cooling off period

Usually a five business day period available to a purchaser to withdraw from a contract for the sale of residential land.The five days is a default period that may be waived by virtue of a purchaser completing a sec 66w certificate or can be varied by mutual agreement between the vendor and purchaser. Three business days is required for private sale properties in Victoria.

Covenant

An encumbrance on title or an agreement, promise or condition contained in a contract (deed) whereby one party pledges to another that something will be done or abided by. (conditions affecting the use of land or property which is written into the title).

D.a.

Development application.

Damages

Generally monetary compensation for non-performance of a contract, failure to follow a statutory obligation or for loss associated with a breach in the property professional's duty of care owned to a principal or third parties.

Deed

A written document which is signed, sealed and delivered.

Default

Failure to carry out a duty or obligation.

Deposit

A payment made by a purchaser or tenant, in good faith, to the agent towards securing a property. It can also specifically refer to the 10% of purchase price paid to seal an exchange of contracts for the purchase of a property.

Disclosure

The now statutory requirements in regard the conveyance of residential land.

Drainage diagram

One of the essential documents provided by the vendor in the contract for sale of land.Supplied by the mwsd or local government in the area and showing the sewerage lines.

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