Asking Price
The listed price of the property but may not always be the selling price. The owner may be willing to negotiate.

Auction
A public sale of a property or real estate that is sold to the highest bidder.

Body Corporate
An administrative body made up of all the owners within a group of units or apartments of a strata building. The owners elect a committee which handles administration and upkeep of the site.

Bond
A sum of money paid by a tenant and held by the Residential Tenancies Authority to ensure against defaulting on payment and damage to the property.

Brick Veneer
A type of construction in which a structural timber frame is tied to a non-load bearing, single-brick external wall.

Certificate of Occupancy
A document issued by a local government to a developer permitting the structure to be occupied. This generally indicates that the building is in compliance with public health and building codes.

Chattels
Movable items of personal property such as furniture that may be included in a sale.

Commission
A proportion (usually a percentage) of the sale price of a property paid to a real estate agent for negotiating a real estate transaction.

Common Property
Areas of a building, land or amenities within a strata title property that are shared by all owners, e.g. a driveway.

Contract of Sale
An agreement in writing setting out the terms and conditions relating to the sale or purchase of a property. It is the purchase document signed at auction.

Cooling-off Period
The legal entitlement of a residential property purchaser to withdraw from a contract is five (5) business days after the contract has been fully signed and the purchaser advised of this circumstance. The vendor is entitled to retain 0.25% of the purchase price should the buyer choose to withdraw from the contract under the terms of the cooling off period.

Cul-de-Sac
Also called a 'Court' or 'Dead End Street'. A street with only one entrance, the other end being closed. Often valued for the privacy provided to homes in the street.

Deposit
A percentage of the purchase price given to bind the sale of real estate.

Dual Occupancy
A block of land which is zoned so that there two distinct dwellings are permitted to be constructed.

Duplex
See Semi-detached.

Easement
A right that someone has to use the land belonging to another, e.g. a water authority may have a sewerage easement across part of your property.

Eviction
The lawful expulsion of an occupant or tenant from real property.

Exclusive Authority
A written contract that gives one real estate agent the exclusive right to sell a property in a specified time period.

Fittings
Objects that can be removed from a property without causing damage to it.

Fixtures
Fixed items that cannot be removed without damaging either the property or the fixture itself, e.g. cupboards.

Gable
The triangular part of a building's end wall which extends up to meet the two slopes of a roof.

Guarantor
A person who agrees to indemnify the holder of a loan all or a portion of the unpaid principal balance in case of default by the borrower.

Holding Deposit
An initial (goodwill) sum of money given to register interest in or bind the sale of real estate before the full deposit is paid. For example, if a property is purchased on Saturday, the agent may take a holding deposit of a few hundred dollars until the buyer can arrange for the full deposit to be paid on Monday.

Investment Property
A property that is not occupied by the owner but leased to produce income.

Land Tax
A State tax based on the value of a property (not the principal place of residence) that is paid by the owner.

Landlord
A person who rents property to another; a lessor. A property owner who surrenders the right to use property for a specific time in exchange for the receipt of rent.

Lease
A written agreement between a landlord and a tenant granting a period of tenancy of a property under specific terms and conditions.

Leasehold
The right to use and have exclusive possession (but not ownership) of real estate for a specified period and subject to the fulfilment of certain conditions as recorded in a lease agreement.

Lessee
A person leasing a property.

Lessor
The owner of a property that is leased to another person.

Listing
1. A written contract between an owner and a real estate agent, authorising the agent to perform services for the principal involving the owner’s property. 2. The property so listed.

Market Value
The price at which a seller is happy to sell and a buyer is willing to buy. This assumes that there is sufficient activity in the marketplace to generate enough buyers and sellers so that neither party controls the price. Establishing the market value is the objective of an appraisal.

Mortgagee
The lender in a mortgage agreement.

Mortgagor
The borrower in a mortgage agreement.

Negative Gearing
Where the return on an investment is not sufficient to cover the costs on the investment, e.g. property maintenance and interest on the loan.

Off the Plan
To purchase a property before it is completed after having only seen the plans.

Offer
Conveyed intent by one party to form a contract, which may have conditions and stipulations, with another party.

Open Listing
A type of listing agreement in which more than one real estate agent may be employed to sell the property. The owner pays a commission only to the agent who finds the buyer. This listing is also known as a simple listing or a general listing and the owner is not obligated to pay anyone a commission if the owner personally sells the property. Such a listing is often used by builders and developers who agree to pay a sales commission to any agent who sells a house or lot in their subdivision.

Passed In
The highest bid fails to meet the reserve price of a property at an auction and consequently does not sell.

Power-of-Attorney
The person who has authority to execute documents on behalf of the grantor of the power.

Private Sale
The sale of a property by the owner without the services of a real estate agent.

Private Treaty Sale
The sale of property, through an estate agent, by negotiation.

Real Estate Agent
A person licensed to negotiate and transact the sale or lease of real estate on behalf of the property owner.

REI
Real Estate Institute of Australia. National representative body of real estate agents. REIV is the representative body in Victoria; REIQ in Queensland, etc.

Reserve Price
The minimum price which a seller will accept at auction.

Seller's Market
When demand for property is greater than supply. The result is greater opportunities for owners who may find someone willing to offer the asking price or even a figure greater than the asking price.

Semi-detached
Also called Duplex. A type of construction where two buildings are attached together by a common wall.

Settlement
1. The sale of a property is finalised by the legal representatives of the vendor and the purchaser, mortgage documents come into effect, costs are paid and the new owner takes possession of the property. 2. Sinking of the soil or any part of the structure which it supports.

Special Condition
A condition that must be met before the contract is legally binding. For example, if buying a home the purchaser may specify that the contract is not legally binding until the purchaser has obtained a building inspection.

Square
A square is a measurement of home area. One square = 9.3m2 approximately.
Home Area - Squares to Square Metres

Stamp Duty
A state tax on conveyance or transfer of real property calculated on the total value of the property (including chattels). This calculation varies from State to State. Visit the Office of State Revenue for further details or click here to calculate the Stamp Duty payable.

Strata Title
A title to a unit or lot on a plan of subdivision associated with townhouses, units and blocks of flats and based on the horizontal and vertical subdivision of air space. Owners have a certificate of title, are absolute owners of a freehold flat and have an undivided share of the common property.

Subdivision
A tract of land divided into individual lots for a housing development.

Tenancy
The right to occupy a property under agreed terms and conditions.

Title Search
A check of the title records to ensure that the seller is the legal owner of the property and that there are no other claims or liens outstanding.

Townhouse
A dwelling unit, generally having two or more floors and attached to other similar units via party walls.

Utilities
The private or public service facilities such as gas, electricity, telephone, water, and sewer that are provided as part of the development of the land.

Valuation
A written analysis of the estimated value of a property prepared by a qualified valuer.

Vendor
The seller.

Villa
A single storey attached dwelling.

Wish List
Think of a wish list as the criteria for your perfect home. While it's rare to find everything you'd like in the house you finally purchase, sitting down and making a wish list will help you find the house which most closely matches your dream.

Zoning
Local authority guidelines for the permitted use of land.