Real Estate Jargons You Need to Know


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Have you experienced applying for a home loan or real estate purchase and finding yourself puzzled with all the property/real estate jargons?

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Real Estate Jargons You Need to Know

  1. 1. Real Estate Jargons You Need to Know© The Mortgage Gallery Rockingham
  2. 2. Have you experienced applying for a home loan or real estate purchase and finding yourself puzzled with all the property/real estate jargons? This helpful jargon-buster word list can help you. Asking Price: This is the listed property price. This price can still be negotiable and is not yet considered as the selling price. Auction: This is the procedure in which the property is sold to the highest bidder. Bridging loan/bridging finance: This is known as the short-term loan used to cover up the financial gap between selling and buying. Building Inspection: Is the detailed and systematic inspection of the property by a licensed builder. The licensed builder will examine the mechanical and structural condition of the property at the buyer’s expense. Buyer’s Market: A situation wherein the property demand is less than the property supply. The scenario creates an advantage shift to the buyer. Certificate of Title: This is a very important document and is included in the contract of sale made by the seller’s solicitor. It has the property description and includes the name of the real owner and any other impediments including easements and mortgages. Commission: Is a portion of the sale, normally a percentage of the property being paid to the real estate agent after closing the deal. Contract of Sale: Is the agreement written in details including the terms and conditions concerning the purchase and sale of the property. Conveyancing: Is the traditional term for the legal work included in the sale and purchase of the property.© The Mortgage Gallery Rockingham
  3. 3. Deeds: These are the legal title documents which prove ownership. The mortgage lender will hold these documents. Deposit: The percentage of the purchase price which will then be given during the time of exchange or winning the bid at the auction for the purpose of binding the sale. Easement: An individual’s right to use the property or land which belongs to the other. For instance, a water authority has a sewerage easement. Exchange of contracts: The situation wherein the buyer and the seller physically exchanges their signed contracts legally upon the sale and purchase of the property with the settled price. Fittings: These are objects which can be removed or detached from the property without causing any damage. Fixtures: These are objects like stoves, built-in cupboards, dishwashers and others which cannot be detached from the property. These are objects somewhat permanently fixed to the real estate or property. Gazumping: A situation wherein a seller accepts and agrees to the offer of the buyer and promises to sell the property to that particular buyer and in the long run sells the property to another potential buyer at a higher price. Joint Tenants: Is a type of co-ownership which offers every tenant an equal share of the property. Listing: Is a written agreement between a real estate agent and the owner. This states the authority of the real estate agent to perform the services to sell the property of the owner. Local Authority Search: Is a process where a buyer’s solicitor enquires at the local council concerning any future developments or outstanding enforcement that can possibly affect the real estate. Market Value: The price of the property which is agreed by both the seller and the buyer.© The Mortgage Gallery Rockingham
  4. 4. Off the Plan: Is a term described for selling a property which does not exist yet. It could be a proposal building soon to be developed, this is common in building units, subdivisions, and apartments. Open Listing: Also considered as a non-exclusive real estate agreement, which means that there could be more than one real estate agent involved in selling the property. Private Treaty: This is when the owner of the property sells the property with the assistance of a real estate agent who makes the direct deal to the potential buyer. Reserve Price: Is the smallest amount which a seller will allow at the auction. Settlement: Is the time where all the involved parties of the real estate sale meet and exchange important documents and payments to close the deal. The sale will be closed by the lawyer, the seller, and the buyer who is now the new owner of the property. Stamp Duty: A charge from the government incurred by the buyer of the real estate. This is computed from the overall value of the property. Strata title: This is a title of the property. This title includes the width, depth, and the height of the upper and lower boundaries of the land. Valuation: is a written analysis of the estimated property value, most commonly done by an eligible valuer. Zoning: Is a legal guideline followed by the local authorities to control the real estate. Once you are dealing with real estates and mortgage, expect that you will encounter numerous legal terms when buying a property. Hence, it is very important that you seal a deal with a lawyer and ask any legal advice before making commitments.© The Mortgage Gallery Rockingham