Glossary

By Kristi

Negotiating a barrage of mortgage and finance jargon can feel like you're trying to tackle the north face of the Eiger - even for the most financially aware borrowers.

Lenders and brokers often try to dumb down their financial buzzwords, but in many instances confusing financial terms are unavoidable.

To help you pick your way through mortgage and finance jargon we've compiled a full glossary of terms that you may encounter along your path to property ownership.

So if you're confusing your LMIs with your LVRs, or mixing your break costs with your deferred establishment fees, click on any of the terms and phrases below.

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Acceptance

The act of agreeing to an offer

Accrued Interest

Interest that has accumulated over a period of time

Adjustment Date

A date for which adjustments of incidental costs and expenses relating to a property purchase are made (e.g. land tax, rates and charges). The adjustment date is normally the settlement date

Adjustments

Changes to the purchase price to include incidental costs relating to the property (e.g. land tax, rates and charges)

Administrative fund

A strata fund that collects levies for the administration of building management

Administrator

A person who is responsible for dealing with a person's estate on their behalf. An administrator is usually involved if there is insolvency, bankruptcy or liquidation

Advertising fees

Fees charges by an agent for marketing the sale of a property. Advertising fees are usually separate charges to commission

Agent

A licensed real estate agent

All monies clause

A clause in a loan contract that allows a lender to use 'all monies' held in the borrower's name with that lender to offset the debt owed by the borrower if the borrower defaults on the loan

Amortisation period

The period within which it takes a borrower to repay a loan in full

Annexure

An attaching document

Arrears

After the due date for payment

ASIC

Australian Securities and Investments Commission

Assets

All property owned by a borrower, as distinguished from a borrower's liabilities. Assets include real and personal property, legal and equitable interests and rights of action

Assignee

A person who is assigned an asset

Assignment

The process of transferring ownership in an asset from one person to another

Assignor

A person who assigns an asset to another

ATM

Automatic Teller Machine

Auction

A sale of property under the hammer to the highest bidder, where no cooling off period applies

Authority

Depending on its context, it can include a reference to a government, non-government, statutory or private body

Bank cheque

Depending on how defined, a bank cheque is normally a cheque drawn from a recognised authorised deposit-taking institution, and may include a credit union or building society

Beneficiary

A person who is entitled to receive the benefit of a trust asset

Body corporate

A legal entity that effectively manages, oversees and regulates all matters relating to a property that is part of a scheme, such as strata, company title, community title, etc

Borrower

A person who borrows money. A borrower may/may not be a mortgagor

Boundary

The official perimeter of a block of land

Breach of contract

A failure to comply with an obligation under a contract

Breach of warranty

A failure to comply with a contractual promise

Break fee

A fee payable if a borrower exits the loan contract. A break fee is usually payable if the borrower exits a loan contract early in the term

Brick veneer

Single brick wall construction

Bridging finance

A loan facility to 'bridge the gap' between the existing facility and the amount required to secure a purchase

Building certificate

A certificate to confirm that the building meets development requirements. A building certificate is not an occupation certificate

Building inspection

An inspection to assess the quality of a building

Building insurance

A type of insurance cover to protect the owner from loss/damage to a building

Buyers agent

A person who acts on the buyer's behalf to purchase a property

Call option

An option giving the buyer a right (but not the obligation) to 'call' on buying a property at a set price and within a set period

Capital

The value used to create an asset, or contribute to its improvement

Capital gain

A form of income derived from a gain on a capital asset

Capital Gains Tax (CGT)

A tax on capital gains, subject to exemptions

Capped loan

A loan with a fixed ceiling or 'cap' in terms of loan term or interest

Caveat

A document that effectively prevents anyone else registering an interest in a piece of land that is the subject of the caveat

Caveat Emptor

A Latin doctrine that means 'buyer beware'

Certificate of title

Also known as a title deed, it is the original documentary proof of land ownership

Charge

An interest held over an asset by way of security. A charge can be fixed or floating, or both

Chattels

Goods (e.g. personal items)

Cheque

Includes a bank or personal cheque

Claim

Depending on how it is defined in a contract, it can be a claim, suit, demand, action, or cause or action, and may be actual or contingent on an event happening

Collateral

See: 'security'

Commercial

Related to business or commerce

Commission

A form of remuneration received by an agent, usually calculated as a percentage of the property sale price

Common area

On a strata plan, it is an area commonly shared by all occupiers. Strata lot owners contribute to its maintenance, but do not themselves own the area

Common plan

A strata plan showing areas of common use for all tenants

Community corporation

A form of ownership where the land is owned subject to a community scheme. The legal entity owning the land is called a community corporation

Community lot

A lot within a community title scheme

Community plan

A plan, much like a strata plan, showing areas of common use for all tenants under a community scheme

Community title

Much like strata title, community title land is divided into lots and is owned by the members of a community scheme

Company

An incorporated body that can sue and be sued in its own name

Company title

Owners of company title property do not sell strata 'lots'. Instead they effect transfer of property by selling their share in the company that owns the property

Comparison rate

A tool to identify the true cost of credit, taking into account the amount, term, repayment rate frequency and interest charged on the loan. Comparison rates do not include government fees

Completion

The date the sale is completed (contract end date). Also known as 'settlement'

Completion date

The date of settlement of a contract

Compound interest

Interest charged on interest over a frequency period, say monthly

Concession

A partial exemption, or discount

Conditional loan approval

A loan approval granted on the condition that the borrower satisfies the lender's specified requirements

Consent

An authority or permission, generally required in writing

Consideration

Something a person gives to someone in consideration for a promise. Under a contract for sale of land, the consideration is normally the purchase price

Consumer Credit Code

A uniform code across all Australian states that regulates the consumer credit industry. Home loan and personal finance borrowers have rights under the Code.

Contents insurance

A type of insurance cover to protect the owner from loss/damage to a building's contents, such as its fixtures and fittings

Contract date

The date on which a contract is signed and exchanged by all parties

Contract of sale

A written legal document setting out each party's rights and obligations to effect a transfer of a legal interest in land. A transfer of land cannot occur without a contract for sale

Conveyancer

A person who is licensed to act on behalf of a person to effect a transfer, assignment, lease or other dealing with respect to an interest in land

Conveyancing

The act of transferring, assigning, leasing or engaging in other dealings with respect to an interest in land

Conveyancing searches and enquiries

Searches and enquiries conducted as a part of the conveyancing process to establish the right to title, ownership and to reveal and defects of title in the property. Defects of quality are usually the buyer's responsibility to investigate

Cooling off period

A period after exchange within which the buyer can elect in writing to rescind the contract without substantial penalty

Cost agreement

An agreement between a lawyer and client setting out the cost estimate the client agrees to be bound to

Cost disclosure

A written disclosure of a lawyer's fees as required to be provided under law before a lawyer can accept a client retainer

Covenant

An undertaking to do something. A positive covenant on title requires the owner to do something to comply with it, while a negative covenant restricts an owner from doing something in relation to the land

Credit

Money advanced to a person

Credit adviser

A person who advises in relation to any form of consumer credit (whether in regards to a home loan, personal loan or credit card)

Credit agency

An agency responsible under Australian privacy law for reporting credit activities to a bureau

Credit file

Information maintained by a credit reporting bureau about a person's credit history, including applications for credit and defaults

Credit history

A person's history of credit activity, including applications for credit and defaults

Credit limit

The limit for which a person can receive an advance of money

Credit reporting

The act of reporting a person's credit history

Creditor

A person to whom money is owed

Damages

Costs and expenses recoverable from a person under law (e.g. by reason of breach of contract)

Dealing

An act in relation to land

Dealing number

A registration number granted under the Torrens title system in relation to a dealing

Debenture

A document that creates or acknowledges a debt

Debt-to-income ratio (DIR)

The relationship between the amount of a person's debt to their income, used to assess loan affordability

Debtor

A person who owes money

Deed

A legal document that has a longer lifespan than a contract, and for which no consideration is required

Default

Failure to comply with an obligation under a contract, such as a failure to pay. Also known as a breach of contract

Delinquency

A default in relation to an obligation

Dependents

Persons dependent on someone for their care and maintenance (e.g. children)

Deposit

An amount paid under a contract for sale to secure the deal. A deposit can be lost, plus other costs and expenses in the event of contract termination for a buyer's breach

Deposit bond

A legal document from a lender that guarantees the payment to the seller of the deposit in the event the contract is terminated for the buyer's breach

Deposited plan

An official plan of the land stating the land measurements, and showing the location of registered covenants and easements

Depreciation

A tax incentive that is calculated based on the diminishing value of a building over time

Detached house

A standalone house (i.e. not a duplex)

Development application

An application to council for the development of a building on a parcel of land

Development consent

The formal grant of a development application, which may/may not be subject to conditions

Direct debit

The automatic deduction from a person's bank account of an amount of money, usually by way of making loan repayments

Disbursements

Incidental fees and charges

Discharge fee

A fee payable by the borrower to the lender on the discharge of a mortgage

Discharge of mortgage

A release of the owner from all liability and obligation to the lender under the mortgage

Disposable income

Net tangible income remaining after tax, superanunuation, debts and living expenses are deducted

Down payment

An upfront payment

Draw down

The act of withdrawing money from the balance of the loan, thereby increasing the principal

Easement

A right to use another person's property for a specific purpose, such as a right of way, a right of carriageway, or a right to maintenance of a part of land

EFT

Electronic Funds Transfer

Encumbrance

Generally, a right or interest of a third party

Equitable interest

An interest that is just but not necessarily a legal interest

Equity

The non-tangible value a person holds, say with respect to property

Equity loan

A loan taken on the equity value of a property

Escrow

Holding something, say money or documents, for the benefit of someone else, or on the satisfaction of certain conditions being met

Establishment fee

A fee payable by the borrower to the lender for the establishment of a loan

Estate

A person's assets and liabilities

Evergreen

A short-term loan which is continually renewed rather than repaid

Exchange of contracts

The formal act of acceptance of a contract for sale. Normally, it involves each party receiving from the other a counterpart signed contract

Exclusions

Things that are not inclusions

Executor

A person appointed to execute a deceased person's estate

Exemption

Unlike an 'exception' an exemption acknowledges a person's general liability to pay, but says the person does not have to pay for a specific reason

Exit fee

See: 'Break fee'

Fee simple

Ownership of land

FHOG

First Home Owners Grant – a government inventive for first property buyers

Final inspection

An inspection conducted immediately before settlement to ensure the quality of the property has not changed significantly from first inspection

Final search

A title search carried out immediately before settlement to ensure no encumbrances (e.g. writes, caveats) have been recorded on title between exchange and settlement

Finance clause

A clause in a contract where the buyer promises it either has adequate finance to complete the sale, or undertakes that it will have adequate finance by settlement

Financial adviser

A professional adviser on personal and business finance who holds an AFSL or is an authorised representative of an AFSL holder.

First home buyer

A person who buys property for the first time, subject to an eligibility criteria

Fittings

Items of a property that can be removed (e.g. demountable sheds, curtains, light fittings)

Fixed charge

A charge over specifically identified assets of a borrower that can be repossessed by the lender if the borrower defaults on the loan

Fixed rate

A fixed rate of interest for a term of the loan

Fixtures

Items of a property that substantially form a part of the property and cannot be removed (e.g. building, driveway, carport, etc)

Floating charge

A charge over the assets of a borrower, including future assets, that will 'crystallise' (become a fixed charge) on the default of a borrower

Folio identifier

A title description of land registered under Torrens title system law

Foreclosure

The act of a lender liquefying the assets of a defaulting borrower

Freehold interest

An interest in land ownership

Gazumping

The act of a seller accepting the bid of another person after having accepted an earlier bid

Government fees

Includes stamp duty and other fees

Gross income

A person's total income before the deduction of tax and other expenses

Guarantee

A promise by a third party to pay to the lender the costs, expenses and damages payable by a borrower under a contract. A guarantee can be limited or unlimited to a certain amount

Guarantor

A person who promises the lender to pay the borrower's expenses in the event of a borrower's default. This normally includes the lenders costs of recovery, penalty interest another expenses

Holding deposit

As distinguished from a deposit under contract, a 'holding deposit' is a token amount paid to the agent as a sign of good faith. There is no legal obligation to pay a holding deposit

Honeymoon rate

See: 'introductory period'

Identification survey

A survey of land carried out by a qualified surveyor to assess the boundaries and any encumbrances by or on the land

Inclusions

Items that are specifically to be included in a contract sale price

Income statement

A statement detailing a person's income and expenses

Indefeasibility

The act of having impenetrable ownership despite prior unregistered interests

Indemnity

A form of legal protection that enables an indemnified person to recover from the indemnifier an amount necessary to put the indemnified person back in their original position had a specified event not happened. Indemnities should be scrutinised carefully before signing a contract because they may cover the acts of third parties

Inflation

Price expansion

Input-taxed

A term sometimes used when referring to GST. A supply can be input taxed if it falls into a certain category, such a residential home sale. You do not pay GST on input taxed supplies, as these are government-approved exemptions

Instalment

A part payment, also known as a 'tranche'

Interest

An amount payable at a rate and frequency, usually expressed as a percentage. Interest can be fixed or variable, or split

Interest only loan

An interest only loan requires the repayment of interest only. Loan repayments are generally lower than principal and interest loans, but they are more suited to investment finance activities

Introductory period

A period of the loan offering a lower than usual interest rate or lower fees and charges to lock in borrowers. See also: 'honeymoon rate'

Investment of deposit

A conveyancing term that describes when interest accumulated on the deposit is invested at a high interest rate. The profits are generally split between the parties on settlement

Investment property

A property primarily used for capital gain

Investor

A person who invests money to typically achieve capital growth

Joint and several liability

A term that means each party to which it refers is liable both personally and jointly with the other person. A person enforcing a joint and several liability clause can make a claim against one or the other or both

Joint tenant

A joint tenant is a person who owns the whole of a property jointly with another and has a right of survivorship if the other becomes deceased

Joint venture

A project undertaken by two or more people

Land tax

A tax payable on the value of certain land each calendar year. Land tax carries with it a government charge over the land that must be released before the land is sold

Land tax clearance certificate

A statutory certificate issued over a parcel of land certifying that no land tax charge exists

Landlord

The owner of a property that is occupied or leased by tenants

Lease

A right to lawfully occupy a property. A lease does not give the tenant ownership rights

Leasehold interest

An interest to lawfully occupy a property

Leasehold mortgage

A mortgage over a lease

Legal adviser

A qualified legal professional (e.g. a lawyer)

Legal interest

A right or interest at law, as opposed to a right or interest in equity

Lender

A person or institution that lends money

Lenders mortgage insurance (LMI)

A type of insurance that protects the mortgagee from loss if the mortgagee cannot recover all costs from a defaulting mortgagor. LMI is normally passed on to the mortgagor

Lessee

A tenant

Lessee disclosure

Disclosure provided to a tenant to a landlord about his/her background and financial position

Lessor

A landlord

Lien

A right to hold an asset until certain conditions are fulfilled. If not fulfilled the person who holds a lien has the right to own the asset

Line of credit mortgage

A non-fixed term facility that allows the borrower to use offset savings to repay the mortgage while living on credit

Liquidator

A person appointed at law to realise the assets of an insolvent person or company

Loan

Money advanced to a person with the agreement that it will be repaid

Loan approval

Formal approval from the lender that the loan has been granted

Loan fraud

A dishonest and illegal act committed by a person in relation to a loan

Loan maturity

The date a loan becomes repayable

Loan purpose

The purpose of the loan (e.g. residential, business, investment)

Loan-to-Valuation Ratio (LVR)

The relationship between the amount of the loan and the property valuation

Lock in

To set a rate of interest for a term

Lot

A parcel of land (generally within a larger parcel)

Low doc mortgage

A type of non-conforming loan where the borrower is not required to show PAYG documentation

Lump sum repayments

A repayment in a full or 'lump' sum

Margin

When referring to margin lending, the margin is the difference between the current and future value of a person's security

Margin lending

The process of using the value of an existing security to invest in other securities

Maximum LVR

The maximum ratio a lender will lend at for a loan product and customer

Median

The middle value in a range: not to be confused with the 'average' value

Memorandum of transfer

A formal document evidencing transfer of an interest in land

Minimum loan amount

The lowest amount a borrower is allowed to borrow

Minimum lump sum payment

The lowest amount a borrower is allowed to pay in a lump sum

Minimum redraw

The smallest amount a borrower can redraw

Minimum repayment

The lowest repayment a borrower is required to make under a loan contract

Mixed use

In regards to zoning, mixed use refers to the permitted use of a property for residential and commercial purposes

Monthly fees

Fees (including government fees) payable each month under a loan contract

Mortgage

A formal document that may be registered or unregistered, giving the mortgagee security of the land in return for an advance of money

Mortgage aggregator

A mortgage company that aggregates or 'collects' several independent brokers under one umbrella

Mortgage broker

A person who helps a borrower find a suitable loan in return for the payment of commission

Mortgage duty

Stamp duty payable on a mortgage, In many states, this has been abolished

Mortgage manager

A person or lender who arranges the funding for a home loan

Mortgage offset account

A savings account used to offset the interest payable on a loan

Mortgage originator

A person from whom the loan comes from or 'originates' i.e. the person who lends the money

Mortgage protection insurance

A type of insurance that provides cover in the event the borrower is unable to meet their mortgage repayments due to death, sickness or injury

Mortgagee

A person who has a mortgage granted in their favour as security for a loan, e.g. a lender

Mortgagor

A person who has given a mortgage over their property as security for a loan, eg: a borrower

Negative gearing

An investment strategy where the income generated by the asset does not exceed the loan repayments and a gain is made through the capital increase in the property's value over time

Net income

A person's gross income, less tax and superannuation deductions

Non-conforming mortgage

A non-standard home loan catering to borrowers that are self-employed, or have a high credit risk

Notice of sale

A formal statutory notice to advise government and departmental authorities of a change of property ownership

Novation

A variation to a legal document by consent

Occupation certificate

A statutory permission to occupy a property once it has been built. It can be an 'interim' or 'final' certificate

Off the plan

A property that is for sale before it has been built

Offer

An act that is more than a mere invitation to treat

Official cash rate

The cash rate determined from time to time by the Reserve Bank of Australia

Offset savings

The amount of money held in a mortgage offset account, used to offset a loan liability

Old system title

A form of title ownership in Australia that requires ownership to be traced back in time by about 30 years to establish a good 'root of title' (i.e. to ensure there are no other rights or interests by third parties)

Ongoing fees

Fees and charges payable by a borrower from time to time, as described in the loan agreement

Option to purchase

An option given to a person to buy a property, normally for a pre-agreed price and during a set period of time

Order on the agent

A letter from the purchaser's solicitor or conveyancer authorising the real estate agent to release the deposit held by it to the vendor

Origination fee

A fee for originating the loan charged to the borrower

Overdraft

An event that occurs where the amount withdrawn from a bank account exceeds the amount available for withdrawal

Owner occupied

A property that is inhabited by the owner

Owners corporation

A membership body that in effect manages a strata building by holding meetings

Party/party walls

Jointly owned walls in a building

Passed in

The act of a property failing to meet its reserve price at auction, or failing any bids

Personal property

All tangible and non-tangible property belonging to a person, excluding land

Pest Inspection

Inspection to detect any signs of pests in a property, usually made prior to settlement

Planning certificate

A government-issued document that describes the zoning of an area of land, planning instruments governing the use of that land, and whether there are certain affectations concerning the land, (e.g. risk of flood, bushfire, soil erosion, etc)

Portability

The ability for a borrower to transfer a home loan from one property to another, without the usual set up and exit fees

Positive gearing

An investment process, where the income generated by the asset is sufficient to cover the loan repayments

Possession

Having a right to occupy a property. Possession is not ownership

Possession before completion

Having a right to occupy a property before the property is bought or sold

Post-completion period

The period after settlement of a land contract, when title has passed from the seller to the buyer

Power of attorney

A power given to another person (an attorney) to do certain acts and things on behalf of the person giving the power. There are various types of powers of attorney

Pre-approval

An approval given by a lender to advance money to the borrower on specific terms and if certain conditions are met

Pre-completion period

The period before settlement of a land contract

Pre-payment

A payment made before the required date

Prescribed documents

Documents legally required to be included in a contract for sale. While this varies in each state, it generally includes the title search, deposited plan and copies of any leases

Principal

The amount of the loan advanced from a lender to a borrower

Principal and Interest loan

A loan that requires the repayment of both the principal and the interest

Private sale

A sale of property without the intervention of an agent

Product Disclosure Statement (PDS)

A legal document that explains the loan in detail and sets out the risks to the borrower

Property

Depending on the context it may mean real estate or personal property, or it could encompass both

Proxy

A permission to do something (e.g. vote) on behalf of someone else

Purchaser

A buyer

Put option

An option to allow a buyer to buy land on pre-agreed terms

Quantity survey

A survey of land boundaries and affectations carried out by a quantity surveyor

Rates certificate

A section 603 certificate

Rates notice

A notice containing rate expenses (e.g. council rates, water rates, electricity rates) and detailing if payment has been made, used in conveyancing for adjustment purposes

Real property

Land (including buildings and fixtures on it)

Refinance

The process of getting a new loan on different terms to replace (in whole or in part) the existing loan

Registered interest

An interest in land that is registered on the title of a property

Release

A legal right to walk away from a commitment, obligation or agreement

Rent

Also known as leasing. Rental money is money paid or received in relation to a person occupying a premises

Repayment

An amount of money paid by a borrower back to the lender to satisfy all or part of the debt owed

Replies to requisitions

Vendor's replies to questions relating the quality of subject land title, provided in accordance with a contract

Requisitions on title

A list of questions the buyer is normally entitled to ask a seller about a property and any defects it may have within a short period of time after exchanging contracts.

Rescission of contract

The unmaking of a contract between the parties, to put the parties in the same place they would have been had the contract not have been entered into. Rescission is different to termination of a contract

Reserve price

A minimum sale price set by the seller for an auction

Residential

In relation to zoning, means land used for residential (private occupancy) use

Restriction as to user

Restrictions on how property is used, may relate to zoning

Restrictive covenant

A promise by someone to refrain from doing something

Revenue office

State taxation office

Reverse mortgage

A mortgage where the borrower borrows against the value of their home over time the debt to equity ratio in the home. Repayments are made by the borrower or the borrower's estate

Right of way

A right to legally trespass on someone else’s property

Rural

In relation to zoning, means land used for rural (farm) purposes

Section 66W Certificate

The NSW name for a certificate that waives a buyer's statutory cooling off period under a contract

Securitisation

Structured debt funding

Security

Collateral for a debt, which can be given in many different forms (e.g. a guarantee, charge, lien, mortgage, caveat, etc)

Semi-detached house

A house that is part standalone, such as a townhouse

Serviceability

The ability of a borrower to make repayments or 'service' a loan

Settlement

The completion of a transaction

Settlement agenda

A document used in the settlement process detailing what each party will receive on settlement

Settlement date

Date set by vendor for completion of property transfer, including full payment of the asking price

Settlement sheet

Also known as an adjustment sheet, a settlement sheet contains calculations on the balance purchase price taking into account rate adjustments, etc

Severing joint tenancy

The act of changing joint tenant ownership to tenants in common

Sinking fund

A strata fund maintained by an owners’ corporation to account for emergency expenses required to contribute to the upkeep of a property. All members contribute to the sinking fund

Solicitor fees

The fees charged by a solicitor for legal services in relation to a property sale or purchase

Special conditions

Conditions of a contract that are not a part of the standard conditions – they are usually drafted for specific circumstances

Split loan

A loan that has both a fixed and variable interest rate component

Stamp duty

A state tax payable when a transaction regarding dutiable property, such as land, occurs

Standard variable rate

A floating interest rate charged by a lender

Statutory declaration

A legal declaration used to certify a fact and sworn before a solicitor or Justice of the Peace

Strata inspection report

A report detailing all matters, administrative, legal, financial and otherwise, relating to a strata building

Strata levy

A fee imposed on members on a quarterly or annual basis to contribute to the repair and maintenance of a strata building

Strata plan

A plan of strata title setting out individually owned and common areas of a building

Strata title

A form of ownership where the land is owned by a legal entity called a body corporate and the building is divided into lots which are owned by various occupiers who wholly form the owners corporation

Sub-lease

A lease given by the tenant to a third party

Sub-lessor

A person who is a tenant under an existing lease and leases his or her interest under that lease to another person

Subdivision

The act of dividing a block of land into separate blocks

Surety

A guarantor or security provider

Survey

See ‘quantity survey’

Switching fee

A fee payable by a borrower from switching from a variable to fixed loan structure

Tax invoice

An invoice issued under Australian tax law, notably containing an amount for the payment of GST

Tenant

A person who occupies a property and pays rent – also known as a lessee

Tenant in common

A tenant in common is a person who owns a part of the whole property and has rights only in respect of his or her share. There is no right of survivorship in respect of that person's share

Term

A stated period of time

Termination of contract

The act of ending a contract

Third party

A person outside of a direct transaction

Title search

A document evidencing a search of the land titles register identifying a property and its notifications on title

Torrens title system

A form of title ownership where a person's rights are indefeasible subject to any patent (registered) defects on title

Townhouse

A semi-detached house

Trust

The act of holding money for the benefit of someone else

Trust money

Money held by a person for the benefit of others

Trustee

A person who holds money for the benefit of others

Unconditional loan approval

A loan approval

Underwriting

The act of guaranteeing the performance of a contract financially

Unencumbered

Unaffected by adverse affectations

Unit

An apartment

Unregistered interest

An interest in land that is not recorded on the title register, which may affect its enforceability

Upstamping

The process of paying additional stamp duty to an increase in the value of the dutiable transaction

Valuation

A process of attaining an assessment of the market value of a property, usually by an independent valuer

Valuer

A qualified person who ascertains value

Variable rate

An interest rate subject to fluctuation from time to time depending on the market changes

Variation

A change to a document. A mortgage variation generally requires a written document to be signed, stamp duty paid, and the documents being registered on title of the land

Vendor

A seller

Vendor disclosure

The process of a seller telling the buyer all things a buyer would need to know before buying a property. Vendor disclosure about certain matters are required by law

Vendor finance

The process of a buyer borrowing money from the seller to finance a purchase

Vendor statement

A form of written vendor disclosure required in some states

Voting rights

Rights to vote at a meeting, e.g. owners corporation

Waive

To give up a legal right

Waiver of cooling off period

The process of agreeing to be locked in to the contract without the right to pull out within the 'cooling off period'

Warranty

A promise at law

Withdrawal of caveat

The act of formally removing a caveat lodged over title of a property

Zoning

The legal permissible use for a property, such as residential, retail, commercial, or mixed use

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Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%