Understanding Real Estate Jargon

If you are in the process of purchasing your first home, the chances are that you’ll encounter plenty of real estate jargon and terms you might not understand. Not only can this make the process feel difficult and overwhelming, but it also increases the risk of mistakes and delays. In this guide, the experts at You&Me Personalised Property Services will help you decipher some of the real estate terms you are likely to come across on your home buying process. Let’s dive in. 

Allotment

Allotment refers to an area or parcel of land that is designated for building a house. It is also called a block of land, lot, or homesite.

Annexure

This is an additional document that is typically attached to an offer and acceptance form. This type of document may be used to include or add special conditions to the transaction. 

Auction

An auction refers to the public sale of a property. When looking to purchase a home that is up for auction, different people will bid on the property, and the highest bidder wins the chance to purchase.

Buyer’s Agent

This is what we do! The buyer’s agent, is a professional who assists people in buying property. If you are looking to buy a property with peace of mind, using a buyer’s agent could be an effective solution. A buyer’s agent will work solely for you, the buyer, rather than the seller.

Building Permits

Building permits refer to official documents created by local government authorities. They can allow you to construct, alter, or demolish buildings. These permits ensure that projects comply with local regulations, building codes, and safety standards. For example, you may be required to get a building permit before adding an extension to your house.

Caveat Emptor

This is a latin term that translates to “let the buyer beware“. It refers to the fact that, in real estate transactions, the buyer is responsible for checking a property’s condition. This can be done with the help of an agent or advisor. 

Chattels

This term simply refers to those physical items in a property that are movable and not fixed to the structure. Examples include certain pieces of furniture, rugs, and curtains. 

Contract of Sale

A contract of sale is a legal document that outlines the terms and conditions of purchasing property. It may define what is included in the sale, details of the parties involved, the purchase price, and what other additional fees and costs the buyer or seller will face in the process. 

Conveyancing

Conveyancing is a term referring to the entire legal process involved with transferring ownership of a property from one person to another. This can be a complex process, especially for first-time buyers, as it involves checking the property’s title, ensuring there are no legal issues, preparing the dales contract, and managing the settlement process. Because of this, many sellers and buyers work with a legal expert or conveyancer to prepare, verify, and file all documents needed. 

Cooling Off Period 

Time given to a buyer after signing a contract to reconsider and possibly cancel the purchase. This period can vary, but it usually lasts 5 business days after the parties involved exchange contracts. 

Easement

Easement refers to the right to use someone else’s land for a specific purpose, in certain cases. For example, it could involve laying utility lines.

Encumbrance 

This term refers to any claim or lien on a property, such as an outstanding mortgage, that affects its ownership. Encumbrances, as well as other claims and legal issues with the property, should be addressed during the conveyancing process. 

Joint Form of General Conditions

This is a standard file that lists common terms in property sales, like how rates and taxes are handled. Although the rules outlined are general and can be applicable in most cases, buyers and sellers may consider personalising these terms to fit specific needs. 

Stamp Duty

Stamp or transfer duty is a government tax on property sales. It is generally calculated as a percentage of the property’s value, but thresholds and amounts tend to change and be adjusted yearly. 

Valuation

A valuation is an official estimate of how much a property is worth. This figure can be used when securing a loan or during legal disputes.

Partner With our team to understand the Real Estate Jargon

When purchasing a property, having to deal with complex, technical terms can make the process all the more intimidating. Consider partnering with a buyers agent at You&Me Personalised Property Services to navigate the journey ahead with ease and peace of mind. 

Get in touch with our team: https://youandmepps.com.au/contact/