Know Your Real Estate

Words Commonly Used in Real Estate....

Acceptance: Agreement by the person receiving the offer to abide by the terms and conditions of the person making the offer to purchase.

Caveat: A warning on a title to a purchaser that they may be some interest or right in the property by a third party.

Certificate of Title: A description of a property with the name of the registered owner and a list of encumbrances (for example, mortgages of easements on the property). This must be presented by the vendor before the sale of the property.

Conveyancing: The process of transferring money and title, ensuring that all details are legally correct, as a property transfers from one person to another.

Dual Occupancy: A block of land zoned so that two distinct dwellings may be built on it.

Duplex: Also called a semi-detachable property where two building are attached by a common wall.

Encumbrance: An obstacle to the use or transfer of a property in the form of an interest or right in the property (for example, a caveat).

Settlement: This is when a property sale is finalised by the legal representatives of the vendor and the purchaser, costs are paid and the new owner takes possession of the property.

Stamp duty: A state tax on conveyance or transfer of real estate, calculated on the total value of the property (including chattels). The method of calculation varies from state to state.

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