Filed under: Glossary
- Appraisal – An estimate of the market value of your home.
- Auction – Where your home is sold at a public sale to the highest bidder, provided the seller’s reserve price has been reached or exceeded. There is no cooling off period and contracts are exchanged immediately, unconditionally. The purchaser pays a deposit of usually 10% of the total price.
- Contract for Sale – A Contract for Sale of residential property is a written contract detailing the terms and conditions of the sale of the property. The contract will also specify the time for settlement and the deposit required. You must have a proposed contract for sale prepared before you put your property up for sale. The contract may have a number of details, such as easements and covenants. It should specify a list of inclusions such as curtains, blinds, light fittings, dishwasher, pool equipment and any other items you intend to leave. It should also state any specific exclusions.
- Conveyancer – A professional who assists in the legal transfer of property.
- Exchange of contracts – Both the buyer and the seller sign the contract of sale and give each other a copy. This is when the buyer usually pays 10% of the sale price as a deposit. The exchange of contracts commits both buyer and seller to the transaction. Prior to an exchange of contracts any verbal agreement you have reached is not binding on either party.
- Feng Shui Consultant – Focuses on bringing happiness and harmony into your home. By analysing your living environment they recommend solutions to help create a space filled with positive energy.
- Grout – Thin mortar that fills the joints between tiles or other masonry.
- Home Staging – Process of pre-sale styling of your home to achieve the ‘top’ sale price and minimise time your home is on the market.
- Mortgagee – The lender of money for a mortgage.
- Passed In – When a property fails to sell at auction it is “passed in”, at the highest bid. Negotiation then commences with the highest bidder.
- Private Treaty – Private treaty is another way that people buy and sell their property. It’s where the property has an asking price and is sold by negotiation.
- Reserve Price – The minimum price that the vendor will sell the property at auction.
- Settlement – Settlement is where the buyer pays the balance of the purchase price and becomes the legal owner of the property. The settlement period is usually around six weeks after exchange. However, this can be changed to meet individual situations.
- Skylight – A window in a roof that allows natural light to illuminate a room.
- Vendors – Sellers of property are referred to as ‘vendors’.