Like any profession, the real estate industry has a language of its own. Many of these terms I’m sure you will already be aware of but there may be some you have not come across.
Appraisal A professional property valuation carried out by a registered appraiser.
Chattels Items that the seller is selling with the property, e.g. dishwasher, curtains. These items will be listed in the Sale and Purchase Agreement.
C.M.A A Comparative Market Analysis report prepared by a real estate sales consultant that provides information about properties currently on the market and properties that have recently sold that are comparable to the property being analysed. It is used to help determine the fair market value of the property.
Commission The commission is paid by the seller to the real estate agency on the successful sale of the property. The commission amount is agreed upon by the seller and the sales consultant.
Conditional A written contract that is signed by the seller and the buyer, but where one or more conditions need to be satisfied, usually within a specified time period. For example “subject to the buyer obtaining finance within 5 days”.
Deposit An amount paid by the buyer to the seller under the Sale and Purchase Agreement, usually 10% of the purchase price.
Due Diligence A buyer may include a due diligence investigation condition in the Sale and Purchase Agreement that gives the buyer an opportunity to investigate the title, registered interests on the title e.g. land covenant, the property, neighbours, etc.
Excluded items Items that are excluded from the sale e.g. built-in cabinets. These items will be listed in the Further Terms of Sale in the Sale and Purchase Agreement.
Fixtures Items that sell with the home, i.e. carpets.
Freehold A freehold property has a clear title of ownership and is not subject to a lease.
Leasehold Property that is subject to a lease. The owner of the property leases to the tenant for a fixed rental sum for a fixed period e.g. 21, 99 or 999 years. Listing Agreement A contract between the seller and the real estate agency marketing the property.
Offer A signed Sale and Purchase Agreement, which includes the deposit, purchase price, terms and conditions of sale, signed by the buyer then presented to the seller.
Possession Date The date the buyerphysically takes possession of the property. Property Profile Each individual piece of property has a property profile, which includes descriptions of the type of title, its size, the name of the owner(s) and any encumbrances.
Settlement Date The date the buyer must pay the balance of the purchase price to the seller. The title transfer will be registered in the buyers name.
Unconditional When conditions in a contract have been satisfied, the contract becomes unconditional. The property is now sold and both the seller and buyer must settle on the settlement date.
Unit title A property subdivided under the Unit Titles Act 2010 e.g. an apartment.