Appraised Value
The estimate of a property’s value offered as security for a home loan. For lending purposes only.
Appreciation
When the value of a property increases for reasons such as demand or inflation over time.
Body Corporate
A self-elected council of owners within a strata building that owns property collectively and manages the building and common areas.
Bridging Finance
Short term finance covering the gap between the purchase of a new property and sale of an existing one.
Capital Gain
Profit from selling an asset at a higher market price than its purchase price.
Caveat
A regsitered encumbrance or notification against the Certificate of Title to a parcel of land that generally serves as a caution or warning that a third person claims some right or interest against the land
Caveat Emptor
Latin for “buyer beware”, meaning the buyer has the responsibility to fully examine the goods before a purchase.
Certificate of Title
A document recording details of property and other encumbrances such as mortgages or covenants.
Chattels
Moveable items of property which are neither land nor permanently attached to land or a building, either directly or indirectly, through attachment to real estate
Common Property
Part of the strata property for the use of all tenants, such as stairwells and driveways.
Comparison Rate
An interest rate calculation taking into account the advertised interest rate, upfront fees and fees over a 25 year period.
Contract for Sale
A legal contract in writing, detailing the terms and conditions of the purchase or sale of a property between the seller and buyer.
Conveyance
Means the transfer of a property or a right in a property from one identitiy to another
Cooling Off Period
The time a buyer or seller has to opt out of a contract for sales (does not apply for auctions).
Conveyancing
The legal transfer of property ownership from the seller to the buyer.
Deposit Bond
This guarantee can be used instead of providing your own funds for the deposit while waiting for property settlement.
Discharge of Mortgage
A document that is used to certify that a mortgage held by a third party or bank has been repaid
Drawdown
The accessing of loan funds provided by the lender.
Easement
A right attached to a p[iece of land which allows the owner (or government authority) of that land to use the landof another in a particular manner, or to restrict its use to a particular extent
Equity
The difference between the market value of a property and what is owed on the property
Exchange of Contracts
The signing and exchange by the buyer and seller which usually involves the need for the buyer to pay the deposit to the seller or selling agent.
Equity
Part of an asset, such as a house, that you own over and above the amount borrowed from the lender which has the mortgage over the property.
First Home Owners Grant or FHOG
A grant provided by the government to eligible first home buyers
Fixtures & Fittings
Items part of the property, such as baths or dishwashers, that can’t be removed and are fixed in place.
Freehold
Absolute ownership of the property by the proprietor of the land.
Guarantee
A contract whereby a person (Guarantor) promises that they will carry the debt, miscarriage or default of a third person (the Debtor)
Guarantor
Someone accepting formal responsibility to the bank/lender for something such as paying another person’s debt in case of default. Guarantor may also offer extra security.
Land
Means any ground, whether dry or underwater including all buildings and everything attached to the land
Land Tax
A state government tax based on the land value that’s payable by property owners. This can vary from state to state.
Lease
A tenancy agreement in respect to property
Lessee
A person who possesses the right to occupy or use a property under a lease agreement
Line of Credit
Means a flexible loan usually with a specified limit usable by the borrower at their discretion.
Loan to Value Ratio or LVR
The ratio of the amount borrowed to the market value of the securityoffered (property) provided or considered without the provision of any income verification by the borrower
Lodgement
The act of lodging registrable documents at Landgate (Land Titles Office)
Market Value
The highest price estimated for which a property will be offered for sale
Mortgage
A form of security pledged to secure the repayment of debt usually taken over real property
Mortgagee
The lender or source of funds to support a mortgage
Mortgagor
The borrower usually the owner of the property serving as security to a mortgage
Mortgage Broker
A representative or an organisation that offers loans usually offering a service to the consumer but being remunerated by the lending institution
Offset Account
An account linked to a loan so that the interest earned on the account balance is applied to reduce the interest on the loan
Principal
The capital sum borrowed or remains owing on which interest is charged
Principal and Interest Loan
A loan which both principal and interest is paid, usually in regular fixed amounts
Purchase Price
The price payable for property stipulated on the sales contract
Refinancing
To extend or replace an existing loan with funds from the same lender or a different lender
Reserve Price
The minimum price a vendor will sell the property for at auction.
Security
An asset that a borrower odders to a lender, the lender can take possession and ell such property (security) should the borrower not repay the loan
Settlement
Money paid in full less the pre-paid deposit in exchange for title documents, keys and the right to take possession of a property.
Settlement Agent
A person who is licensed as a Settlement Agent under the Settlement Agents Act in Western Australia
Stamp Duty
State government tax on certain transactions and documents such as a Contract of Sale and Mortgage. Can vary from state to state.
Standard Variable Loan
A loan with extra repayment option with an interest rate that fluctuates up and down with the market
Strata Lot
A lot that forms part of a strata scheme (development) defined by horizontal sub division of air space
Term
Length of time of a home loan or specific portion of time, such as the fixed rate period, within that home loan.
Title
The ownership of a property or a document or certificate that evidences such ownership
Title Deeds
Legal documents signifying ownership of real property.
Title Search
Land Titles Office registers this record search for the certificate of title to enable you to establish who owns the property and whether there are any registered encumbrances such as a mortgage or caveat.
Trust
A fiduciary relationship and an instrument thereof, which provides legal title and control of a property to the trustee for the benefit of another or a number of other persons
Trustee
One who holds title to a property for the benefit of others
Trust Deed
A deed of conveyance by which a trust is created and the conditions under which the trust must exist are evidenced
Valuation
A report usually provided by a licensed valuer, detailing a professional or expert opinion of the value of the property (formerly known as a sworn valuation)
Valuer
A licensed person who provides an expert opinion of the value of property
Vendor
The party offering a property for sale.
Zoning
Local government or planning authority classification of uses of land