Amenity	A feature that adds value to a property and increases the owner's enjoyment - examples include pool, gardens, views etc.
Amortisation period	The term of a mortgage loan.  Often 25 years.
Appraised value	The value estimated by a valuer.  Often used to secure finance.  Note - Real estate agents are not able to provide a 'sworn statement' of the value of a property (they can only provide an educated opinion).
Appreciation	The increase in property value.
Asking Price	The marketing price that is placed on a property
Assessed value	The value placed on a property for the purpose of tax.
Asset	Anything that you own that has a monetary value.
Auction	A public sales process where a property is sold to the highest bidder (as long as it's reached the Owner's minimum acceptable price (known as the reserve price)).
Body Corporate	A team that manages strata buildings upkeep and administration (usually formed from the building occupants).
Breach of contract	Breaking the terms of a contract
Bridging finance	A property loan that provides short-term finance for a new property whilst the existing property is being sold.  A bridging loan is usually charged at a higher rate of interest.
Building code	Standards that control how buildings should be designed, which materials should be used etc.  Normally enforced by the Local Authority.
Buyer's Market -	When property supply exceeds demands (more property than buyers!).
Caveat	Anyone with a legal interest in a property can lodge a Caveat - This alerts prospective buyers that the person has such an interest.
Caveat Emptor	Means 'Let the Buyer Beware' - where the buyer is responsible for checking that the purchased goods meet their needs.
Certificate of Title	Describes the property, who owns it as well as any encumrances etc.  Required for all property sales (ownership details are updated at settlement).
Chain of title	The documented history of property ownership.
Chattel	Means personal property.
Commission	Fees charged by an agent for selling a property.
Common Property	Areas that are shared by all owners (usually applies to strata buildings) - such as pools, gardens, access routes, ect.
Company title	Property owners can form a company which owns the property.  Owners have 'shares' in the company which entitle them to exclusive use of buildings and/or space.  Changes / sales etc. need company approval.
Compound interest	Interest paid on the sum of the principle (original amount) plus accrued and unpaid interest.
Contingency	A condition that must be met before a contract is legally binding.
Contract	An agreement.  Which may be oral or written.
Contract of Sale	An agreement which specifies the terms and conditions of a property sale.
Conveyancing	The legal process for transferring property ownership.
Cooling-Off Period	A period of time in which a buyer is able to rescind the contract.  Usually 5 days in NSW.
Covenant	Conditions which state how land can be used.
Creditor	A person that is owed money.
Cul-de-sac	A street with only one access route.
Deposit	Money provided (by the buyer) to secure a property.
Depreciation	The decrease in property value.
Dual Occupancy	Land-zoning on which two separate dwellings are permitted.
Easement	People other than the owner have right of way or access to a property (or part of a property).
Effective age	An appriaser's opinion of the 'age' of a property based on it's condition.
Encroachment	Where a building or structure overhangs a neighbouring property.
Encumbrance	A liability on a property restricting it's use.
Equity	The difference between the properties value and the outstaning property loan.  For example if a property is valued at $1M and the loan balance is $200,000, then the equity is $800,000.
Estate	The total of all property (real and personal) that someone owns at the time of their death.
Exclusive listing	An agreement that a real estate agent has exclusive rights to sell the property.
First Home Buyer	A buyer that has never owned a property.
Fixtures and Fittings	Fixtures are belongings that are normally left on a property - their removal would cause damage.  Fittings are belongings that can be removed without causing damage (i.e. oven)
Foreclosure	When a borrower has defaulted on a mortgage, the lender is able to 'foreclose', effecting a sale of the property so that the outstanding debt can be recovered.
Freehold	When an owner owns the property indefinitely (or until ownership is transferred).
Gazumping	When a property for which you you have agreed a purchase price is sold to another buyer (normally for a higher price).
Guarantor	A person who gurantees part or all of loan in the event that the borrower defaults.
Holding Deposit	Money that is given to the vendor as part-payment of the full deposit.
Home inspection	An inspector will conduct structural (and / or pest) inspection to comment on it's condition.
interest	Fees charged for borrowing money.
Interest Only Loan	A loan where the principal is not paid off, only the interest payments are made.  Commonly used by investors.
Inventory	A list of all items that are included in the sale of property.
Investment Property	A property that is held with the aim of producing a profit, and is not the owner's principle place of residence.
Land Tax	A State tax based on the value of a property.
Liabilities	Monies owed to creditors.
Lien	A claim against a property which must be settled on sale of the property.
liquid asset	Cash or an asset that can be easily converted to cash.
Listing	A contract that entitles an agent to sell a property on behalf of the owner.
loan-to-value ratio	The principal amount divided by the appraised value expressed as a %.  i.e. if the loan principle = $300,000 for a property that is valued at $400,000, then the LVR = 75%.
Market Value	The price at which buyers will pay for a property.
Maturity date	The date at which a mortgage loan ends.  By this date the loan will need to be repaid.
Mortgage	A legal document that secures a loan with a property.
Mortgage Insurance	Insurance that a lender has against a borrower defaulting on payments.  Often the borrower must pay for insurance if the Loan to Value ratio exceeds 80%.
Mortgagee	The lender of finance that is used to purchase property.
Mortgagor	The borrower of finance that is used to purchase property.
Multiple Listing	Where multiple agents can assist with the sale of a property, though the owner has an agreement with only the listing agent (who manages the activities of other agents in relation to the properties).
Negative Gearing	When the costs associated with an investment (such as loan repayments, agent rental fees, taxes etc.) exceed the income generated for the investment (i.e. rents), then the property is said to be negatively geared.
Non-liquid asset	An asset that cannot easily be converted into cash.
Off the Plan	Purchasing a property before construction is complete is said to be purchasing it "off the plan".
Open Listing	A vendor can list a property with multiple agents concurrently using an Open Listing Agreement.  The vendor only pays a fee to the agent that has successfully negotiated a sale.
Option to Buy	A legal agreement which provides the buyer with an option to purchase a property at a set price and with set Terms and Conditions.
Owner financing	When a buyer supplies all or part of the monies required to purchase a property.
Passed In	When a property fails to reach the reserve at austion it is said to be "passed In"
Prepayment penalty	A lender may set penalties if a mortgage is paid off too early (as  they lose their ability to charge interest).
Pre-qualification	Determines how much a finacier will be prepared to lend a prospective purchaser.
Principal	The amount borrowed on a mortgage loan.
Principal balance	The amount outstanding on a mortgage loan.
Private Sale	Where a vendor does not engage the services of an agent to sell their property.
Private Treaty	Where a property is sold via an agent through a negotiation process with prosepctive buyers.
Public auction	The sale of a property via a meeting open to the public.  Registered bidders can bid for a property, with the highest bidder securing the sale (as long as it is above the reserve).
Qualified Buyer	A buyer that has passed the lenders qualification criteria to be eligible for a loan.
Real estate agent	A person that is licensed to sell real estate on behalf of a vendor.
Real Property	Land, with or without improvements.
Reserve Price	The minimum price that a vendor will accept for their property that is to be sold by auction.
Security	Property that is used to pay off a loan in the event that the borrower defaults on the mortgage.
Semi detached	A property that physically adjoins a neighbouring property via a common wall.
Settlement	Completion of the property sales process where the buyer pays the outstanding monies and ownership is transferred.
Sole Agency	A single agent has the right to sell a property, but the owner retains the right of a private sale.
Special Condition	A condition, placed in the contract, which must be met before the contract is binding.
Stamp Duty	A State Govenrment tax that acompanies the sale of property.
Strata Title	A title that gives the owner right to use a specified space within a property.  Commonly used for apartment buildings.
Subdivision	Where a  property is divided into individual properties, allowing each to be sold independently.
Survey	confirmation of a property's boundaries and improvements (including buildings)
Term	The time that is allowed to repay a mortgage (i.e. 25 years).
Title	A legal document that states property ownership rights.
Torrens Title	A system that records property ownership.
Townhouse	A 2-storey building that has similar buildings on either side.  This can be part of a strata title or Torrens title.
Transfer	A document that is held by the Land Titles Office, recording transfer of ownership.
Unencumbered	A property that has no restrictions placed upon it.
Valuation	An assessment on the value of a property, provided by a registered valuer (not a real estate agent).
Vendor	The home owner/seller
Zoning	Local Authority guidelines on how land can/cannot be used.

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