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"Buying the Listing" The unethical practice of appraising a property higher than can be justified by the market research in order to win the business. &nbsp; &nbsp; "Sign Count" The activity of driving through the agent's prospecting area to ascertain the available listings and establish market share. &nbsp; "Sign Jumping" The unethical practice of approaching the clients of a property that is listed by another agent with the attempt of poaching the listing from the agent. &nbsp; Addendum An addition relating to documentation i.e. contract and legal documents &nbsp; Agent An agent is authorised to act on behalf of the Principal in a real estate transaction with a third party and carry out certain acts which affects the principal’s rights and duties in relation to the third parties. &nbsp; agents in conjunction The term agents in conjunction refers to the practice where real estate agents or agencies collaborate to settle a property transaction. This often translates to agents tapping into a broader pool of clients and also results in the agents sharing the commission amongst each other. &nbsp; Anti-Discrimination Promoting equality of opportunity for everyone by protecting them from unfair discrimination in certain areas of activity and from sexual harassment and certain associated objectionable conduct. &nbsp; Appointment The appointment outlines any limitations or conditions on the agency, the services provided the amount of commission, fees and expenses that the client will pay for these services an end date, if the appointment is for a sole or exclusive agency. It is signed by both the seller and agent. &nbsp; Arrears Money not paid when due i.e. rental payments. &nbsp; Auction Auction is a form of marketing a property through an intensive campaign. The aim is to attract interest from a maximum number of buyers within a set time frame. At auction, the property is sold to the highest bidder above the reserve price. &nbsp; Auctioneer Person licensed and authorised to carry out an Auction. &nbsp; Beneficial Interest Beneficial interest is "that right which a person has in a contract made with another" (third) person. &nbsp; Body Corporate A body corporate is a legal entity created when land is subdivided and registered to establish a community titles scheme. The scheme can be a duplex, a residential unit block, a high-rise accommodation complex, a shopping complex, or a residential suburb, or a business park. Every owner of a lot in a community titles scheme is automatically a member of the body corporate. &nbsp; Bond Money taken as security over the property in the event the Landlord suffers any financial loss such as damages or unpaid rent. &nbsp; Business Development Area The specific area assigned to each agent to focus their real estate activities with the purpose of building their profile and obtaining listings.&nbsp;Inside that zone, opportunities can be developed in sales, leasing, and property management.The area of the zone should not be too large and ideally should contain approximately 1200 - 2000 properties to allow the agent to become an expert of that area. &nbsp;&nbsp; Buyers Agent An agent who acts on behalf of a buyer by sourcing suitable properties and representing the buyer during the buying process. &nbsp; Certificate of Title Document stating ownership of a property. It states the land size and information pertaining to the property. &nbsp; Client The Client is known as the party who appoints the real estate agent to act on their behalf. This may not necessarily be the Seller. It can also be the buyer (If the agent is acting as a buyer’s agent), landlord or tenant. &nbsp; Commission SaleRe-numeration of a real-estate agent for services rendered for the sale of a property based on the percentage of the price which the property is sold for.RentalMoney paid to a rental department for the management of the landlord's property which is a percentage of the price at which the property is rented for. &nbsp; Community Title Is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership. &nbsp; Comparative Market Analysis A comparison researched to ascertain the market value of a property against recently sold similar properties. &nbsp; Consumer Any person that uses the real estate agency for service including buyers, tenants, vendors, landlords. &nbsp; Contract of Sale An agreement for the sale of a property which conveys the terms and conditions of the sale between the relevant parties (buyer (s) and seller (s). &nbsp; Cooling off Period The cooling-off period is (5) business days, during which time a purchaser can change their mind about purchasing the property. &nbsp; Counter Offer When an offer is not accepted a counter offer can be made in response to it with either a different price and/or commissions. &nbsp; Covenants An agreement or promise by deed, by which one party pledges to the other that something has been done or will be done, or stipulates for the truth of certain facts. &nbsp; Customer The customer is the party with whom the real estate agent will liaise with on behalf of the client. The customer will commonly be the buyer or tenant. It can also be the seller (if the agent is acting as a buyer’s agent). &nbsp; Deposit An amount of money paid into the real estate trust to secure the purchase of a property. &nbsp; Disbursements Monies payable out of the trust account at the completion of a sale transaction to solicitors &amp; vendors or rent paid to Landlords at mid and/or ends of month. &nbsp; Easement An easement is the right to use the real property of another without possessing it. &nbsp; Encumbrance Legal terminology for anything that affects or limits the title of a property, such as mortgages, leases, easements, liens, or restrictions. Also, those considered as potentially making the title defeasible are also encumbrances. E.g., building orders and structure alteration. &nbsp; Fixed Interest Rate An interest rate that will remain unchanged for a set period of time. &nbsp; Fixtures and Fittings Items attached to the property and can be used exclusively by a tenant. These items also become part of a contract of sale as they cannot be removed. &nbsp; Gazump To bypass a buyer with whom a price has been agreed but selling at a higher price to another. &nbsp; GST Goods and services tax which is a 10% in Australia and is charged on the commission charged by an agency for the service of selling and managing property. &nbsp; Heritage Listing A building, relic or landscape of such significance for past, present, of future generations that it is deemed worthy of being preserved. Heritage listed properties are subject to strict conditions regarding renovations or modifications. &nbsp; Industrial Relations An agreement between employers and employees covering awards and conditions. &nbsp; Insurance A method of guaranteeing and individual or company from a specified hazard. This gives financial protection for a stated period of time. &nbsp; Interest A charge on monies lent by a bank or financial institution when paying back a loan. &nbsp; Inventory A tabulation of the separate items comprising an assembled property. &nbsp; Investment Property A property bought for the purpose of a return on the investor’s money. &nbsp; Joint Tenants Where a property is purchased as a whole in equal shares by two or more people. It can only be disposed of as a whole. &nbsp; Landlord The owner or Lessor of a rental property. &nbsp; Lease An agreement between a Lessor and tenants with the acceptance of special terms and conditions for a period of time. &nbsp; Let Fee A fee paid by the landlord to an agent for finding a suitable tenant for their property. &nbsp; Licensee The person responsible for giving authority to registered sales people and property managers to perform duties for the client. This person is responsible for the licence for the office and is responsible for the activities of employees holding their salesperson and property managers certificate. &nbsp; Listing The recording of properties as being available for sale or for lease. Also used to denote the property as listed. &nbsp; Listing Presentation A presentation where you explain the services you offer and the methods you would use to sell or rent a property. The aim of the presentation is to get agreement from the potential vendor or landlord for you to list the property. &nbsp; Maintenance The act of keeping, or the expenditure required to keep a property in condition to perform efficiently the service for which it is used. &nbsp; Management The act of directing or conducting affairs. &nbsp; Managing Agent A real estate agent authorised to manage the business affairs in connection with the property of another owner. &nbsp; Material Fact A material fact is a fact that a reasonable person would recognize as germane to a decision to be made, as distinguished from an insignificant, trivial, or unimportant detail. In other words, it is a fact, the suppression of which would reasonably result in a different decision. &nbsp;e.g. knowing that the property had been a scene of a horrific crime may change a buyers decision to want to purchase the property. &nbsp; Negotiate To confer with another or others in order to come to terms or reach an agreement. &nbsp; Occupancy Having possession of a property. Physically taking and holding it and residing thereon as a tenant or owner. &nbsp; Off The Plan Buying a property based on architect’s plans, before it has been built. &nbsp; Out of Line Sale When a property sells contrary to evidence. Its price, either low or high, is out of line with the market value reasonably suggested by all available comparables and other market factors. e.g. repossession &nbsp; Parties The persons who are directly involved or interested in any act, affair, contract, transaction, or legal proceeding; opposing litigants. Persons who enter into a contract or other transactions are considered parties to the agreement. When a dispute results in litigation, the litigants are called parties to the lawsuit. U.S. law has developed principles that govern the rights and duties of parties. In addition, principles such as the standing doctrine determine whether a person is a rightful party to a lawsuit. Also, additional parties may be added to legal proceedings once litigation has begun. &nbsp; Passed In If a property is not sold at auction because the owner’s reserve price has not been reached, it is passed in. Further negotiations may take place with bidders afterwards. &nbsp; Power of Attorney A legal authorisation giving one person the authority to act as an agent or attorney for another. &nbsp; Principal The principal is the individual who is selling or leasing the real estate property (vendor or landlord), while the agent is the licensed broker who has been contracted to represent the seller. &nbsp; Private Sale Refers to a property that is being offered for sale to the public by the vendor with no agency involvement. &nbsp;Also known as For Sale by Owner. &nbsp; Private Treaty The sale of a property where the agent is appointed by the vendor to advertise the property for a price and facilitate negotiations between the buyer and seller to complete the sale of the property. This method of sale excludes auctions and tenders. &nbsp; Property Appraisal The process by which an agent inspects a property and researches current market trends to come to an approximate market price for the property. &nbsp; Property Management A division of a real estate office composed on leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients. &nbsp; Prospecting To undertake activities in order to search for and explore business opportunities. &nbsp; Qualify To determine that a person is a serious and financially capable buyer or tenant, or a motivated seller or landlord &nbsp; Real Estate Real estate is a type of real property that refers to land and anything permanently attached to it, such as buildings, fixtures, roads, and utility systems. Tags: auction&nbsp; &nbsp; Referral A client that has been directed to you from a third party such as a friend, relative or another client. &nbsp; Regulator A regulator is a person or body that supervises a particular industry or business activity. &nbsp;With respect to real estate these are state specific as follows;NSW: &nbsp;NSW Fair Trading QLD: &nbsp;Office of Fair Trading - Queensland Government VIC: &nbsp;Consumer Affairs Victoria &nbsp; Rent Roll Industry term for the portfolio of properties an agency is managing. &nbsp; Reserve Price This is the lowest price at which someone is willing to sell their property when it is auctioned. Buyers are not told what the reserve price is. &nbsp; Secret Commission This simply means we must put the interests of our principal above our own interests at all times. When we accept, without the knowledge and consent of our principal, any benefit over and above what we are legally entitled to receive, we are receiving a secret commission. &nbsp; Settlement This is the final stage of the sale when the purchaser completes the payment of contract price to the vendor and takes legal possession of the property. The occasion when ownership of a property passes from the vendor to the buyer and the balance of the sale price is paid to the vendor. &nbsp; Solicitor A legally qualified professional who undertakes legal work related to real estate matters for a fee. &nbsp; Stamp Duty A government tax based on the sale price of a property. &nbsp; Statute Laws Laws made by Parliament, federal and state parliaments. Subject to constitutional constraints, statute law prevails over the common law. Statutes are interpreted in accordance with common law principles of interpretation (as supplemented or modified by interpretation statutes). And the “principle of legality” ensures that statutes do not casually obliterate at least some common law rights. &nbsp; Strata Title Applies to more than one property on a single piece of land, such as an apartment block. Each unit will have a separate strata title, organised under “a strata plan.” &nbsp; Tenant Any person in possession of real property with the owner’s permission. &nbsp; Tenants in Common A form of joint ownership in a property in which each person owns a share of the property which can be individually sold or willed upon death. &nbsp; Trust Account A bank account relating to monies received or held by an agent for or on behalf of any other person such as a client or customer. Example: Deposits or rental monies etc. &nbsp; Unconditional The formal agreement between a seller and buyer that a sale has been agreed to and all conditions under that agreement have been satisfied. It is said that the property is “Unconditionally Sold.” &nbsp; Under Contract The formal agreement between a seller and buyer that a sale has been agreed upon subject to certain conditions outlined in the contract. &nbsp; Valuation An estimate of the value of a property by a qualified and registered valuer. &nbsp; Variable Interest Rate A rate that varies in accordance with the money market rates. &nbsp; Vendor The owner or person lawfully selling a property. &nbsp; Vendor Paid Advertising Vendor paid advertising in real estate advertising paid for by the vendor, and commonly called VPA. &nbsp; Vendor Statement Information which the seller must provide to the buyer setting out any restrictions such as covenants and easements, outgoings such as rates and other relevant notices. &nbsp; Wear and Tear Depreciation of an asset due to ordinary usage. &nbsp; Zoning The permissible uses of an area of land as defined by a council. &nbsp;

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Recent blog posts

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Essential Conveyancing Resources for Queensland Buyers an...

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