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 Annualised Average Percentage Rate
Buyers Agent
Caveat
Contract
Cooling Off
Covenant
Cross-Securitisation/Collateralisation
Exchange
Fees
Loan to Valuation Ratio
Median Price
Memorandum of Transfer
Property Cycle
Quartile - Lower
Quartile - Upper
Real Estate Institute of NSW
Service Cycle
Settlement
Strata Scheme
Tenants in Common
Tenants - Joint
Wrapping
Annualised Average Percentage Rate
AAPR also referred to as the comparison rate, taking into
account all the costs associated with the loan and is used to compare loan products.
Buyers Agent
A buyer’s agent must be the holder of a valid real estate agent
licence.
A buyer’s agent must have professional indemnity insurance.
A buyer’s agent must be independent of
any selling agent, builder, or developer.
WIKIPEDIA
Caveat
Warning to a purchaser that a third party has some right or interest in the property
.
Contract
The fine print in the contracts is different from state to state. The process also
differs from state to state e.g. in some states the contract is physically “exchanged” and in others a single
contract is signed by both parties. The cooling off period also differs from state to state.
Cooling Off
There is a 5-business day cooling off period unless you have bought at an auction
or you have waived the right to the cooling off period. You need to obtain legal advice regarding the benefits and also the
obligations in waiving the cooling off period. The cooling off period follows the exchange of contracts allowing time for
searches, obtaining reports and confirming finance. If you do not continue with the sale, you will forfeit 0.25% of the purchase
price from the deposit you have paid. Discuss with your legal adviser your rights and obligations during the cooling off period.
Covenant
Terms, conditions and restrictions noted on a property's certificate of title
. The covenant may affect future development plans or re-sale.
Cross-Securitisation/Collateralisation
When the financial institution uses your property
(whether owner-occupied or investment) as security for another property you wish to purchase.
Exchange
The contract sets out the terms and conditions of the sale including the fittings such
as blinds, curtains etc and any items excluded from the sale. The solicitor or conveyancer will examine the
contract carefully. There are two copies of the Contract for Sale - one for you and one for the seller. You each sign
one copy before they are swapped or “exchanged” and the deposit is handed over. Only when both the seller and the
buyer have signed the contract and exchanged copies do you both become bound by the contract. The contract will stipulate the
deposit amount and who will hold it. Once all parties have signed a contract it cannot be altered or changed. However,
there may be unforeseen changes of circumstance which affect either party to a contract between signing and settlement that may
require a change to be made to the contract. Provided all parties agree, changes can be made.
Fees
You should consult your accountant for advice on its deductibility
.
Loan to Valuation Ratio
The Loan to Valuation Ratio LVR) refers to the
ratio between the size of your loan and the value of your security property. It is calculated by dividing your loan size by the
value of your security property e.g. loan size $240,000, property value $300,000, LVR = 80%.
Median Price
The median price is the middle price in a series of sales, where half of
the sales are of lower value and half are of a higher value. For example, if 15 sales are recorded in a suburb and arranged in
order from lowest to highest value, the eighth sale price is the median price.
Memorandum of Transfer
The document that verifies the change in ownership from the seller to
the buyer.
Property Cycle
Property values usually follow a cycle of growth, a slowdown, a bust
and an upturn. History shows this occurs every 7 to 10 years.
Quartile - Lower
The price point below which 25% of sales were recorded. If there were
100 sales in a suburb, it is the 25th lowest price.
Quartile - Upper
The price point below which 75% of sales were recorded. If there were 100
sales in a suburb, it is the 25th highest price.
Real Estate Institute of NSW
There are many advantages in dealing with a member of the
REINSW.
- REINSW is one of the largest professional associations for real estate agents in Australia.
- REINSW members follow a Code of Conduct that outlines the ethical duties and responsibilities of real estate agents.
It encourages agents to follow best practices and to be fair and responsible in their agency practices.
- If you have a problem about the behaviour or actions of an REINSW member you can take your concerns to the REINSW for
investigation.
REINSW has an Accreditation program. This means you can be assured of experience and skills in a
specialist area when you choose an agent who is accredited.
Service Cycle
The average time from engaging our service to exchanging on a property is 6 to
8 weeks for an investor and slightly longer for an owner occupier. Both are dependent on the specific
requirements and market conditions.
Settlement
Settlement occurs when the buyer pays the balance of the selling price.
Adjustments are made for water, council rates and strata levies (if applicable) and any outstanding mortgages are paid
out by the seller from the purchase price. The buyer becomes the legal owner of the property after settlement.
The
period between the exchange of contracts and settlement is usually four to six weeks, although either party may ask for a longer
or shorter settlement period prior to exchange. Make sure the settlement period suits your needs prior to committing to the
purchase. Be prepared as last minute issues that arise may delay settlement by hours or days.
Strata Scheme
A strata scheme is a building or collection of buildings where
individuals each own a part, such as an apartment, villa or townhouse, but where there is common property, such as windows, roof,
foyers, paths, external walls, floors, fences, lawns, gardens and driveways, which every owner shares ownership over.
The
maintenance and repair of these common parts is usually the responsibility of the owners’ corporation. There are a number
of rules or by-laws relating to living in a strata scheme.
Tenants in Common
In the case of tenancy in common, although each has an undivided share, such
share is distinct and separate. The interests need not be equal; thus ‘A’ may have one undivided third share, and
‘B’ two undivided third shares of the same property. The most important feature is that the share of a tenant-in
-common may be separately disposed of during a person’s lifetime, or by will. On death it passes, not to the other
tenants-in-common, but by will, or by the laws of intestacy.
Tenants - Joint
Joint tenancy is ownership in equal undivided shares. The most important feature
of joint tenancy is known as survivorship; on the death of one joint tenant, that person’s share passes to the
survivors so that they remain joint tenants of the whole. Joint tenants are regarded collectively as a single person in respect
of their dealings with others.
Wrapping
The instance when a seller is prepared to offer the buyer finance or other assistance
such as staged payments to assist with the purchase of the property (also known as vendor's terms). |
