Adjustments: Amounts for property taxes, council, and water rates prepaid by the vendor, adjusted at settlement for which the purchaser will be liable.

Agent’s Commission: A fee, usually a percentage of the sale price, payable to a real estate agent for selling a property.

Amortisation Period: The time taken to reduce the value of a debt through regular instalments until the loan is fully paid off. For most home loans, the maximum amortisation period is 25-35 years.

Appraised Value: An estimate of the value of property offered as security for a home loan. This appraisal is conducted for financial lending purposes and may not reflect the actual market value.

Architrave: A decorative moulding around doors or windows.

Assets: All possessions or rights owned by an individual or company that can provide a benefit. Net assets are the value of assets after deducting liabilities. Liquid assets are those in the form of cash or easily convertible to cash.

Awning Window: A window with sashes that open out horizontally.

Body Corporate: A strata corporation incorporated in relation to land subdivided mainly for residential purposes under a law providing for strata, cluster, precinct, or other subdivision of land. The Body Corporate is usually responsible for managing and maintaining common areas of the property.

Brick Veneer: A type of building where a structural timber frame is tied to a single brick external wall.

Bridging Finance: Short-term finance used when buying and selling houses to cover the gap between receiving funds from the sale of an existing house and paying for the purchase of another house.

Building Regulations: Standards formulated by responsible authorities to uphold public safety, health, and construction quality.

Capital Gain: Profit from the sale of an asset at a higher market price than its purchase cost. Investors often buy assets expecting an increase in value rather than income generated during ownership.

Casement Window: A window with sashes that open out vertically.

Caveat Emptor: Latin for “Let the Buyer Beware.” Buyers are responsible for examining goods (in this case, property) closely or reading the contract fine print before completing the purchase. Under common law, if someone buys faulty goods, they have no right to compensation.

Ceiling Joists: Parallel lengths of timber or steel that support the ceiling.

Certificate of Title: The document of title to an estate or interest in land. It sets out the Crown description of the land, proprietorship, and shows any registered interests such as mortgages, charges, and caveats. It also shows any restrictive covenants and easements affecting the estate or interest.

Chattels: Personal property. There are two types: real chattels (buildings and fixtures) and personal chattels (clothes, furniture, etc.).

Cluster Title: Each Cluster Title holder has a Certificate of Title specifying ownership of a particular area and defining the common property. Unlike Strata Title, it does not subdivide “airspace.”

Commission: See Agent’s Commission.

Common Area: An area for use by many, not an individual. For example, home units have common areas such as stairs and driveways.

Company Title: This title applies when a company owns the entire property. By purchasing shares in the company, the purchaser obtains an entitlement to occupy a particular part of the property. Consult a solicitor before buying.

Comparison Rate: An indicative interest rate that includes certain costs associated with setting up a loan. This rate includes the nominal interest rate, loan approval fee, and other upfront and known ongoing fees. It does not include government and statutory fees or event-based fees that may or may not apply during the loan term (e.g., redraw fees and early repayment costs).

Contract Note: The first document signed when buying a house, sometimes instead of a Contract of Sale. When signed by both parties, it is as legally binding as a Contract of Sale and should be treated with the same importance.

Contract of Sale: A written agreement detailing the terms and conditions of a property purchase or sale. It is usually prepared by the vendor’s agent, solicitor, or conveyancer.

Conveyancing: The legal process of transferring ownership of real estate from one party to another.

Cornice: A horizontal decorative moulding usually positioned where the wall meets the ceiling.

Cover Note: A document providing temporary insurance cover over a property until a formal policy is issued by the insurance company.

Deposit: An amount of money placed in trust or paid directly to the vendor as evidence of intention to buy. It is typically 10% of the purchase price.

Door Jambs: The vertical sides of a door frame.

Drawdown: The disbursement of loan funds provided by the bank.

Easement: A right that an individual enjoys over land belonging to another, such as rights of way, light, or support.

Encumbrance: A legal claim on a particular property, such as an easement or mortgage.

Equity: The part of an asset (e.g., a house) that you own over and above the amount borrowed from the bank, which has a mortgage over the property.

Fibro Cement: Building material made of compressed fibres cemented into rigid sheets.

Fitments: Built-in equipment such as a bath and stove.

Fittings: Items that can be removed from a property without causing damage, such as drapes.

Fixed Rate Loan: A loan with a fixed interest rate for a set term. The interest rate and payments remain the same during the fixed term, regardless of market interest rate changes.

Fixtures: Items affixed to and forming part of the property, such as built-in air conditioning.

Footing: The structure that supports the building on its foundation.

Foundation: The compact sand, gravel, hard clay, or rock upon which the footings rest.

Freehold: Common term for an ‘estate in fee simple,’ meaning the proprietor has absolute ownership of the property.

Gable: The triangular part of a building’s end wall that extends up to meet the two slopes of a roof.

Home Units: A grouping of residential dwellings sharing common areas (e.g., gardens, storerooms) and commonly registered under Strata Title.

Interest: A charge on borrowed money or the return earned on funds invested.

Inventory: A listing of items that could be included with a property, such as furniture, furnishings, and other movable items.

Joint Tenants: The holding of land by two or more persons with a right of survivorship. Upon the death of one joint owner, the land vests in the survivors and can only be disposed of by will by the last surviving owner.

Laminated Timber: Layers of timber glued and pressed together to increase rigidity or used as bench tops or cupboard doors.

Land Tax: A State Government tax based on property value, payable by property owners.

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Lease: An agreement between two parties where one party is granted the right to use the property of the other for a specified period in return for periodic payments.

Leasehold: The right to use and have exclusive possession (but not ownership) of real estate for a specified period, subject to conditions outlined in a lease agreement.

Liabilities: Debts owed by an individual or company.

Loan Repayment Capacity: The percentage of your monthly gross income that is committed to fixed debt repayments.

Loan to Valuation Ratio: The proportion of the loan amount to the property’s value, expressed as a percentage.

Manhole: An opening that allows access to the space between the roof and ceiling or below the floor.

Mortgage: A legal document between a borrower and lender, giving the lender a conditional right to the property as security for the loan.

Mortgagee: The lender who provides the funds to purchase property.

Mortgagor: The borrower who takes out a loan to purchase property.

Multiple Listing: When a property is listed with more than one agent. The agent who first finds a buyer ready to meet the price and terms acceptable to the vendor receives the commission.

Offer to Purchase: A written proposal to buy a specified property at a specified price. The offer can be firm (without conditions) or conditional (with certain conditions).

Plan: A detailed drawing showing the design, elevation, room sizes, and layout of a house, including the position on the land.

Principal: The original amount of a loan on which interest is calculated.

Private Treaty Sale: The sale of property through private negotiation and contract via an agent.

Rafter: A structural component of the roof framework, sloping down from the ridge to the eaves.

Render: A coat of cement or plaster applied to brickwork or stone.

Reserve Price: The minimum price a seller will accept at auction.

Ridge: The peak of the roof where the top ends of the rafters are attached, usually horizontal.

Right of Way: An easement allowing a person to cross your property to access their own property or a general pathway across the land.

Rise and Fall Clause: A clause in a building contract that adjusts the contract price based on changes in prices, wages, or other specified factors.

Roof Pitch: The slope of the roof.

Sash: The frame in which a pane of glass is set to form a window.

Security: An asset given or deposited as surety for the payment of a debt. In home loans, the property being purchased usually acts as the security.

Semi-Detached: Two houses joined together with a common wall or walls, typically registered under Torrens Title.

Settlement Date: The date on which the sale of the property is finalised, money and security change hands, and the new owner takes possession.

Shingles: Thin pieces of wood or other material set in overlapping rows to form a roof or wall cladding.

Sill: The horizontal section at the base of a window opening.

Sole Agency: When one agent or agency has exclusive rights to sell a property.

Stamp Duty: Government revenue raised on written instruments such as agreements, conveyances, and transfers of land. Common types include stamp duty on the transfer of land and mortgage.

Strata Title: Commonly used for flats and units, this title gives ownership of a specific unit within a larger property, along with an undivided share of common land. Owners can lease, sell, or dispose of their unit and become members of the Body Corporate, which manages maintenance.

Stratum Title: This title provides legal ownership of a piece of property and a share in the company managing common areas of flats or units. It does not include “air space.”

Studs: The vertical supports in the wall of a building.

Survey: A document showing the boundaries of the land and the location of buildings.

Tenants in Common: Co-owners of land, each owning a specified share. Shares can be equal or unequal, and there is no right of survivorship. Each share can be sold, bequeathed, or gifted independently.

Term: The duration of a loan.

Title Search: A search of records at the land titles office to confirm interests in a particular property. It shows interests such as proprietors, mortgagees, charges, and caveators, as well as any restrictive covenants and easements.

Torrens Title System: A land title system named after its South Australian author in 1858. It provides a registered proprietor with a perfect and unchallenged title, subject to encumbrances and conditions mentioned on the title certificate.

Townhouse: Detached or attached housing forming part of a cluster of homes sharing some common grounds. Typically has its own private entrance and areas, and can be single or multi-storey.

Transfer of Land: A document registered in the Land Titles Office that recognises and acknowledges a change of property ownership, noted on the Certificate of Title.

Uncommitted Monthly Income: The available net income after all monthly expenses, including loan repayments, have been considered.

Underpinning: Supports placed under an existing wall to provide additional strength.

Unencumbered: A property free of encumbrances, covenants, and restrictions.

Valuation: A report by a registered valuer detailing their opinion of the property’s value.

Variable Rate Loan: A loan with an interest rate that changes based on money market conditions.

Vendor: The person offering a property for sale.

Wall Cavity: The space between the inner and outer sections of a wall.

Zoning: Categories designated by Local Councils and/or Planning Authorities to control land use, commonly commercial or residential.