- A person who is authorised to act for another (the agent's principal) through employment, by contract or apparent authority.
- Is just another term for valuation, but is used instead of the word "valuation" because estate agents are not permitted to provide true valuations on real estate. Only an accredited valuer can provide a genuine property "valuation".
- A benefit.
- Bank cheque:
- Personal cheque, Trust cheque and Money orders. Bank cheques are the safest. Personal cheques sometimes don't have money in there! Trust cheques are better than personal cheques but not as good as bank cheque. Money order is fairly safe. Generally, it takes 3 working days to clear a cheque. It used to be 5 days.
- They usually specialise in appearing before the court and act for clients through the referral of solicitors. They belong to the Bar Association they usually work in Chambers. Chambers are offices shared with other court specialists.
- Body Corporate:
- Now called an owners corporation. See "Owners Corporation" below.
- Bridging loan:
- Money borrowed from a bank or financial institution, usually at high interest rates, to cover the period between settlement date of the house you have bought and the settlement date of the house you have sold.
- Building Certificate:
- Certificate issue by local council guaranteed for 7 years that council will not require you to do anything with the building that is there is no legal structure.
- Building over a sewer certificate:
- Certificate issue by local council guaranteed for 7 years that council will not require you to do anything with the building that is there is no legal structure.
- Building over a sewer certificate:
- You apply to Sydney water for this certificate with a fee of $44.95 (subject to changes). Only apply for the one if the sewerage diagrams show that there is a sewerage pipe runs through the building. The responsibility of obtaining this certificate is with the purchaser's solicitor.
- Building Survey:
- An inspection and report on the structural condition of a property, prepared by a qualified professional such as a Chartered Surveyor.
- Business day:
- Any day except a bank or public holiday or a Saturday or Sunday.
- Buyer's Agent:
- A buyer's agent or buyer's advocate is simply a commission estate agent who requires the purchaser to pay a commission in return for being introduced to a property. The concept of the buyer's agent is quite misleading, as the buyer's agent does not have the legal skills or qualifications to properly negotiate the purchase of real estate, and must always refer the client to a lawyer in all but the most simple of transactions.
- A warning. (Latin for let him beware.) Freezes the title and the incoming mortgagee will not settle. If there is a caveat it will show on the title and therefore we need to do a final search to find out whether there is a caveat. A party with a legal interest in a property can lodge a caveat with Land and Property Information Office to ensure the property is not sold without his knowledge.
- Caveat Emptor:
- This means let the buyer beware. This principle of law places the burden on the buyer to be satisfied with the property before buying.
- Certificate of Occupancy:
- As the name implies, the Certificate of Occupancy certifies that a home can be lived in. It is a requirement of most local government or shire councils that an occupancy certificate be issued prior to the purchaser of a home taking occupation.
- Certificate of title (CT) (1):
- Also known as title deed. This certificate shows the name(s) of the owner(s), the mortgagee and other information. The mortgagee will keep the CT. It will be given to the buyer once the loan is paid off.
- Certified Copy:
- A true copy of an original document that has been sighted and certified by an authorised person and noted as follows: 'I certify that this document is a true and complete copy of the corresponding page of the original'. This certification must have the certifier's name, title, registration number (where applicable) and be signed and dated.
- Certified Practising Conveyancer (CPC):
- To become a CPC a conveyancer must have completed the educational and practical training requirements to hold a conveyancer's licence and be a member of the Australian Institute of Conveyancers NSW Division. The title of Certified Practising Conveyancer (CPC) is awarded to conveyancers who annually meet the standards set by each Division to maintain best practice through constant professional development.
- There are technical differences between a mortgage and a charge, but even the Law Commission said the phrases are now used interchangeably so just forget about it. For current purposes a charge is a mortgage.
- Any tangible, moveable, personal property article.
- Cheque Direction:
- A letter from the vendor to the purchaser which specify where the payments cheque goes after settlement.
- Security Pledged for the payment of a loan.
- Common Property:
- This is the land on a plan of subdivision that does not form any of the lots, but it is subject of shared ownership by the Lot owners as members of the body corporate. Common property may take the form of land, air space, space below the ground or buildings.
- The final stage in the legal process of transferring ownership of property, when the purchase money is paid and the Conveyance takes place (known as Settlement).
- Completion Date (1):
- This is the date stipulated on the front page of the contract. It is normally 42 days from the date of exchange.
- Common property:
- An area in a block of units that is available for use by all the tenants and owners (e.g. hallways, stairs and gardens).
- Common seal:
- A common seal is the official stamp or "signature" of an association. As a body corporate, an association is entitled to a common seal, and the Act requires an association's rules to provide for the "custody and use of a common seal".
- Common title:
- Usually it is a house with the addition that you have to pay Administration fees, Sinking Fund and Special levies to the Managing Agent (Body Corporate).
[Hint & Tips: Vendor solicitor need to apply for section 109 certificates through the Managing Agent.]
- Conditions are the "rules" of the Contract of Sale. They tell the parties who is responsible for what, the dates by which things must be done, and what will happen if things are not done as agreed.
Conditioning is the term used to describe a process of convincing the vendor to accept a lower price, in order to bring about a sale and to secure a commission for the estate agent. There are many forms of conditioning, including the following:
- Estate agent falsely states that the market has "slumped" in order to have the vendor accept a low price.
- Estate agent provides false low "offers" so that the vendor is more likely to accept a slightly higher genuine offer.
- Estate agent finds "faults" in the property, using them to "talk down" the vendor's asking price.
- Contents Insurance:
- Insurance, those cover you against the risk of loss or damage to your possessions with-in your home.
- The purchase price.
- Usually this refers to the Contract for the Sale of Land and not the mortgage document.
[Hints & Tips: There is only the vendor's signature or the purchaser's signature and not both. The vendor and purchaser signature has been given to the other side to complete the exchange process.]
- Contract date:
- The contract has to be signed and dated to be valid. The contract date is taken to be the exchange date.
- Contract of Sale:
The Contract of Sale is the term used to describe the document prepared by a lawyer, and used to formalise the sale of real estate.
However, the word "Contract" has more than one meaning:
- contract can mean an agreement; or
- contract can mean the document that sets out the agreement.
- A legal document that transfers ownership of property from the seller to the buyer.
- Is the process of preparing and executing the documents. A "conveyancer" is a professionally qualified person dealing with the Conveyancing process, who must either be a solicitor or a licenced conveyancer.
- Cooling off period:
- Within 5 working days after exchange of contracts the purchaser (only) can change their mind and end the contract with the small penalty of 0.25% of the purchase price. The cooling off period only applies to residential properties and can be waived.
[Hints & Tips: Cooling off period can be extended, simply fax to the other side solicitor requesting an extension of time and tell them that the loan has not been finalised.]
- Council's Building certificate:
- Council's formal agreement that at the time of issue of the Certificate Council is happy with all the structures on the property to which the Certificate relates.
- To enter into formal agreement to do or not do a certain thing (a restriction).
- Stands for Certified Practising Conveyancer
- Crown land:
- A title to land, formerly Crown land, granted by the Queen (by her Western Australian representative, the Governor) to a person, company, statutory body or incorporated association. The grant may be made for a cash consideration or on the completion of certain developments that will benefit the State or for a mixture of both.
- Current Market Value:
The current market value of a property is determined according the following standard:
- The price at which a willing but not anxious vendor would sell, and at which a willing but now anxious purchaser would buy.
- If someone bought the property at current market value as an investment, then decided to sell it again, they should be able to find someone else who is prepared to pay the same price in the same market, and so on.
- DA stands for Development Application. This is required when you make "development" with the property. When making a development, it is wise to check (to the appropriate city council) first if it is permissible and if DA is needed.
- Deceased estate:
- Property belonging to a deceased person or persons.
- A legal document which must be signed, witnessed and delivered to have effect, i.e. 'Signed sealed and delivered'.
- Delayed Settlement:
- Is a term used when either of the party is unable to settle on the specified date of settlement as stated on the contract.
- Money given in advance to show intention to complete the purchase of a property.
- Deposit Holder:
- Also known as stakeholder. This is the holder of the deposit. Usually it is the Real Estate Agent but sometimes it is the vendor's solicitor.
- Deposit Power Bond:
- This is a piece of paper given by the insurance companies stating that they will pay the amount specified for the deposit and charged to the purchaser.
- Development Application (DA):
- Is required when you make"development" with the property. When making a development, it is wise to check (to the appropriate city council) first if it is permissible and if DA is needed.
- Disbursements are the out-of-pocket costs associated with a matter, as opposed to the legal costs charged for the service being provided.
- Discharge of Mortgage:
- Getting rid of the mortgage by the outgoing banks or vendor's bank.
[Hints & Tips: We immediately discharge the mortgage when we have sold or refinance the property.]
- Deposited Plan
- Dual Occupancy:
- Dual occupancy is the term used to describe a subdivision where a house block is subdivided so as to enable an additional dwelling built on it. A dual occupancy development involves at least a two lot subdivision.
- Early Possession:
- When a buyer moves in before settlement.
- A legal agreement that allows an owner to make use of another person's property for a specific purpose, such as a pedestrian right of way, drains or other services passing under or over adjacent land.
- Any charge on the land for the purpose of securing the payment of a sum of money other than a debt, e.g. a mortgage.
- The value of your property minus the amount of any outstanding mortgage.
- This is when the buyer gives his signed contract to the seller and the seller gives his signed contract to the buyer.
[Hint & Tips: A contract is not validly exchange until it is dated and signed. A contract does not have to be witnessed but it is wise to do so.]
- Exclusive Sale Authority:
- This is the document by which an estate agent is able to exclusively secure the Vendor, the property being sold, and all persons who inquire about the property for a set period of time, and then indefinitely until the Vendor cancels in writing. An Exclusive Agency Agreement..
- Fee Simple:
- Full ownership of the land.
- Final Search (or Order):
- A final search is a check on the title to see if there are no problems on title.
- Stands for Foreign Investment Review Board. (If you are a foreign person you must obtain permission from the Australian Government (through this board) in order to purchase a property.)
- Goods and articles that can be remove from a property without causing damage to it, such as light fittings and rugs.
- Some things that is fixed to the building e.g. A built-in-wardrobes.
[Hints & Tips: To avoid arguments as to what is included in the sale, it is a must to mark the inclusions boxes on the front page of the contract. That way it is clear and there will be no hassles afterwards.]
- After you have done a verbal deal to buy a property at an agreed price, the seller accepts a higher offer from someone else - you have then been "gazumped".
A term used when a seller (especially of property) accepts a verbal offer from one potential buyer, but then accepts a higher offer from someone else.
- Holding Deposit:
- A meaningless word designed by the agent to deceive the purchasers to secured the disposal of the property. There is no legal obligation for the vendor to sell at this stage. There is also no obligation for the purchaser to buy the property. Often, the vendor will sell the property to someone else!
- Home Warranty Insurance:
Home warranty insurance is an important component of a comprehensive consumer protection regime for homeowners undertaking building work in NSW.
Home warranty insurance provides a safety net for homeowners undertaking residential building projects where the contract price exceeds $12,000 and a builder is unable or unwilling to honour their fundamental responsibilities under the building contract, that is, to complete the construction of a dwelling or return and rectify defective work.
If a builder is unable to honour their commitments under a contract because of insolvency, death or disappearance the home warranty insurance scheme is there to protect homeowners. The scheme is also there to protect homeowners where a builder refuses to meet their contractual obligations and has been found at fault by the Consumer, Trader and Tenancy Tribunal or a court and fails to comply with a compensation (money) order in favour of the homeowner (which results in the automatic suspension of the builder's licence). Homeowners are not required to enforce the Tribunal order or initiate insolvency proceedings. They are able to claim on their home warranty policy. (From homewarranty.nsw.gov.au.)
- Illegal structure:
- Illegal structures are generally permanent buildings or the likes of it which do not have a town council's permission.
- Anything above the land. This can include the grass and the tress.
- What the vendor will include as part of the sale. E.g. Curtains stove etc.
- Whoever owns the title, owns the property.
- Independent Legal Advice:
- A document that attests that a person has received legal advice on a proposed contract, from an independent lawyer not associated with the other contracting party.
- Initial Period:
"in relation to body corporate" means the period commencing on the day on which that body corporate is constituted and ending on the day on which there are proprietors of lots the subject of the strata scheme concerned (other than the original proprietor) the sum of whose unit entitlement is at least one-third of the aggregate unit entitlement.
[From Section 5 of the Strata Schemes (Freehold Development) Act 1973.] Its restriction during the initial period:
(Section 113 of the Strata Schemes Management Act 1996 outlines these various actions which are not permitted during the initial period. The actions relevant to LPI include but not limited to the following listed below.)
- Strata plan subdivision which includes common property or creates common property.
- Conversion of a lot to common property.
- Transfer or lease of part of the common property.
- Creation of an easement burdening common property.
- Release of an easement benefiting common property.
- Dedicating part of common property as road, public reserve or drainage reserve.
- Charge of by-Laws, see section 50 Strata Schemes Management Act 1996.
[Note: If a document is lodge at LPI which intends to perform one of the above actions, it must be accompanied by a certificate from the owners corporation in Approved form 10 (PDF 20KB) unless the common property title contains a note in the second schedule that a certificate has been lodged previously.]
- Home building insurance normally refer to a house and certificate of currency refers to strata units. (You only need to buy this insurance if it is a house or a strata without a managing agent. If it is strata and there is a managing agent, there is already an insurance in place and you do not have to buy one.)
- This when you die without having written a will.
- Joint Tenancy:
- Joint ownership by two or more persons, each with equal shares of the property. On the death of the co-tenant, his or her share passes automatically to the remaining tenant.
- Joint Tenants:
- A maximum of four individuals who own an interest in land in such a way that their legal and beneficial interests transfer automatically to the survivors on death.
- Land Registry:
- This is the official government register where the ownership of all property in England and Wales is recorded.
- Land Tax:
- A state government tax payable by the owners of investment property based on the value of the property.
- Latent Defect:
- Is a problem that cannot simply be detected by the naked eyes.
- Lateral Thinking:
- A way of thinking which seeks the solution to a problem by making association with other apparently unrelated areas, rather than by pursuing one logical train of thought.
- A documented contract by which one person gives another property rights for a term of years. Any lease including options over three years must be registered to gain protection of indefeasibility.
- Letters of Administration:
- If you are the spouse, de facto spouse or other direct family member of the deceased, and the deceased died without a will, or the will is declared invalid, then you can apply to the Supreme Court to become the administrator of their estate. Following your application, the Supreme Court will issue a Grant of Letters of Administration in the name of the applicant. The Grant will then authorise and enable you to collect the assets of the deceased and to distribute them according to the State intestacy laws.
- Licence Agreement:
- A short term rent example for 2 weeks.
- This is the term used to describe the arrangement between a vendor and an estate agent, whereby the agent becomes entitled to a portion of the proceeds of the sale of the vendor's property.
- Loan Serviceability:
- This is about the borrower's ability to repay loan in the eyes of the lender, the bank. Each bank will have their own formulae. Most of their formulae are similar.Essentially they will look at your cash flow. (That is your income and expenses within a certain time period.)
- A lot is simply a separately identifiable piece of land, part of a building, or air space that is created when a plan of subdivision is registered.
- LPI stands for Land and Property Information.
- A person under the age of 18 can purchase property-need a minor certificate from a third party solicitor.
- Security document. The word mortgage comes from the French word 'mort' and it means 'agreement until death'.
- A loan secured on land or buildings, the mortgagee lends money to the mortgagor, who offers their property as security for the loan.
- Mortgage Advance:
- The money loaned under a Mortgage.
- Mortgage Broker:
- Home Loan Companies refers person to the bank for loans.
[Hints & Tips: they introduce borrowers to banks or help borrowers obtain a loan.]
- Mortgage Document:
- The bank solicitors prepare them and send them out to us and we have to explain to the clients and let them sign.
- Mortgagee In Possession (to) Sale:
- This is when the bank takes over and sells it (the property on Mortgage). In an event like this, at settlement, whatever are the inclusions left on the property, it will be yours.
- Mortgage Offer:
- The formal document making an offer of a loan under a mortgage which states how much the loan is for, the period and amount of repayment and all of the terms and conditions attached to loan. The Mortgage offer will normally be sent by the lender to the borrower, with a copy to us.
- Mortgage Insurance:
- Usually this is a compulsory insurance if the client is borrowing more than 80% of the purchase price. The bank will demand this insurance and the client is paying for it. The bank will arrange for this insurance. Normally the insurance company will only give mortgage insurance if the client can show6 months of genuine saving.
- Mortgage Document:
- The bank solicitors prepare them and send them out to us and we have to explain to the clients and let them sign.
- The bank. (There is an outgoing mortgagee and there is an incoming mortgagee.)
- The borrower.
- Natural Person:
- A living person (not a company).
- Negative Gearing:
- Where an investor borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan.
- Notice to Complete:
- Is a precedent issued by the purchaser to Conveyancing purchase of land matters where the Vendor has not met their obligations under the contract prior to settlement.
- Notice of Recession:
- A letter which can be fixed to the vendor's solicitor and the agent telling them that the purchaser/s no longer wishes to proceed with the purchase. Must done within "cooling off period". [Only Steve (the licence conveyancer) or the purchaser/s can sign this letter.
- Notice of Sale:
- An advertisement placed by a municipal issuer inviting underwriters to submit bids for an upcoming offering.
- For the average consumer, the term offer has a simple and straight-forward meaning. However, when applied to the law of Contract, it has a very specific meaning. The confusion between these two meanings is often manipulated, and used against consumers.
- Off the Plan:
- Off the Plan literally a plan which not yet realize.
- Off the Plan Purchase:
- Purchasing a property which is still on construction.
- Order on Agent:
- A letter from the purchaser's solicitor to real estate agent stating that the matter has settled.
- Owners Corporation:
- When a block of land contains common property an owner's corporation is created. An owner's corporation manages the services and common property: shared walls, driveways and buildings for flats, units and multi-story apartments.
- Party wall:
- Is a dividing partition between two adjoining buildings (or units) that is shared by the tenants of each residence or business.
- A defect that can be detected with the naked eyes.
- Pay-out Figure:
- This is when the vendor has sold or is refinancing and it is the outstanding balance on the date of settlement.
- Pest Report:
- If an older house or unit with wooden floors is being purchase it is advisable to get a pest report before the cooling off period expires to ensure there are no white ants etc.
[Hints & Tips: Check for the termites and not the cockroaches.]
- Power of Attorney:
- A certificate allowing one person to act on behalf of another. It has to be registered with the Land and Property Information.
- The amount you loan.
- Pre-Approval of Home Loan:
- The terms "pre-approved" or "approved in principle" both mean the same thing - the home loan is NOT approved.
- Is a special proceeding to establish the validity of a will. Probate is mandatory, which means that no will passes either real or personal property unless it is proved and allowed in a proper court.
- This is the term used to describe amounts payable to the local council and the water authority for services provided to a property. Rates are adjusted on a pro-rata basis, together with any other outgoings that are payable as a consequence of land ownership.
- Real Estate Agent:
- The shop that sells and buys homes land etc.
[Hints & Tips: the word real comes from the Spanish word Royal.]
- Real Property:
- Concerning land. Personal property is anything that doesn't concern land.
E.g. a lady handbag.
[Hints & Tips: anything to do with land law it has to be in writing to be effective.]
- Registered Documents:
- These are the documents, usually collected at settlement in return for the payment of the balance of the purchaser price, that are lodged at the Land Titles Office to transfer ownership of the property to the purchaser. They must be property signed or endorsed so as to allow registration.
- Release of Deposit:
- This is when the vendor wishes to use the deposit to buy another property or pay stamp duty before settlement of the property that they are buying. It is not wise to release the deposit e.g. What if the vendor dies? Goes bankrupt? etc.
- Cancel the contract from the beginning. Strictly speaking this is an incorrect word. The more appropriate word is repudiated. But everyone is using it.
- Sales Advice:
- Letter from the real estate agent telling you that the property has been sold and other details such as the other side solicitor etc.
- Second Mortgage:
- It refers to the loan that is subordinate to another loan against the same property. In instances that the loan goes in default, the first loan or mortgage gets paid off first before the second mortgage. The second mortgages have greater risk for lenders compare to the first one. That's why, generally, the second mortgage comes with the higher interest rate than the first mortgage.
- Section 47:
- Land Tax certificate. Only certain properties have land tax imposed. MUST do search. [Hints: always do a search as there could be land tax and you (the client) might be paying for it.]
- Section 66:
- Certificate showing how much water rate is payable. Apply them through Sydney Water with a cheque. Water rate is paid on a quarterly basis.
- Section 66W:
- Also known by other names such as Certificate, a Cooling off Certificate and so forth. A certificate for shorten (cancelling) the cooling off period. [Hints: Only Steve sign this certificate. He will only issue one if he knows that the loan is 100% approved. It is wise to resist is suing such a certificate.]
- Section 88b Instrument:
- Restriction on the use of the land. If there is any it will be mentioned on the title search.
- Section 149 (2) certificate:
- (Section 149 (5) is optional). This certificate is compulsory to be annexed into the contract. It shows various details such as zone A (for living), whether the land is affected by flood etc. You apply to the relevant council with a $40.00 (subject to changes) fee. If the certificate is more than one year old, it is wise to get or request a new one as there could have been many changes.
- Section 603:
- Certificate from Council showing details of the rates. You apply them through the relevant council. The rate starts from the 01 July to 30June of next year.
- Sewerage diagram:
- Picture of the pipe that connects the waste (toilet) from the house to the ocean.
- Simultaneous Settlement:
- This is when two or more settlement is taking place at the same time. Be extra careful with a simultaneous settlement.
- Sole Agency or Exclusive Listing:
- Where a seller agrees to instruct only one estate agent to sell the property (usually for a limited period of time).
- Solicitors belong to the Law Society. They generally work from their offices and see clients direct. They usually work in many areas of law.
- Special Conditions:
- Conditions that are considered special (not the Standard). It can be found in every contract.
[Hints & Tips: To protect the vendor and make extra money.]
- Stands for Strata Plan.
- Stamp Duty:
- A payment of money to the government. Another form of tax.
- Stamp Duty (2):
A sale or transfer of land (including improvements) or a business in NSW is liable to duty. A liability for duty arises when the sale or transfer occurs and is on a sliding scale from $1.25 for every $100 for property valued at up to $14,000 to $8990 plus $4.50 for every $100 for properties valued between $300,000 and $1 million. However, if the sale or transfer is affected by a written instrument, liability for duty arises when the instrument is first executed. Duty is payable within 3 months of the date liability arises. The purchaser or transferee is liable to pay the duty. Stamp duty collected by the Office of State Revenue New South Wales.
$ 160, 000 $ 4090 $ 340, 000 $ 10, 790 $ 180, 000 $ 4790 $ 360, 000 $ 11, 690 $ 200, 000 $ 5490 $ 380, 000 $ 12, 590 $ 220, 000 $ 6190 $ 400, 000 $ 13, 490 $ 240, 000 $ 6890 $ 420, 000 $ 14, 390 $ 260, 000 $ 7590 $ 440, 000 $ 15, 290 $ 280, 000 $ 8290 $ 460, 000 $ 16, 190 $ 300, 000 $ 8990 $ 480, 000 $ 17, 090 $ 320, 000 $ 9890 $ 500, 000 $ 17, 990
- Statutory Declaration:
- This is a written statement stating certain facts to the best of the declarant's (the person making the declaration) knowledge or belief and is made subject to the provisions of certain legislation. A prescribed functionary (someone authorised by the appropriate Act to take the declaration) must witness the declarant's signature. (From LPI.)
- Stigmatised Property:
A property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness, or personal tragedy. Some states restrict the disclosure of information about stigmatised properties.
In real estate, stigmatised property is property which buyers or tenants may shun for reasons that are unrelated to its physical condition or features. These can include murder, suicide or even AIDS, in addition to a belief that a house may be haunted. The concept is controversial.
It is argued that the seller has a duty to disclose any such history of the property. This, in practice, falls into two categories: demonstrable (physical) as well as emotional. These guidelines vary from state to state.
- Strata Inspection Report:
This report will show what problem exists, if any, with the building, neighbours, proprietors and any financial liabilities. When should you do a strata report? Must do before the cooling off expire. What is the difference between a strata report and a section 109 certificate?
A Strata Report will reveal:
- Administration Fee,
- Sinking Fund,
- Special Levy and more (like the above mention).
- Strata Managing Agent:
- This is the agent that looks after the units for a fee. For example, if there is a broken pipe, you need to contact the strata managing agent. Example of Strata Managing Agents: All Suburbs Strata, Independent Unit Management.
- Strata Title:
- The word 'strata' means airspace. Strata Title concern units. This is a system of the title that applies to ownership of units, apartments and some townhouses. Strata Title involves subdivision of airspace above land you own, part of the building, not the land. Thus, a "strata title" can be define as a certificate of title for a lot (strata titled units, flat or apartment) and a share in the common property in a strata scheme set up under the Strata Titles Act 1985.
- Sunset Clause:
- Is a provision in a statute or regulation that terminates or repeals all or portions of the law after a specific date, unless further legislative action is taken to extend it. Most laws do not have sunset clauses; in such cases, the law goes on indefinitely.
- Conducted by a registered surveyor who provides a written report showing the position of the buildings and fences in relation to the boundaries and will show any encroachment on to the land or onto the neighbour's land.
Survey Report (More correctly it is known as an ID Survey):
It shows the dimensions of the land and placement of the building erected. It will show any non-compliance with the local council government rules in respect to the distance from boundaries.
[Hints & Tips: A survey consists of two pages: the first is written report and the second one is the diagram. There is something like over 40 survey reports e.g. Survey report of the bottom of a river. So make sure that you order the right survey as it can cost you an arm and a leg.]
- Tenants in Common (1):
- If you buy a house jointly with someone else as 'tenants in common' then each owner has a separate share in the property and is only entitled to that proportion of the sale proceeds if the property is sold (see also 'Joint Tenants').
- Each owner owns a precise and specified share of the property and each is free to leave their share of the property by Will to whomever they choose. If the property is held as Tenants in Common, you must be specific about the proportions of ownership. E.g. Owner A is to own 30% and owner B is to own 70%.
- Tenant in Common (2):
- As tenant in common, you can leave your share to someone else in you will. This form of ownership, is suitable of a business venture, or if you prefer to leave your share to your children or a friend rather than giving the whole interest to your spouse.
- The person renting that house.
- One row of houses joined together with common walls.
- Ownership of real property, usually either freehold or leasehold.
- Title Deeds:
- The phrase loosely refers to documents establishing ownership of property and on what terms. Becoming an anachronism, now title is registered at Land Registry.
- Torrens Title:
- A system of registration of land in Australia, New Zealand, Malaysia and other countries.
- Trust Account:
- An account to hold the money of our clients. We do not have one. It can be dangerous to have one. If money is stolen, who will pay for it? Solicitors can lose their licence by taking money out of the trust account inappropriately.
- (Written undertaking) a promise to do something. If we promise the other solicitor that we will do something, we must honor it.
- A valuer is a professional person whose role it is to determine the current market value of a property. Valuer is tertiary trained, and accredited by the Australian Property Institute (API).
- We need to get a licensed valuer to value the property to determine a "fair" value of the property.
[Hints & Tips: If you sell a property to your relatives e.g. a sister, the Office of State Revenue Department will want a copy of a valuation report to determine a fair value of the property so that you pay the right amount of (stamp duty) tax.]
- Work Order:
- A valid direction from the local council, notice or order that requires work to be done or money to be spent on or relation to the property or any adjoining footpath or road.
- Government regulations controlling the use of land and buildings.