Real Estate jargon - what does it all mean?.

Acceptance
Agree to the terms and conditions of an offer or contract.

Auction
A marketing option where you list your home without a price. The property is sold to the highest bidder on auction day - on the proviso the reserve price for the property has been met or exceeded.

Body Corporate
The owners of the units/apartments within a building form a Body Corporate. These owners select a council who are responsible for the maintenance of the building (which includes all common areas).

Chattels
Items you sell with the home, i.e. carpets, light fittings, drapes, curtains etc. Any different chattels, such as glasshouse, dishwasher, etc. are noted in the contract if they are included in the sale.

Certificate of Title / CT
A document, which shows the following: Ownership details, dimensions of the land, details of any mortgages and encumbrances (outstanding charge/liability on a property). Each individual piece of land in NZ has a CT.

Common Property
An area which is owned by all tenants of the strata property.

Company Title
Owners of these units are shareholders in a private company. The approval of the majority of shareholders is necessary if you wish to lease or sell your property.

Conditional Contract
A written contract that is signed by the sell and the buyer, but where one or more conditions need to be met, usually within a specified time period. E.g. "subject to the purchaser raising finance within X days".

Conveyance
The legal process involved in transferring the ownership of a property.

Deposit
A deposit is normally paid by the buyer at the time of signing contracts. It is normally 10% of the purchase price.

Freehold
A Freehold property has a clear title of ownership and is not subject to a lease.

GV (Government Valuation)
Also known as CV (Capital Value) or RV (Rating Value). The valuation assessed by Valuation NZ on an annual basis. The assessment is used principally by local authorities to calculate rates.

Land Information Memorandum (LIM)
Details contained on Council Property File relating to properties.

Marketing Programme
A promotional package put together to give a home exposure to the market. It may include advertisements to be used, a calendar of dates for adverts, open days, flyer samples, etc.

Mortgage
A legal document containing the terms and conditions applied to the funds (money) leant to a person (or legal entity) for the purchase of property (real estate).

Mortgagee
The lender of the funds (money) to purchase the property.

Mortgagor
The person who borrows the funds (money) to purchase the property.

Possession Date
The date the purchaser physically takes possession of the property.

Reserve Price
The reserve price is the amount, which is set by the owner of the property prior to the Auction. After the property meets the reserve price it will be sold to the highest bidder.

Settlement
A date is set for settlement of the sale and at this point the balance of the contract price is paid and ownership of the property transfers from the vendor (seller) to the buyer.

Strata Title or Unit Title
The system of title that applies to units, apartments and some town houses. It applies to the subdivision of air space rather than land - you own part of the building and a share in the land as part of the Body Corporate.

Title Search
Process to ensure ownership of a property.

Unconditional
When the conditions written into the agreement to buy a house have been met, the offer becomes unconditional. The property is now sold and both the seller and buyer must settle.

Vendor
The party (seller) who offers a property for sale.