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Agency type
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The way you decide you want your real estate agent to sell your property.
The amount you can expect the agent to do differs with the type of agency
you choose. In general, there are 5 common agency types in use in Australia:
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Open listing (General Engagement to Sell)
This means putting your property for sale with many agents. Agents will not
be able to devote as much time selling your property with agency type.
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Multi-Listing
Putting your property for sale with a group of agents who combine properties.
Similar to an Open Listing except with only one agent in control.
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Sole Agency
One agent acts for you taking responsibility for the sale of your property,
but you retain the right to sell it yourself. Having given the agent your
confidence, you can expect far more service and attention.
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Exclusive Agency (Exclusive Sole Agency)
Similar to the Sole Agency, however you will gain absolute attention from
your agent as the difference is that you now don't have the right to sell
privately. This is the most assured way of best using the professional services
of a real estate agent
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Auction
Another form of Exclusive and highest form of Real Estate selling. Simply,
an Auctioneer puts a property for sale in a public gathering and sells it
to the highest bidder.
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Authority agreement (Vendor's Statement)
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Document signed by Vendor to give the real estate agent authority to sell
the property and includes the agency type.
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Bid
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An offer to buy a property at a given or stated price which is being sold
at an auction.
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Caravanning
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When a group of real estate offices or team members inspect a vendor's property
to determine the best way of promotion and confirm price.
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Chattels
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Any property other that the freehold land. Generally meaning personal property
such as fixtures like light fittings, curtains etc.
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Conditional Offer
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An offer made conditional, for example on availability of finance or sale
of other property.
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Contract of Sale
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A formal written agreement which states the terms and conditions of sale.
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Conveyancer
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A person/company who acts on behalf of another to assist the transfer of
property form one owner to another.
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Cooling off period
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A stated time after contracts have been signed, in which time a purchaser
can change their mind and rescind the contract.
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Deed
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A document whereby an agreement is made, obligation entered into or property
conveyed and is under the seal of the parties in the document.
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Deposit
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The amount of money placed in trust as evidence of the intention to purchase.
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Disbursements
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Money paid out by the agent, which can include advertising, rates, taxes,
insurance, service fees.
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Endorsement
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Signing of a document
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Exchange of Contracts
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Exchange of contracts occurs after both purchaser and vendor have signed
the contacts and the contracts are physically exchanged from one party to
the other.
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Improvements
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Anything that is built on the land, for example the house.
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Instruct
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Give authority to another person e.g.. Solicitor, agent, friend, to act on
your behalf.
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Legal fees
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Money paid for legal work completed by Solicitor or Conveyancer.
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Listing (or 'to list')
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Recording that a property is for sale.
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Market
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The market is the buyers that are around at the time a property is for sale.
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Market price
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The amount of money that the buyers at the time are willing to pay for a
property.
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Mortgage
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A legal document signed as security for the repayment of money when you borrow
money to purchase property.
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Mortgagee
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The lender of the money.
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Mortgagor
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The borrower of the money.
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Possession date
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The day the purchaser receives possession of the property. This is usually
the settlement date.
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Promotion
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Advising the public and interested people that a property is for sale.
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Requisitions
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A list of questions that a purchaser puts to the vendor, usually through
the solicitor or conveyancer, to determine information about the property
such as rates, title, rents, etc.
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Service fees
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Money paid to professionals for their work.
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Settlement
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The completion of the sale. Documents and money settled between parties.
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Settlement day
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The day of completion of the sale. Vendor receives money, purchaser receives
possession of property.
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Solicitor
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A qualified legal person who acts on behalf of another to assist the transfer
of property form one owner to another.
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Stakeholder
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A person or company, usually the agent or solicitor, with whom money has
been deposited pending the sale of property.
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Title
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Document that states the owner of the land and the way the land or property
is classified by the Government Surveyors.
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Types of Title
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Old System
The original system of passing title from one person to the next. Records
are checked for transactions on the property for the last thirty years or
more.
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Torrens Title
A more simple title that checks the present owner's financial obligations
before proceeding with the transfer to the new owner.
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Company Title
Usually on a block of units owned by a company and run by a board of directors.
You purchase shares in the company rather than owning a title or deed.
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Community Title
A cluster of homes sharing amenities such as a driveway, drainage etc.
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Strata Title
Usually on a group of dwellings such as units and run by a body corporate,
you purchase a Title deed.
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Unconditional sale
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The point at which the contract is binding.
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Vacant possession
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The property will be vacant at settlement.
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Valuer
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A registered and qualified person who makes a financial valuation of a property.
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Vendor
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The person selling the property.
