Real Estate Terms

Addition – Any construction or change in a building which increases the overall area of the structure.

Architect – A person who is qualified to design buildings and supervise their construction. 

Assignment of lease – The transfer of the interest of a tenant to another whereby the other person becomes the tenant in the place of the assignor. 

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).

Capital Gains – The difference between purchase price and selling price in the sale of an asset (actual profit made); used primarily in income tax calculations. 

Contract of sale – An agreement relating to the sale of property, which expresses the terms and conditions of sale. 

Easement – A right which a person has to use land belonging to another in a particular manner not involving the taking of any part of the natural produce of that land – or of any part of its soil; or a right to prevent the owner of that land from using his land in a particular manner. 

Hectare – The metric measure for an area of land measuring 10,000 square metres (approx 2.47 acres)

Industrial Estate – An area of land subdivided for the purpose of industrial development.

Market price – The price actuallyl paid, or to be paid for property. It differs from market value in that it is an accomplished fac, whereas market value is and remains an estimate until proved. 

Property Management – A division of a real estate office composed of leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients. 

Purchaser – The buyer. The one who acquires title to a property or an interest therein. 

Tenant – Any person in possession of real property with the owner’s permission. 

Trust Account – A bank account relating to monies received or held by an agent for or on behalf of any other person, eg. deposits, rental etc. 

Valuation – The term applied to the procedure followed in ascertaining value. It is also sysnonymous with the actual estimate of value or the written report. 

Vendor – One who sells anything. In real estate transactions it is the person disposing of the property. 

Source: A glossary of terms used in Real Estate and Valuation practice. Second edition. – The Real Estate Institute of Australia

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