Acceptance

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

A body or person who is authorised to act on behalf of the client in the sale, purchase, letting or management of real property.

Auction

A public sale where the property is sold to the highest bidder – 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).

Upon signing a Tenancy Agreement a bond needs to be paid by the Tenant to the Bond Centre (usually equivalent to 4 weeks rent). Please check with the Managing Agent to confirm the amount.

A document, which shows the following: Ownership details, dimensions of the land, details of any mortgages and encumbrances (outstanding charge/liability on a property).

Client

Formerly known as the Vendor of the property (may be preceeded by prospective)

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.

Contract of Sale

A written agreement which details the terms and conditions regarding the sale or purchase of a particular property.

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

Customer

formerly known as the buyer of a property (may be preceeded by prospective)

Deposit

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

When signed copies of the Contract of Sale are physically swapped between the seller and the purchaser.

Where the seller agrees to the sale of the property but before the Contract of Sale is signed the property is sold to another buyer.

Holding Deposit

This is a deposit paid to the vendor – based on the goodwill of the buyer to go ahead with the purchase of a property. It may or may not be refundable at the Vendor's / buyers prior agreement.

The amount of money charged by a lender on an amount borrowed.
Investment Property

Property purchased for the purpose of earning an income through rentals and also obtaining a capital gain.

Details contained on Council Property File relating to properties.

A document which grants a person/s tenancy of a property. A specific period and terms and conditions will apply. Contact the Managing Agent for details.

Lessee

A person (or legal entity) who leases a property.

Lessor

The owner of a property who leases the property to another person (or legal entity).

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.

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

Passed in

A property will be passed in at Auction if it does not meet the set Reserve price.

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.

Process to ensure ownership of a property.

Torrens Title

The system of title that applies to most land in New Zealand.

Vendor

The party (seller) who offers a property for sale - now known as the Client.

The income gained from a property. The yield is usually expressed as a percentage of the value or cost of the investment.