Whether you've been at it for a few days, weeks, or even years, house hunting can make the process of buying or selling a home seem like learning a whole new language. This feeling can be amplified when you consider the variations in terminology across different countries, states, and agencies. To make this journey smoother, we've put together a guide to the essential terminology you'll encounter in the process, specifically in South Australia.
Agent: A licensed professional authorised to facilitate property sales or purchases.
Appraisal: An appointment or discussion with a real estate agent to obtain their expert opinion on the value and sales process of a property. During an appraisal, the property consultant may also provide strategies to enhance the property's value through updates or renovations. Notably, there is no charge for an appraisal at Lands Real Estate.
Auction: A public sale conducted by an auctioneer, typically held at the property itself (though not always). The property is sold to the highest bidder once it has met the reserve price and is officially on the market.
Auctioneer: A licensed professional responsible for conducting an auction. The auctioneer can be the listing agent, provided they are licensed to do so, or a specialised auctioneer.
Building Inspection: An examination performed by an external party to ensure that a property complies with building control regulations. This inspection is usually carried out within the 48-hour cooling-off period or before an auction.
Buyer's Agent: A licensed professional engaged to represent and negotiate on behalf of a buyer, with their fees paid by the buyer.
Capital Gain: The increase in the value of a capital asset when it is sold. This occurs when the selling price exceeds the original purchase price.
Capital Gains Tax: A tax levied on the capital gain realised from the sale of an investment property. Refer to the current requirements of the Australian Taxation Office (ATO) for specific details.
Caveat: A notice on the property title that indicates a possible interest or claim other than that of the owner.
Commission: A fee or payment made to an agent for their services, such as the sale of a property. The commission amount is typically specified in the sales agency agreement and is often calculated as a percentage of the contract amount, though sometimes it may be a fixed, agreed-upon sum.
Contract Of Sale: A legally binding agreement that governs the sale of a property, outlining the terms and conditions of the sale.
Conveyancer: A licensed professional responsible for managing the transfer of ownership of a property with a common law title from one party to another.
Cooling Off Period: A brief statutory period, lasting for two clear business days after a contract is signed, during which a buyer can cancel the agreement for any reason. This cancellation must be in writing as per the Form 1. Notably, this period does not apply in the case of auctions.
Counteroffer: A new offer concerning the price or terms and conditions of a sale, presented in response to a prior offer that was not accepted.