Unlocking the Mystery of Real Estate Terminology: A Comprehensive Guide to Common Terms and Definitions

Here are some common real estate terminology used in Australia:

Auction: A public sale in which a property is sold to the highest bidder.

Contract of Sale: A legally binding document that outlines the terms and conditions of the sale of a property.

Cooling-Off Period: A set period of time (usually 3-5 days) after the contract of sale is signed during which the buyer can withdraw from the sale without penalty.

Deposit: A sum of money paid by the buyer to the seller as a sign of commitment to purchase the property.

Equity: The difference between the value of a property and the outstanding amount of any mortgages or loans secured against it.

Fixed Interest Rate: An interest rate that remains the same for the entire term of the loan.

Lender’s Mortgage Insurance (LMI): Insurance that protects the lender in the event that the borrower defaults on the loan.

Settlement: The final stage of the sale process, where the balance of the purchase price is paid and ownership of the property is transferred to the buyer.

Stamp Duty: A tax imposed by the state government on the sale of a property, based on the purchase price.

Strata Title: A legal ownership structure used for apartments and townhouses, where the owner owns the individual unit and a share of the common property.

Torrens Title: A system of land registration used in Australia, where each property is assigned a unique title that shows ownership and any encumbrances.

Valuation: An estimate of the value of a property, usually conducted by a professional valuer.

Vendor: The seller of a property.

Author: Mr.Oz

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