Don’t be baffled by the real estate business’s technical expressions and jargon. Avoid confusion and misunderstandings by swotting up on what those terms mean.
How property expenses such as council rates or water charges are divided up between buyer and seller.
Your real estate agent must legally give you these consumer
guides. One is about the contract you
make with your agent, and the other is about the
The written contract for the sale and purchase of property between the seller and the buyer. In full, it is an agreement for the sale and purchase.
A warning notice registered against a title that a third party might have a right to or interest in a property.
Removable items on a property, such as curtains or a fridge. Chattels for sale with the property should be
detailed on the sale and purchase agreement.
The agent’s fee, usually charged as a percentage of the price.
The legal work associated with transferring ownership of property.
A condition or restriction on a title. This may say, for example, that an owner may
not build something that would obscure a neighbour’s view, or keep a noisy dog
in the subdivision.
This is where a property is owned in common by more than one homeowner. The system was established to avoid the costs of subdivision and predates unit titles.
A cash payment to meet out-of-pocket expenses incurred by a lawyer
on a client’s behalf
A portion of the purchase price, maybe 10 per cent, paid when an agreement for sale and purchase is made.
A right to use another’s property, such as for vehicle access (a right-of-way), or drainage. An easement can be held by a neighbour or authority such as a local council.
The amount of value an owner has in a property. This means the resale value minus any mortgage owed.
Land Information Memorandum, a report purchased from your local council containing information it has on file concerning the property, including valuation data, rates, building and resource consents and zoning.
One who lends money secured against a property
One who borrows money secured against their property.
A multi-listed property is one that is on the books of more than one real estate agent. Many properties that are multi-listed have first been listed with a sole agent.
An indication from one party that it wants to form a contract with
the other. It may be conditional (with
conditions attached) or unconditional
Project Information Memorandum, a report containing information that
may affect planned construction on a site.
Such matters could include drainage problems or classifications by the
Department of Conservation, or the Historic Places Trust.
This term, seen in real estate advertisements, means price on application. It means you need to ask the real estate agent what the price is.
When the buyer gets access to and takes over the property. This usually, but not always, happens on the same day as settlement.
The person, people or company buying a property.
When a policy or claim is transferred to the new buyer, more common since the earthquakes.
The minimum price the seller will accept at auction.
Rateable Valuation, or the value assessed by a valuation agency which the local authority will use to assess the rates. This used to be known as a Government Valuation.
A mortgage where the lender has second claim on the proceeds of the
property if the borrower stops paying.
The interest rate will be higher
When the property is paid for in full. This is done on the settlement date, which is agreed between the buyer and seller.
When a real estate agent has exclusive rights to sell a property for a given period of time.
The division of land into sections.
In and around Christchurch, these are the technical classifications (also known respectively as green-grey, green-yellow and green-blue) imposed by the authorities. The higher the number, the more the land is considered prone to damage in quakes
The document which records the legal description of a property, its
ownership, and any mortgages or other incumbrances on it.
A title search, usually done by a lawyer as part of conveyancing, checks whether the seller is the legal owner of the property and whether there are any other claims on it.
A form of tenure which gives ownership of an apartment, townhouse or unit, while making provision for shared ownership and administration of common areas.
The person, people or company selling the property.
Council rules determining land use.