Real Estate Jargon – what does it mean?
Acceptance Date : The date the vendor and purchaser both agreed to the terms of “The Sale and Purchase Agreement”, and it becomes a contract.
Appraisal : Where a Real Estate Salesperson comes and looks at your property and gives you an indication of where they believe it would sell. You usually work with one salesperson and they will arrange other people to help provide a well rounded opinion. You are not likely to get an instantaneously answer – your salesperson is likely to come back to you in 1 or 2 days.
Auction : A method of selling a house where people publicly bid against each other to buy the property.
Buyer : A person looking to buy a property.
Buyer Budget Over (BBO) : A simple explanation – all buyers (including vendors when they were buyers), would agree that they have a planned budget which they can afford or are prepared to pay to purchase a property. In order that the right buyers, see the right properties, “Buyer Budget Over” helps to give buyers an indication if the property is in a price range that they are looking for.
Buyer Enquiry Over (BEO) : This is a price which indicates the bottom range that the property is likely to sell for. The vendor does not have to accept any offer at this level. It is used as a guide for people to indicate the value of the property.
Chattels : There are specified items that are to be left at the property, usually these are things such as fixed floor coverings, curtains, stove, TV aerials, light fittings. Check that there are not any specific inclusions / exclusions that you need to be aware of.
Closed Tender : A closed tender is like a silent auction – It means that on a set date and time interested parties put in sealed offers on a property based on what they would like / can afford to pay. No one (except you) should know in advance what any offer is worth. In most cases – your first offer is your final one and you generally do not have the option to negotiate your price and conditions further.
Conditional : This means that the contract has some aspects / things which need to be completed prior to becoming unconditional. This is usually things such as title search, finance, valuation or a builders report
Confirmation Date : This is the date which any conditions in “The Sale and Purchase Agreement” will need to have been met by and the contract becomes an Unconditional Contract Agreement.
Deposit : An amount of money which is paid to the Real Estate Company and is held in a Trust account pending the completion of a sale for 10 days. It is a sign of good faith from a purchaser that they plan to go ahead with the sale.
Deadline : Often Real Estate companies will require that a deadline is called before an offer can be presented. This means that all the salespeople in that company will be notified that there is interest on a specific property and that there is a signed offer in place. This gives time for other interested buyers to get an offer prepared and signed. This works for the Vendor to ensure that all interested parties are given the opportunity to get their offers in.
Exclusive : Where an owner has agreed that they will only use one company to sell their property
General Listing : Where an owner agreed that several companies can try and sell their property.
Listing : When someone chooses to sell their property using a real estate salesperson, the property is registered as a listing on that company’s books. This means that there is a written agreement for a salesperson to promote and sell the property on behalf of the owner.
Possession Date : This is usually the same as the settlement date – however there may be circumstances where possession is granted earlier or later than settlement.
Purchaser : The person who has purchased a property.
Open Tender : An open tender means that there is no set date on which offers are required to be in by. At Leaders (for properties not up for auction or closed tender) buyers can put in an offer after a property has been on the market for more than 48 hours (within working days).
Settlement Date : The date the Purchaser pays for the property in full and the property will change ownership from the vendor to the purchaser.
Unconditional : Means that there is an agreement in place which is binding and is not subject to any conditions.
Vacant Possession : Means that the property is required to have no one living in it and be empty and tidy at the time settlement takes place.
Vendor : The is the owner of the property that is for sale.1,618 views