Glossary of Terms
Negotiating a barrage of mortgage and finance jargon can feel like you're trying to tackle the north face of the Eiger - even for the most financially aware borrowers.
Lenders and brokers often try to dumb down their financial buzzwords, but in many instances confusing financial terms are unavoidable.
To help you pick your way through mortgage and finance jargon we've compiled a full glossary of terms that you may encounter along your path to property ownership.
So if you're confusing your LMIs with your LVRs, or mixing your break costs with your deferred establishment fees, click on any of the terms and phrases below.
Acceptance
The act of agreeing to an offer
Accrued Interest
Interest that has accumulated over a period of time
Adjustment Date
A date for which adjustments of incidental costs and expenses relating to a property purchase are made (e.g. land tax, rates and charges). The adjustment date is normally the settlement date
Adjustments
Changes to the purchase price to include incidental costs relating to the property (e.g. land tax, rates and charges)
Administrative fund
A strata fund that collects levies for the administration of building management
Administrator
A person who is responsible for dealing with a person's estate on their behalf. An administrator is usually involved if there is insolvency, bankruptcy or liquidation
Advertising fees
Fees charges by an agent for marketing the sale of a property. Advertising fees are usually separate charges to commission
Agent
A licensed real estate agent
All monies clause
A clause in a loan contract that allows a lender to use 'all monies' held in the borrower's name with that lender to offset the debt owed by the borrower if the borrower defaults on the loan
Amortisation period
The period within which it takes a borrower to repay a loan in full
Annexure
An attaching document
Arrears
After the due date for payment
ASIC
Australian Securities and Investments Commission
Assets
All property owned by a borrower, as distinguished from a borrower's liabilities. Assets include real and personal property, legal and equitable interests and rights of action
Assignee
A person who is assigned an asset
Assignment
The process of transferring ownership in an asset from one person to another
Assignor
A person who assigns an asset to another
ATM
Automatic Teller Machine
Auction
A sale of property under the hammer to the highest bidder, where no cooling off period applies
Authority
Depending on its context, it can include a reference to a government, non-government, statutory or private body
Bank cheque
Depending on how defined, a bank cheque is normally a cheque drawn from a recognised authorised deposit-taking institution, and may include a credit union or building society
Beneficiary
A person who is entitled to receive the benefit of a trust asset
Body corporate
A legal entity that effectively manages, oversees and regulates all matters relating to a property that is part of a scheme, such as strata, company title, community title, etc
Borrower
A person who borrows money. A borrower may/may not be a mortgagor
Boundary
The official perimeter of a block of land
Breach of contract
A failure to comply with an obligation under a contract
Breach of warranty
A failure to comply with a contractual promise
Break fee
A fee payable if a borrower exits the loan contract. A break fee is usually payable if the borrower exits a loan contract early in the term
Brick veneer
Single brick wall construction
Bridging finance
A loan facility to 'bridge the gap' between the existing facility and the amount required to secure a purchase
Building certificate
A certificate to confirm that the building meets development requirements. A building certificate is not an occupation certificate
Building inspection
An inspection to assess the quality of a building
Building insurance
A type of insurance cover to protect the owner from loss/damage to a building
Buyers agent
A person who acts on the buyer's behalf to purchase a property
Call option
An option giving the buyer a right (but not the obligation) to 'call' on buying a property at a set price and within a set period
Capital
The value used to create an asset, or contribute to its improvement
Capital gain
A form of income derived from a gain on a capital asset
Capital Gains Tax (CGT)
A tax on capital gains, subject to exemptions
Capped loan
A loan with a fixed ceiling or 'cap' in terms of loan term or interest
Caveat
A document that effectively prevents anyone else registering an interest in a piece of land that is the subject of the caveat
Caveat Emptor
A Latin doctrine that means 'buyer beware'
Certificate of title
Also known as a title deed, it is the original documentary proof of land ownership
Charge
An interest held over an asset by way of security. A charge can be fixed or floating, or both
Chattels
Goods (e.g. personal items)
Cheque
Includes a bank or personal cheque
Claim
Depending on how it is defined in a contract, it can be a claim, suit, demand, action, or cause or action, and may be actual or contingent on an event happening
Collateral
See: 'security'
Commercial
Related to business or commerce
Commission
A form of remuneration received by an agent, usually calculated as a percentage of the property sale price
Common area
On a strata plan, it is an area commonly shared by all occupiers. Strata lot owners contribute to its maintenance, but do not themselves own the area
Common plan
A strata plan showing areas of common use for all tenants
Community corporation
A form of ownership where the land is owned subject to a community scheme. The legal entity owning the land is called a community corporation
Community lot
A lot within a community title scheme
Community plan
A plan, much like a strata plan, showing areas of common use for all tenants under a community scheme
Community title
Much like strata title, community title land is divided into lots and is owned by the members of a community scheme
Company
An incorporated body that can sue and be sued in its own name
Company title
Owners of company title property do not sell strata 'lots'. Instead they effect transfer of property by selling their share in the company that owns the property
Comparison rate
A tool to identify the true cost of credit, taking into account the amount, term, repayment rate frequency and interest charged on the loan. Comparison rates do not include government fees
Completion
The date the sale is completed (contract end date). Also known as 'settlement'
Completion date
The date of settlement of a contract
Compound interest
Interest charged on interest over a frequency period, say monthly
Concession
A partial exemption, or discount
Conditional loan approval
A loan approval granted on the condition that the borrower satisfies the lender's specified requirements
Consent
An authority or permission, generally required in writing
Consideration
Something a person gives to someone in consideration for a promise. Under a contract for sale of land, the consideration is normally the purchase price
Consumer Credit Code
A uniform code across all Australian states that regulates the consumer credit industry. Home loan and personal finance borrowers have rights under the Code.
Contents insurance
A type of insurance cover to protect the owner from loss/damage to a building's contents, such as its fixtures and fittings
Contract date
The date on which a contract is signed and exchanged by all parties
Contract of sale
A written legal document setting out each party's rights and obligations to effect a transfer of a legal interest in land. A transfer of land cannot occur without a contract for sale
Conveyancer
A person who is licensed to act on behalf of a person to effect a transfer, assignment, lease or other dealing with respect to an interest in land
Conveyancing
The act of transferring, assigning, leasing or engaging in other dealings with respect to an interest in land
Conveyancing searches and enquiries
Searches and enquiries conducted as a part of the conveyancing process to establish the right to title, ownership and to reveal and defects of title in the property. Defects of quality are usually the buyer's responsibility to investigate
Cooling off period
A period after exchange within which the buyer can elect in writing to rescind the contract without substantial penalty
Cost agreement
An agreement between a lawyer and client setting out the cost estimate the client agrees to be bound to
Cost disclosure
A written disclosure of a lawyer's fees as required to be provided under law before a lawyer can accept a client retainer
Covenant
An undertaking to do something. A positive covenant on title requires the owner to do something to comply with it, while a negative covenant restricts an owner from doing something in relation to the land
Credit
Money advanced to a person
Credit adviser
A person who advises in relation to any form of consumer credit (whether in regards to a home loan, personal loan or credit card)
Credit agency
An agency responsible under Australian privacy law for reporting credit activities to a bureau
Credit file
Information maintained by a credit reporting bureau about a person's credit history, including applications for credit and defaults
Credit history
A person's history of credit activity, including applications for credit and defaults
Credit limit
The limit for which a person can receive an advance of money
Credit reporting
The act of reporting a person's credit history
Creditor
A person to whom money is owed
Damages
Costs and expenses recoverable from a person under law (e.g. by reason of breach of contract)
Dealing
An act in relation to land
Dealing number
A registration number granted under the Torrens title system in relation to a dealing
Debenture
A document that creates or acknowledges a debt
Debt-to-income ratio (DIR)
The relationship between the amount of a person's debt to their income, used to assess loan affordability
Debtor
A person who owes money
Deed
A legal document that has a longer lifespan than a contract, and for which no consideration is required
Default
Failure to comply with an obligation under a contract, such as a failure to pay. Also known as a breach of contract
Delinquency
A default in relation to an obligation
Dependents
Persons dependent on someone for their care and maintenance (e.g. children)
Deposit
An amount paid under a contract for sale to secure the deal. A deposit can be lost, plus other costs and expenses in the event of contract termination for a buyer's breach
Deposit bond
A legal document from a lender that guarantees the payment to the seller of the deposit in the event the contract is terminated for the buyer's breach
Deposited plan
An official plan of the land stating the land measurements, and showing the location of registered covenants and easements
Depreciation
A tax incentive that is calculated based on the diminishing value of a building over time
Detached house
A standalone house (i.e. not a duplex)
Development application
An application to council for the development of a building on a parcel of land
Development consent
The formal grant of a development application, which may/may not be subject to conditions
Direct debit
The automatic deduction from a person's bank account of an amount of money, usually by way of making loan repayments
Disbursements
Incidental fees and charges
Discharge fee
A fee payable by the borrower to the lender on the discharge of a mortgage
Discharge of mortgage
A release of the owner from all liability and obligation to the lender under the mortgage
Disposable income
Net tangible income remaining after tax, superanunuation, debts and living expenses are deducted
Down payment
An upfront payment
Draw down
The act of withdrawing money from the balance of the loan, thereby increasing the principal
Easement
A right to use another person's property for a specific purpose, such as a right of way, a right of carriageway, or a right to maintenance of a part of land
EFT
Electronic Funds Transfer
Encumbrance
Generally, a right or interest of a third party
Equitable interest
An interest that is just but not necessarily a legal interest
Equity
The non-tangible value a person holds, say with respect to property
Equity loan
A loan taken on the equity value of a property
Escrow
Holding something, say money or documents, for the benefit of someone else, or on the satisfaction of certain conditions being met
Establishment fee
A fee payable by the borrower to the lender for the establishment of a loan
Estate
A person's assets and liabilities
Evergreen
A short-term loan which is continually renewed rather than repaid
Exchange of contracts
The formal act of acceptance of a contract for sale. Normally, it involves each party receiving from the other a counterpart signed contract
Exclusions
Things that are not inclusions
Executor
A person appointed to execute a deceased person's estate
Exemption
Unlike an 'exception' an exemption acknowledges a person's general liability to pay, but says the person does not have to pay for a specific reason
Exit fee
See: 'Break fee'
Fee simple
Ownership of land
FHOG
First Home Owners Grant – a government inventive for first property buyers
Final inspection
An inspection conducted immediately before settlement to ensure the quality of the property has not changed significantly from first inspection
Final search
A title search carried out immediately before settlement to ensure no encumbrances (e.g. writes, caveats) have been recorded on title between exchange and settlement
Finance clause
A clause in a contract where the buyer promises it either has adequate finance to complete the sale, or undertakes that it will have adequate finance by settlement
Financial adviser
A professional adviser on personal and business finance who holds an AFSL or is an authorised representative of an AFSL holder.
First home buyer
A person who buys property for the first time, subject to an eligibility criteria
Fittings
Items of a property that can be removed (e.g. demountable sheds, curtains, light fittings)
Fixed charge
A charge over specifically identified assets of a borrower that can be repossessed by the lender if the borrower defaults on the loan
Fixed rate
A fixed rate of interest for a term of the loan
Fixtures
Items of a property that substantially form a part of the property and cannot be removed (e.g. building, driveway, carport, etc)
Floating charge
A charge over the assets of a borrower, including future assets, that will 'crystallise' (become a fixed charge) on the default of a borrower
Folio identifier
A title description of land registered under Torrens title system law
Foreclosure
The act of a lender liquefying the assets of a defaulting borrower
Freehold interest
An interest in land ownership
Gazumping
The act of a seller accepting the bid of another person after having accepted an earlier bid
Government fees
Includes stamp duty and other fees
Gross income
A person's total income before the deduction of tax and other expenses
Guarantee
A promise by a third party to pay to the lender the costs, expenses and damages payable by a borrower under a contract. A guarantee can be limited or unlimited to a certain amount
Guarantor
A person who promises the lender to pay the borrower's expenses in the event of a borrower's default. This normally includes the lenders costs of recovery, penalty interest another expenses
Holding deposit
As distinguished from a deposit under contract, a 'holding deposit' is a token amount paid to the agent as a sign of good faith. There is no legal obligation to pay a holding deposit
Honeymoon rate
See: 'introductory period'
Identification survey
A survey of land carried out by a qualified surveyor to assess the boundaries and any encumbrances by or on the land
Inclusions
Items that are specifically to be included in a contract sale price
Income statement
A statement detailing a person's income and expenses
Indefeasibility
The act of having impenetrable ownership despite prior unregistered interests
Indemnity
A form of legal protection that enables an indemnified person to recover from the indemnifier an amount necessary to put the indemnified person back in their original position had a specified event not happened. Indemnities should be scrutinised carefully before signing a contract because they may cover the acts of third parties
Inflation
Price expansion
Input-taxed
A term sometimes used when referring to GST. A supply can be input taxed if it falls into a certain category, such a residential home sale. You do not pay GST on input taxed supplies, as these are government-approved exemptions
Instalment
A part payment, also known as a 'tranche'
Interest
An amount payable at a rate and frequency, usually expressed as a percentage. Interest can be fixed or variable, or split
Interest only loan
An interest only loan requires the repayment of interest only. Loan repayments are generally lower than principal and interest loans, but they are more suited to investment finance activities
Introductory period
A period of the loan offering a lower than usual interest rate or lower fees and charges to lock in borrowers. See also: 'honeymoon rate'
Investment of deposit
A conveyancing term that describes when interest accumulated on the deposit is invested at a high interest rate. The profits are generally split between the parties on settlement
Investment property
A property primarily used for capital gain
Investor
A person who invests money to typically achieve capital growth
Joint and several liability
A term that means each party to which it refers is liable both personally and jointly with the other person. A person enforcing a joint and several liability clause can make a claim against one or the other or both
Joint tenant
A joint tenant is a person who owns the whole of a property jointly with another and has a right of survivorship if the other becomes deceased
Joint venture
A project undertaken by two or more people
Land tax
A tax payable on the value of certain land each calendar year. Land tax carries with it a government charge over the land that must be released before the land is sold
Land tax clearance certificate
A statutory certificate issued over a parcel of land certifying that no land tax charge exists
Landlord
The owner of a property that is occupied or leased by tenants
Lease
A right to lawfully occupy a property. A lease does not give the tenant ownership rights
Leasehold interest
An interest to lawfully occupy a property
Leasehold mortgage
A mortgage over a lease
Legal adviser
A qualified legal professional (e.g. a lawyer)
Legal interest
A right or interest at law, as opposed to a right or interest in equity
Lender
A person or institution that lends money
Lenders mortgage insurance (LMI)
A type of insurance that protects the mortgagee from loss if the mortgagee cannot recover all costs from a defaulting mortgagor. LMI is normally passed on to the mortgagor
Lessee
A tenant
Lessee disclosure
Disclosure provided to a tenant to a landlord about his/her background and financial position
Lessor
A landlord
Lien
A right to hold an asset until certain conditions are fulfilled. If not fulfilled the person who holds a lien has the right to own the asset
Line of credit mortgage
A non-fixed term facility that allows the borrower to use offset savings to repay the mortgage while living on credit
Liquidator
A person appointed at law to realise the assets of an insolvent person or company
Loan
Money advanced to a person with the agreement that it will be repaid
Loan approval
Formal approval from the lender that the loan has been granted
Loan fraud
A dishonest and illegal act committed by a person in relation to a loan
Loan maturity
The date a loan becomes repayable
Loan purpose
The purpose of the loan (e.g. residential, business, investment)
Loan-to-Valuation Ratio (LVR)
The relationship between the amount of the loan and the property valuation
Lock in
To set a rate of interest for a term
Lot
A parcel of land (generally within a larger parcel)
Low doc mortgage
A type of non-conforming loan where the borrower is not required to show PAYG documentation
Lump sum repayments
A repayment in a full or 'lump' sum
Margin
When referring to margin lending, the margin is the difference between the current and future value of a person's security
Margin lending
The process of using the value of an existing security to invest in other securities
Maximum LVR
The maximum ratio a lender will lend at for a loan product and customer
Median
The middle value in a range: not to be confused with the 'average' value
Memorandum of transfer
A formal document evidencing transfer of an interest in land
Minimum loan amount
The lowest amount a borrower is allowed to borrow
Minimum lump sum payment
The lowest amount a borrower is allowed to pay in a lump sum
Minimum redraw
The smallest amount a borrower can redraw
Minimum repayment
The lowest repayment a borrower is required to make under a loan contract
Mixed use
In regards to zoning, mixed use refers to the permitted use of a property for residential and commercial purposes
Monthly fees
Fees (including government fees) payable each month under a loan contract
Mortgage
A formal document that may be registered or unregistered, giving the mortgagee security of the land in return for an advance of money
Mortgage aggregator
A mortgage company that aggregates or 'collects' several independent brokers under one umbrella
Mortgage broker
A person who helps a borrower find a suitable loan in return for the payment of commission
Mortgage duty
Stamp duty payable on a mortgage, In many states, this has been abolished
Mortgage manager
A person or lender who arranges the funding for a home loan
Mortgage offset account
A savings account used to offset the interest payable on a loan
Mortgage originator
A person from whom the loan comes from or 'originates' i.e. the person who lends the money
Mortgage protection insurance
A type of insurance that provides cover in the event the borrower is unable to meet their mortgage repayments due to death, sickness or injury
Mortgagee
A person who has a mortgage granted in their favour as security for a loan, e.g. a lender
Mortgagor
A person who has given a mortgage over their property as security for a loan, eg: a borrower
Negative gearing
An investment strategy where the income generated by the asset does not exceed the loan repayments and a gain is made through the capital increase in the property's value over time
Net income
A person's gross income, less tax and superannuation deductions
Non-conforming mortgage
A non-standard home loan catering to borrowers that are self-employed, or have a high credit risk
Notice of sale
A formal statutory notice to advise government and departmental authorities of a change of property ownership
Novation
A variation to a legal document by consent
Occupation certificate
A statutory permission to occupy a property once it has been built. It can be an 'interim' or 'final' certificate
Off the plan
A property that is for sale before it has been built
Offer
An act that is more than a mere invitation to treat
Official cash rate
The cash rate determined from time to time by the Reserve Bank of Australia
Offset savings
The amount of money held in a mortgage offset account, used to offset a loan liability
Old system title
A form of title ownership in Australia that requires ownership to be traced back in time by about 30 years to establish a good 'root of title' (i.e. to ensure there are no other rights or interests by third parties)
Ongoing fees
Fees and charges payable by a borrower from time to time, as described in the loan agreement
Option to purchase
An option given to a person to buy a property, normally for a pre-agreed price and during a set period of time
Order on the agent
A letter from the purchaser's solicitor or conveyancer authorising the real estate agent to release the deposit held by it to the vendor
Origination fee
A fee for originating the loan charged to the borrower
Overdraft
An event that occurs where the amount withdrawn from a bank account exceeds the amount available for withdrawal
Owner occupied
A property that is inhabited by the owner
Owners corporation
A membership body that in effect manages a strata building by holding meetings
Party/party walls
Jointly owned walls in a building
Passed in
The act of a property failing to meet its reserve price at auction, or failing any bids
Personal property
All tangible and non-tangible property belonging to a person, excluding land
Pest Inspection
Inspection to detect any signs of pests in a property, usually made prior to settlement
Planning certificate
A government-issued document that describes the zoning of an area of land, planning instruments governing the use of that land, and whether there are certain affectations concerning the land, (e.g. risk of flood, bushfire, soil erosion, etc)
Portability
The ability for a borrower to transfer a home loan from one property to another, without the usual set up and exit fees
Positive gearing
An investment process, where the income generated by the asset is sufficient to cover the loan repayments
Possession
Having a right to occupy a property. Possession is not ownership
Possession before completion
Having a right to occupy a property before the property is bought or sold
Post-completion period
The period after settlement of a land contract, when title has passed from the seller to the buyer
Power of attorney
A power given to another person (an attorney) to do certain acts and things on behalf of the person giving the power. There are various types of powers of attorney
Pre-approval
An approval given by a lender to advance money to the borrower on specific terms and if certain conditions are met
Pre-completion period
The period before settlement of a land contract
Pre-payment
A payment made before the required date
Prescribed documents
Documents legally required to be included in a contract for sale. While this varies in each state, it generally includes the title search, deposited plan and copies of any leases
Principal
The amount of the loan advanced from a lender to a borrower
Principal and Interest loan
A loan that requires the repayment of both the principal and the interest
Private sale
A sale of property without the intervention of an agent
Product Disclosure Statement (PDS)
A legal document that explains the loan in detail and sets out the risks to the borrower
Property
Depending on the context it may mean real estate or personal property, or it could encompass both
Proxy
A permission to do something (e.g. vote) on behalf of someone else
Purchaser
A buyer
Put option
An option to allow a buyer to buy land on pre-agreed terms
Quantity survey
A survey of land boundaries and affectations carried out by a quantity surveyor
Rates certificate
A section 603 certificate
Rates notice
A notice containing rate expenses (e.g. council rates, water rates, electricity rates) and detailing if payment has been made, used in conveyancing for adjustment purposes
Real property
Land (including buildings and fixtures on it)
Refinance
The process of getting a new loan on different terms to replace (in whole or in part) the existing loan
Registered interest
An interest in land that is registered on the title of a property
Release
A legal right to walk away from a commitment, obligation or agreement
Rent
Also known as leasing. Rental money is money paid or received in relation to a person occupying a premises
Repayment
An amount of money paid by a borrower back to the lender to satisfy all or part of the debt owed
Replies to requisitions
Vendor's replies to questions relating the quality of subject land title, provided in accordance with a contract
Requisitions on title
A list of questions the buyer is normally entitled to ask a seller about a property and any defects it may have within a short period of time after exchanging contracts.
Rescission of contract
The unmaking of a contract between the parties, to put the parties in the same place they would have been had the contract not have been entered into. Rescission is different to termination of a contract
Reserve price
A minimum sale price set by the seller for an auction
Residential
In relation to zoning, means land used for residential (private occupancy) use
Restriction as to user
Restrictions on how property is used, may relate to zoning
Restrictive covenant
A promise by someone to refrain from doing something
Revenue office
State taxation office
Reverse mortgage
A mortgage where the borrower borrows against the value of their home over time the debt to equity ratio in the home. Repayments are made by the borrower or the borrower's estate
Right of way
A right to legally trespass on someone else’s property
Rural
In relation to zoning, means land used for rural (farm) purposes
Section 66W Certificate
The NSW name for a certificate that waives a buyer's statutory cooling off period under a contract
Securitisation
Structured debt funding
Security
Collateral for a debt, which can be given in many different forms (e.g. a guarantee, charge, lien, mortgage, caveat, etc)
Semi-detached house
A house that is part standalone, such as a townhouse
Serviceability
The ability of a borrower to make repayments or 'service' a loan
Settlement
The completion of a transaction
Settlement agenda
A document used in the settlement process detailing what each party will receive on settlement
Settlement date
Date set by vendor for completion of property transfer, including full payment of the asking price
Settlement sheet
Also known as an adjustment sheet, a settlement sheet contains calculations on the balance purchase price taking into account rate adjustments, etc
Severing joint tenancy
The act of changing joint tenant ownership to tenants in common
Sinking fund
A strata fund maintained by an owners’ corporation to account for emergency expenses required to contribute to the upkeep of a property. All members contribute to the sinking fund
Solicitor fees
The fees charged by a solicitor for legal services in relation to a property sale or purchase
Special conditions
Conditions of a contract that are not a part of the standard conditions – they are usually drafted for specific circumstances
Split loan
A loan that has both a fixed and variable interest rate component
Stamp duty
A state tax payable when a transaction regarding dutiable property, such as land, occurs
Standard variable rate
A floating interest rate charged by a lender
Statutory declaration
A legal declaration used to certify a fact and sworn before a solicitor or Justice of the Peace
Strata inspection report
A report detailing all matters, administrative, legal, financial and otherwise, relating to a strata building
Strata levy
A fee imposed on members on a quarterly or annual basis to contribute to the repair and maintenance of a strata building
Strata plan
A plan of strata title setting out individually owned and common areas of a building
Strata title
A form of ownership where the land is owned by a legal entity called a body corporate and the building is divided into lots which are owned by various occupiers who wholly form the owners corporation
Sub-lease
A lease given by the tenant to a third party
Sub-lessor
A person who is a tenant under an existing lease and leases his or her interest under that lease to another person
Subdivision
The act of dividing a block of land into separate blocks
Surety
A guarantor or security provider
Survey
See ‘quantity survey’
Switching fee
A fee payable by a borrower from switching from a variable to fixed loan structure
Tax invoice
An invoice issued under Australian tax law, notably containing an amount for the payment of GST
Tenant
A person who occupies a property and pays rent – also known as a lessee
Tenant in common
A tenant in common is a person who owns a part of the whole property and has rights only in respect of his or her share. There is no right of survivorship in respect of that person's share
Term
A stated period of time
Termination of contract
The act of ending a contract
Third party
A person outside of a direct transaction
Title search
A document evidencing a search of the land titles register identifying a property and its notifications on title
Torrens title system
A form of title ownership where a person's rights are indefeasible subject to any patent (registered) defects on title
Townhouse
A semi-detached house
Trust
The act of holding money for the benefit of someone else
Trust money
Money held by a person for the benefit of others
Trustee
A person who holds money for the benefit of others
Unconditional loan approval
A loan approval
Underwriting
The act of guaranteeing the performance of a contract financially
Unencumbered
Unaffected by adverse affectations
Unit
An apartment
Unregistered interest
An interest in land that is not recorded on the title register, which may affect its enforceability
Upstamping
The process of paying additional stamp duty to an increase in the value of the dutiable transaction
Valuation
A process of attaining an assessment of the market value of a property, usually by an independent valuer
Valuer
A qualified person who ascertains value
Variable rate
An interest rate subject to fluctuation from time to time depending on the market changes
Variation
A change to a document. A mortgage variation generally requires a written document to be signed, stamp duty paid, and the documents being registered on title of the land
Vendor
A seller
Vendor disclosure
The process of a seller telling the buyer all things a buyer would need to know before buying a property. Vendor disclosure about certain matters are required by law
Vendor finance
The process of a buyer borrowing money from the seller to finance a purchase
Vendor statement
A form of written vendor disclosure required in some states
Voting rights
Rights to vote at a meeting, e.g. owners corporation
Waive
To give up a legal right
Waiver of cooling off period
The process of agreeing to be locked in to the contract without the right to pull out within the 'cooling off period'
Warranty
A promise at law
Withdrawal of caveat
The act of formally removing a caveat lodged over title of a property
Zoning
The legal permissible use for a property, such as residential, retail, commercial, or mixed use