Commonly Used Property Terms And What They Mean

When you are selling or purchasing land or property there are many legal words that may seem unfamiliar and difficult to understand. We at Surani Associates understand that the law and legal agreements is not always easy to understand and that our clients have various levels of understanding about what is required.

We aim to give your clients a better understand of what they need to do and that includes a better understanding of some of these legal terms. So, here is a short list of definitions of some of the most used terms that you may come across when buying/selling a property:

• Sale and Purchase Agreements
  This is a written contract for the transaction of buying/selling a property.
  
  

• Auction
  This is a common method of selling a property either privately or with a real estate agent. All prospective buyers are invited to bit for the property.
  
  

• Back-up Offer
  If the seller has accepted an offer and signed a conditional agreement the seller can still sign an agreement for a back-up offer if the conditions of the first offer is not fulfilled.
  
  

• Cross-Lease
  This is a type of ownership where one property has more than one dwelling. The owners of each dwelling co-own the land and each co-owner has exclusive rights over their designated area. This is a complex form of ownership.
  
  

• Leasehold Title
  This is another type of ownership and is where the landowner allows someone else to lease their land. The person who leases the property own the building however they will still have to pay rent to the landlord as the landlord still owns the property as well.
  
  

• Possession Date
  If you bought a property then a possession date is the date where you get the keys to the house and can take physical ownership of the property. This is usually the same date as the Settlement Date.
  
  

• Settlement Date
  This is the date when the buyer has officially paid for the property and the money has been paid to the seller. Once the payment is made, legal title is transferred to the buyer and the buyer is now the legal owner of the property.
  
  

• Unit Title
  This is a type of ownerships that is common in apartment buildings. Unit title holders own the specific apartment unit however they do not own the apartment building or common areas such as hallways, driveways, car parks and foyers etc. Each unit title holder becomes part of the apartment’s body corporate and can be subject to additional and specific requirements and obligations.
  
  

• Valuation
  Your local council has their own rating system for determining the valuation of a property. This council valuation provides a guide to the market value of the property.
  
  

• Market Value
  The market value of your property is dependent on the property/housing market. Aspects such as location, supply and demand of houses etc. can affect the market price/selling price of your property.