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Agency type:
Everytime a member of the public employs a real estate agent to sell their property the two parties record their agreement on an agency agreement. There are a couple of different types of agency agreement - each one incurs different responsibilities on the agent.
Types of Agency:
Open Listing:
This type of agreement is used when a person selling a property wishes to list his / her property with a number of agents but only pay a commission to the agent that successfully sells the property.
Multi-Listing:
A Multi-List agreement is used when a person selling a property wishes to list their property with a number of agents but deal with only one of those agents during the sale process. In cases such as these the commission is shared between the agent that lists the property and the agent that eventually sells the property.
Sole Agency:
This type of agency agreement is used when a person selling a property wishes to list with one agent only but at the same time retain the right to sell the property themselves without having to pay a fee.
Exclusive Agency:
Similar to a Sole Agency in that the person selling their property would list with only one agent but in this instance there is no right for the property seller to sell the property themselves without incurring a fee.
Auction:
Similar to an Exclusive Agency except that the property seller and the agent agree to promote a specific day in the future when the property will be offered for sale at a public auction - and hopefully sold to the highest bidder on that day.
Bid:
An offer to buy a property at a specific price during an auction.
Chattels:
Any property other than freehold land.
Conditional Offer:
An offer to purchase a property which is subject the occurance of another event - eg the approval of finance to complete the proposed purchase.
Contract of Sale:
A formal written agreement which states the terms and conditions of sale.
Conveyancer:
A person / company who acts on behalf of another to assist the transfer of property form one owner to another.
Cooling off period:
A stated time after contracts have been signed, in which time a purchaser can change their mind and rescind the contract (generally this period is 5 working days unless otherwise agreed between the parties).
Deed:
A document whereby an agreement is made, obligation entered into or property conveyed and is signed by all parties to the agreement.
Deposit:
The amount of money paid by a property purchaser and placed in trust as evidence of their intention to purchase.
Disbursements:
Money paid out by an agent generally on behalf of a property owner and which can include advertising, rates, taxes, insurance, service fees etc.
Endorsement:
Signing of a document.
Exchange:
An exchange of contracts occurs after both purchaser and vendor have signed the contacts and the contracts are physically exchanged from one party to the other.
Improvements:
Anything that is built on the land, for example the house.
Instruct:
Give authority to another person e.g.. Solicitor, agent, friend, to act on your behalf.
Legal fees:
Money paid for legal work completed by Solicitor or Conveyancer.
Listing:
The recording of properties as being for sale.
Market price:
The price actually paid, or to be paid, for a property
Market Value:
The price that a willing buyer (in full knowledge of the subject property) might pay a willing seller for a specific property.
Mortgage:
A legal document signed as security for the repayment of money.
Mortgagee:
A person or company who lends money to another for the purchase of a property and whose agreement is evidenced in a mortgage.
Mortgagor:
A person or company who borrows money from another for the purchase of a property and whose agreement is evidenced in a mortgage.
Possession date:
The day the purchaser receives possession of the property. This is usually also called the settlement date.
Promotion:
Advising the public and interested people that a property is for sale usually by way of advertising.
Requisitions:
A list of questions that a purchaser puts to the vendor, usually through the solicitor or conveyancer, to determine information about the property such as rates, title, rents, etc.
Service fees:
Money paid to professionals for their work.
Settlement:
The completion of the sale. Documents and money settled between parties.
Settlement day:
The day of completion of the sale. Vendor receives money, purchaser receives possession of property.
Solicitor:
A qualified legal person who acts on behalf of another to assist the transfer of property form one owner to another.
Stakeholder:
A person or company, usually the agent or solicitor, with whom money has been deposited pending the sale of property.
Title:
The ownership of property, or the documents constituting the evidence of such ownership. Types of Title
1. Old System:
The original system of passing title from one person to the next where a series of documents showing the history of the property over a prescribed period and showing by that history who is currently the lawful proprietor.
2. Torrens Title:
The modern method of recording property ownership where each transaction that occurs on a property is registered with an approved government department. In NSW this department is the Land Titles Office.
3. Company Title:
Usually on a block of units owned by a company and run by a board of directors. You purchase shares in the company rather than owning a title or deed.
4. Community Title:
A cluster of homes sharing amenities such as a driveway, drainage etc.
5. Strata Title:
Usually on a group of dwellings such as home units and run by a body corporate. When you purchase a property in a strata titled complex you are actually buying the right to occupy designated air space in that complex.
Unconditional sale:
The point at which the contract is binding.
Vacant possession:
The property seller is said to be willing to provide vacant possession to the purchaser if he / she is willing to provide an empty or vacated property on the day of settlement.
Valuer:
A registered / qualified person who provides a written valuation of a property.
Vendor:
The person selling the property.
Wear and Tear:
The depreciation of an asset due to ordinary usage
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