Getting to know the language of property
When you're new to real estate, it can sometimes feel like everyone’s speaking another language. You’ll hear words like “exclusive agency”, “conveyancing”, or “cooling-off period” thrown around, and it’s completely normal to feel a bit lost at first.
This section is here to help make things clearer. We’ve put together a list of the most commonly used terms you’re likely to come across in the property industry. Each term comes with a plain English explanation, so you can get your head around the lingo and feel more confident using it in the real world.
Agent: A person authorised to act for another (usually for the owner) in the selling, buying, renting or management of a property. Commonly used to refer to licensed real estate agents and real estate representatives.
Agency Agreement: An agreement between an owner and the agency to act on their behalf. There are several types of agency agreement including a Selling Agency Agreement (SAA) and a Management Agency Agreement (MAA)
Appraisal: An estimate of a property's value if it were currently on the market
Arrears: Arrears refer to payments that are overdue or unpaid, especially in the context of rental payments.
Assistant Agent: Title given to holders of a Certificate of Registration
Auctioneer: A licensed real estate agent who has accreditation to conduct auctions.
Auction: An auction is a sale method involving potential buyers bidding on properties with the highest bidder winning the sale.
Bond (rental): A rental bond, also known as a security deposit, is a sum of money paid by a tenant at the start of a tenancy to the landlord or real estate agent, which covers potential damages, unpaid rent, or other breaches of the tenancy agreement.
Bid: A verbal or written offer to purchase.
Certificate of title: A document showing ownership and interest in a parcel of land.
Commercial property: Property intended for use by all types of retail and wholesale stores, office buildings, hotels and service establishments. In many property circles, commercial property refers specifically to office property.
Commission: The fee or payment made to an agent for services rendered, such as the sale of property, often calculated as a percentage of the final selling price.
Contract of sale: An agreement relating to the sale of property, which expresses the terms and conditions of sale.
Cooling off period: A short statutory period after the contract is made, during which the purchaser may cancel the contract unconditionally. Usually does not apply in the case of auctions.
Conveyancing: The legal process of transferring the ownership of a property from one party to another, usually as part of a property sale.
Cooling off period: A period after a sale in which buyers are given the opportunity to cancel the transaction without being subject to the conditions of the sale. This period will vary between states and does not apply to properties sold through an auction.
Common Property: Areas of a building, land or amenities within a strata title property that are shared by all owners, e.g. a driveway
Eviction: The removal of a person from a property.
Exchange of contracts: A formal legal process where the vendor and purchaser each sign a copy of the sale contract and then exchange these documents, after which time the contract becomes legally binding on the parties.
Exclusive listing: Where a single agent only is appointed to sell or lease a property under an Exclusive Agency Agreement.
Licensee in Charge (L.I.C): The agent in charge of the running the agency or a specific area of the business.
Management fee (property): The fee charged by the property manager to the landlord for the service of managing a property or properties.
Managing agent: A real estate agent authorised to manage the business affairs in connection with the property. See also Property Management.
Median price: The median price is derived by arranging property prices in ascending or descending order and then selecting the middle price. It is not the average.
Notice of termination: The notice given by either the landlord or tenant that they want to end the rental agreement and vacate the property in compliance with the terms and conditions of the lease.
NSW Civil and Administrative Tribunal (NCAT): An independent tribunal in NSW that hears a wide range of civil and administrative cases, including tenancy disputes, building disputes, consumer claims, guardianship matters, and administrative reviews of government decisions.
Off the plan: Signing a contract for property which has yet to be built. This is often the practice of developers of blocks of high rise units and apartments.
Off market: Property sold without public advertising.
On the market: A term used during an auction when the seller's reserve price has been reached and the property is now officially for sale to the highest bidder.
Passed-in: If a property is not sold at auction because the owner’s reserve price has not been reached, it is passed in.
Periodic lease: Where a tenant continues to rent / occupy the property after the lease has formally expired.
Principal: (a) A term used in most contracts as another name for client or property owner
(b) Usually the owner or L.I.C of the agency
Private treaty: A sale negotiated directly between the parties or their agents.
Property management: The management of a property on behalf of the owner. For example, the leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients.
Property manager (PM): A property manager is a person or firm charged with the upkeep and management of a property on behalf of the owner.
Rent: A payment made periodically by a tenant to the owner for the use of premises.
Rent review: A periodic review of rental under a lease using a predetermined method. For example, an increase in line with Consumer Price Index (CPI) or in accordance with a market valuation.
Rent roll: A group of rental properties managed by a real estate agent and includes names of tenants and the amount they pay.
Residential Tenancy Agreement (RTA): A tenancy agreement is a written contract between a tenant and a landlord. A property manager acts on behalf of the landlord.
Residential tenancy database: A risk management tool used by agents to identify tenants with a history of breaching tenancy rules.
Rural: land or a lot that is used wholly for non-residential purposes, or land that is more than 2.5 hectares in area
Seller: The owner of the property for sale
Settlement: This is the final stage of the sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property.
Settlement date: The date on which a contract of sale is finalised and the balance of money is paid for an asset.
Stock and station agent: Stock and station agents are licensed to deal with livestock, rural property and agricultural products on behalf of their clients.
Tenant: A person who occupies a property under a tenancy agreement.
Title: The form of ownership of real estate (i.e. Torrens, strata or company title).
Title deeds: Documents evidencing the ownership of property.
Trust account: A bank account where monies are held by an agent for or on behalf of another person e.g. sales deposits, rental payments etc.
Under offer: When both parties have agreed on the purchase price and applicable terms and conditions, but the contract hasn't yet been finalised, a property is 'under offer'. Once the conditions have been met, the property is unconditional and then sold.
Vacancy: A rental property or any unit that is empty.
Vacancy rate: The proportion of inhabitable rental premises which are vacant.
Vacant possession: In real estate this refers to a right to possession of land or property of which there is no current occupant.
Vacate: To give up occupancy; to make vacant; move out of property.
Vendor: A term used instead of seller.
Vendor bid: A bid that is set by the auctioneer on behalf of the seller during an auction, to establish a fair starting price.
Vendor paid advertising (VPA): a payment made by the seller to cover the cost of marketing/advertising.