Commonly Used Terms in Real Estate Transactions
Here are some common terms you are likely to see when undertaking real estate transactions and what they mean:
As it relates specifically to real estate transactions, the agreement (also called the Agreement for Sale and Purchase) is the legal written contract between a seller (vendor) and a buyer (purchaser) of a property. It outlines the property address, the vendor’s and purchaser’s details, the offer made, deposit due, date of settlement. A Real Estate Agent will prepare this for you unless you are involved in a private transaction in which case a property lawyer will prepare it for you.
An agreement can include Conditions – known as a Conditional Agreement – common conditions include finance, builders report and LIM and can even be conditional upon the vendor finding another property to move into.
An agreement may have no conditions at all – this is known as an Unconditional Agreement.
Ideally you should discuss the agreement and conditions with a lawyer before you sign it. You cannot usually change an agreement after it is signed. At the Home Transfer Centre our specialist Property Lawyers and legal staff have the training and expertise to discuss all aspects of your agreement before you sign. We will discuss and check all the conditions with you. We will also search the Title to make sure the property details are correct.
This is an electronic document that describes the property and shows who the legal owner is. It shows easements that may be registered against the title – things like right of ways, drainage or sewerage which may have an effect on the property after you buy it. A lawyer can really help prevent a costly mistake with this check.
The term used to describe the paperwork in the process of buying and selling a property – or transferring ownership of a property from one person or entity to another. You engage a property lawyer to be responsible for your conveyancing. It is a good idea to engage a property lawyer sooner rather than later too as we will assist throughout the process advising you on the agreement, the conditions and everything else involved in the process. At Home Transfer Centre we have a flat, fixed fee enabling you to make as many phone calls, emails or appointments as you need. Your property lawyer will also deal with the lawyer acting on the other side of your transaction. Whether you use a Real Estate Agent or not you still need a lawyer for your conveyancing.