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Jargon Busting Terms All First Home Buyers Should Know

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Agreement

This is the written contract for the sale and purchase of the property between the vendor (seller) and the purchaser (buyer).

Deposit
Part of the price (usually 10%) paid by the buyer when the agreement is signed or on confirmation.

Equity
This is the amount of the property that the purchaser actually owns – rather than owes.

Freehold
This form of title means that you own the land and the buildings on the property, with few restrictions.

Mortgage
A mortgage is a type of loan. Mortgages are used to make large real estate purchases without paying the entire value of the home and land up front. Over a period of many years you repay the loan, plus interest, until you eventually own the property.

Settlement date
This is the date on which you pay for the property. Usually it is the same date as the date you take possession but that is not always the case.

Title
A document that describes the property and gives legal right of ownership to the property.

Vendor
This is the person selling the property. The vendor pays the commission to the real estate agent who arranges the sale of the property.

Solicitor

Someone who has the legal right to deal with conveyancing.

Conveyancing

Preparing documents to change the title of who owns the property.

Conveyancer

They handle the legal side of things and make sure that the property that’s about to be yours will actually be yours.

First home owners grant

If your buying or building a new home valued up to $750,000 you may be able to apply for the first home owners grant which is a payment of up to $10,000 to put towards your first home.

Stamp duty

Stamp duty is basically a type of tax that can vary from the price of your home or land the general rule is the cheaper the property then cheaper the tax.

Façade

The front decorative design of your home, what you see from the street.

Architraves

The moulded frame around a door way or window.

Cladding

One material layered over another to help against the weather conditions or even just to look pretty.

Appreciation

An increase in value of the property.

Fittings

Items that can be taken out of the home easily with little to no damage these are more appliances such as washing machines and fridges.

Fixtures

Items that are usually stuck in their positons and are hard to replace such as lights, tap wear things that can’t be removed after the sale.

Guarantor

Usually a parent or guardian who will be a back up to pay the bank back your loans and debt if you can’t.

Easement

A right to cross or otherwise use someone else’s land for a specified purpose.

Frontage

Frontage is the boundary between a plot of land or a building and the road onto which the plot or building fronts. Frontage may also refer to the full length of this boundary.

Soil test

A test done on a block of land to see how healthy the soil is and if it will affect the build or not.

Where We Are

Interested in buying land? Let’s chat. Call 1300 545 263

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