Understanding Real Estate Terminology Part 1

When you enter into the world of real estate it may seem a bit overwhelming at first. There are so many different terminologies to try to understand that is can get pretty confusing. Here is part one of the property options AU guide to understanding some of the most widely used real estate terminology words. Hopefully this will help you navigate through the world of real estate.

• Abutting means that two properties share a common boundary.

• Abstract Of Title is the condensed version of the full history of a property. This may also be referred to as the Title Extract or the Extract of Title

• Adverse Possession refers to what happens when someone occupies someone else’s land for a certain period of time (between 12-20 years). If someone occupies another person land for that period of time then the original owner’s rights to the land are forfeited.

• An Agent is someone who works for you to help you buy or sell a property. You will most often pay fees and commissions for this service.

• Amortization means to pay off your debt by regular installments over a predetermined period of time.

• Appraisal is what the real estate appraiser says that your property is worth. Be sure to get an appraisal by an independent appraiser as opposed to someone who works for the current owner of the property or the listing agency.

• Balloon Payment refers to a large sum of money that is paid at the end of a loan to pay of the balance and clear up the debt.

• Body Corporate refers to units that have multiple owners, such as in a condo set up. The Body is responsible for ongoing expenses and day to day bills associated with running the building. There are different rules that govern the Body Corporate depending on where in Australia you live.

Look for the next installment when we will explore more real estate terminology.

Sean Rasmussen
Property Options Australia
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