Now we will continue with a look at common real estate words and what they mean.
• Easement is the right to use some or all of the land that is owned by someone else for specific purposes. For instance if there is a river that borders your property you may have an easement through your land to allow workers access to the river.
• Economic Obsolescence happens when your property losses value through no fault of you own. This would happen if a rubbish dump, or toxic waste facility was built right next to your property.
• Enduring Power of Attorney refers to the written authorization that one person gives to another person allowing them to make legal decisions for them. This usually happens when a person becomes sick or incapacitated in some way that prevents them from making important financial decisions on their own. Enduring Power of Attorney should only be given to a trusted person.
• Fixture refers to any item in a home cannot be removed from the home without causing damage. Examples of this include a built in hot water system, kitchen countertops and cabinets, the toilet, stove, sinks, bathtub and other such items.
• Gated Communities are areas that are enclosed within a fenced in developed area. These areas often afford an added element of safety due to the enclosed nature of the property.
• Gazzumped happens when an agent that was supposed to be helping you stabs you in the back and helps themselves instead. This occurs when you are interested in purchasing a property or asset and the agent purchases it for themselves. This is often done through the use of a shelf company or a third party.
• Gearing. There are two different types of gearing. Negative gearing occurs when you borrow money in order to invest in an income producing property and you don’t end up making back as much money as what you borrowed. An example of this would be if the interest that you have to pay on the money that you borrowed is higher than the rental process that you get from the property itself. You are actually losing money this way. Positive gearing occurs when you make more money than the amount that you borrowed.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Hi Sean,
Again, you’ve made some really difficult terms very easy to understand. I don’t know about gazzumped though. That would have to be illegal wouldn’t it?
I guess you’d have to have proof that they did this before you could do anything about it. Probably not easy to get.