If you are looking to buy property, there are a number of different property terms that you should be aware of.
As leading Sydney property buyers agents, we understand the language of property. We have compiled this simple glossary for you.
Unconditional Exchange: If the Purchaser waives their rights to the Cooling off Period by providing a Section 66W Certificate, the Exchange of Contracts will be unconditional and the Purchaser will not be able to Rescind. The Purchaser is bound to complete the purchase within the timeframes specified in the Contract and if the Purchaser fails to do this, then they will be in Breach of Contract. If Contracts are exchanged with a Cooling off Period, the exchange will become unconditional as soon as the Cooling off Period has expired.
Under Offer: Where the Vendor has accepted the Purchaser's offer but Exchange of Contracts has not yet taken place. You should make sure that Exchange of Contracts takes place as quickly as possible otherwise you are at risk of being Gazumped.
Vacant Possession: A property which is vacant and unoccupied. If a property is being sold with Vacant Possession the Vendor must ensure that the property is vacant and that the tenants have moved out prior to Settlement.
Valuation: A written report indicating the value of a property. Valuations may be determined in different ways and for different purposes. A Valuation is usually required by a bank before it will lend money to finance the purchase of a house or before a re-financing.
Vendor: Seller of a property.
Vendor's Bid: At auction, the auctioneer may open the auction by making a single bid on behalf of the Vendor. This is done to elicit higher bids. If there are no higher bids following the Vendor's Bid, the property will be Passed In. Withdrawn from Sale: Where a property that was advertised for sale or due to be auctioned is withdrawn from the market. If an auction is due to take place but there is no interest in the property immediately before the auction, the property will be withdrawn from sale and the auction cancelled.
Yield: The income or return made by an Investor in respect of an investment property. This is calculated as a percentage of the Purchase Price and may be expressed either as a gross or net figure.
Zoning: Every property is zoned for a particular use such as residential, industrial or commercial. Before you buy a property, you should check the zoning to ensure that your proposed use of the property is allowed. If you plan to make alterations to the property, the zoning will determine the extent to which this will be allowed.
Buyers Domain are leading Sydney property buyers agents and specialise in sourcing quality homes and investment properties in Sydney's Inner West, Eastern Suburbs, North Shore and Northern Beaches . Check out Sydney Property Buyers Agent to obtain a greater understanding of all the areas we cover.
If you are looking to purchase a property, speak to leading Sydney property buyers agents, Buyers Domain, today.