An auction is a popular property-selling method where interested parties make offers to buy a property at a specific time and place – usually at the property itself, but sometimes at auction rooms.
The bidder with the highest offer is the successful buyer and must pay a deposit then and there, which is usually 10% of the sale price. All auction sales are final.
A bridging loan or bridging finance is a loan that provides the funds you need to buy a new home before you’ve sold your current home (generally temporary and short-term).
Capital Gains Tax
Capital Gains Tax (CGT) is a tax applied to the capital gains you make on a property/asset. The capital gains amount is the difference between what you paid for a property/asset, and what you sold it for.
A caveat is a notice that another party (other than the seller) is claiming an interest in a property.
If a property has a caveat, it doesn’t have a clear title – one that gives sole undisputed ownership with no other claims. An example is someone (the caveator) lodging a caveat on the grounds that they’re the legal beneficiary of a property as outlined in a previous owner’s will.
The legal process of transferring ownership of real property from the seller to the buyer.
A covenant (sometimes referred to as a restrictive covenant or a deed of covenant) outlines or restricts how you can build or alter your property.
Covenants are put in place to limit or guide the development of land/property for the benefit of another land/property. The land the covenant applies to is known as ‘burdened’ land, and the land that benefits from the restrictions is known as ‘benefited’ land.
Lender’s Mortgage Insurance
Lenders Mortgage Insurance (LMI) is a one-off insurance payment which covers your lender in case you can’t make your repayments. It's required for home loans with a Loan to Value Ratio (LVR) over 80%.
A lien is a claim lodged by a worker/supplier against a property to inform others that they’re owed payment for work done to the property. If a property has a lien on it, it doesn’t have a clear title, so banks and buyers will be deterred from purchasing it.
Generally, the seller ends up clearing the lien with money from the sale of the property.
Loan to Value Ratio
The Loan to Value Ratio (LVR) is your loan amount divided by the appraised value of the property. For example, if your property valuation is $300,000 and your loan is $240,000, then the LVR is 80%.
Mortgage Discharge Fee
A mortgage discharge fee is charged by the mortgage provider for services involved in clearing the existing mortgage. Services include things like attending settlement, and preparing relevant documents.
Private sale/private treaty
Private sale or private treaty (also known as sale by negotiation) is a selling method where a property is advertised at a set or ballpark price. Interested parties submit offers in writing to the vendor, who accepts the most desirable offer.
Property/home staging (also known as property styling) uses furniture and décor curated by professionals to present your home in its best light. A staged home aims to appeal to the target buyer’s lifestyle and tastes to increase interest before the sale.
Stamp duty is a tax you pay to the state or territory government when you buy a property.
The value of your property as determined by a bank, real estate agent, or independent valuer.