The world of real estate is filled with unique terms and phrases that can sometimes feel overwhelming, especially if you’re new to the process. Whether you’re buying your first home or selling a property, understanding these terms is key to making informed decisions.

At EVES, we believe in making the property process as clear and approachable as possible. Here’s a breakdown of common real estate jargon you’ll encounter and what it all means.

1. By Negotiation

This means the property does not have a fixed asking price. Instead, buyers are invited to make an offer, and the final price is determined through negotiation between the buyer and the seller. This approach allows flexibility and may encourage multiple offers.

2. Unconditional

An unconditional offer is a binding agreement to purchase a property without any conditions attached. Once accepted by the seller, the buyer is legally obligated to complete the purchase, regardless of circumstances like financing or building inspection outcomes.

3. Conditional

A conditional offer includes specific terms that must be met before the sale becomes binding. Common conditions include securing finance, conducting a satisfactory building inspection, or reviewing the property’s title.

4. Settlement

Settlement is the final step in the property transaction process. It’s the date when the buyer pays the remaining balance, the ownership transfers, and the buyer receives the keys to their new home. This date is agreed upon in the sale and purchase agreement.

5. Title

A property’s title is a legal document that shows who owns the land and any restrictions or rights associated with it. Before buying a property, reviewing the title is essential to ensure there are no unexpected issues.

6. LIM (Land Information Memorandum)

A LIM is a report from the local council that provides information about a property, such as zoning, permits, and potential issues like flood risks. Buyers often request a LIM to better understand the property they’re purchasing. LIMs should be reviewed by lawyers or property conveyancers.

7. RV, CV, and GV (Rateable Value, Capital Value, Government Valuation)

These terms are often used interchangeably and refer to the value the local council assigns to a property for rating purposes. It’s important to note that these values don’t always reflect the market value of a property.

8. Auction

An auction is a method of sale where buyers bid for a property in a competitive environment. The property is sold to the highest bidder, provided the seller’s reserve price (minimum acceptable price) is met. Auctions are unconditional, meaning the buyer must complete the purchase if they win the bid.

9. Sole Agency Agreement

This is an agreement where a seller appoints a single real estate agency to market and sell their property. It ensures exclusive representation and avoids confusion with multiple agents.

10. Multi-Offer Situation

A multi-offer occurs when multiple buyers submit offers on the same property at the same time. The seller then evaluates all offers and chooses the one that best meets their needs, which might not always be the highest price.

11. Fixed Price

A fixed price sale is when the property is listed with a set asking price. Buyers can make an offer at that price or negotiate terms, but the starting point is clear.

12. Due Diligence

This refers to the process of thoroughly investigating a property before committing to a purchase. It often includes reviewing the LIM, title, and building inspection reports, as well as securing financing.

13. Tender

A tender is a method of sale where buyers submit confidential offers by a set deadline. The seller reviews all offers and chooses the most favourable one, but they’re not obligated to accept any.

14. Deposit

The deposit is the upfront payment made by the buyer when their offer is accepted. It’s typically 10% of the purchase price and is held in trust until settlement.

15. Cash Buyer

A cash buyer refers to an individual or entity that purchases a property outright, without the need for mortgage financing or other loans. This means they have the full purchase amount readily available and can complete the transaction without lender approval, making the process typically faster and more certain than sales involving mortgage-dependent buyers.

16. Deadline Sale

A deadline sale is a property sale method where buyers must submit offers by a set date. Unlike an auction, offers are confidential, and the seller can accept, negotiate, or decline them. This approach creates urgency while allowing the seller flexibility in choosing the best offer.

Real estate terms don’t have to be confusing. At EVES, we’re here to make your property journey as straightforward and stress-free as possible. Whether you’re a buyer or seller, our experienced team is always happy to explain the process and answer your questions.

Contact us today to learn more or to start your property journey. With EVES, you’re in safe hands. Let us make your next move a confident one! www.eves.co.nz