AAPR
The average annual percentage rate (AAPR) is also known as the 'true rate' or ‘mortgage comparison rate'. It wraps up interest payments and fees and expresses all these costs in one rate. It is designed to reflect the total annual cost to a borrower of a loan. All lenders must disclose this benchmark rate in their advertising of home loans and personal loans from July 2003. In Australia, the AAPR is officially called the 'Comparison Rate'.

ABODE
The place where a person ordinarily lives and sleeps at night.

ABSENTEE LANDLORD
An absentee landlord is a property owner who does not live on his property and leaves the management of the property to the tenant who lives there.

ABSOLUTE INTEREST
Full and complete ownership; a vested right of property which is liable to be determined only by the failure of appropriate successors in title.

ABSTRACT OF TITLE
A chronological summary of all conveyances, such as deeds or wills and legal proceedings, giving the names of the parties, the description of the land, and the agreement, arranged to show the continuity of ownership for land not under the Torrens system.

ABSTRACT OF AUCTION
This is a summary of the auction advertisements which appears in the property page of a newspaper, eg on the Saturday. It is a summary of the day's auctions. Fuller details are set out elsewhere in the auction sales advertisement. However, the abstract gives a quick indication of what actions are scheduled for that day.

ABUT
To be next to or share a boundary with another property.

ABUTMENT
That part of a wall or pier on or against which an object abuts or presses; that part which receives the pressure of an arch or strut, as the supports at either end of a bridge.

ACCELERATED PAYMENT
Making of higher repayments to pay off the home loan faster.

ACCELERATION CLAUSE
A clause in a mortgage document which requires the immediate repayment of the entire balance due under the said mortgage at any given time should there be a breach of the conditions of the mortgage, eg repayment default.

ACCEPTANCE
To agree to the terms of an offer or contract.

ACCESS
Approach or means of approaching.

ACCESS RIGHTS
The right of ingress to and egress from a property that abuts upon an existing street or highway. Details will be shown on Certificates of Title of both parties granting and receiving the right.

ACCOUNT KEEPING FEES
Fees charged to cover or partially cover the lender's internal costs of administering the home loan.

ACCRUED DEPRECIATION
The difference between the replacement cost of new improvements and the present value of those improvements.

ACCRUED INTEREST
Interest you have earned or incurred that is yet to be paid or charged.

ACQUIRING AUTHORITY
A Government Department, Local Authority or other body empowered by statute to acquire land compulsorily.

ACTUAL AGE
The number of years elapsed since an original structure was built.

ACTUAL CASH VALUE
The price which property will realise on the open market, after all reasonable efforts have been made to secure a purchaser who will pay the highest price. The expression actual cash value as applied to real estate is synonymous to market value.

ADDED VALUE OF IMPROVEMENTS
The monetary amount that buildings add to the market value of land as based on the building replacement costs less accrued depreciation.

ADDITION
Any construction or change in a building that increases the overall area of the structure.

ADDITIONAL SECURITIES
An asset that guarantees the lender their loan until the home loan is repaid in full. Usually the residential or investment property is offered to secure the loan.

ADDITIONAL REPAYMENT
Extra funds paid into the loan in addition to the minimum monthly or weekly payments. These extra funds reduce the term of the home loan and the interest paid.

ADJACENT
An expression to indicate proximity without actual abuttal. To lie near; close or contiguous; adjoining; near; in the neighbourhood or vicinity of.

ADJOINING
Used to indicate that two pieces of land have a common boundary. Touching or contiguous, as distinguished from lying near or adjacent.

ADJUSTMENTS
Apportionment of rates, taxes, body corporate, rent, insurances etc. Up to the date of possession or settlement on a sale.

ADJUSTMENTS
The process of allocating expenses eg council rates, water rates, etc.

ADMINISTRATOR
A person appointed by a probate court to settle the affairs of an individual dying without a will.

AD VALOREM
Designates an assessment of taxes or stamp duty against property. Literally according to value.

AGISTMENT
Where a land owner allows cattle, horses or similar animals to come upon his land for grazing purposes in return for the payment of a fee.

AIR RIGHTS
Rights vested by a grant of an estate in real property to build upon, occupy or use in the manner and degree permitted, all or any portion of space above the ground, or any other state elevation within vertical planes.

ALIGNMENT
The fixing of a line. The line established.

ALLOTMENT
A small area of land sufficient for building a house. An allotment is also referred to as a building block, lot or block of land.

ALLOTMENT
A block of land created (subdivided) out of a larger area.

AMENITIES
Those aspects of the home that provide advantages that can be measured in terms of lifestyle satisfaction rather than financial gain (eg convenient shopping and transport facilities).

AMENITY
A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, parks, water) or man-made (like a swimming pool or garden).

AMENITY BUILDING
A building or part of a building used by employees or persons engaged in an industry or business for their personal comfort, convenience or enjoyment of leisure as distinct from the work of the industry or business.

AMORTISATION
If the loan is amortized, the loan reduces by regular (usually monthly) payments of principal and interest that is calculated to pay off the loan at the end of a fixed term (ie, 30-year fixed, etc.).

AMORTISATION PERIOD
Repayment of a mortgage loan through regular installments of principal and interest; the regular monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years). Often known as the home loan term.

AMPLIFICATION
Amplification is enlargement of utilities for the servicing of urban land, eg enlargement of water or sewerage mains because of increase in demand or need for greater capacity.

ANCHOR TENANT
The main, usually the largest tenant who attracts other tenants and customers to a shopping centre.

ANNUAL VALUE
Of any property means the rent at which the property might reasonably be expected to let from year to year.

ANNUITY

APPLICATION FORM
The first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the credit approval process.

APPLICATION FEE
The fee charged by a lender to cover or partially cover the lender's costs of setting up or establishing the loan.

APPRAISAL
A document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the home loan amount is not more than the value of the property.

APPRECIATION
An increased conversion value of property or mediums of exchange due to general inflationary trends or related causes which may prove to be either temporary or permanent. Appreciation is the antonym of depreciation where the latter is used to denote shrinkage in conversion value.

ARBITRATION
A written agreement to refer present or future differences to arbitration is called a submission. The submission of a matter in dispute to arbitration for a determination by an arbitrator (instead of a court), eg some leases provide that where the parties fail to agree on rent to be paid on renewal the amount will be fixed by an arbitrator.

ARBITRATOR
An independent person who is called upon to conduct an arbitration. Is usually a person with experience and/or qualification in a particular field and may be nominated by the parties.

ARCHITECT
A person who is qualified to design buildings and supervise their construction.

ARREARS
An overdue account yet to be paid.

ASSESSMENT
The rate or tax payable on a property ie rate assessment, land tax assessment.

ASSESSOR
One whose duty it is to assess property for ad valorem taxes, insurance claims etc.

ASSETS
Real and personal property in which a person has an unencumbered ownership or equity and which has value.

ASSET LENDER
Lending institution that lends finance based on the value of the asset, which is held as security.

ASSIGNEE
One to whom a transfer of interest is made.

ASSIGNOR
One who makes an assignment.

ASSIGNMENT
Legal reference of a right or a title to a property, to another party.

ASSIGNMENT
Generally, transfer of property, eg an assignment of interest under a will; an assignment of rights in a patent; an assignment of a lease or mortgage. An assignment of contract is an act by which one person to a contract substitutes another person for himself as a party to that contract either for some or all of the purposes of the contract. The assignment of rights and liabilities under contracts is limited by law. Assignment of a lease must be in writing.

ASSIGNMENT OF LEASE
The transfer of the interest of a tenant to another whereby the other person becomes the tenant in the place of the assignor.

ASSUMPTION OF MORTGAGE
When a buyer takes ownership to real estate encumbered with a mortgage, he may assume the responsibility as the guarantor for the unpaid balance of the mortgage. Such a buyer is liable for the mortgage repayment.

AT CALL
A bank account from which money can be withdrawn immediately.

AUCTION
The selling of any property, real or personal, in public by a licensed auctioneer, who offers the property for sale, starting at a price possibly much below its value, and endeavours to persuade those present to make successively increased offers until it is knocked down to the highest bidder. A reserve price may be placed on the property by the owner and no sale can then be made below this price.

AUCTIONEER
One who sells or offers for sale real estate where persons become purchasers by competition, being the highest bidders.

BALANCE SHEET
A statement of net assets, liabilities and equity.

BALLOON PAYMENT
A large loan repayment usually at the end of the loan term.

BANK CHEQUE
A cheque on which the drawer is a bank or other finance institution drawing on itself; no individual or company name appears. The customer buys the cheque for cash and a small fee and uses it in the same way as cash.

BANKER'S LIEN
The right of a bank to retain a customer's securities until a liability to a bank is discharged.

BANKRUPTCY
The legal financial state and individual is in, when unable to meet debts (for companies it's known as being 'wound up'). A debtor may be declared bankrupt by the Federal Court at either the debtors or the creditors instigation, and the debtors estate will be placed in the hands of an official receiver who will distribute the estate in accordance to the provisions of the Bankruptcy Act.

BASIC OR ‘NO FRILL' LOANS
Many lenders offer a class of home loan which has a lower variable interest rate than their standard variable rate loan. The trade off is that these discount loans generally have less flexibility and fewer features, eg no extra repayments can be made, the repayment level cannot be varied or no redraw is available.

BASIC RATE
Applied to loans commonly called 'No Frills Loans' which are generally cheaper than Standard Variable Rate Loans but do not have features such as a redraw facility or mortgage offset.

BAYCORP LTD
The company which records and holds credit information on everyone, such as loan applications, credit defaults, and so on. Was originally known as CRAA, and may often be referred to as the 'CRAA Check'.

BEARER
Person presenting a cheque.

BETTERMENT
An improvement which adds to the capital value of the structure. A capital value which increases the utility or market desirability of the property. It is distinguished from repairs or replacement by the fact that the original character is improved and the value is increased. A physical change in an existing property or equipment which increases its value or usefulness and is not a mere restoration.

BID
An offer to buy at a given or stated price a thing which is being sold by auction.

BILL OF SALE
A written agreement whereby ownership is transferred but the original owner is allowed to retain possession.

BODY CORPORATE
Under legislation relating to villas, town houses, flats or home units, the control and administration of common property is vested in a statutory Body Corporate which comes into existence automatically on the registration of the plan, and to which the provisions of the Companies Act do not apply. The registered proprietors of the units are the members and the only members of the Body Corporate. The rights and obligations are fixed by scheduled by-laws. Easements for the protection and enjoyment of the units and common property are also provided for. The name also applies to shareholders in units under Company Title.

BOND
A bond is paid as an assurance that the tenant will not breach the conditions of tenancy and upon vacating will leave the premises in a state of good repair and order.

BORROWER
A person or entity borrowing money to purchase, pay off or refinance a product or effect.

BOUNDARY
The line separating adjoining properties.

BREACH OF CONTRACT
Breaking the terms of the contract.

BREAK COSTS
Relates to the penalty fees charged when a borrower terminates a fixed-rate loan contract before the expiry of the fixed-rate period.

BRIDGING FINANCE
The need often arises for purchasers to effect settlement of a real estate transaction prior to the date that the finance becomes available. Under these circumstances it is necessary to obtain bridging finance (a temporary loan) to provide for the time gap in order to comply with the terms of the contract in regard to settlement pending the availability of the long term finance.

BUILDING CONSULTANT
An expert experienced in designing and/or constructing buildings. When employing such a person for a pre-purchase report on a property, enquire whether he or she has indemnity insurance to cover any serious defects that the report may overlook. A building consultant is not required to be registered but many are registered as domestic builders, commercial builders, draftspeople, inspectors, surveyors, engineers.

BUILDING INSPECTION
Inspection generally carried out prior to the purchase of a property to ensure the building is structurally sound. Contracts of sale can be made subject to the satisfactory building inspection.

BUILDING INSPECTOR
A local government officer who is responsible for checking buildings in the course of construction and completed buildings to ensure that they have been constructed in accordance with building control provisions.

BUILDING PERMITS
A permit issued by Local Government Authorities for the erection or structural alterations of all structures.

BUILDING REGULATIONS
Laws adopted and enforced by Local Government Authorities which specify the method of construction of buildings and the nature and materials to be used, below which standards the buildings must not fall. They are designed to ensure public safety, health and the minimum acceptable society standards as to design, construction, alteration, repair and occupancy. Also referred to as Building By-Laws and Building Code.

BUILDING RESTRICTIONS
Laws designed by Local Government Authorities to limit the use, size and location of buildings or other improvements on land.

BUILDING SURVEYOR
A person registered with the Building Practitioners Board as a building surveyor. Qualified to issue a building permit, inspect for compliance with the Building Act and Building Regulations and issue an Occupancy Permit or Certificate of Final Inspection.

BUYER'S AGENT
Person who acts on behalf of the buyer to find and negotiate on properties the buyer wishes to purchase.

BUYER'S ADVOCATE
A property consultant who acts solely for the buyer by sourcing suitable properties and representing the buyer throughout the buying process.

BUYER'S MARKET
The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices are at a relatively low level, giving the buyer an advantage. An over-supply causing prices to decline.

CAPITAL
The current value of your long-term assets.

CAPITAL GAIN
The monetary gain obtained when you sell an asset for more than you paid for it.

CAPITAL GAINS TAX
This is a tax payable on the capital gain made in the sale of investment properties. The capital gain is the profit made between the final sale price and the original purchase price.

CAPPED LOAN
Loan where the interest rate is not allowed to exceed a set level for a period of time, but unlike fixed rate loans, can fall.

CAVEAT
A notice of warning given to a public authority, eg Titles Office, claiming entitlement to an interest in certain land. The caveat is registered and remains on the books as a warning to anyone who contemplates dealing with the property. It therefore prevents any action being taken without the previous notice of the person entering the caveat (the caveator).

CAVEAT EMPTOR
Latin for "let the buyer beware".

CENTRAL HEATING
Heating of building from a central source either by circulating hot water or steam through pipes and radiators, or warm air through ducts.

CERTIFICATE OF TITLE
The document of title to land held under the Torrens System. It consists of duplicate deeds stating the fact and extent of the interest of a person (the registered proprietor) in land held under the Torrens System. The deeds are numbered. One is kept in the Titles Office and the other is held by the registered proprietor. When the land is dealt with, a note of the dealing is made on both copies by the Titles Office.

CHARGE
The term used to describe any right established over a borrower's property to secure a debt or performance of an obligation.

CHATTELS
Are personal property. There are two types. Real chattels are buildings and fixtures. Personal chattels are clothes and furniture.

CLADDING
A term applied to relatively thin sheets or slabs used to enclose a framework, eg imitation bricks, aluminium, etc.

CLEAR TITLE
A seller has a clear title when there are no restrictions (such as an outstanding mortgage) preventing the sale, and when ownership of the seller has been established.

CLUSTER HOUSING
Group of houses that share common space.

COLLATERAL SECURITY
Additional or supporting security given in addition to the principal security.

COMMERCIAL PROPERTY
Property intended for use by all types of retail and wholesale stores, office buildings, hotels and service establishments.

COMMON PROPERTY

COMPANY TITLE
Rights to occupation in perpetuity of property based on the ownership of shares in a company in which is vested the title to the property. This was the common method of home unit ownership prior to the introduction of strata title ownership.

COMPARISON RATE
All lenders must disclose a benchmark comparison rate in their advertising of home loans and personal loans since July 2003. This Comparison Rate is designed to reflect the total annual cost to a borrower of a loan. It wraps up interest payments and fees and expresses all these costs in one rate, or the average annual percentage rate (AAPR).

COMPOUND INTEREST
Interest that is paid on both the accumulated interest as well as on the original principal.

COMPULSORY ACQUISITION
A power in the Crown to acquire property belonging to a private person, irrespective of whether such person is willing to sell or not.

COMPULSORY COMPARISON RATE OR CCCR
Is the figure expressed as an interest rate, that takes into account some of the extra costs of a loan product. The formula used to calculate the CCCR is regulated by the Uniform Consumer Credit Code and all Australian lenders are required to use the same formula.

CONDITIONS OF SALE
The conditions under which a purchaser takes property sold to them.

CONSUMER CREDIT CODE LEGISLATION
Designed to protect the rights of the individual (personal consumer) by ensuring banks and other financial institutions all adhere to the same rules when providing personal, domestic or household credit. It should provide borrowers with complete and honest information. Also known as the Uniform Consumer Credit Code or UCCC.

CONTRACT FOR SALE
A written legally enforceable agreement outlining the terms and conditions for the purchase or sale of property.

CONVEYANCE
The transfer of ownership of property from the seller's name to the buyer's name.

COOLING OFF PERIOD
A period after the contract is made (usually 5 days), when the purchaser may cancel the contract.

COUNTER OFFER
A new offer as to price, terms and conditions, made in reply to a prior unacceptable one. Normally the counter offer terminates the previous offer.

COUNTERSIGNED
Additional signature or signatures to guarantee the validity of a document.

COVENANT
Terms and conditions that specify the usage of a block of land or the buildings on it.

COVER NOTE
This is given on behalf of an insurance company giving immediate temporary cover over a specified property for a particular sum as soon as you decide to buy a property, ie pay a deposit, and/or sign an agreement to purchase. In most States the estate agent handling the sale of the property can issue this cover note.

CREDIT
Borrowed money or other finance (eg hire purchase) to be paid back under an arrangement with a lender.

CREDIT HISTORY
History of an individual's debt payment; lenders use this information to gauge a potential borrower's ability to repay a loan.

CREDIT LIMITED
Maximum amount a borrower can use at any one time.

CREDIT REFERENCE LIMITED
(Previously called Credit Reference Association of Australia or CRAA) holds details of the credit history of all Australians.

CREDITOR
A party to whom money is owed.

CRAA
The company which records and holds credit information on everyone. CRAA is now known as 'Credit Advantage Limited'.

CUL-DE-SAC
An access street with a blind end in the form of a turning space for vehicles.

DAILY INTEREST
Interest calculated on a daily basis - therefore varies according to daily account balance.

DATE OF SETTLEMENT
In relation to real estate transactions, it is the day on which under the terms of the contract the vendor is required to transfer his or her estate or interest in property to the purchaser.

DEBT-TO-INCOME RATIO
A comparison of gross income to expenses.

DEBIT
An account entry to charge a withdrawal to a specified account.

DEBTOR
Someone who owes money to someone else.

DEED
Legal document that states an agreement or obligation regarding a property.

DEFAULT
Failure to meet debt payment on a due date. A failure to make loan payments (defaulting on a loan) may result in the mortgage holder taking legal action to repossess the mortgaged property.

DEFLATION
A general decrease in the market value of property.

DELINQUENCY
Failure of a borrower to make timely mortgage payments under a loan agreement.

DEPLETION
A reduction in the value of an asset by reason of the taking away of exhaustible material assets or resources, such as the removal of trees from a forest, the taking of minerals from a mine, the taking of oil from a well and so on.

DEPOSIT
Non-refundable percentage (usually ten per cent) of purchase price paid by buyer when contracts are signed and exchanged. Deposit must be held by estate agency or seller's solicitor in a trust account or held jointly in a trust account by seller and buyer.

DEPOSIT BONDS
A guarantee that the purchaser of a property will pay the full deposit by the due date. Institutions providing deposit bonds act as a guarantor that payment will be made.

DEPRECIATION
A loss from the upper limit of value. An effect caused by deterioration, or obsolescence, or both.

DESIGN
An architectural drawing or draft of a plan, relating to a structure.

DEPRECIATION
The periodic cost assigned for the reduction in usefulness and value of a long-term tangible asset.

DERELICT
The intentional abandonment or renunciation of property. A state of disrepair.

DETACHED HOUSE
A dwelling unattached to any other building and occupied or intended or designed for occupation as a single dwelling.

DETERIORATION
The gradual exhaustion of the usefulness of a property caused by wear and tear or decay and decline from natural causes. One of the causes of depreciation and loss in value.

DIRECT DEBIT
Regular electronic debiting of payments from a customer's nominated bank/building society cheque or savings account.

DISBURSEMENT
Miscellaneous fees and charges incurred during the conveyancing process, including search fees and charges paid to Government authorities.

DISCHARGE FEES
An administration fee to cover the costs incurred in finalising a loan account.

DISCHARGE OF MORTGAGE
A document signed by the lender and given to the borrower when a mortgage loan has been repaid in full.

DISPLAY HOME
A building which represents a dwelling and which is employed for the purpose of inducing prospective purchasers to enter into contracts for the purchase or construction of like buildings. A display home is generally located adjacent to new housing estates or on a main roadway.

DISPOSABLE INCOME
Any income left over after all known expenses have been met (eg loan payments, bills, other commitments).

DISTRICT
An area having a common use characteristic such as a retail district and the like.

DISTRICT BUSINESS CENTRE
A term used to describe the hub of a main shopping centre in a city or suburb. It is much more extensive than a daily needs shopping centre.

DIY PROPERTY SALES
A sale of a property that is sold without the engagement of a real estate agent.

DOWN PAYMENT
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.

DRAW DOWN
To access available home loan funds, might refer to a staged loan for property constructions, or lines of credit where the limit is set and the borrower can use the funds as required or the act of transferring money from lending institution to the borrower after the loan has settled.

DRY ROT
A decay of seasoned wood caused by a fungus.

DSR
Debt Service Ratio - Maximum of a loan applicant's weekly, fortnightly or monthly wage which will support loan repayments over the agreed loan term. Usually expressed as a percentage.

DURATION OF LEASE
The lease period. The remaining time for which the property is leased. The length of a lease.

DUTY (OR STAMP DUTY)
State Government tax on finance transactions. For the purchase of real estate, it is calculated according to the property value. It also applies to the amount of the mortgage and the amount differs from state to state.

DWELLING
A residence. A place of abode or a structure occupied exclusively for living purposes.

EARLY TERMINATION PAYMENT
The cost of winding up a home loan early. These costs should be detailed in the loan contract.

EASEMENT
A right which a person has to use land belonging to another in a particular manner not involving the taking of any part of the natural produce of that land - or of any part of its soil; or a right to prevent the owner of that land from using that land in a particular manner. The most usual easements are rights of way, easements for light and easements for the flow of water over and through another's land.

EASEMENT
A right to use a corridor or passage of land which is owned by another.

ECONOMIC RENT
In real estate the term refers to the market rental, ie the rental income that a property would most probably command on the open market at a given time. It represents a rental rate that comparable properties are bringing.

EDWARDIAN RESIDENCE
Architectural style that flourished during 1901-1916. Characteristics of the style include: chunky building, solid and compact construction out of common red bricks with bold horizontal lines at floor levels, the cornice and parapets were plastered in flat planes and painted. Verandahs were discarded and walls carried up to form parapets to reveal the baldness of the building. Cast iron in all forms was not used.

EFFECTIVE AGE
A building's physical condition, not its actual age, determines its effective age. Generally the better the condition, the lower the effective age of a building, eg some well maintained 35 year-old buildings may be assigned an effective age of 20 or 25 years.

EFFECTIVE DATE
The date something commences or closes. The origination date.

ELECTRONIC FUNDS TRANSFER (EFT)
Electronic transfer of funds from one account to another.

ENCROACHMENT
An unlawful gaining upon the possession of a neighbour. An encroachment is usually in the form of a fence, or portion of a building, erected by one person upon land of an adjoining neighbour; or a structure overhanging the land of a neighbour. An encroachment may similarly occur upon a street.

ENCUMBRANCE
An outstanding liability or charge on a property.

ENDORSE
To sign the back of a cheque to confirm or transfer its ownership to someone else.

ENVIRONMENTAL IMPACT STUDY
An investigation designed to assess the comprehensive and long-range environmental effects of a proposed land use upon society.

EQUITY
This is calculated as the value of a home minus the outstanding balance of any debt (usually mortgage balance) secured on or by the home.

EQUITY LOAN
A loan usually secured by the proportion of the value of your house which you own.

EQUITY MORTGAGE
A loan secured by the part of the value of an asset (usually house) which you own.

ESCROW
Money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the specified conditions are fulfilled.

ESTABLISHMENT FEES
Lending body fees which may or may not be charged to set up a loan.

ESTATE
The whole of one's possessions, especially all the property and debts left by one at death.

ETHICS
The philosophy of human conduct with emphasis upon the determination of right and wrong. The basic principles of right action. The standards of character set up by a profession to ensure that its members are worthy of confidence. Professional rules defining unfair and wrong acts of individuals in relationship to the professional group, to each other, to clients, and to the public.

EVALUATION
To find or fix the value; to estimate.

EVICTION
The act of disposing a person from property. Forcing out eg where a tenant does not comply with a condition of lease, the landlord is entitled to forfeit the lease and re-take possession of the property. Where this cannot be achieved by mutual agreement then the tenant is forcibly evicted by legal process.

EXCHANGE
The trading of an equity in a piece of property for the equity in another piece of property. If a solicitor negotiates the exchange that person will normally treat each transaction as a sale and charge a commission accordingly.

EXCHANGE OF CONTRACTS (or EXCHANGE)
The legal point of time when the vendor and purchaser swap documentation and start enquiries with a view to settlement.

EXIT FEE
Fee imposed by lenders when the loan is paid off before the end of it's term.

EXISTING MORTGAGE
A loan of money secured by way of a registered mortgage on the security of a property. Generally when a property is sold or in any way disposed of, the mortgage is to be discharged. In some cases the mortgage may be transferred to the new owner.

EXTENSION OF LEASE
An agreement extending or renewing the terms of a lease for a period beyond the expiration date.

FACADE
The principal exterior face of a house or other building

FASCIA
A board carrying a gutter (spouting) around the eaves of a building.

FAIR RENT
The likely market rent that a property could command on the open market as indicated by the current rentals being paid for comparable properties. Where rent control legislation exists fair rent may be determined arbitrarily by reference to specified limitations on returns etc.

FAIR VALUE
Value that is reasonable and consistent with all of the known facts.

FAMILY ROOM
An informal living room, usually the centre of family activities, as distinguished from the more formal living room.

FEE SIMPLE
Private ownership of real estate in which the owner has the right to control, use, and transfer the property at will.

FAIR MARKET VALUE
The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.

FINANCE INSTITUTIONS DUTY (FID)
State duty on the receipts of finance institutions.

FIRB
Foreign Investment Review Board. Reviews any proposals for foreign investment in Australia and advises the government on relevant foreign investment policy.

FIREPROOF CONSTRUCTION
Designed to withstand a complete burn-out of the contents of the structure, without impairment of its structural integrity.

FIREPROOFING
The use of incombustible materials to protect structural components of a building so it can withstand a complete burn-out of contents without losing structural integrity.

FIRE RESISTANCE RATING
Means the minimum period of time during which an element of a structure may be expected to function satisfactorily while subjected to a standard fire test, as set down by the relevant authority.

FIRE WALL
A wall constructed of fireproof material installed to check the spread of fire into other areas of a building or to adjacent properties.

FIRST HOME OWNERS GRANT
The First Home Owners Grant is a grant from the Federal Government which is available to first home buyers that meet criteria as compensation for the increased cost of housing after implementation of the Goods and Services Tax (GST) on 1 July 2000.

FIRST MORTGAGE
This is a mortgage that is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be repaid before any other mortgages.

FIRST REFUSAL
The right granted to a person to have the first privilege to buy or lease real estate, or the right to meet any offer made by another.

FISCAL YEAR
The business year as distinguished from the calendar year. The most commonly used period in Australia is 1 July to 30 June.

FITTINGS
Items that can be removed from a property without causing damage to it (eg light fittings).

FIXED FLOOR COVERINGS
Wall to wall carpet, kitchen linoleum, vinyl tiles, etc. This term does not cover loose rugs.

FIXED INTEREST (FIXED RATE)
An interest rate set for an agreed term.

FIXED INTEREST RATE
An interest rate that remains unchanged for a set period, for example, for the whole term of the loan, or the first year of a loan.

FIXED MORTGAGE
A mortgage whose terms do not require repayment of principal until the end of the mortgage term. Normally the borrower pays interest at regular intervals during the currency of the mortgage, ie each quarter, half-yearly or yearly.

FIXED RATE MORTGAGE
A fixed interest rate that applies to a loan for a set term. Both the interest rate and loan repayments are fixed for the agreed term, regardless of any interest rate variations in the home loan market.

FIXTURES
Items that would cause damage to a property if removed. Their removal must be stipulated in the contract of sale and any damage made good by the seller (eg: carpets, stoves, dishwashers etc).

FLAGSTONE
A flat, irregular slab of stone used for paving; usually sandstone or shale, which can be split into slabs. Used for walkways, patios, terraces, planter boxes.

FLASHING
Sheet metal, copper, lead, or tin used in roof and wall construction to protect a building from seepage of water.

FLAT
A self-contained dwelling unit in a multi-unit building.

FLAT ROOF
A roof having a slope just sufficient to provide for proper drainage; one where the pitch does not exceed 20 degrees.

FLOOD INSURANCE
Insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the lender will require flood insurance before approving a loan.

FLOOR AREA
Total horizontal surface of a specific floor, or the total area of all floors in a multi-storey building, computed from the outside building dimensions of each floor. Balconies and mezzanine floor areas are calculated separately and added to the total floor area of the building.

FLOOR AREA RATIO
The relationship between the floor area of a building and the square metre area of the site on which its stands.

FOR SALE BY OWNER
The owner of a property is selling the property themselves.

FOR SALE SIGNS
A sign at the front of a property that advertises that the property is for sale.

FORECLOSURE
A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.

FREEHOLD
The highest form of estate in land, and the nearest the law allows a real property owner to approach complete ownership. A freehold estate is one which is of unlimited duration, that is to say, it cannot be said of an estate of freehold at the time of its creation when it will come to an end.

FROZEN ACCOUNT
An account in which all transactions have been suspended.

FULL DOC (FULL INCOME DOCUMENTATION)
Borrowers are often required to provide income documentation to qualify for a mortgage loan. Borrowers who provide full income documentation (ie Full Doc) with their application qualify for the best rates and mortgage programs.

GABLE
The end of a building, triangular in shape; the vertical plane which lies above the eaves and between the slope of a ridged roof.

GABLE ROOF
A ridged roof, the ends of which form a gable.

GARDEN APARTMENTS
A term used to distinguish an apartment development of two or more buildings which has a garden-like setting. They are usually two or three storeyed walk-up buildings. These residential units in a multi-storey block have part of the ground floor garden area included in their title and which therefore enjoy exclusive use of what would otherwise be common property.

GARNISHEE
To legally divert a part or whole of someone's money or property to someone else.

GARNISHEE ORDER
A court order taken out by a creditor on a person's employer or banker for the deduction of funds from his wages or bank account to repay a debt.

GAZUMPING
Where the vendor agrees to sell a property, but then sells it to someone else or raises the price.

GEARING
Ratio of your own money and borrowed funds in an investment.

GENERAL LAW TITLE
There are two systems of providing title to land. One is the Torrens Title System which uses government - recorded certificates of title. The other is the very much older system under which title is proved by showing what is known as a good root of title, that is a series of documents showing the whole of the history of the land over a prescribed period and showing by that history who is currently the lawful proprietor of the land. Also referred to as; common law title, and old systems title.

GENERAL LIEN
The lender's right to retain property until a debt is paid. Includes Power of Attorney and other clauses generally contained in lender security forms.

GEORGIAN ARCHITECTURE
A formal colonial style adapted from English design of the eighteenth century; characterised by simple lines, balanced window openings, doors and chimneys.

GOING CONCERN
A business in actual operation and working order. One in which the transfer of ownership would affect no interruption of business.

GOOD TITLE
Title to real estate sufficiently free of defects, eg easements, restrictive covenants, mortgages, etc.

GOODS & SERVICES TAX (GST)
A consumption tax levied on the final consumer of the goods or services. The supplier of the transaction is responsible for collecting the GST and then sending it to the Australian Taxation Office (ATO). Businesses with an Australian Business Number (ABN) can reclaim the GST from the ATO as input tax credit.

GRACE PERIOD
A period when a mortgage payment or other debt becomes past due, and before it goes into default. Most mortgages provide for a specified period of time when it can be paid without penalty or default.

GRAIN RENT
The payment of rent in the form of grain or other crops for the right to farm the land. It is more commonly known as sharecropping.

GRADUATED LEASE
A lease which provides for a certain rent for an initial period, followed by an increase or decrease in rent over a stated period.

GST
Goods and Services Tax.

GOVERNMENT CHARGES
State and government charges at the time of settlement, eg stamp duty.

GROSS INCOME
Income from a person or company, before tax, superannuation, or payroll deductions.

GUARANTEE
A promise made as bound by the terms of a contract.

GUARANTOR
A person/s who agree to be responsible for the payment of another person's debts.

HALF-TIMBERED
House construction where the timber frame of walls is exposed, the space in between filled with masonry of lath and plaster; also, simulated half-timbering is where boards are applied on plaster walls. Half-timbering the distinguishing characteristic of Elizabethan style of architecture.

HALL
A room at the entrance of a building or a passage providing access to various parts of a building. A large room used for public gatherings.

HARD FINISH
The final smooth finished coat of plaster, which is applied in rough plastering.

HECTARE
The metric measure for an area of land measuring 10,000 square metres (approximately 2.47 acres).

HIGH RISE
An indefinite term, but generally understood to mean a structure, may be an office block or residential building, higher than three or four storeys, usually requiring a lift and requiring heavy construction methods. When referring to very large office buildings, the term skyscraper is more applicable.

HIGH SET
A house typical of some in Queensland usually of timber construction erected on wooden stumps or concrete or brick piers. The section under the house is often enclosed to provide laundry, and garage accommodation as well as clothes drying area, storage shaded play area for children and recreation.

HIGH START LOAN
A home loan where the initial repayments are high and decrease over the term of the loan.

HIGHEST BID
The top price offered by a bidder at auction. If the reserve price is not reached and the property is passed in.

HOLDING DEPOSIT
A refundable deposit demonstrating the goodwill of the buyer to go ahead with the purchase.

HOLDING DEPOSIT
An amount given by a buyer to the estate agent acting for the seller. It shows the buyer's serious commitment to the property, but is not compulsory and is refundable if the offer is rejected.

HOME AND CONTENTS INSURANCE
An insurance policy that combines protection against damage to a dwelling and its contents with protection against claims of negligence, ie inappropriate action that result in someone's injury or property damage.

HOME EQUITY
The value of a homeowner's unencumbered interest in their property(s). Equity is the difference between the home's fair market value and the unpaid balance of the mortgage and any outstanding debt over the home. Equity changes as the mortgage is paid or as the property appreciates or depreciates.

HOME EQUITY LINE OF CREDIT
This is an open-ended loan, with specific limitations on paying down and redrawing equity, which allows a borrower to borrow against the equity in a property.

HOME EQUITY LOAN
A home equity loan gives you a revolving line of credit secured by the equity in your house. This allows you to use the funds for any other purpose such as the purchase of a second property, shares or other investments. The interest rate is generally higher than a standard variable rate, and these accounts are not suitable for everyone.

HOME INSPECTION
An examination of the structure and mechanical systems to determine a home's safety; makes the potential homebuyer aware of any repairs that may be needed.

HOME LOAN
A home loan requires you to pledge your home as the lender's security for repayment of your loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.

HOME UNITS
A self contained dwelling unit in a multi unit residential development building individually owned, usually occupied by the owner, although not infrequently tenanted. Known in some States as Own Your Own flats.

HONEYMOON RATES
"Honeymoon" or introductory rates are offered to entice borrowers with a low advertised rate that may be as much as 2 percentage points below the standard home loan rate and therefore look very attractive. The rate can be fixed, capped or variable for the first six to 12 months of the loan. Then they automatically revert to the standard rate offered by that lender.

HOUSEHOLD INSURANCE
Insurance against all risks including theft, weather damage and fire. Because the purchaser becomes the legal owner immediately on the exchange of contracts, household insurance should be taken at this point.

IMPLIED EASEMENT
An encroachment upon property that has been left unchallenged for a long period of time. One that is apparent by long and continued use.

IMPROVED VALUE

IMPROVEMENTS
In relation to land means all works actually done or material used on and for the benefit of the land, but in so far only as the effect of such work done or material used increases the value of the land, and the benefit thereof is unexhausted at the time of valuation; but does not include work done or material used for the benefit of the land by the Crown or by any statutory public body. Improvements can take the form of buildings, fences, driveways, retaining walls, etc.

INCLUSION
Items included with the property eg light fittings.

INCOME PROPERTY
A property in which the income is derived from commercial rentals or in which the returns attributable to the real estate can be so segregated as to permit direct estimation. The income production may be in several forms; eg commercial rents, business profits attributable to real estate other than rents etc.

INCOME STATEMENT
A statement of income and expenditure for a period.

INCREMENT
An increase; most frequently used to refer to the increase in the value of land that accompanies population growth and increasing wealth in the community. The term unearned increment is used in this connection since values are supposed to increase without effort on the part of the owner.

INDEMNITY
Security against damage or loss; sum paid in compensation for loss incurred.

INDEMNITY INSURANCE
Insurance carried by a member of a profession or industry body (for example, a prescribed building practitioner or conveyancing solicitor) designed to protect the buyer/s from loss owing to the negligence or criminal actions of the professional acting on his/her behalf.

INDEX
Measurement used by lenders to determine changes to the interest rate charged on a variable rate mortgage.

INDUSTRIAL BUILDING
A building designed and used primarily for industrial and commercial purposes. Any structure used for manufacturing and general business purposes, such as a factory, assembly plant, warehouse etc.

INDUSTRIAL ESTATE
An area of land subdivided for the purpose of industrial development.

INDUSTRIAL PARK
A controlled, park-like development, designed to accommodate specific types of industry, and providing the required appurtenances such as public utilities, streets, railroad sidings, water and sewerage facilities, etc.

INDUSTRIAL PROPERTY
Land zoned and suited for the construction of factories, warehouses and other similar industrial purposes.

INFLATION
A sustained increase in the general level of prices so that a given amount of money buys less and less. (Eg the number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.)

INSTALMENT
The regular periodic payment that a borrower agrees to make to the lender.

INSTRUMENT
Formal legal document in writing, eg a deed of conveyance.

INSULATION
A heat-retarding material applied in outside walls, top-flooring ceiling or in roof to prevent passage of heat or cold into or out of the house. Also, the process of insulating a house.

INSURANCE
A method of guaranteeing or indemnifying an individual or company against loss from a specified hazard. For the payment of an agreed premium, the insurer issues a policy to the insured that gives financial protection for a stated period of time.

INSURANCE
Protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.

INTEREST
The Lender's charge for the use of funds or the return on deposited funds.

INTEREST ONLY LOANS
A loan where the principle is paid back at the end of the term and only interest is paid during the term.

INTEREST RATE
The amount of interest charged on a monthly loan payment; usually expressed as a percentage.

INTERNAL RATE OF RETURN
A measure of the return on an investment (or loan) which takes into account the time value of money by showing the rate of interest at which the present value of future cash flows is equal to the cost of the investment or loan.

INTRODUCTORY LOAN
A home loan or investment loan is offered at a reduced rate for an introductory period (usually 6 to 12 months) to new borrowers. Also called a discounted or honeymoon rate.

INVENTORY
A list of items included with a property eg furniture.

INVESTMENT
Monies placed in a property with the expectation of producing a profit, assuming a reasonable degree of safety and ultimate recover of principle; especially for permanent use, as opposed to speculation.

INVESTMENT LOAN
A loan acquired to purchase an investment property. Typically investment loan interest rates are similar to standard home loan rates. As with home loans, you are requires you to pledge your investment property as the lender's security for repayment of your loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.

INVESTMENT PROPERTY
A property purchased for the sole purpose of earning a return on the investment, either in the form of rent or capital gain. The owner cannot live in the property.

INVISIBLE IMPROVEMENT
Those improvements to land which are not visually apparent. They are general improvements to the land itself and are difficult to ascertain and assess as they have merged with the land, eg cutting and filling, reclamations, timber treatment and eradication of pests and noxious weeds.

JOINT AND SEVERABLE LIABILITY
With joint and several liability , a creditor has as many rights of action as there are debtors; he can sue them jointly or severally until he has obtained payment, and an unsatisfied judgment against one debtor will not be a bar to an action against the others.

JOINT TENANTS
Equal holding of property between two or more persons. If one party dies the property passes to the survivors.

JOINT TENANTS and TENANTS IN COMMON
Property, whether real or person, may be owned under joint tenancy or tenancy in common. Joint tenancy is ownership in equal undivided shares, state to have the technical requisites of unity of possession, interest, title and time. The most important feature of joint tenancy is known as survivorship; on the death of one joint tenant, that person's share passes to the survivors so that they remain joint tenants of the whole. Joint tenants are regarded collectively as a single person in respect of their dealings with others. In the case of tenancy in common, although each has an undivided share, such share is distinct and separate. The interests need not be equal; thus ‘A' may have one undivided third share, and ‘B' two undivided third shares of the same property. The most important feature is that the share of a tenant-in-common may be separately disposed of during a person's lifetime, or by will. On death it passes, not to the other tenants-in-common, but by will, or by the laws of intestacy.

JUDGMENT
A legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source.

LAND TAX
A State Government tax charged to the owners of any property over a stipulated value.

LANDLORD
The owner of leased property. The lessor.

LANDSCAPING
The work of the landscape architect, landscape gardener or landscaper; treatment of lawn and plantings to enhance the appearance of a lot.

LAND TAX
An annual tax paid to the state government, calculated according to the value of the property.

LAND USAGE
The use being made of land or the uses permitted under zoning ordinances. Zoning ordinances act to control land usage in a community by establishing building codes and set back requirements. Proper land usage attempts to assign the highest and best use to each parcel.

LEAN-TO
A small structure with a single pitched roof, usually erected against an outside wall of a larger structure.

LEAN TO ROOF
A sloping roof supported on one side by the wall of an adjacent building.

LEASE
Possession but not ownership of a property for a set period of time. The terms and conditions are set out in a document signed by both tenant and owner.

LEASE
A document granting a period of tenancy of a property under specific terms and conditions.

LEGA FEE
May be charged where an outside party is used to prepare Lender documentation.

LESSEE
One who possess the right to use or occupy a property under a lease agreement.

LESSOR
Property owner who rents it out.

LIABILITY
A debt which one is liable for; being responsible only to a limited amount.

LIEN
The right to hold property as security against a debt or loan.

LINE OF CREDIT
A flexible loan arrangement with a specified ceiling to be used at a Customer's discretion secured by equity in the home or investment property.

LIMITED TITLE
The Torrens Title that applies before a property has been surveyed.

LISTING
The recording of properties as being available for sale.

LMI
L.M.I. is Lenders Mortgage Insurance. It's a one-off payment by the borrower to the lender to insure the loan. It's usually required when a loan amount is higher than a lender's acceptable L.V.R. which is usually around 80% of the property's value. L.M.I. insures the lender for the full amount of a loan in case a borrower defaults.

LO DOC
No Income Documentation is another documentation type that borrowers can choose instead of Full Doc or Lo Doc when applying for a home loan. Borrowers just state their income and do not have to supply the mortgage lender with any income documentation. This is usually only available to borrowers who borrow less than 70% of valuation of security property.

LOAN
Money borrowed that is usually repaid with interest.

LOAN FRAUD
Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.

LOAN PRE-APPROVAL
The loan is approved before the borrower bids on or offers for the property.

LOAN TO VALUE RATIO (LVR)
The loan amount in relationship to the appraised value or selling price expressed as a percentage (for example, a loan amount of $80,000 divided by the appraised value of $100,000 equals an 80% LTV).

LOCK IN
Interest rates can change frequently, so many lenders offer an interest rate lock-in that guarantees a specific interest rate if the loan is closed within a specific time.

LONG TERM LEASE
Generally considered to be a lease agreement extending for 10 years or more. Under such leases the tenant may desire, or be required, to do extensive remodelling: or if the property leased is land, to construct a building or other improvements.

LOSS MITIGATION
A process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan.

LOW START LOAN
A home loan where the initial repayments are low and increase over time.

'LOW DOC' LOANS
Low doc or low documentation loans are structured for the self-employed who don't have the documentation required to get traditional home loans. The interest rate can be higher than the standard variable rate although the gap is narrowing. Other types of non-conforming loans are also on the rise to cater for people with riskier borrowing profiles. They accordingly pay higher interest rates. Both types of low doc loans generally carry a requirement for mortgage insurance, adding to their cost.

(LTV) LOAN TO VALUE RATIO
This is the general term for the Loan to Value ratio. This measure is used to determine the percentage of the equity in a mortgage against the value of the security. Eg if a house is worth $500,000, and the mortgage over the property is $350,000 then the LVR is 70.00%. Typically, lenders consider 80% as the point at which mortgage insurance is required. (LVR is sometimes referred to as LTV.)

LUMP SUM REPAYMENTS
Additional ad hoc repayments, made over and above your minimum repayment requirement.

LVR
This is the general term for the Loan to Value ratio. This measure is used to determine the percentage of the equity in a mortgage against the value of the security. Eg if a house is worth $500,000, and the mortgage over the property is $350,000 then the LVR is 70.00%. Typically, lenders consider 80% as the point at which Mortgage Insurance is required. (LVR is sometimes referred to as LTV.)

MACHINE SHED
A farm building used for the storage of farm machinery. It generally has an open wall on one side.

MAINTENANCE
The act of keeping, or the expenditure required to keep a property in condition to perform efficiently the service for which it is used.

MAISONETTES
There does not seem to be an absolute definition, but a usual one is two semi-detached dwellings, normally of single storey construction.

MARGIN
The difference between the lender's interest indicator rate (or other reference rate) and the rate actually charged to borrowers.

MARGIN LENDING
Margin lending enables investors to borrow against their existing assets (eg cash, share holdings etc) to invest in more shares.

MARKET PRICE
The price actually paid, or to be paid, for a property.

MATURITY
The date a debt or investment must be paid in full.

MAXIMUM LOAN AMOUNT
The maximum amount that can be borrowed based on an applicants' disposable income, deposit, and the purchase price of the property.

MAXIMUM LOAN VALUE RATIO (LVR)
Maximum loan to valuation. This means the amount you can borrow expressed as a percentage of the valuation of the security (usually the property you are buying).

MAXIMUM TERM
The maximum length of a home loan or a specific portion within that loan. (Normally 25 or 30 years).

MEDIAN
The median is the 'midpoint' when a set of values are arranged in ascending order, eg if the numbers were 1,1,3,4,5,6,7,7,7,7,8 the median would be 6, whereas the average is 5.09.

MEZZANINE
A low storey between two floors of a building, especially the first two floors; an intermediary floor. In a theatre, a shallow balcony between the main floor and the first balcony.

MINIMUM FIXED AMOUNT
The minimum amount that can be borrowed at a fixed rate of interest.

MINIMUM LOAN AMOUNT
The minimum amount that can be borrowed.

MINIMUM LUMP SUM PAYMENT
The minimum amount that can be repaid as a lump sum.

MINIMUM REDRAW AMOUNT
The minimum amount that can be redrawn from a loan.

MINIMUM REPAYMENT
The amount you are contractually obliged to repay each month, in order to repay your loan within the agreed term.

MOBILE HOME
A complete, liveable dwelling unit equipped with wheels so that it may be towed from place to place.

MONTHLY FEES
The fees charged to cover or partially cover the lender's internal costs of administering the loan each month.

MORTGAGE OFFSET
Non-interest earning account that is offset against a home loan to reduce the total interest payable.

MORTGAGE
A form of security for a loan usually taken over real estate. The lender, the mortgagee has the right to take (repossess) the real estate if the mortgagor fails to repay the loan.

MORTGAGE GUARANTEE INSURANCE
Paid by the borrower to protect the lender against failure by the borrower to keep up mortgage repayments or to pay back the loan in full when it is due.

MORTGAGE INSURANCE
This is a type of insurance coverage that a borrower may be required to purchase (generally if the deposit is less than 20 percent of the purchase price of the home) to protect the lender in the event the borrower fails to make timely mortgage payments or defaults on the mortgage. Whether or not a borrower is required to purchase LMI depends on the type of mortgage the borrower obtains from a lender. Mortgage insurance protects the lender not the borrower whilst premiums are payable by the borrower.

MORTGAGEE
The source of funds for a mortgage loan and in whose favour the property serving as security is mortgaged, ie the person who lends money on the mortgage against some security normally real property or goods.

MORTGAGOR
The person borrowing money in the terms of the mortgage.

MORTGAGE BROKER
A company or person that originates loans for a number of lenders.

MORTGAGE MANAGER
Mortgage managers are lending specialists who arrange funding for home and investment loans. Unlike banks, building societies and credit unions, mortgage managers do not have a base of customer deposits with which to fund their loans. Instead they source their funds via a process known as securitisation.

MORTGAGE OFFSET ACCOUNT
A savings account run in conjunction with a home loan. The interest earned on the account is applied to reduce the interest paid on the loan. A 100% offset is where the interest rates earned and paid are the same. A partial offset account is where the interest earned on the offset account is only a portion of the rate paid on the home loan.

MORTGAGE ORIGINATOR
Originators initiate or generate mortgage applications for the mortgage trust. Put simply, they 'pool' a group of mortgages which can then be sold on to investors as an income producing asset. Originators are responsible for receiving applications for finance, assessing credit and monitoring the transaction through to settlement. They may then appoint a mortgage manager or may take on the management role themselves.

MORTGAGEE PAYMENT
A regularly scheduled payment that usually includes both principal and interest.

MORTGAGE PROTECTION INSURANCE
This is a type of insurance coverage that a borrower may be required to purchase (generally if the deposit is less than 20 percent of the purchase price of the home) to protect the lender in the event the borrower fails to make timely mortgage payments or defaults on the mortgage. Whether or not a borrower is required to purchase LMI depends on the type of mortgage the borrower obtains from a lender. Mortgage insurance protects the lender not the borrower whilst premiums are payable by the borrower.

MORTGAGE REGISTRATION FEE
State Government charge for the registration of a loan.

NEGATIVE GEARING
Where the return on an investment is insufficient to meet the interest costs of the loan used to fund the investment. This amount can usually be claimed as a tax deduction.

NET INCOME
Income after income tax and expenses are deducted.

NET PROFITS
The term net profits, without qualifying expression, should be.

NO AGENT PROPERTY SALES
The sale of properties sold by the owners with no real estate agent involved.

NON-CONFORMING LOANS
Non-conforming finance refers to loans that cater for those who can't meet the standard income verification and credit history criteria mainstream lenders like banks and mortgage originators use for ordinary borrowers. Such borrowers include those who are self-employed, have a poor credit record or who have recently arrived in Australia. Non-conforming loans are usually at higher interest rates to reflect higher risk of these borrowers. The non-conforming finance is also called 'sub-prime lending'.

NOTICE OF TERMINATION
At the end of a lease either the landlord or tenant may give notice that they want to end the rental agreement and vacate the property.

OCCUPANCY
Having possession of property. Physically taking and holding it and residing thereon as a tenant or owner.

OCCUPANCY PERMIT
A document, issued by a private or council building surveyor to show that the building is suitable for occupation. It is not evidence that the building complies with the Building Act or the Building Regulations.

OFFER
Indication by a potential buyer of willingness to purchase a home at a specific price; generally put forth in writing.

OFFER TO PURCHASE
A legal agreement that details a specific price for the purchase of a specific property.

OFFSET ACCOUNT/MORTGAGE OFFSET
Offset accounts can help reduce your tax bill by offsetting taxable income from deposit accounts against interest paid in after tax dollars on mortgage repayments. However, not all offset accounts are equal, with many not paying the same interest as you are charged on your mortgage.

OFFICIAL CASH RATE
The Official Cash Rate is the interest rate set by the Reserve Bank of Australia and used to influence the general level of interest rates in banking and the economy. Changes to the cash rate, also termed "official interest rates", flow on to variable home loan, personal loan and credit card rates within weeks.

OFFSET ACCOUNT
A savings account linked to your mortgage in such a way that the interest earned on your savings is applied to reduce the interest on your mortgage.

OLD SYSTEM TITLE
(Common law title) details the 'chain' of the title documents stretching back to the original owner.

ON SITE AUCTION
Auction sale held on premises being offered for sale or chattels being offered at the owners residence as distinct from an auction held at the premises of the auctioneer or auction rooms.

ONLINE PROPERTIES
Properties listed on the internet.

OPTION
A right given for a consideration to purchase property on or before a fixed date, on terms previously agreed upon.

OPTION TO BUY
Legally binding document which gives a person first right of refusal on a property etc.

ORIGINATION
The process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property valuation.

ORIGINATION FEE
A fee for originating the loan charged by the lender. Can also be called an application fee.

OUTBUILDINGS
Any building other than the main structure on a particular allotment of land. Eg a garage, workshop etc.

OVERDRAFT
Pre-arranged limit to which a person can exceed an account balance.

OVER IMPROVEMENTS
Improvements so costly or so large as to produce a residual land value lower than the residual land value which could have been produced on the same site by a less costly or smaller improvement. Also known as over capitalisation.

OWNERS CORPORATION
The owners corporation (previously known as the body corporate) is the body who controls the administration of common property in strata title building. The members of the owners corporation are the owners of each unit in the building.

OWNERSHIP
The right to possess and use property to the exclusion of others.

PANEL HEATING
Radiant heating with pipes or ducts embedded in walls, floor or ceiling serving as heating panels.

PARCEL
A piece of land, regardless of size, in one ownership.

PASSED IN
If a property is not sold at auction because the owner's reserve price has not been reached, it is passed in. The highest bidder having first option to purchase at the reserve price. It is then possible to negotiate for the purchase, either on the same day or afterwards. Properties so passed in are mostly sold shortly afterwards at a price close to the passed in figure.

PAYEE
The person or entity to which a cheque is payable.

PENTHOUSE
An apartment built on a portion of the roof or top floor of a building. Typically, such units are larger and more luxurious than most apartments.

PEPPERCORN RENT
When land is let free of rent and the landlord wishes to be able to obtain an acknowledgement of the tenancy when necessary, a nominal rent is frequently reserved, consisting of one peppercorn a year to be paid by the tenant when demanded as evidence that he is occupying land as a tenant and is not thereby developing rights adverse to those of the landowner himself.

PERGOLA
An open framework over a path, terrace, patio, etc.

PERIODIC LEASE
Where the tenant continues to rent the property after the lease has formally expired. Notice to terminate the agreement may be given by either party during this period.

PHYSICAL DEPRECIATION
The decline in property value due to the physical action of time and the elements, as well as through usage. Deterioration through the physical depreciation is normally as a result of inadequate maintenance or normal weathering and decay.

PLAN
Detailed illustration of a house that shows the internal layout and dimensions and the position of the house on the land.

PRIVATE REAL ESTATE/PRIVATE REAL ESTATE SALES
Property/ies sold by the owner.

PORTABILITY OR PORTABLE LOAN
A portable home loan allows you to sell your house and move to a new one without having to refinance. This saves application and legal fees. Most lenders however insist that the home loan amount is the same or less. It is important to know the terms of your loan.

PRE-APPROVAL
Lender commits to lend to a potential borrower; commitment remains as long as the borrower still meets the qualification requirements at the time of purchase.

PREFABRICATED HOUSE, PREFAB
A house, manufactured, and sometimes partly assembled before delivery to the site.

PREMIUM
Amount paid on a regular schedule by a policyholder that maintains insurance coverage.

PREPAYMENT
Any amount paid to reduce the principal balance of the loan before the due date or any amount in addition to the minimum repayment. May be subject to a prepayment penalty.

PRE-QUALIFY
A lender informally determines the maximum amount an individual is eligible to borrow.

PRINCIPAL AND INTEREST LOAN
Loan in which both the principal and the interest are repaid during the term of the loan.

PRINCIPAL
Capital sum borrowed from a lender on which interest is paid (doesn't include the interest or additional fees).

PORTABILITY
The loan is transferred to a new security property without needing to repay the loan, reapply, or restructure.

PRE-QUALIFICATION
This is the conditional establishment of a borrower's qualification for a mortgage loan amount and his or her ability to make monthly payments within a specific loan scenario. Pre-qualification is based on debt-to-income ratios and is subject to debt and income verification, credit history, property appraisal and other factors.

PRIVATE SALE
An owner sells a property without using an estate agent.

PRIVATE TREATY
A private property sale where the buyer negotiates on a price set by the seller.

PROPERTY MANAGEMENT
A division of a real estate office composed of leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients.

PUBLIC LIABILITY
It is common practice for business people to insure against this liability to others for death, injury or damage accidentally caused by their negligence or by their employees, servants or agent.

PURCHASE AND LEASE BACK
A real estate transaction wherein an investor purchased a property and allows the seller to remain in possession as a tenant.

PURCHASE PRICE
The price paid; the amount for which a property is sold.

PURCHASER
The buyer. The one who acquires title to a property or an interest therein.

QUALIFIED TITLE
An Old System Title that has been updated to the Torrens system, but which may not have been comprehensively investigated to find out all the enduring legal interests in the property.

QUANTITY SURVEYOR
A person who undertakes the preparation of a statement of the quantities of material involved in the carrying out of constructional work.

RACK RENT
The rent at which a property is worth to be let by the year in the open market, ie what a tenant, taking one year with another, might fairly and reasonably be expected to pay, the tenant paying rates and taxes, and the landlord doing repairs.

RANCH HOUSE
A one storey rambling style home, usually having a low pitched gable or roof line.

RATEABLE PROPERTY
Real estate property in respect of which there is power to impose rates.

RATEABLE VALUE
The value of property on which rates are assessed.

REAL PROPERTY
Land, with or without improvements (eg a house).

REAL ESTATE
Land and hereditaments or rights therein and whatever is made part of or is attached to it by nature or persons.

REAL ESTATE MARKET
The buying and selling of real property that creates supply and demand resulting in the setting of market values and prices.

REAL PROPERTY
This refers to the interests, benefits and rights inherent in the ownership of the physical real estate. It is the bundle of rights with which the ownership of real estate is endowed.

REALTY
Used as a synonym for real estate.

RE-AMORTISE
To recalculate the minimum repayment required to repay the outstanding balance of your loan over the remaining period (typically relevant when loan balance has changed substantially from the original amount).

REDEVELOPMENT
The development or improvement of cleared or undeveloped land in an urban renewal area.

REDEVELOPMENT ZONE
An area of land designated by a planning scheme as an area in which the existing development is to be replaced by a new development of the kind specified in the planning scheme.

REDRAW FACILITY
Redraw facility allows you to make additional repayments on your mortgage, and then have access to the additional repayments if you need to. It is important to understand the conditions attached to the redraw facility as they can include a minimum amount and a fee for every time you use it.

REDRAW FEE
Fee charged to cover or partially cover the lender's internal costs of allowing the borrower to redraw money.

REFINANCING
This is the process of paying off one loan with the proceeds from a new loan secured by the same property. The borrower must be a vested owner at the time of the transaction. A cash-out refinance gives the borrower cash from the loan proceeds that can be used for any acceptable (by the lender) purpose.

RENT PURCHASE
Designed to assist low to moderate-income homebuyers to purchase a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

RENTAL BOND
A bond is paid as an assurance that the tenant will not breach the conditions of tenancy and upon vacating will leave the premises in a state of good repair and order.

REQUISITIONS ON TITLE
Process by which the buyer requests additional information about the title of the property from the seller.

RESERVE PRICE
The minimum price at which the owner of a property is prepared to sell a property at auction.

RESIDENCE
The place where one lives; a person's home.

RESIDENTIAL TENANCIES TRIBUNAL
Specialist tribunal that determines most matters relating to residential tenancies including breaches of tenancy agreements by either the landlord or the tenant. Usually does not involve solicitors.

RESTORATION
Remodelling a building to its original form; contrasted with rehabilitation.

RESTRICTION
An encumbrance which limits the use of real estate in some way.

RESUMPTION
The taking by the Crown, or some statutory body, of certain lands.

RETICULATION
Formation of network of individual lines to service urban land on establishment of principal utility services, eg supply of water to individual houses from a water main.

RIGHT OF WAY
A person's right to cross other property or a general pathway across your land.

RISE AND FALL CLAUSE
Building contract clause that allows the final pricing to move up or down according to the fluctuations of material pric