Queensland Real Estate Sales Agent Course Glossary of Terms A-F

As a student in the Queensland Sales Agents Course, you will need to be familiar with the following real estate related terms: A Account sales A statement provided by an agent to a principal (vendor) giving full account for all deposit money received in a sale less commission, advertising costs and other disbursements. Act A set of rules that has been passed by Parliament, received Royal Assent and become law. Affidavit A written statement in the name of the person who signs it and swears or affirms to its truth. Agency authority Written agreement for the agency to act on behalf of a landlord. Agents representative An employee who is authorised in writing to act on behalf of an estate agent and to perform the functions of that agent as specified. Not a licensed agent. Agents in conjunction Estate agents from unrelated agencies, working together to undertake a transaction and who share the commission for that transaction. Appraisal An opinion of the market worth of a property without resorting to a full-scale valuation. Assignment (of lease) The transfer of a lease from one tenant to another tenant. Auction of land A public sale of property in which the highest bidder at or beyond the reserve price is normally the purchaser of the property.

Authority to act A document signed by an estate agent and given to an employee (agents representative or another estate agent), authorising the employee to perform the functions of an estate agent as set out in section 4 of the Estate Agents Act. Authority to lease A legally binding document that is signed by the landlord. It details the agreement between the landlord and the agency. Many aspects of the authority, such as commission, advertising costs and the authority period, are negotiable between the parties. Authority to sell A legally binding document that is signed by the vendor. It details the agreement between the vendor and the agency. Many aspects of the authority to sell, such as commission, advertising costs and the authority period, are negotiable between the parties. B Bond An amount paid as an assurance that the tenant will not breach the conditions of the tenancy, for example the tenant will pay rent and on vacating will leave the premises in a state of good repair and order. See security deposit. Branch manager An estate agent or approved agents representative who manages the branch office of an estate agency business. Branch office Any agency office, other than the principal office, from where real estate business is conducted. Breach of contract The breaking of one or more of the terms or conditions of a contract. Building contract salesperson A person who sells property as an employee of the owner of that property, which is a formally constituted business. A building contract salesperson does not need to be an agents representative or to hold an estate agents licence. Building permit A permit issued by local government authorities for the erection of a building or for structural alterations to a building.

Business A commercial operation ranging from a small retailer to a large manufacturing or service organisation. The business includes the goodwill, which is its reputation and clients, any plant, equipment, chattels, stock and other assets. Business broker An estate agent or agents representative who specialises in the sale or lease of businesses. Business day Any day other than a Saturday, Sunday or gazetted public holiday. Buyers advocate estate agent who acts solely for the purchaser by sourcing suitable properties and representing the purchaser throughout the buying process. Buying agent An estate agent or an agents representative acting on behalf of a purchaser to arrange the purchase of a property. C Caveat A note on the title that an interest in the land is claimed by a third party. Caveat emptor A Latin expression that means let the buyer beware; it is the purchasers responsibility to assess the quality of the purchase (the property or business) before buying. Certificate of Completion A document issued by a building surveyor on completing the final mandatory inspection of the property. It is not evidence that the building complies with the Building Act 1993 or building regulations. See Certificate of Occupancy. Certificate of Occupancy A document issued by a building surveyor, which shows that the building is suitable for occupation. It is not evidence that the building complies with the Building Act or building regulations. See Certificate of Completion. Certificate of Title

A document that shows who owns the property, the size of the land and whether there are any limitations on the title such as mortgages, easements or encumbrances. Chattels Moveable personal property or furniture. Also referred to as goods in the context of a sale of property. Commercial property Property zoned and used as office buildings, shops and retail premises. Commission The fee paid by the principal (vendor or landlord) to the agency for undertaking a transaction relating to the sale, purchase, leasing or management of property. The amount of commission is negotiable between the principal and the agency. It may be either a flat fee or a percentage (or a combination of both) of the purchase price or the rental collected. Commission income The income that accrues to salespeople from their share of the commission that an estate agency earns from the sale of property. Common law The system of laws originated and developed in England and based on court decisions, on the doctrines implicit in those decisions, and on customs and usages rather than on codified written laws. Common property Areas of a property that are used by and belong jointly to all the owners of a strata title property. This applies to common driveways, paths, courtyards, stairs, passageways, lifts, lobbies, fences, common garden areas and other facilities in multi-dwelling complexes. Company title Each owner in a block of fiats has shares in a company that has total ownership of the land and buildings of the flats. The owners receive a parcel of the shares with rights attached. Each owner is entitled to exclusive occupation of a flat, but this is subject to the companys Memorandum and Articles of Association. See strata and stratum titles. Condition report A report on the current condition of residential property to be leased where a bond is to be taken. The condition report must be completed by the agent and given to the tenant before the tenant takes possession of the property. The tenant must sign and return one copy of the condition report within three business days of occupying the premises. Contract of Sale of Real Estate

A legal document prepared by the vendors solicitor that outlines the conditions of the sale. The contract of sale is legally binding when signed by both the purchaser and the vendor. Conveyancing Transferring the ownership of a property from the vendor to the purchaser. It is often performed by a solicitor or conveyancer. Cooling-off period The period of three clear business days after the purchaser signs the contract of sale for residential or rural property of not more than 20 hectares, during which the purchaser may withdraw from the purchase. The cooling-off period does not apply in certain circumstances, including where property is sold by auction. Co-owners Where a number of people have joint ownership of a property. See tenants in common and joint tenants. Co-owner bid at auction A genuine bid by one or more of the co-owners of a property to purchase the property. Counter offer A new offer as to price, terms or conditions made in reply to a prior unaccepted offer. Covenant In real estate, a covenant is an agreement that creates an obligation on the owner of a property not to do something. For example, a covenant could state that no more than one dwelling may be built on the land. A covenant runs with the land and the liability to comply with it or the right to take advantage of it passes from owner to owner. D Damages Money ordered to be paid as compensation for injury or loss. Deed A document in writing where an agreement is reached, obligation entered into or property conveyed. It is signed under seal. Defect of title Any matter, for example an encumbrance or an illegal structure built without a permit, which restricts the purchaser from obtaining a clear title to the property.

Demographics The statistics of a population, or section of a population. Deposit An amount of the purchase price paid by the purchaser, usually at or around the time of making a written offer. It is usually 10% of the purchase price. The deposit must be held in a trust account by an estate agency or by the solicitor or conveyancer, or may be held jointly in a trust account by the vendor and purchaser. Disbursements Expenditure by the estate agent on behalf of the principal including, for example, advertising expenses, rates, taxes and insurance. Domestic building insurance Insurance taken out by builders to protect home owners from loss arising from defects to a building or for incomplete work. Builders must take out domestic building insurance for most home building or renovations with a contract price over $12,000. However, the insurance may only be claimed against where the builder has died, is insolvent or has disappeared. Dummy bid A false bid made or accepted by the auctioneer. Dummy bids can include bids made by a nongenuine bidder and fictitious bids pulled out of the air by the auctioneer. Any bid made on behalf of the vendor by anyone other than the auctioneer under the auction rules is considered a dummy bid. Dummy bidding is illegal. Duration of lease The period of the lease. The remaining time for which the property is leased. Also known as the lease term. E Easement A right held by one person to make use of the land of another. For example, land set aside for drainage and sewerage pipes. Employment agreement The contract that sets out the terms and conditions of employment for an employee and which is agreed between an employer and employee. Encumbrance

A third partys right that obstructs the unencumbered use or transfer of a property. Examples are easements, mortgages and caveats. Enforceable undertaking A promise in writing that is enforceable through the Magistrates Court. Equity law Law founded on the principles of fairness and natural justice to supplement the rules and procedures of the common law. Estate agent A licensed person who is authorised to act on behalf of another person to bring about the sale, purchase, lease or management of a property or business. Estimated selling price The price an estate agent estimates a property will attract. It must be recorded on the authority to sell as either a single figure or as a range where the difference between the top and bottom figures does not exceed 10%, for example, $400,000$440,000. Ethics The standards governing the conduct of real estate practitioners. The standards may be set in legislation or by an industry body and are based on the principle of right conduct. Exclusive agency authority The vendor appoints a single agency and, regardless of who is the effective agent of the sale or lease (including the principal or another agency), the appointed agency is entitled to the commission. Extension of lease An agreement extending or renewing the terms of a lease for a period beyond the initial termination date. F Fee simple The fullest and highest possible ownership of property. Ownership of unlimited duration, where ownership passes to heirs or beneficiaries on the owners death. First Home Owner Grant A scheme funded by the Victorian Government that provides first home owners with a nonmeans tested one-off payment. Visit FistHome for more details.

First Home Owner Boost A scheme funded by the Australian Government that provides a one-off non-means tested grant for people entering a contract between October 2008 and June 2009 to purchase their first home. Fittings Items that can be removed without damaging the property, such as garden ornaments, lighting and drapes. They must be listed in the contract of sale if the purchaser wants them to remain with the property. Fixed term tenancy A tenancy where there is an agreement that ends on a specified date. Except where the tenant has breached the law or the tenancy agreement, the landlord is not entitled to terminate the tenancy agreement before the expiry of the fixed term. On expiry, a fixed term tenancy automatically continues as a periodic tenancy unless a new fixed term agreement has been entered into. Fixtures Items that are attached to the property and cannot be removed without causing damage to the property, such as bathroom suites, built-in wardrobes and kitchen stoves. They are usually included in the sale. Freehold See fee simple. The New South Wales Certificate of Registration, or Queensland Sales Agents program is provided by Intellitrain as an online training course and has been specifically designed to meet the minimum real estate training requirements in order to sell real estate in the respective State.

Intellitrain delivers the Queensland Sales Agent Course and the New South Wales Certificate of Registration Course via our online learning portal, so you can get started training to sell real estate today!