A
- Agency agreement
- A legally binding contract between a seller and their real estate agent, setting out what the agent will do and the commission they’ll receive. The agent must recommend the seller get legal advice before it’s signed.
- Appraisal
- An agent’s written assessment of a property’s likely sale price, based on recent comparable sales, condition and current market demand, not a guess or a fixed valuation.
- Auction
- A sale method where buyers publicly bid until the highest price is reached. The winning bid is usually unconditional immediately, so finance and due diligence need to be sorted beforehand.
B
- Body corporate
- The group made up of all owners in a unit title development, responsible for managing and maintaining common property and shared costs like insurance and maintenance.
- Building report
- An independent assessment of a property’s condition by a qualified inspector, identifying current or likely future problems, worth getting even on newer homes.
C
- Caveat
- A notice registered on a property’s title showing that someone other than the owner may have a claim or interest in the property.
- Certificate of title (Title)
- The legal document showing who owns a property, its legal description, and any rights or restrictions registered against it, such as easements or covenants.
- Chattels
- Moveable items included in a property sale, such as the stove, curtains, blinds or light fittings, only the items actually listed in the sale and purchase agreement are included.
- Commission
- The fee a seller pays their real estate agent for selling the property, set out in the agency agreement and negotiable between seller and agent.
- Conditional offer
- An offer to buy subject to stated conditions being met, commonly finance approval, a satisfactory building report, or a LIM.
- Cross lease
- An ownership type common where several homes sit on one block. Owners jointly own the underlying freehold land and each hold a leasehold interest in the specific area they occupy.
D
- Deadline sale
- A sale method where a property is marketed with an advertised end date, but the seller isn’t obliged to wait and can accept a suitable offer earlier.
- Deposit
- A percentage of the purchase price paid upfront to secure a property sale, not the same as the deposit a bank requires before approving a mortgage.
E
- Easement
- The right for someone other than the landowner to use part of a property for a specific purpose, such as accessing a shared driveway or utility connection.
F
- Freehold (fee simple)
- The most common and generally simplest form of property ownership in New Zealand, you own the land and (generally) what’s built on it, subject to any registered interests.
L
- LIM (Land Information Memorandum)
- A report from the local council setting out what it knows about a property or section, consents, drainage or plumbing issues, rates owing and known hazard information.
- Leasehold
- An ownership type where someone else owns the land and you pay ground rent for the right to use it and any buildings on it for a set term.
- LVR (loan-to-value ratio)
- The size of a mortgage expressed as a percentage of the property’s value, a key figure lenders use to assess loan risk and set interest rates.
M
- Meth testing
- Testing a property for methamphetamine contamination, sometimes considered for former rental properties or where there’s a specific reason for concern.
- Multi-offer process
- A situation where more than one genuine written offer exists on a property at the same time, and the seller can ask each interested buyer to submit their best offer.
P
- PIM (Project Information Memorandum)
- A council report on relevant information for a proposed building project on a piece of land, such as services, hazards and resource consent requirements.
R
- Rateable value (RV/CV)
- A council valuation used to calculate local rates, it’s not the same as market value and can be well out of step with what a property would actually sell for.
- REA (Real Estate Authority)
- The independent New Zealand government agency that regulates the real estate industry and licenses agents under the Real Estate Agents Act 2008.
- REAA 2008
- The Real Estate Agents Act 2008, the legislation governing how real estate agents in New Zealand must be licensed and how they must conduct themselves.
- REINZ
- The Real Estate Institute of New Zealand, an industry membership body that also publishes widely used national and regional property market statistics.
S
- Sale and purchase agreement
- The legally binding contract between buyer and seller for a property sale, setting out price, conditions and settlement date. Binding once both parties sign it.
- Settlement
- The point at which a property sale is completed, funds and title are exchanged between the buyer’s and seller’s lawyers, and the buyer takes possession.
- Sole/exclusive agency
- An agency agreement where one agency handles the sale (though another agent can still introduce a buyer through a conjunctional arrangement), as opposed to a general agency with multiple agencies involved.
T
- Tender
- A sale method where buyers submit confidential written offers by a set deadline. The seller can negotiate with any tenderer afterwards and isn’t obliged to accept the highest figure alone.
U
- Unconditional
- A sale and purchase agreement where all conditions have been met (or none were ever attached), at this point, both parties are legally bound to complete the sale.
- Unit title
- An ownership type common in apartments and multi-unit developments, you own your specific unit plus an undivided share of common property, and automatically join the body corporate.
V
- Vendor
- The legal term for the person or entity selling a property.
Z
- Zoning
- Local council rules that determine what a piece of land can be used for and what can be built on it, worth checking before you buy if you have specific plans for a property.