Home Helper - Glossary of Terms

Alfresco
An undercover, outdoor area. Also known as a patio or outdoor room.
Facade
A common term to describe the outer face of the home.
Bridging finance
A short-term loan used to finance a new property while waiting for existing property to sell.
Contract price
The amount payable to your builder for any work.
Conveyancer
A professional who assists in the legal transfer of property.
Cooling-off period
The period when a person may legally withdraw from a contract without incurring a penalty.
Contract of sale
Written agreement outlining the terms and conditions of a property sale.
Defects
Work that is faulty or not to the level specified in the contract.
Defect Liability Period
The period specified in the contract in which the builder is required to rectify defects.
Deposit
Money paid to indicate an intention to buy. It is non- refundable after the exchange of contracts.
Draw down
Access available funds.
Establishment fees
Fees charged by a lender for setting up a loan.
Exchange of Contracts
Process prior to settlement where the purchaser and vendor enter a binding contract.
Fixed rate
An interest rate that does not alter, regardless of any variations in the market's interest rates.
Gable roof
A roof where two sloping planes meet at a peak.
Galley kitchen
A kitchen where appliances and cabinets sit against a single wall.
Honeymoon period
Where the interest rate is lower than the standard rate for a period.
Interest only loans
A repayment option in which, during a specified term, only the interest accrued on the home loan is paid.
Investment property
A property purchased for earning a return on investment.
Joint tenants
Joint Tenancy is the equal holding of property by two or more people.
Liabilities
Your outstanding debts or what you owe.
Line of credit loan
A revolving line of credit, allowing the amount to be borrowed again once it has been repaid.
Narrow Lot
A block of land with a width of less than 15 metres.
Mortgagee
One who lends money and takes a mortgage over the property of the borrower.
Mortgagor
One who borrows money and gives a mortgage to the lender.
Mortgage duty
A state government tax based on the loan amount.
Planning Permit
Councils place restrictions on building activities in their jurisdiction.
Settlement
Completion of a sale when the balance of the contract is paid and the buyer becomes legally entitled to take possession of the property.
Sloping Lot
A block of land on a slope
Stamp duty
A state government tax paid on the purchase of properties
Strata Title
Gives ownership of a 'unit' of a larger building and membership of a body corporate.
Structural survey
A detailed survey of the structure of a building carried out by a Structural Engineer or Chartered Building Surveyor.
Tenants in common
A type of co-ownership where two or more people own distinct interests.
Title
The right to occupy and use specified land but subject to any limitations of title set out on the certificate of title.
Title deeds
Documents containing information on the present and past ownership of a property.
Transfer
A document that needs to be registered with the relevant land titles office so that the change in ownership is recorded on the certificate of title.
Variable rate
An interest rate that may rise and fall, in conjunction with variations in the market's interest rates.