Real Estate Glossary

Enjoying your real estate transaction starts when you can talk-the-talk! Here we have collated a comprehensive knowledge base of commonly seen and used meanings when transacting in real estate. This will give you more confidence with the knowledge of understanding commonly used terms and references.

Apartment
Also known as a flat (flats - usually when referring to older apartments) built over multiple levels and normally separated by strata titles.

Auction
A public sale of a property in which the potential buyers bid against each other to purchase the property. The highest bidder is normally the successful buyer and is expected to sign an unconditional contract immediately after the auction.

Baby Boomers
Those people born in Australia between the end of the Second World War (1945) and the late 1960's.

Bedrooms
This provides a count of the number of bedrooms in occupied private dwellings, including caravans in caravan parks.

Body Corporate
A body corporate is created to manage common ownership of property when a plan of subdivision is registered at Land Registry. A body corporate manager is generally appointed to look after maintenance in common areas, insurance and any other matters that may affect the unit owners. The body corporate is best described as the collection of all the unit owners. In some instances your membership differs in liability that may affect your voting rights.

Bridging finance
A short-term loan that is usually offered at a higher interest rate. It may be required for someone requiring further time to arrange alternative finance or complete the sale of assets which will not be ready in time for settlement of the property the bridging finance is being sought for.

Broadhectare land
Undeveloped land identified for residential development, generally located on the fringe of the metropolitan area. Also referred to as greenfield land.

Cadastre
The public register of land boundaries that defines the separate holdings of land.

Catchment
The area served by a particular centralised service or function, such as a hospital.

CBD
The central business district (CBD) of Melbourne is the commercial centre of Melbourne, and is usually regarded as the area bounded by Spring, Flinders, Spencer and La Trobe Streets.

Certificate of Title (most common - Torrens Title System)
A legal document showing who owns a property, the size of the land (in most instances). It also indicates whether there are any restrictions or other interests affecting the property such as covenants, mortgages, easements or encumbrances.

Common property
Areas in a property (usually in strata title units) that are not owned exclusively and do not form part of an individual strata tile which is owned jointly by all owners.

Company Title
A company that has total ownership of the land and buildings. A buyer then buys a parcel of shares with rights attached in that company. He or she is entitled to exclusive occupation of a flat, but is subject to the company's Memoranda and Articles of Association.

Conveyancing
The work required to ensure all the correct legal documentation is prepared (if selling) to sell (Vendor Statement - see below) prior to actually legally selling real estate. In the case of purchasing, it's the preparation and execution of documentation between the time the Contract is signed and settlement. This is to ensure that all relevant authorities are notified of change of ownership, the appropriate meeting is organised for settlement to proceed the checking of documentation and transfer of ownership.

CPD
On 1 July 2004, a system of compulsory Continuing Professional Development (CPD) training introduced by the REIV came into effect for all Licensed and Agents' Representative members.

Crown land
Land which has no official tenure under land legislation and which is held and managed by the Government.

Demography
The scientific and statistical studies of population and in particular the size of populations, their development and structure. It therefore focuses on the empirical, mathematical and statistical analysis of births and fertility, deaths and mortality and migration processes and their effects on population size, structure, composition and distribution and on the causes and consequences of changes in these variables.

Decentralisation
The movement of people, jobs and activities from the centre or core of major metropolitan areas to suburban and outlying locations

Double Front
A home that is two rooms wide or across which is normally identified by rooms being recessed and separate windows along the front of the house for each room. In most cases there is a room on either side of the front door.

Dwelling
A building or structure in which people live. This can be a building, such as a house, part of a building, such as a flat, or it could be a caravan, a tent or humpy.

Economic growth
The increase of the productive capacity and output of a country (or region), usually measured in terms of Gross National Product.

Empty nesters
People whose children have grown up and left the parental home.

Flat
Also known as an Apartment (apartments - usually when referring to newer flats) built over multiple levels and normally separated by strata titles.

Fringe Melbourne or urban fringe
This term refers to the non-urban area within the Melbourne metropolitan area and includes both towns such as Pakenham, Melton and Sunbury as well as areas that are considered rural.

Hinterland
Literally meaning back country, the term hinterland refers to a geographical area served by a population, economic or political centre.

House
A detached building used for long-term residential purposes.

Infill development
New residential development that occurs on small sites in established suburbs and produces less than ten new dwellings.

Infrastructure
The installations and facilities that provide a fundamental framework for an economy, facilitating industrial, agricultural and other forms of economic development. It includes the provision of transport, communication, power supplies and other public utilities.

Landlord
Commonly known as the Lessor or the property owner who rents a property out to a lessee.

Lessee
Commonly known as the tenant who is the person who rents a property a property from a landlord.

Lessor
Commonly known as the landlord or the property owner who rents a property out to a lessee.

Local Government Area (LGA)
The geographical area for which an incorporated local government council is responsible.

Lower quartile
The lower quartile is the point where one quarter (25%) of the prices in the series are lower than this point.

Major residential redevelopment
Land from redundant, surplus and, in some cases, inappropriately located facilities, which is recycled for residential purposes. Major redevelopment sites are those that accommodate more than ten dwellings.

Median price
The median is the middle price in a series of sales, where half of the sales are of lower value and half are of a higher value. For example, if fifteen sales are recorded in a suburb and arranged in order from lowest to highest value, the eighth sale price is the median price. Median prices are used rather than average or mean prices as they are unaffected by a few unusually high or low prices in a series. Average or mean prices are affected by unusually high or low values in a series. Using the median presents a more accurate indicator of true market activity. Median prices are used for REIV Property Updates, quarterly and annually, and REIA Market Facts.

Medium density housing
Generally defined as more than one dwelling on an ordinary house block, or any form of attached housing such as townhouses or apartments.

Melbourne metropolitan area
This area covers the metropolitan area of Melbourne, including outlying towns such as Werribee, Melton, Sunbury, Craigieburn, Healesville and Pakenham as well as the Mornington Peninsula. This area is equivalent to the 31 Melbourne Local Government Areas and is also referred to as the Melbourne region.

Metropolis
A term applied loosely to any large city, but specifically to that city in a country that is the seat of government, of ecclesiastical authority, or of commercial activity.

Mortgagee
Is the lender who is providing the loan finance/money to buy the property.

Mortgage repayments
These are housing loan repayments being paid by a household to purchase the dwelling in which it was enumerated. It is also applicable to caravans. Note that the percentages in the quartiles represent households, not persons.

Mortgagor
A person who gives a loan/finance to someone usually to purchase a property or re-finance it.

Moving annual median
The moving annual median is an average of the quarterly figure for the past year. When a new quarterly figure is obtained, it is added to the figures for the preceding three quarters. The total figure for the last four quarters is divided by 4 to arrive at the new moving annual median. The moving annual median is used to illustrate trends and to make comparisons overtime.

Non-private dwelling
A non-private dwelling is a form of establishment which provides a communal type of accommodation eg hotels, motels and hospitals.

Other residential dwellings
A broad Australian Bureau of Statistics definition of dwellings other than attached houses, including semi-detached houses, flats and apartments.

Outgoings
Compulsory costs associated with the leasing or ownership of a property. Generally these include council rates, water consumption, parks and gardens rates and body corporate (if applicable). In the case of leasing, other items may include insurance, maintenance and advertising which a lessee is compelled to pay as part of the negotiated lease.

Population density
The number of people in relation to the space in which they live. The most common measure is the number of persons per square kilometre.

Public sector
That part of a national economy subject to direct government ownership and control. The constituents of the public sector are the departments of central and local government, various government agencies and the nationalised industries. The public sector is motivated by the welfare of the community as a whole.

Private dwellings
A private dwelling is normally a house, flat, part of a house, or even a room; or a house attached to, or rooms above, shops or offices; an occupied caravan in a caravan park or craft in a marina; a houseboat; or a tent if it is standing on its own block of land.

Private Sales
Where buyer negotiates with the agent/owner privately to buy the property. Usually the negotiations commence with the owner asking a price for their property and the buyers making an offer they feel is appropriate.

Quartile
The values that divide a frequency distribution or set of ranked observations into four equal parts.

REIV
Real Estate Institute of Victoria - representative body of member estate agents.

Rental payments
The rent (in dollars) paid weekly by households for the dwelling in which they were enumerated on census night, including caravans in caravan parks. The percentage figures given for each of the four quartiles refer to percentages of households.

Regional Victoria
This refers to those areas of Victoria that fall outside the Melbourne metropolitan region.

Sector
Parts of the economy as judged by the economic activity that they constitute. For example agriculture, forestry, fishing and mining constitute the primary sector.

Separate house
A house standing separately in its own grounds but separated from other dwellings by at least half a metre.

Settlement
Settlement date (2 options normally apply):
vacant possession - of the property and chattels must be provided, namely, upon acceptance of title by the purchaser and receipt of the consideration then due to the vendor under the terms of this contract. Or;
receipt of the rents and profits - of the property and chattels must be provided, namely, upon acceptance of title by the purchaser and receipt of the consideration then due to the vendor under the terms of this contract.

Single Front
A home that is one room wide or across which is normally identified by a room to one side only of the front entrance and along the front of the house.

Suburb
A district within the metropolitan area which lies within commuting distance of the centre, and which can have a distinct social and urban identity. Suburbs are registered with the Victorian Registrar of Geographic Names and published in the Victorian Government Gazette.

Strata Title
Strata title is the subdivision of a larger block of land into separate titles for separate strata lots or units. Each lot or unit represents a separate apartment. The title or ownership rights of the land are along imaginary lines (generally speaking outlined by the unit, garden and garage) within the larger allotment. Any other land outside the strata lots (imaginary lines) is common property.

Stratum Title
Each owner has a Certificate of Title as per a Strata Title ownership except for the common property. A service company has title to the common property and the title holder has a final responsibility to the service company. The service company, in which the title holder has shares, administers, manages and maintains the property in which the owner's flat is registered.

Surveying
The measurement of dimensions (contour, position, boundaries, area, height etc.) of any part of the earth's surface (land or water) or any cultural feature.

Tenant
Commonly known as the lessee who is the person who rents a property from a lessor.

Tenants in Common
A form of joint ownership of property in which each person owns a share of the property, equal or unequal. On the death of an owner the share does not necessarily transfer to the other joint owner but passes to the owner's heir/s who assume the role of tenant in common with existing owner/s.

Tenure
This applies to all private dwellings, and describes whether households are renting or purchasing or whether they own the dwelling in which they were enumerated on census night, or whether they live in the dwelling under some other arrangement. The category purchasing includes being purchased under a rent/buy scheme. The category other includes being occupied rent free and being occupied under a life-tenure scheme. The percentages given represent percentages of households.

Terrace
A row of reasonably uniform houses built in a row and sharing dividing walls.

Title (Certificate of Title)
A legal document (commonly being the Torrens Title System) showing who owns a property and the size of the land (in most instances). It also indicates whether there are any restrictions or other interests affecting the property such as covenants, mortgages, easements or encumbrances.

Torrens Title
System where registration of title is recorded on one document.

Town house
Two-storey residence commonly attached to others often in a row. Also known today to be part of a multi unit development and being part of a body corporate with a strata title.

Triple Front
A home that is three rooms wide or across which is normally identified by rooms being recessed and separate windows along the front of the house for each room. In most cases there is a room on one side of the front door and two on the other side.

Upper quartile
The upper quartile is the point where one quarter (25%) of the prices in the series are higher than this point.

Urban fringe
Refers to areas outside urban Melbourne and includes both towns such as Pakenham, Melton and Sunbury, as well as areas that are considered rural.

Urban Melbourne
The term urban Melbourne is used to describe the parts of the Melbourne metropolitan area that are contiguously urban or suburban parts of Melbourne. This includes at least some part of every one of the 31 metropolitan local government areas and includes all inner and middle distance locations. The outer nine local government areas (Cardinia, Casey, Hume, Melton, Mornington Peninsula, Nillumbik, Whittlesea, Wyndham and Yarra Ranges) are split into parts that may be deemed as part of urban Melbourne, rural areas or towns. These include places such as Melton and Sunbury that are not joined to Melbourne although they are to all intents and purposes part of what is generally understood to constitute metropolitan Melbourne.

Urban primacy
Refers to the pre-eminence of an urban centre or urban centres in terms of population or political power over the small town and rural hinterland.

Unoccupied private dwellings
The number of private dwellings that are habitable but unoccupied on census night.

Vacancy rates
Vacancy rates indicate the number of dwellings unoccupied as a proportion of all dwellings in a given area at the time of the census. Vacancy rates will vary according to the time of the year and the location of towns. Coastal areas, for example, have a large number of vacant dwellings at the time of the Census.

Vendor
The person selling a property.

Vendor Statement (Section 32)
Legal document prepared in accordance with the Section 32 of the Sale of Land Act (generally on behalf of the vendor by a solicitor or conveyancer) outlining all relevant information that may effect the property including any notices, orders or restrictions from relevant authorities, outgoings, zonings and who the responsible authorities are for the subject property.

Villa Unit
Single-storey residence commonly attached to others often in a row and normally separated by strata titles.

Zoning
The restrictions and allowance of the use of the building and/or land. For instance, Residential zoning means that this area can only be used for residential purposes as outlined by the relevant authorities. This also applies for the many other zoning defined by the Department of Infrastructure.