Glossary of Real Estate Terms: J - Q

A - C    D - I    J - Q    R - Z    References

 

JOINT TENANCY - The ownership of land in common by several persons where there is a right of survivorship i.e. where on the death of one joint owner the land as a whole vests in the survivors.

LAND AGENT - See Agent.

LAND TAX - A tax payable annually in respect of the beneficial ownership of land, the rate of which is determined by the assessed valuation. Usually based on unimproved value of land.

LANDLORD - The owner of leased property. The lessor.

LEASE - An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time.8

LEASE ABSTRACT - A summary of a lease document listing the specific details peculiar to that lease.

LEASE TERM - The period of the lease.

LEASEHOLD - Possession and use of a property by virtue of a lease.

LESSEE (TENANT) - A person / legal entity who receives the right to occupy and use a property under the terms of a lease.

LESSOR (LANDLORD) - The owner of a property who transfers the right to occupy and use property to another by way of a lease agreement.

LICENSED REAL ESTATE AGENT - A Licensed Real Estate Agent may perform the activities in the conduct of a real estate business. He/she is licensed to hold responsibility for an agency's legislative compliance activities.

LIEN - A charge, security or encumbrance upon property for the payment of debt.

LISTING - (a) A term commonly used by agents for obtaining an instruction to sell or lease real estate; (b) The recording of properties as being available for sale.

LONG-TERM LEASE - Generally considered to be a lease extending for ten years or more. In some long-term leases the lessee or tenant may desire, or be required, to do extensive remodelling or, if the property leased is land, to construct a building or other improvements.

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

MANAGEMENT AGREEMENT - A written contract recording the agreement between the owner and manager of real estate concerning the duties, responsibilities and liabilities of the owner and the manager in the management of that real estate.

MANAGEMENT FEE (PROPERTY) - The fee charged by the property manager to the landlord for the service of managing a property or properties. This service typically includes collecting rents, paying recurrent property expenses, selecting and supervising property service contractors such as cleaners, plant service providers and security. It may also include negotiating new leases, marketing of the property, rent reviews and overseeing building refurbishment. In respect of property trusts, it refers to the fee levied on unit holders by the responsible entity to cover the cost of trust administration.

MANAGING AGENT - A real estate agent authorised to manage the business affairs in connection with the property of another. See also Property Management.

MARGIN SCHEME - Refer to the Australian Taxation Office. www.ato.gov.au

MARKET PRICE - The price actually paid, or agreed in a contract to be paid, for an asset. It differs from market value in that it relates to an accomplished fact, whereas market value is and remains an estimate until proved. Market price may involve circumstances not normally included in market value.

MARKET VALUE - Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.⁶

MEDIAN - The middle number when data is arranged from lowest to the highest in sequence. If there are two median scores, they are averaged to provide the true median. The median is also known as the 50th percentile.

MEDIATION - The process by which a third party assists two disputing parties to reach a mutually agreeable solution. A recommendation made by the mediator is not necessarily binding on the parties.

MORTGAGE - Documentation of a property loan. Security over real property to ensure payment of a debt or performance of an obligation.

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.

MORTGAGEE - Financier who lends money against property as security.

MORTGAGEE SALE - Sale of a property where, in the case of a default of payments by the mortgagee, the mortgagor can sell the property over which the mortgage has been held.

MORTGAGOR - One who owns an interest in real estate and who executes a mortgage on that interest as security for a loan or for the advance of credit.

MULTIPLE LISTING - A method of exchanging exclusive entries for the sale of properties between real estate agents who are members of the same organisation.

NEGATIVE GEARING - See Gearing.

NOTICE OF TERMINATION - The notice given by either the landlord or tenant that they want to end the rental agreement and vacate the property in compliance with the terms and conditions of the lease.

NOTICE TO QUIT - A legal notice served on tenants requiring them to vacate real estate due to a breach of lease terms.

OFFER - The consideration offered to purchase or lease an asset.

OLD SYSTEM TITLE - See Common Law Title.

OPEN AGENCY AGREEMENT - The agreement between an agent and a vendor establishing an Open Listing.

OPEN LISTING - Where a vendor grants selling or leasing rights over a property to any number of agents on a non-exclusive basis. The first agent to procure a buyer ready, willing and able to purchase or lease the property on terms acceptable to the vendor receives the commission. Also known as a Common Listing, Simple Listing or Open Agency.

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

OUTGOINGS - The expenses incurred in generating income. In real estate, these expenses include, but are not necessarily limited to, property rates, insurance, repairs and maintenance and management fees.

OWNER - In relation to land, the owner includes every person who jointly or severally whether at law or in equity: (a) is entitled to the land of an estate in freehold possession; or (b) is entitled to receive rent or profits thereof, whether as beneficial owner, trustee, mortgagee in possession or otherwise.

OWNERS CORPORATION - See Body Corporate.

PASSED-IN - If a property is not sold at auction because the owner's reserve price has not been reached, it is passed in.

PERIODIC LEASE - Where a tenant continues to rent / occupy the property after the lease has formally expired.

PLANNING APPROVAL - Approval from the relevant authority to use property for a specified use.

PREFERRED LISTINGS - Entrusting a property sale / lease to a predetermined preferred agent.

PREMISES - A house, building or other structure together with the surrounding grounds that form part of the title. Also, the real estate forming the subject of a conveyance or licence.

PRINCIPAL -( a) A term used in most Australian contracts in lieu of 'client' or 'proprietor'; (b) A licensed estate agent holding responsibility for an agency's legislative compliance activities including legal responsibility for trust accounts.

PRIVATE SALE - Where an owner offers a property for sale without engaging an agent.

PRIVATE TREATY SALE - A sale negotiated directly between the parties or their agents.

PROPERTY - At law, property consists of the private rights of ownership. To distinguish between real estate (realty), a physical entity, and its ownership, a legal concept, ownership of land is known as real property. Physical items other than real estate are legally termed 'personalty' and their ownership is known as 'personal property'. The word 'property' used without further qualification or identification may relate to real estate, personalty or a combination. Colloquially, property is anything that can be owned or in which an interest can be held, over which control can be exercised, which can be traded or left in an estate or from which current or future rights to receive benefits can be held. Property can include, but is not limited to, real estate and associated interests therein, personalty, intellectual property, rights, licences and options, plant and machinery, art and jewellery, goodwill and shares.

PROPERTY MANAGEMENT - The management of a property on behalf of the owner. For example, the leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients.