Lifestyle

Real Estate Lingo

From the days of local classified ads in the 90’s real estate lingo has been born out of necessity.

With space limited to only a few lines abbreviations were designed to cram as much information as possible into a short space. Terms like “LUG” (lock-up garage) “CP” (carport) and “IGP” (in-ground pool) have long since gone with unlimited space on real estate portals.

Let’s shed some light on terms and words that usually get used now.

Exchange

When contracts ‘exchange’ whether it be with or without a cooling off period the property is off the market. This is when a buyer and seller agree on terms and a signature from both parties is made on the contract for sale.

Cooling off

A period in which the buyer can rescind the contract with little or no penalty. In most cases contracts can be exchanged with a cooling off period in order for the buyer to do their due diligence. Note auctions do not have a cooling off period.

Gazumping

A term commonly used when a buyer and seller agree on a price and a higher offer from another buyer is then accepted by the seller. Vendors are under no obligation to honour venal agreements until a contract is signed.

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Binding

When the cooling off lapses contracts are binding or locked in.

Pre-approval

The first step in the approval status. Usually more paperwork is needed and not until formal approval is granted can buyers be certain of the loan.

Formal approval

When a financial institution gives the last and most crucial approval.

Vendor

The seller or home owner in the real estate transaction.

Trever Molenaar
Trever has worked in the industry selling property for over two decades. This lifelong profession has enabled him to master the art of negotiation. Trever’s own personal values relate through to his professional life 
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Molenaar x McNeice
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