A property term glossary

Use this handy glossary of common property terms as your easy reference. 

Callaway Park in Victoria. 

Architect

A person who holds a degree in architecture and trained in the planning, design and oversight of the construction of buildings. An architect holds membership of a professional body, e.g., Australian Institute of Architects.

Backfill

Earth that has been removed during building excavation that is then used for other purposes such as filling a ditch around a basement or foundation wall. Backfill needs to be compacted properly or can result in the land sinking (this is also known as subsidence). (See also definition of Level 1 compaction)

Building designer

Similar to an architect but with different education requirements (generally TAFE) and regulations. Services are generally more affordable than those of architects.

Building envelope

The parts of your land lot you are entitled to build on after taking into consideration any setbacks i.e. front, rear and side (and height limits).

Building permit/licence

Documentation issued by a building surveyor or local council that allows proposed building work to commence.

Building restrictions

Residential building limits set by the local council governing things like maximum site coverage and maximum height.

Completion date

The date when building works are completed, according to the contract. 

Conveyancer

Someone who is licensed or regulated under state law to assist in the legal aspects of buying and selling property. Conveyancing can also be carried out by a solicitor.

Custom home

One-of-a-kind home designed specifically for you.

Cut and fill

A technique to help level a sloping lot prior to construction by using material excavated from higher ground to create a flatter platform on which to build your home.

Draftsman

Responsible for drawing (or drafting) architectural plans.

Easement

A section of land on your property around which building restrictions may apply, which can be accessed by someone other than you for a specific purpose. An example is a shared driveway, or sewerage pipes. If you wish to build over a statutory easement, you will need to get consent from your local council. For other easements, you will need to get consent from other parties. All easements must be disclosed in contract documents.

Equity

This is the difference between the value of your home, and how much you’re owing on it. 

Exchanged contracts

The stage when the buyer and seller have signed contracts, completed any cooling-off period and the deposit is paid in full. From this point, the buyer and seller are legally bound to fulfil the contract.

The height difference of a sloping block, generally measured from the corner points of the block.  

Fittings

Items that can be removed without damaging the property. Provide examples Door handles/knobs, some light pendants and shades, towel rails, toilet roll holders etc

Fixtures

Items such as basins, toilets, baths, built-in wardrobes and kitchen stoves that are attached to the property and cannot be removed without causing damage.

Kit home

The “IKEA” of homes. A pre-fabricated house that is delivered in parts ready to be put together, generally suited to owner-builders (people who build their own homes).

Land title

An official record of who owns a piece of land, including information about mortgages, covenants, caveats and easements (need to define all these i.e. caveats). Land title is transferred to the owner upon full payment for the block purchased.

Lenders mortgage insurance (LMI)

An insurance policy taken out against you by a bank in case you can no longer fulfill your requirements to service a loan. This is normally taken on loans that comprise an LVR amount greater than 80% of the valuation and is paid by the borrower either as a one-off lump sum or incorporated into monthly mortgage repayments.

Level 1 compaction

Generally an industry accepted standard for lots when filled with greater than 300mm of fill material. This is generally sufficient to allow most builders to site a home on a lot without additional site costs. Determining the appropriate amount of fill a builder will accept requires independent research. An engineer may issue an individual fill certificate for each lot.

Lock-up stage (or enclosed stage)

The stage when a home’s external wall cladding and roof covering is fixed, the flooring is laid and external doors and external windows are fixed (even if those doors or windows are only temporary).

LVR (Loan to Value Ratio)