Common terms explained
In your dealings with us, you'll find there are some common terms we use. Here's a quick overview of what they mean and when you might come across them.
If you're...
- receiving an inheritance
- planning for the future
- planning for future generations
then see Estate planning and wills.
If you're...
- buying a new home
- selling your existing home
- purchasing an investment property
then see Property-related terms.
Estate planning and wills
| Term... | Means... |
|---|---|
| Beneficiary | Any person, organisation, trust or charity who will benefit under the Will |
| Disbursements | Fees from various organisations that we pay on behalf of the estate (such as bank fees, valuations, lawnmowing etc.) |
| Distribution | A payment made, or an asset transferred |
| Estate | Everything a person owns at the time of their death |
| Executor and trustee | The person or organisation responsible for carrying out the wishes in the Will and paying the beneficiaries |
| Grant of administration (of probate) | The court's approval giving the executor the right to deal with the estate |
| Guardian | Someone who will look after a child's welfare when their parents can't |
| Personal care and welfare attorney | The person you have appointed to make decisions about health or personal matters affecting you if you can't look after yourself |
| Plan of administration | The plan we agree with the beneficiaries setting out how the estate will be managed and settled - it details what will be done, when, and who will do it |
| Property attorney | The person you have appointed to manage your assets if you can't look after them yourself |
| Statement of account | The account of how the estate was settled. It shows all the assets, what was done with one and what each beneficiary received |
| Transmission | This is the process by which an executor takes ownership of a property |
Property-related terms
| Term... | Means... |
|---|---|
| Conveyancing | The legal process of buying and selling a house |
| Cross lease | All parties own an undivided share in the land and lease homes to one other, without needing to pay rent |
| Deposit | A percentage or fixed dollar value of the purchase price paid by the buyer on signing an agreement |
| Equity | The value of the property, less debt secured by it |
| Fixed interest rate | The interest rate is fixed for a set period of time e.g. 5 years |
| Freehold | You own the land and home with the least restrictions of all kinds of ownership |
| Interest | The amount your mortgagee (e.g. Public Trust) charges for the loan over its life |
| Land Information Memorandum (LIM) | A document issued by the Council with information relating to or affecting a property |
| Leasehold | You own the home, but you lease the land and pay rent for it |
| Principal | The amount you borrow (does not include interest) |
| Purchaser | Whoever buys a property |
| Sale and purchase agreement | A written contract between the seller and buyer |
| Term | The period of time a loan is in place |
| Title | The legal right of ownership of the property (whether freehold, leasehold or other interest) |
| Unit title | A title that provides freehold or leasehold ownership of a unit in a multi-unit building subject to body corporate rules |
| Variable interest rate | A rate that can move up and down. Also known as floating interest rate |
| Vendor | Whoever is selling the property |