Real Estate Dictionary
Acceptance of an offer constitutes an agreement. If a vendor signs an agreement without any alterations their signature is legally binding “acceptance” of that offer.
NOTE: Any offer that is unsigned by the vendor has NOT been accepted
Any act of nature without human involvement such as rain, lightning, floods or earthquakes. Many insurance policies do not cover losses resulting from an ‘Act of God’.
The written contract for the sale and purchase of property between the seller (vendor) and the buyer (purchaser). Note: Agreements that are not in writing do not exist!!
To repay a mortgage with regular payments that cover both Principal and Interest.
This is the amount of years that it would take to completely payoff your mortgage assuming that you did not miss any payments, make any prepayments and assuming that you kept the same interest rate, and payment amount throughout the life of the mortgage. For example, a 15 year amortized mortgage would be paid off in 15 years if you took out a 15 year mortgage and made every payment on time for exactly the amount shown on the mortgage. To be safe, pick an amortization period that results in a monthly payment that is affordable and make periodic prepayments when you have additional funds whenever you are allowed to under the terms of your mortgage.
A written analysis of the estimated value of a property prepared by a qualified appraiser. Also known as valuation although some times a building inspection report could be referred to as part of the property’s appraisal.
A person qualified by education, training, and experience to estimate the value of real property and personal property. You can tell someone is accredited in NZ with the “B Prop” or “Dip Valuation” after their name.
An increase in the value of a property due to changes in market conditions or supply and demand, etc.