Sale & Purchase Agreement

An agreement in writing setting out the terms and conditions relating to the sale or purchase of a property.  It is the purchase document signed at auction.

Second Mortgage

A mortgage that, on the sale of a property, is paid off only when the first mortgage is paid.

Security

The property that is pledged as collateral.

Sellers Market

When demand for property is greater than supply.

Service (the loan)

The repayment of mortgage interest and principal repayment and other related expenses, such as property taxes and property insurance.

Settlement

Sole/Exclusive Agency

A sole or exclusive agency prevents all other agents from working on the disposal of the property, although another agent may approach the sole agent if the former has a suitable client. But even then the sole agent would finalise the deal.

Stamp Duty

Stamp Duty is a tax payable in respect to the transfer of commercial land and buildings. Stamp Duty is not payable on the purchase of residential property in New Zealand.

Strata Title

A title to a unit or lot on a plan of subdivision associated with townhouses, units and blocks of flats and based on the horizontal and vertical subdivision of air space. Owners have a certificate of title, are absolute owners of a freehold flat and have an undivided share of the common property.

Subdivision

A tract of land divided into individual lots for a housing development.

Survey

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.