Indian Newslink 15th May 2017 Digital Edition

14
Businesslink
MAY 15, 2017
Real Estate lingo can be daunting
Lucy Corry
Every industry is full of
jargon and buzzwords that
make no sense to anyone
who’s not part of the club.
Real estate is no different, which
means it can be hard to get up to
speed.
Here is a handy guide to some of
the most common terms you will
come across when buying or selling
property.
Agency agreement: If you are using
a licensed real estate agent to sell
your property, you’ll need to sign
one of these agreements - it sets out
what the agent will do and what
they will be paid. Remember you
can negotiate the conditions, such
as who pays for marketing and how
much the commission is. Make sure
you get legal advice before you sign,
because it is a binding document.
BEO or BBO: This stands for
‘Buyer Enquiry Over’ or ‘Buyer
Budget Over,’ which means that
price listed on the advertisement
indicates the minimum that the seller
will accept. The seller needs to give
serious consideration to any offer
over the BEO, so this figure needs to
be selected carefully.
Deadline Sale or Deadline Private
Treaty: In this kind of sale, a property
is marketed for a set period (with
an advertised end date). The seller
can choose to accept an offer at any
stage during the listing period though
it may be stated in the advertising
that ‘no offer will be accepted prior’.
Check the fine print.
Dalinghaus Construction
LIM: This stands for Land
Information Memorandum, which
contains everything that the local
council knows about the property,
such as any issues with drainage
and plumbing, erosion or permits.
It will help you identify if any
additions have not got the right
consent. A LIM will also record
any unpaid rates.
Sale and purchase agreement:
This is a legally binding contract
between the buyer and seller for
the purchase/sale of a property. It
provides certainty to both parties
and it sets out in writing all the
agreed terms and conditions. It is
essential to get legal advice before
you sign an agreement – and that
you read and understand what it
means.
Settlement: This is the end goal
in a property transaction, when
the sale and purchase is completed
by the exchange of property and
payment. Settlement occurs when
the seller receives the money for
the sale – the buyer will not receive
the keys until this happens.
RV: This stands for ‘Rateable
Value’ – this is a value used to
calculate local body rates. It should
not be assumed to be a market
value for a property when it is
for sale as the rating valuation
may be a number of years old.
It is also not responsive to local
market fluctuations and may not
reflect any recent renovations to a
property. This was formerly known
as ‘Government Value,’ or GV.
Tender: If a property is for sale
by tender, prospective buyers must
submit confidential written offers
by a set date. Usually there is no
minimum price, but properties are
often listed with a BEO or BBO
price. The seller can then choose
the offer that is most acceptable
to them, based on the price and
any attached conditions. The most
attractive tender is likely to be one
that combines a good price with
few conditions. Sellers are allowed
to negotiate with any one or more
of the tenderers received after
tenders close.
For more advice about buying
a property, check out the REAA’s
free guide at buyingahome.reaa.
govt.nz.
Lucy Corry is Media Communications
Manager at the Real Estate
Agents Authority based in Wellington.
For more free and independent
advice on buying a property, please
access the Home Buyers’ Guide at
buyingahome.reaa.govt.nz.
If you still have questions, call
the Real Estate Agents Authority
(REAA) on 0800-3677322 or 04-
4718930 from a mobile phone.
John Key to join
Air New Zealand
board
New Zealand Newswire
Former Prime Minister John Key is joining
Air New Zealand’s board of directors
in his first post-parliamentary job.
Air New Zealand Chairman Tony
Carter said that Mr Key would be a director of
the airline from September 1.
“When John Key announced that he was
stepping down as Prime Minister and moving
to a new phase of life outside of politics, it
became a priority for the board to try to secure
his services as a director. He will bring extensive
international commercial experience, outstanding
leadership skills, global perspective and a keen
understanding of the tourism sector,” he said.
In a statement, Mr Key said he had been
approached to join the board.
“I look forward to working with the board,
Chief Executive Officer and his executive team
to see the company fulfil its potential,” he said.
Air New Zealand’s longest-serving director,
Paul Bingham, is stepping down.
Mr Key resigned as Prime Minister suddenly
last year and left Parliament officially in March
2017 but had been quiet about his plans for life
after Parliament.
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