Real Estate Glossary Letter :  N & O

Real Estate Glossary Letter :  N & O

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NATIONAL ELECTRONIC CONVEYANCING PROJECT – Australia’s joint government and industry initiative to create an efficient and convenient way of completing property based transactions and lodging title dealings for registration.

NEGATIVE GEARING – See Gearing.

NEGOTIATION – The process of discussions between buyer and seller, which are usually handled by the agent.

NET INCOME – The income received by an individual AFTER TAX has been taken out.

NET PROFIT – The profit remaining in a business after all expenses have been taken out but BEFORE TAX.

NET YIELD – Is the income on your property less certain expenses such as rates, insurance, maintenance and body corporate levies.

NEWEL -The bottom or top post of a stair balustrade which supports the handrail.

NOGGING – A horizontal timber strut fixed between studs or joists in framed construction to provide stiffening.

NOMINEE – A person who, in a limited sense, acts for or represents another.

NOSING – The internal sill finish of a window or front edge of a stair tread.

NOTICE OF PRACTICAL COMPLETION – Notice furnished by the builder to the client to indicate that in the builders view contracted works are now completed.

NOTICE OF TERMINATION – The notice given by either the landlord or tenant that they want to end the rental agreement and vacate the property in compliance with the terms and conditions of the lease.

NOTICE TO VACATE or QUIT – A legal notice served on tenants requiring them to vacate real estate due to a breach of lease terms.

Real Estate Glossary Letter :  O

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OCCUPANCY – Having possession of property. Physically taking and holding it and residing there as a tenant or owner.

OFF-STREET PARKING – Parking space provided in an area that is not part of a road.

OFF THE PLAN – Purchasing ‘off the plan’ involves buying a property before it has been built. Such purchases are usually based on the architects or builders plans and models.

OFFER – The consideration or price offered to purchase or lease an asset. With or without conditions.

OLD LAND SYSTEM – Land which was granted by the Crown in fee simple by a land grant prior to 2 July 1858 and which has not subsequently been bought under the Real Property Act. Dealings with such land are registered in the General Registry Office.

OLD SYSTEM TITLE – See Common Law Title.

ON THE MARKET– The point at an auction where a price is reached at or above which the seller is prepared to sell. This is not always indicated at auctions. So do not expect it always to be called out if you are bidding.

ONE UNDIVIDED MOIETY – A one undivided half share in the land. The interest of a tenant in common. Note that, although having a distinct share in the land, this does not entitle the proprietor of the share to the exclusive ownership of any identifiable portion of it. This is an old system and few properties are affected by this.

OPEN AGENCY AGREEMENT – The agreement between an agent and a vendor establishing an Open Listing.

OPEN HOUSE – OPEN INSPECTION – An occasion when a house that is for sale is presented for prospective buyers to see or inspect. The house is left open, supervised by an onsite selling agent, for a specified period of time at a fixed advertised time.

OPEN LISTING – Where a vendor grants selling or leasing rights over a property to any number of agents on a non-exclusive basis. The first agent to procure a buyer ready, willing and able to purchase or lease the property on terms acceptable to the vendor receives the commission. Also known as a Common Listing, Simple Listing or Open Agency.

OPTION TO BUY – A right for a consideration to purchase a property on or before a fixed date, on terms previously agreed upon. An option entitles but doesn’t oblige, the person having the option to make the purchase. The owner is bound to sell at a particular price if the prospective purchaser wishes him to be bound, providing that the purchaser makes up his mind within the term of the option.

OUTBUILDINGS – Any building other than the main structure on a particular allotment of land e.g. a garage, workshop etc.

OUTGOINGS – a) The expenses incurred in generating income. In real estate, these expenses include but are not necessarily limited to, property rates, insurance, repairs and maintenance and management fees.
b) Any costs incurred by the seller on top of the agent’s commission. For example, marketing and advertising costs.

OVER CAPITALIZATION – Improvements so costly or so large as to produce a residual land value lower than the residual land value which could have been produced on the same site by a less costly or smaller improvement.

OWNERSHIP – The right to possess and use the property to the exclusion of others.

OWNER – In relation to land, the owner includes every person who jointly or severally whether at law or in equity: (a) is entitled to the land of an estate in freehold possession; or (b) is entitled to receive rent or profits thereof, whether as beneficial owner, trustee, mortgagee in possession or otherwise.

OWNERS CORPORATION – See Body Corporate.

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