Definitions of property terms and how you should interpret them
An offset account is typically a savings or transaction account that is linked to your mortgage account. The primary function of an offset account is to help you reduce the amount of interest you pay on your home loan. Here’s…
Development application approval, also commonly known as DA approval is a process to seek approval from the local council to carry out development, typically building work. This can include building a new structure, renovating an existing building, changing the use…
Disbursements are the various out-of-pocket expenses that your solicitor or conveyancer incurs on your behalf during the process of buying a property in Australia. Disbursements are charged above and beyond the general conveyancing service fee. Some will include it into…
Gentrification refers to the transformation of a neighborhood through the increase of more affluent residents and businesses. This generally drives less affluent residents to relocate or move out of the neighbourhood as they can no longer afford to live there.…
Loan to Value Ratio (LVR) is a percentage calculated by dividing the loan amount by the lender-assessed value of your property. Lenders consider an LVR of more than 80% as a higher risk. For lenders to accept higher-risk loans, you…
The administrative fund is used to cover the regular, ongoing operational costs of a strata scheme. This includes expenses like maintenance of common areas, utilities, cleaning services, and strata management fees. How is the administrative fund different to the capital…
An AGM (Annual General Meeting) is a legally mandated once a year meeting of the lot owners in the strata. The AGM serves as a formal platform for making important decisions about the strata scheme. It’s where lot owners can…
By-laws in strata schemes are the rules and regulations that govern the conduct and responsibilities of lot owners, tenants, and the owners corporation (also known as the body corporate) within a strata-titled property. Table of Contents Purpose of By-Laws Common…
A Capital Works Fund, sometimes known as a sinking fund is a fund into which lot owners contribute, intended for future long-term expenses like major repairs or renovations to the building or common areas. Table of Contents Why is a…
Embedded electricity networks in apartment buildings are private electricity networks setup so there is one central electricity provider for all the units in the entire building. Table of Contents Why do apartment buildings have embedded electricity networks? What are the…
A special levy is a one-off payment that is made by owners of strata properties in Australia. It is used to cover unexpected expenses that are not covered by regular strata fees. Special levies can be used to pay for…
A body corporate, also known as an owners corporation or strata corporation, is a legal entity created when a property is divided into multiple individual lots or units within a strata scheme. It is responsible for the management and administration…
A strata report is a document that provides detailed information about the condition of a property that is part of a strata scheme or a residential apartment building The report is usually prepared by a professional strata inspection company and…
Defects in property refer to any faults or shortcomings in a property that affects its value, safety, or functionality. Some common defects in property include: It is important to identify and address any defects in a property before purchasing it,…
