Terms Flashcards
Unit Title
Means you own your flat or apartment and that you own a portion (or unit) of the common areas, as administered by the body corporate.
BEO
Buyer enquiry over… A silly acronym used to confuse a first home buyer that indicates the point above which offers will be looked at by the vendor. This doesn’t mean you can’t offer below that, just that nothing will probably happen if you do.
BBO
Buyer Budget Over variant of BEO
Buyer enquiry over… A silly acronym used to confuse a first home buyer that indicates the point above which offers will be looked at by the vendor. This doesn’t mean you can’t offer below that, just that nothing will probably happen if you do.
Chattels
The items that come with the house when sold, including curtains, carpets, appliances, light fittings and other stuff generally considered part of the house. These should be listed on the Sale and Purchase agreement.
Easement
An easement permits someone else to use your property for some stated purpose. An example is when the neighbour needs to use your driveway to get to their place. You may have an easement on your neighbour’s property for a similar reason.
Covenant
If a covenant is recorded on the title for your property it means there is some legal restriction or agreement. It may, for example, include restrictions on what you can and cannot modify on your property.
Freehold
This means you own your land and buildings with few restrictions on what you do with them. Freehold can also mean you don’t owe any money on your property.
Leasehold
Means someone else owns the land under your property and that you rent it from them. The risk of leasehold is that your rent for the land could go up. You can get a Certificate of Title for your leasehold interest and will need to notify the landowner when you sell your property.
Body Corporate
The body corporate is the group that all apartment or flat owners belong to. The body corporate is responsible for the running of the building and the upkeep of all common areas and functions, including building security, etc.
Body Corporate levies or fees
Body corporate levies are paid by the apartment or flat owners to pay for the work done by the body corporate and upkeep of the building or complex. These levies are typically additional to rates.
Body Corporate finances
A body corporate is responsible for casting a budget and keeping expenditure within the budget. Body corporate finances vary. Make sure your body corporate doesn’t have any debt and that the expenditure is reasonable and well-managed. You own a portion of any assets or debts of the body corporate.
Body corporate rules and regulations
The rules imposed by the body corporate on the tenants. May include restrictions on noise, pets, or anything else. You should review these before you buy an apartment to make sure you are happy with the rules.
Freestanding
These are houses that aren’t connected to other houses and sit on their own section of land. They’re still by far the most common type of home in New Zealand, although other options are becoming more and more popular.
Apartments
Apartments are becoming a more popular option for people of all ages in New Zealand. They have different characteristics from the freestanding homes most Kiwis grew up in, so if you haven’t lived in one before, think about renting one for a while to see whether it’s for you.
Townhouses
Townhouses are typically smaller than freestanding houses, but bigger than apartments, so they’re ‘in-between’ options. Sometimes they’re freestanding themselves; sometimes two townhouses share a common wall (duplexes), or two common walls (terrace houses) with other homes.
Home units
Home units are usually built in rows of three to six units, often built originally as pensioner housing. They typically share facilities such as driveways, paths and lawns.
