Home buyer glossary

The vendor sets a reserve price, and once this price is reached, the property will be sold to the highest bidder. Sales at auction are unconditional – it’s important to obtain legal advice, get full loan approval and do your due diligence before bidding.

A group made up of owners in a block of flats or apartments, who maintain and repair the building and its shared spaces.

A document containing the legal description of a property, who owns it and who may have registered a mortgage against the title.

Items included in the sale of the property and listed in the Sale and Purchase Agreement. Chattels can include items such as curtains, carpets and light fittings.

A formal statement issued under the Building Act 2004, that the building work carried out under a building consent complies with that building consent and the New Zealand Building Code.

An offer where you specify conditions that must be met by a certain date before the Sale and Purchase Agreement is declared unconditional. Common conditions include obtaining a satisfactory building inspector’s report, confirming finance or obtaining a LIM report.

Term used to describe the legal work required for completion of a property transaction – usually a sale or a purchase.

Full loan approval means we’ve confirmed the amount we can lend you on the specific property you intend to buy.

If you want to bid at an auction, or you want to make an offer with no finance clause, you’ll need to get full loan approval first.

Note, a pre-approved home loan is not full loan approval as you still need our approval for the specific property.

Issued by the local council and provides a summary of information they have on file about roads, flooding or any contamination of the land, rates and resource planning consents.

You make an offer in writing and then negotiate with the vendor until you agree on a price and conditions. Your real estate agent or your solicitor will help you fill in a Sale and Purchase Agreement containing your offer and any conditions. The vendor can accept your offer, reject it or make a counter-offer. The real estate agent will act as the go-between until both you and the vendor reach an agreement.

Gives you an indication of what we will lend to you, subject to certain conditions, so you can go house-hunting with confidence.

A pre-approved home loan is not a loan that has been fully approved – you will still need to get full loan approval by satisfying any conditions that need to be met.

Private sales usually follow the same process as offer and negotiation – but the negotiations are made directly with the vendor instead of through a real estate agent, and you’ll pay the deposit to your solicitor. With this type of sale you’re more likely to require a property valuation report before finance can be approved.

It’s important that you consult your lawyer before signing or committing to anything in a private sale.

The amount you wish to borrow as a percentage of the property’s market value. LVR is calculated by dividing the amount of the loan by the value of the property. For example, if you have a deposit of $100,000 and the property is worth $500,000 it means you need to borrow $400,000 and the LVR will be 80% ($400,000 ÷ $500,000 = 80%).

Sometimes used to describe a home loan. However, this is a legal document that is the security a borrower gives a lender which is registered against the title to the property being purchased. The property cannot be sold without the home loan being repaid and the mortgage removed from the title (discharge of mortgage).

The lender who gives the loan to the borrower and receives the security (mortgage) in the property from the borrower.

The amount you have borrowed from the bank, which is used to calculate your final loan amount (i.e. including the interest you will need to pay).

This is the written contract for sale and purchase of the property between the vendor (seller) and the purchaser (buyer) – usually handled by a real estate agent and a solicitor. The Agreement sets out the amount the property will be sold for, any conditions that must be satisfied before the sale is unconditional and settlement date.

The date the purchaser’s lawyer pays the vendor’s lawyer the purchase price and the vendor’s lawyer transfers legal title to the property to the purchaser. The purchaser can get the keys on this date.

This is the process where prospective buyers submit a written offer (tender) by a certain date. The tenders are opened after that date and the vendor decides which (if any) they will accept. They may or may not choose to negotiate with any of the tenderers.

An offer with no conditions attached. You should carry out all due diligence (e.g. LIM reports, inspections, confirming full loan approval) and ensure your solicitor has reviewed the Sale and Purchase Agreement prior to making an unconditional offer, as you will be legally bound to complete the purchase if your offer is accepted. Your ANZ Home Loan Coach will be able to assist you with confirming full loan approval.

This is the person selling the property.