Below are some definitions of terms commonly used in the local real estate property market.

Auction	When a house is put up for auction, people who are interested in buying it make bids at the auction. The highest bidder will win the auction but will only be able to buy the house if their offer meets or exceeds the reserve price.
Buyer Budget Over (BBO) Buyer Enquiry Over (BEO)	The vendor (or seller) will agree to negotiate with buyers who offer this price or greater.
Capital value	The value of the land and the building structure on a property.
Company share	Some apartments are sold not as separate legal entities with a unit title but as shares in a company instead. This means that if you purchase the apartment, you buy shares in the company that collectively owns the building. Some banks do not like lending money on company share properties. Company share properties also cannot be rented out without the express permission of the building manager or body corporate (owners' committee).
Conditional agreement	This is when an agreement is made to purchase a property based on conditions being met.
Deposit	This is paid by the buyer as a sign of good faith and commitment to the vendor. A deposit is not compulsory, but when there is one it is usually 10% of the total sale price.
Open home	A time where a property is open for the public to view. This is a common sales tactic in New Zealand. Back to Top of Page.
Owner occupier	The owner of the property (usually an apartment) must be the one occupying it. In other words, it is not to be let to tenants.
Rateable value	The value from which the level of rates payment is determined. These are provided by Quotable Value.
Real estate agent	A person selling the property on behalf of the vendor.
Reserve price	The minimum price at which the seller is prepared to part with his/her property.
Settlement date	The date at which the balance of payment for the property is paid to the vendor and the buyer becomes the legal owner.
Tender (open & closed)	When a vendor does not specify a desired price, prospective buyers make offers in writing called tenders. In an open tender, any prospective buyer can make a tender. There is no closing date for the sale. People can make tenders on the house until the vendor finds a desirable outcome. In closed tenders, there is a final date. Tenders are not revealed until a certain date; neither the estate agent nor the vendor can see them. When the day comes, the vendor is able to review the tenders and select one if it is favourable to him or her.
Unconditional agreement	Where an agreement is made to buy a property without conditions placed on it.
Vendor	The owner of the property being sold.

Related Links

• Housing - Housing Abbreviations