# WA Property Glossary Source page: https://www.boutiquerealtyperth.com.au/resources/wa-property-glossary/ Publisher: Boutique Realty Perth. General information, not legal, tax or financial advice. ## Appraisal An agent's estimate of the price a property is likely to sell or rent for, based on recent comparable sales or rentals. It is free and not the same as a bank or licensed valuer's valuation. In WA an agent must not mislead you about the estimated selling price (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/how-to-choose-a-real-estate-agent/ ## Auction A public sale where buyers bid and the property sells to the highest bidder once bidding passes the seller's reserve price. Auction sales in WA are usually unconditional, so buyers need finance and inspections done beforehand (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/buying-property-at-auction-wa/ ## Bond (rental bond) Money a tenant pays at the start of a tenancy as security against unpaid rent or damage. In WA it must be lodged with the Bond Administrator, not held by the landlord, and released through the bond process at the end of the tenancy (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/wa-tenancy-laws-guide/ ## Building and pest inspection A report by a qualified inspector on a home's structural condition and any termite or pest activity. Buyers usually make an offer conditional on a satisfactory inspection. See: https://www.boutiquerealtyperth.com.au/resources/making-an-offer-on-a-house-wa/ ## Capital gains tax (CGT) Tax on the profit made when you sell an asset such as an investment property. Your main residence is generally exempt, and individuals who held the asset for more than 12 months can usually discount the gain by 50% (ATO). See: https://www.boutiquerealtyperth.com.au/resources/selling-an-investment-property/ ## Capital works deduction A tax deduction for the cost of building a rental property, usually 2.5% a year for 40 years for residential buildings started after 15 September 1987 (ATO). Often called Division 43. See: https://www.boutiquerealtyperth.com.au/resources/depreciation-and-tax-guide/ ## Certificate of title The official Landgate record of who owns a parcel of land in WA and any interests registered against it, such as mortgages, easements and caveats. A buyer's settlement agent searches the title before settlement. See: https://www.boutiquerealtyperth.com.au/resources/settlement-process-wa/ ## Clearance certificate An ATO certificate confirming a seller is an Australian resident for tax purposes. Without one, the buyer must withhold 15% of the price and pay it to the ATO, whatever the sale price (ATO). See: https://www.boutiquerealtyperth.com.au/resources/settlement-process-wa/ ## Comparable sales Recent sales of similar properties nearby, used to support a price estimate. Ask any agent which comparables they used and why they excluded others. See: https://www.boutiquerealtyperth.com.au/resources/how-to-choose-a-real-estate-agent/ ## Condition report A written, dated record, usually with photos, of a rental property's condition at the start and end of a tenancy. It is the main evidence in any bond claim. See: https://www.boutiquerealtyperth.com.au/resources/routine-rental-inspections-wa/ ## Conditional offer An offer that only becomes binding if certain conditions are met, such as finance approval, a building inspection or the sale of the buyer's home, by agreed dates. See: https://www.boutiquerealtyperth.com.au/resources/making-an-offer-on-a-house-wa/ ## Cooling-off period A period after signing in which a buyer can withdraw. WA has no general cooling-off period for residential property sales, so an offer and acceptance is binding once signed by both parties, subject to its conditions. See: https://www.boutiquerealtyperth.com.au/resources/making-an-offer-on-a-house-wa/ ## Days on market How long a property is listed before it sells. REIWA reports median selling days for Perth and each suburb; a short figure signals strong demand. See: https://www.boutiquerealtyperth.com.au/resources/perth-property-market-outlook/ ## Deposit The part of the price a buyer pays when the contract is signed, held in trust by the agent or settlement agent until settlement. The amount is negotiated and written into the offer. See: https://www.boutiquerealtyperth.com.au/resources/first-home-buyer-guide-wa/ ## Depreciation (plant and equipment) A tax deduction for the declining value of removable assets in a rental, such as appliances and carpets. Since 1 July 2017, most owners cannot claim depreciation on second-hand assets already in a residential property when they bought it (ATO). See: https://www.boutiquerealtyperth.com.au/resources/depreciation-and-tax-guide/ ## Downsizer contribution A one-off contribution of up to $300,000 per person into super from the sale of a home owned for at least 10 years, available from age 55 (ATO). See: https://www.boutiquerealtyperth.com.au/resources/downsizing-guide-perth/ ## Easement A right for someone else to use part of your land for a set purpose, such as a sewer, drainage or access. Easements are recorded on the certificate of title and can limit where you build. ## Exclusive agency An agreement appointing one agent to sell your property for a set period. If it sells in that period, that agent is usually paid commission. Check the length and termination terms before signing. See: https://www.boutiquerealtyperth.com.au/resources/how-to-choose-a-real-estate-agent/ ## First Home Owner Grant (FHOG) A WA Government grant for eligible first home buyers who build or buy a new home, subject to price caps and eligibility rules (WA Department of Finance). See: https://www.boutiquerealtyperth.com.au/resources/first-home-buyer-guide-wa/ ## Green title Freehold land you own outright, with no strata company, common property or levies. Most standalone houses in Perth are green title. ## Joint Form of General Conditions The standard terms used in most WA residential sale contracts, published jointly by REIWA and the Law Society of WA. They are incorporated into the offer and acceptance, so read them before you sign. See: https://www.boutiquerealtyperth.com.au/resources/settlement-process-wa/ ## Lenders mortgage insurance (LMI) Insurance that protects the lender, not you, usually charged when you borrow more than 80% of the property's value (Moneysmart). See: https://www.boutiquerealtyperth.com.au/resources/first-home-buyer-guide-wa/ ## Local intake area The area around a WA public school whose residents have a guaranteed place there, often called a school catchment. Check an exact address with the Department of Education (Schools Online). See: https://www.boutiquerealtyperth.com.au/resources/school-catchments-western-suburbs/ ## Median price The middle sale price in a period: half of sales were above it and half below. REIWA publishes Perth and suburb medians (REIWA). See: https://www.boutiquerealtyperth.com.au/resources/perth-property-market-outlook/ ## Minor modification A small change a tenant asks to make to a rental, such as a safety or personal change. Landlords have 14 days to respond, and a request is treated as approved if they do not (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/wa-tenancy-laws-guide/ ## Off the plan Buying a home before it is built, from plans. Eligible WA off-the-plan purchases receive a transfer duty concession until 30 June 2028 (WA Government). See: https://www.boutiquerealtyperth.com.au/resources/off-the-plan-buying-guide/ ## Offer and acceptance The written contract used to buy and sell residential property in WA. Once the buyer's offer is accepted and signed by the seller, it is binding, subject to any conditions it contains. See: https://www.boutiquerealtyperth.com.au/resources/making-an-offer-on-a-house-wa/ ## Pet bond An extra bond for a tenant's pet. In WA the maximum is $350, and it can cover pet damage as well as fumigation (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/pets-in-rental-properties-wa/ ## Pre-approval A lender's conditional indication of how much it will lend you. It is not a final approval: the lender still values the property and confirms your details before settlement. See: https://www.boutiquerealtyperth.com.au/resources/subject-to-finance-clause-wa/ ## Pre-settlement inspection The buyer's final inspection shortly before settlement, to check the property is in the agreed condition and included items are present and working. See: https://www.boutiquerealtyperth.com.au/resources/pre-settlement-inspection-wa/ ## Private treaty A sale by negotiation at an asking price or price guide, rather than at auction. It is the most common way homes are sold in Perth. See: https://www.boutiquerealtyperth.com.au/resources/auction-vs-private-treaty-wa/ ## Property manager A licensed agent or registered sales representative who leases and manages a rental on the owner's behalf, including tenant selection, rent collection, inspections and repairs. See: https://www.boutiquerealtyperth.com.au/resources/landlord-guide-perth/ ## R-Codes (residential design codes) The WA planning rules that set housing density and design, shown as a coding such as R20 or R40. The higher the number, the more dwellings a lot can usually hold, which affects subdivision and redevelopment potential. See: https://www.boutiquerealtyperth.com.au/resources/renovating-for-profit-perth/ ## Real estate agent licence In WA, agencies and agents hold a licence (numbers start "RA") and sales representatives hold a registration (starting "RR"). Check any agent on the WA online licence search (WA Government). See: https://www.boutiquerealtyperth.com.au/resources/how-to-choose-a-real-estate-agent/ ## Rent increase In WA rent can only be increased once every 12 months, if the lease allows it and the tenant gets proper written notice (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/wa-tenancy-laws-guide/ ## Reserve price The lowest price a seller will accept at auction. It is confidential; once bidding passes it, the property is "on the market" and sells to the highest bidder. See: https://www.boutiquerealtyperth.com.au/resources/buying-property-at-auction-wa/ ## Settlement The day ownership transfers: the balance of the price is paid, the transfer is lodged with Landgate, and the buyer receives the keys. In WA it is usually handled electronically by settlement agents. See: https://www.boutiquerealtyperth.com.au/resources/settlement-process-wa/ ## Settlement agent A licensed professional who prepares the documents and completes the transfer for a buyer or seller. WA settlement agent fees are deregulated, but you must be given a written maximum before you appoint one (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/settlement-agent-fees-perth/ ## Smoke alarms and RCDs WA law requires compliant smoke alarms, and residual current devices (safety switches), before a home is sold or rented (WA Building and Energy). See: https://www.boutiquerealtyperth.com.au/resources/preparing-your-home-for-sale/ ## Strata title Ownership of a lot within a scheme, such as an apartment or villa, with shared common property run by a strata company funded by levies. Survey-strata lots have little or no common property. See: https://www.boutiquerealtyperth.com.au/resources/off-the-plan-buying-guide/ ## Subject to finance A condition that lets the buyer end the contract if their loan is not approved by a set date, provided they have genuinely applied. It is the most common condition in WA offers. See: https://www.boutiquerealtyperth.com.au/resources/subject-to-finance-clause-wa/ ## Sunset clause A completion deadline in an off-the-plan contract. If the project is not finished by then, the contract can usually be ended and the deposit returned. See: https://www.boutiquerealtyperth.com.au/resources/off-the-plan-buying-guide/ ## Transfer duty (stamp duty) WA state tax paid by the buyer on a property purchase, based on the price. First home buyers and eligible off-the-plan purchases may pay less or none (WA Government). See: https://www.boutiquerealtyperth.com.au/resources/first-home-buyer-guide-wa/ ## Urgent repairs Repairs to a rental that affect health, safety or security, such as a burst pipe or no hot water. Tenants can arrange them in some circumstances if the landlord does not act (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/investment-property-maintenance/ ## Valuation A formal opinion of a property's value by a licensed valuer, usually ordered by a lender before it approves a loan. It can come in below the contract price. See: https://www.boutiquerealtyperth.com.au/resources/subject-to-finance-clause-wa/ ## Written authority The signed agreement appointing an agent to sell or lease your property. It records the commission, marketing costs and term, and changes must be in writing and initialled (Consumer Protection WA). See: https://www.boutiquerealtyperth.com.au/resources/cost-of-selling-a-home-perth/