NZ Buyers Guide Buyers Guide - Ray White_2019_NZ - single page no | Page 25

Glossary of real estate terms
A
Acceptance
Consent by the person receiving the offer to be bound by the terms and conditions of the
person making the offer. Acceptance of an offer constitutes an agreement.
Advertised Price Sale
Selling at an advertised price means that the seller has declared the amount that they
expect to be paid for it.
Agency Agreement
If you are using a licensed real estate agent to sell your property, you’ll need to sign an
agency agreement. This is a legal contract between the seller and the agent that sets
out what the agent will do and what they will be paid. Remember you can negotiate the
conditions, such as who pays for marketing and how much the commission is. Make sure
you get legal advice before you sign.
Agency Agreement Guide
This guide contains the key things you need to know about agency agreements. The real
estate agent must give you a copy of this guide before you sign an agency agreement.
Agent or real estate agent
This is the general term for a real estate agent, agency, branch manager or salesperson
(these are different types of real estate licences). In New Zealand, real estate agents are
licensed by the Real Estate Authority (REA) rea.govt.nz
Agreement
The written contract for the sale and purchase of property between the seller (vendor) and
the buyer (purchaser).
AML/CFT Act 2009 - Anti-money laundering and countering financing of terrorism
From 1 January 2019 real estate agents are captured under the AML/CFT Act 2009 and
are required to collect documents and identify clients before signing an agency agreement
and carrying out real estate agency work on behalf of the client.
Appraisal
An assessment of a property’s likely sale price. An agent must give the seller a written
appraisal that is realistic and based on the market conditions and information from recent
sales of similar properties. The listed price of the property may not always be the final price
the property sells for.
Appraiser/Valuer
A person qualified by education, training, and experience to estimate the value of real
property and personal property. You can tell someone is accredited in NZ with the “B Prop”
or “Dip Valuation” after their name.
Asking Price
The listed price of the property but may not always be the selling price. The owner may be
willing to negotiate.
Auction
A public sale of a property or real estate that is sold to the highest bidder when the owner’s
reserve is reached.