NZ Buyers Guide Buyers Guide - Ray White_2019_NZ - single page no | Page 30

I
Insured Mortgage
A mortgage that is protected by private mortgage insurance. If the borrower defaults
on the loan, the insurer must pay the lender the lesser of the loss incurred or the
insured amount.
Interest
The fee charged for borrowing money.
Investment Property
A property that is not occupied by the owner, but provides a return to the owner through
letting or leasing to a tenant.
J-K
Joint Tenancy
A form of co-ownership that gives each tenant equal shares and rights in the property,
including the right of survivorship, eg: ownership of a property passes to the surviving
owners automatically.
L
Landlord
A person who rents property to another, a lessor. A property owner who surrenders the
right to use property for a specific time in exchange for the receipt of rent.
Leasehold
You buy the right to own the home and lease the land for a certain time. You pay rent
to the landlord for the land. You can sell the lease if you want to move on. There may be
restrictions on your use of the property.
Lessee
A person leasing a property.
Lessor
The owner of a property that is leased to another person.
LIM Report (Land Information Memorandum)
A LIM contains relevant information that the local council knows about a property, such
as any issues with drainage and plumbing, erosion or permits. A LIM will also record any
unpaid rates. For a fuller explanation of the contents of a LIM you should contact your
local council.
Listing (or Listing Agreement)
Another term for agency agreement. A written contract between an owner and a real
estate agency, authorising the agent to perform services for the owner.