Vendor: Another term to describe the seller
Auction: The property is sold via a bidding process where the highest bidder above the vendor’s reserve price purchases the property. Bidders must provide ID and be registered to bid. A non-refundable deposit is required immediately and settlement is usually 30-45 days later.
Private treaty: The property is offered at a specific price. Buyers can make offers below or above the asking price. Offers are legally binding once the sales contracts have exchanged.
Price Range: A variation of private treaty, where a ball-park estimate of the expected price is given, rather than a specific dollar figure. Buyers can make offers below the range, within it or above the highest amount.
Expressions of Interest & By Negotiation: A process where potential purchasers are invited to decide the price for themselves and submit their best offer.
Exchange: The formal, legal exchanging of contracts between solicitors. In an auction the exchange occurs on the fall of the auctioneer’s hammer; no solicitors have to be present. A 10% non-refundable deposit is normally required on the date of exchange.
Gazumped: A term referring to a buyer who has made an offer and had it accepted but then finds that, prior to exchange, the vendor has agreed to a higher offer from another buyer.
Settlement: The final stage of the purchase process. Buyers usually do a pre-settlement inspection to ensure the property is still in an acceptable condition. Once that’s completed, the solicitors settle the sale. Settlement can occur any time after exchange; a common time frame is four-six weeks. Once settled, the buyers receive the keys and can move in.