Real Estate / Business Glossary
"T" Dictionary Definition - What is a :
With a table loan, you repay principal and interest together. At first, most of the money goes towards interest repayments, but as the loan starts to go down more of each payment goes towards repaying the principal. At the end of the loan period, you own the property with nothing left to pay. The amount you repay each month stays the same throughout the term of your loan, unless interest rates change. If interest rates increase, table loan payments may increase if so that the loan is paid off in time (see Reducing Loan).
Tenancy in Common
This type of ownership is useful if you are buying a property with friends or relatives. You each own part of the property, and if you die your share goes to whoever you leave it to in your Will.
A process of selling, calling for purchasers to make their best offers in writing for a property by a set date. Purchasers should obtain "Particulars and Conditions of Sale by Tender" from the vendor (or Agent). A price for the property is not advertised, allowing the market to decide the value.
Tenders from buyers remain confidential until the closing date when the seller choses one offer as being the most favourable. The details of any tender (whether successful or unsuccessful) will not be divulged to any other tenderer or third party. But if your tender is successful, you are committed to buying the property and have a set amount of time to meet all of the sale conditions.
Tenders can be "open" (anyone can make an offer) or "closed" where only some prospects are invited to submit a tender (closed tenders are often used by Industry to obtain expressions of interest from a select group of suppliers).
The Real Estate Institute of New Zealand forbids its Members from using qualifying words such as “open tender ” or “closed tender”. However, tenders can call for unconditional offers or allow buyers to put conditions into their offer.
This is the time you take your loan out for. Many home loans are for 20 or 30 years. It can also be how long your lease is for if you have a leasehold property.
The legal right to ownership of the property.
Documents showing who owns a property.