Your Common Property Terms (N-Z)

HERE IS the final segment of your Common Property Terms. It contains definitions for most of the remaining aspects of property you’re likely to come across.

And as you can see, they cover from …

N to Z

Net Lease

Where your Lessee is responsible for all building outgoings on
top of the agreed net rental.

Net Rental

Monthly payment made by a tenant, not including outgoings.

Net Face Rental

Net rental stated in the lease, before allowing for any
incentives (like a rent-free period).

Notice to Quit

Enables, under strict conditions, a landlord or tenant to
terminate a tenancy without the agreement of the other.


For a sale: the right (secured by a payment) to purchase a
property at an agreed price on or before an agreed date.
For a lease: the right to renew at a mutually agreed rent.


All operating expenses related to the property.

Own-Your-Own Flats

Own-your-own flatsThe expanding practice of people buying rather than renting flats and units. Usually the owner obtains a separate title and undertakes to pay a proper proportion of running costs for the whole building.

Owners’ Corporation

The legal administrative group of owners of offices, home
units, flats, town houses, etc. for common property.

Parking Ratio

The ratio of parking places to office area or number of flats;
a very important consideration these days.

Passed In

When a property fails at auction to reach the vendors reserve
price. (The highest bidder has the right to buy at the reserve
price, or try to negotiate an acceptable price).

Passing Rental

Actual Net Rental received at the time of purchasing a property.

Peppercorn Rent

Historically, a rent of one peppercorn a year. In fact, a method
by which landlord can let a property for virtually nothing, but
retain all ownership rights.

Plot Ratio

The ratio of building area to site area.

Property Manager

A real estate agent, who manages properties for landlords to
ensure the property complies with legislation & regulations at
all times, selecting tenants, collecting rents, arranging
maintenance and so on.

Property Wealth

The difference between the market value of your properties and
the amount of money you owe on them.

Public Liability

The insurance taken by companies and private individuals to
protect themselves against claims made by members of the public,
who might be injured in some way on the property.

Quantity Surveyor

A professional, who calculates (and costs) the materials required
for a construction. Also helps you to compile your depreciation

Rateable Value

The estimated value of a property on which rates are assessed.

Real Property

The ownership of physical real estate land and buildings.


The updating of urban property, usually by demolition and

Regional Shopping Centre

A drive-in development with department stores, supermarkets
and specialty shops ? as opposed to the “ribbons” of shops
along both sides of busy streets.

Reserve Price

The lowest price at which a vendor is prepared to sell a
property at auction.

Restrictive Covenant

Land is sold with some legal constraints … like a covenant that
only one home can be built upon it; or that the home must be
built at a specified cost or height.


A planning term in which the local authority can alter a
planning scheme to allow, say, commercial rather than
residential development.

Sale and Lease Back

An investor buys a property and leases it back to the seller;
a practice which is on the increase.

Site Value

The amount an unencumbered piece of land (less any
improvements) is likely to realise, at the time of a municipal
valuation. Also the land component of a developed property.


A punter who buys property in the expectation of selling it
later for a higher price.

Strata Title

The title for a segment of a property a flat, unit, office in
which there are several owners. (Nowadays, a separate Torrens
Title is issued).


Land subdivisionThe division of a piece of land or buildings into separate lots; inevitably requires several official approvals.


A property that is already leased, is leased again. But will not for a longer period than the unexpired part of
the original lease.


The accurate measurement and description of a piece of land,
usually showing structures and contours.


A group of investors (individuals or corporations) who get
together to invest in a financial project requiring more capital
than each one has individually.

Tenancy at Will

The tenancy can be closed at will by either landlord or tenant.

Title Deeds

The documents proving ownership for a property.

Torrens Title

Named after Sir Robert Torrens of South Australia, who put the
scheme of registering property titles with governments into effect;
it is now used in many other parts of the world. Earlier there were
General Law or Common Law titles.

Unimproved Capital Value

The value of a piece of unencumbered land without improvements.

Unregistered Mortgage

Not registered on the title of the property.

Urban Renewal

Redevelopment, usually within the more dilapidated sections of a
major city.

Vendor Terms Contract

When a property is paid for over time ? usually a deposit and
then regular payments of the balance, plus interest over several

Without Prejudice

These words, used during the course of a negotiation, mean that
a suggestion (or proposal put forward) cannot be used as evidence
later, if the negotiations are not successful.


The money you derive by way of income or profit from a
property deal.


The method by which councils or planning authorities control
property use residential, industrial, etc.

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