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So tenants in common have nothing to do with landlords and you can’t be registered as the owner of a property in Queensland if you are under 18? These are two of a number of terms found in the real estate industry that may at first glance seem a little confusing for first time property owners and investors.

But help is at hand with Real Estate Institute of Queensland (REIQ) accredited agencies being able to explain terminology to first time buyers and investors, and the REIQ’s guide to real estate lingo giving you the heads up on terms often used in the industry.

The REIQ guide to real estate lingo.

Agent - A person authorised to act on behalf of another person. In the case of real estate agencies, this authority must be in writing.

Deposit – An amount of money paid as evidence of good faith for the future performance of a real estate transaction. It is normally held by a third party, usually the agent in a trust account. If the purchase is complete, it will be paid towards the purchase price.

Equity – The different between the market value of a property and any loans that still have to be paid.

FIRB – Foreign Investment Review Board. A Federal Government organisation that provides guidelines for the approval of the purchase of Australian property by persons not ordinarily resident in Australia.

Heritage listed property – A property that has significant heritage impact in a community. A local or state authority can nominate the listing. The listing is placed on a heritage register. Works cannot be undertaken on the property, nor can the building be removed or demolished without the permission of the State Government Heritage Council.

Joint tenant – The term ‘tenant” does not in this context refer to a situation of landlord and tenant, rather it refers to one of two ways in which two or more persons may own land together. The rules of survivorship applies to joint tenancies and where a joint tenant dies then the surviving joint tenant or tenants are automatically entitled to the deceased person’s share of the land. Joint tenants also have equal shares in the land. Joint tenancy is most commonly used where the co-owners are husband and wife.

Negative gearing - If the total of deductible outgoings (e.g. interest on borrowings, rates, repairs, management fees) exceeds the income (rent) for a property, then it is said to be negatively geared. Investors often use negative gearing to reduce taxable income as the loss can be deducted from other earnings.

Rent roll – Those properties that an agency currently manages for their client landlords.

Tenants in common - This form of co-ownership is the alternative to joint tenancy defined earlier. For tenants in common, the rule of survivorship does not apply as each tenant in common is able to dispose of his or her interest in the land either by contract or by a will. The other major distinction is that tenants in common do not necessarily have to own equal shares in the property. For example, one tenant in common may have a one-third interest and the other two-thirds.

Trust account – A bank account relating to monies received or held by an agent for or on behalf of another person.

Vacant possession – When a property is sold within any existing lease or tenancy agreement it is sold ‘with vacant possession’. There will be no-one in occupation at the time of settlement.

Valuation – A written report by a registered valuer showing opinion of the value of the property.

“It is important for consumers to be aware that not all real estate agents are REIQ accredited agencies. The accredited agency logo serves as a visual safeguard to help consumers make informed and confident choices,” REIQ executive manager Elissa Keenan said.

For a list of REIQ accredited agencies in your local area visit www.reiq.com.au