Auctions & Statutory Legal Terms
Reserve Price
The confidential minimum price agreed in writing between the vendor and the auctioneer below which the property cannot be sold under the hammer.
Auction Bidding Tactics →Section 66W Certificate
A legal certificate under NSW Conveyancing Act signed by the purchaser’s solicitor or licensed conveyancer explicitly waiving the statutory 5-business-day cooling-off rights.
Section 66W Guide →Passed In
Occurs when public bidding fails to reach the vendor's reserve price. Under standard practice, the highest bidder is granted first exclusive right to negotiate privately with the vendor.
Post-Auction Negotiation →Lending & Mortgage Mechanics
APRA Serviceability Buffer
A prudential regulatory rule mandating ADIs (banks) to stress test a borrower’s ability to service mortgage repayments at 3.00% (300 basis points) above product rate.
APRA Calculations Guide →Loan-to-Value Ratio (LVR)
The ratio of the mortgage loan amount divided by the lender’s independent professional valuation of the property, expressed as a percentage.
LVR Tiers & Risks →Lenders Mortgage Insurance (LMI)
A one-off insurance premium charged when LVR exceeds 80%. It protects the bank—not the buyer—against financial default shortfall.
How to Avoid LMI →Advocacy & Contractual Terms
Exclusive Buyer's Agent
A licensed real estate professional who exclusively acts on behalf of the purchaser under a signed agency agreement, offering 100% fiduciary loyalty without vendor conflict.
Buyer Advocacy Hub →Cooling-Off Period
A statutory timeframe (5 business days in NSW) allowing private treaty residential buyers to rescind a contract, subject to forfeiting 0.25% of purchase price.
Cooling-Off State Rules →Vendor Bid
A single bid placed by the auctioneer on behalf of the seller below reserve price. Under NSW Fair Trading law, it must be explicitly announced as a vendor bid.
Vendor Bid Strategies →Valuation, Strata & Yield Metrics
Gross vs Net Rental Yield
Gross yield calculates annual rental income as a percentage of property purchase price. Net yield deducts council rates, water, strata levies, management fees, and repairs.
Yield Compounding Guide →Bridging Finance
A short-term loan facility allowing a homeowner to purchase a new property before finalizing the sale of their existing home, carrying specialized interest capitalization rules.
Bridging vs Selling First →Strata Capital Works Fund
A mandatory reserve account maintained by the owners corporation to fund long-term structural repairs, roof replacements, lift upgrades, and common property works.
Strata Due Diligence →