There can be many parts that can be confusing in Business + Property matters, which is the last thing, you and your business needs when an issue occurs. We are here to make this process easier for you. If you require further information regarding Business + Property matters, please call us on 1300 590 613.

A

Acquisition An acquisition occurs if the majority or all of the shares of one company are purchased for control of that company. Acquiring more than 50% of equity and of other properties of a target company, enables the acquisitor, without the permission of the investors, to make decisions on the newly acquired assets.
Accountability The obligation to account for, assume responsibility for and disclose results transparently for a particular individual or organisation. The liability for money or other property entrusted also includes it.
Adjustments Adjustments include a comparison of the seller's and purchaser's prices, taxation and expenditures. The settlement date (or any date detailed in the contract) will be amended to make sure that the vendor is paid their share and that the purchaser is liable for the remaining share of the settlement. Adjustments guarantee that the supplier has paid or will pay for any arrears and/or interest outstanding.
Authority to sell A legally binding agreement also known as Agreement is signed by a sales agent and a seller that specifies the contract of sale, namely the granting of legal authorization to sell an estate, commissions and marketing costs and the terms of auction.

B

Beneficial owner An entity that is entitled to ownership and/or benefits of a property (such as receipt of income) despite ownership in another entity's name (known as' nominee' or' registered proprietor'). The use of an applicant (which may be an agent, custodian or trustee) does not alter tax reporting and tax liability positions and remains a responsibility of the beneficial owner.
Building contract A legal document under the Domestic Building Contracts Act 1995, which sets out a contract between the construction works and consumers on the construction, renovation, extension and repair of homes.
Bridging finance A short-term loan (around six to 12 months) filled the time gap between the purchase of another property or the sale of one or the acquisition of a long-term loan. These loans typically have a higher rate of interest.
Buyer’s advocate The buyer's agent is also known to act exclusive to the buyer through the procurement of appropriate property and the buyer's presence during the purchasing process.

C

Corporate governance The rules and procedures through which a Board of Directors assures responsibility, equity and openness in its partnership with all shareholders (financial partners, consumers, leadership, staff, public authorities and communities).
Conflict of interest A circumstance which may compromise an individual's impartiality because of the potential conflict between an individual's self-interest and the professional or public interest.
Collective bargaining agreement The contract between the administration of the company and its workers organised by an official trade union is negotiated and legally enforceable for a specific period (usually for 1 year).
Constitution law The legislation originated from a written constitution of a nation. This lays out and directs the government's duties and resources, and its people and residents ' obligations and freedoms.
Cooling off period You have a cooling-off time of 3 days, according to certain restrictions, whenever you buy property privately. Therefore, if the terms and conditions apply, you may withdraw from the contract by written notification to the seller within 3 days. If you purchase a property at the auction, the cooling-off period applies.
Covenants An contract that imposes an obligation to the holder of a property to do or not to do anything. For example, a restrictive contract may state that there can be no more than one residence on the land.
Certificate of occupancy A document that indicates that a building surveyor has approved construction as suitable for occupation in accordance with the Building Act and other building regulations is also called the Occupancy Automatic Permit. It is a crime to take possession of a new building without an occupancy permit including a home or apartment.
Caveat A notification is a file that can be obtained at Land Use Queensland by anyone who has a legitimate interest in an estate. Upon registration, a notice note emerged in the title stating that a third party claimed ownership over the land to anyone with interest.

A notification shall prohibit the registration of land interest sales, ensuring it is not possible to transfer the estate and the agreement can only take place until the notice is repealed, suspended, postponed or annulled.
Caveat emptor The purchaser has to check the value and suitability of the house, before the deal is completed. this is a legal principle that translates into "buyer beware."
Consolidation Combining two acts (including the same parties and the same matters) into one court order action. A single decision may or may not contribute to merger.
Community Titles Scheme The term given to multi-dwelling development. It can be a gated property house, a townhouse, or a high-rise apartment. The property title within the Community titles scheme shall have the same protection as the property title on a single land block, with the exception of having communal areas, such as a pool, fitness centre or public parking.

D

Duty of care The duty or legal obligation to prevent (which can logically be foreseen) actions or omissions are likely to harm others.
Dispute resolution A process to settle discrepancies among two or more parties. The policy aims at ensuring equality for all parties in business practise and is often moderated by a third party. Within contracts, there is often a lawsuit settlement clause that sets out how conflict is to be settled.
Domestic building insurance Previously known as the building policy guarantee. Insurance for the domestic construction company for works in excess of $16,000 (with the exception of trade professionals which do not require registration for works in which only a trade covers).

You are covered only by a domestic building policy if your contractor is deceased, insolvent or vanished. In such cases, the report covers six years of structural defects and two years of non-structural defects. The builder shall be eligible to register for domestic construction insurance. The contractor will issue you a currency card for an insurance policy for work at home.
Demising wall The boundary which distinguishes one tenant from the other and from the public corridor. Often called the curtain or demising partition.
Defective title A defective title is not legally transferrable to the asset or property, making it unmarketable, and also a bad title. See also title cloud on the title of the asset or property. This is also called a defective title.
Discretionary Trust A trust in which the trustee decides to whom, under the provisions of the trust act, profits and assets are being allocated. Often recognised as a trust in the community.
Due Diligence Pre-purchase investigation of a company or business.

E

Encumbrance A fee, statement, liability or rule applied to a property that is binding. This may have an effect on the validity of the good title (see clear title) or may reduce the property's value. There may be a range of forms of burden: mortgages, other parties ' claims, court decisions, outcoming legal action, unpaid taxes, restrictive act or loan agreements, neighbourhood settlement rights, or zoning ordinances.
Easement is a land portion which is registered on your property title and grants someone the right, even if they do not own the land, to use the land for a particular purpose. A person's right to use another person's property. Sources are drainage and sewage pipes.
Equity capital Investment of money not being repaid to investors in the normal course of business, unlike debt capital. It is the risk capital that holders stake through the purchase of the ordinary share of a company. The capital value is calculated using the current market value of the total liability of everything owned by the company.

F

Fiduciary duty One party's legal obligation to behave at the benefit of others ' needs. In fact, the obligated party is a fiduciary, i.e. someone responsible for the handling of money or property. Often recognised as fiduciary duty.
Foreclosure Legal proceedings through which the creditor cancels (foreshadows) the right of a debtor for repayment of mortgaged properties in the course of a court order. The court determines the day on which the debtor will pay off the entire loan balance by charging the creditor (including foreclosure costs).
Franchisee A person or company licenced to work under a business model for a franchisor.
Franchisor A firm that permits a person (franchisee) to work under its business name and model in a region.

G

Guarantor If the person or entity who signs the buying agreement can not do so, the person is obligated to execute the contract. This is important if a company is buying a property.

I

Indemnity A contract in which someone compensates others for such actions or omissions.

L

Litigation The legal method of resolving disputes or disagreements between and between entities, agencies and the Government. During the legal process, the parties concerned (the litigants) have the right to hear the case before a court of law suitably empowered to settle it (the judgement).
Leasehold interest Claim or right for the exclusive use of an asset or property, as created by a written lease for a specified period. Long-term leasing is an inherent asset that can be traded or mortgaged as a physical asset.
Legitimate power Power derived from a job, place or rank and held in that position as belonging to the individual.
Licensing agreement Written contracts by which a copyright owner may use, make or sell copies of a licensee's original, know-how, patent, service mark, mark, or other intellectual property. These contracts usually restrict the licensee's range or area and determine whether the licence is exclusive or non-exclusive and if the permit holder pays royalty in return or any other consideration.
Liquidation The method of gathering and turning capital into money to pay debts when closing the company.

P

Procurement The process by which goods and services are received or bought. The process includes the preparing and submission of an application, acceptance and transaction approval.
Partnership A type of corporation that puts together capital, expertise and other assets and shares profit and loss under the partnership agreement.
Personal liability An individual's financial obligation and that could be fulfilled from his or her assets.

S

Stakeholder An individual, group or organisation interested in or concerned about an organisation. The acts, goals and strategies of the company will impact or be influenced by the stakeholders. Sources include shareholders, executives, workers, state (and its agencies), stakeholders (action holders), vendors, associations and the society from which the firm receives its assets.
Sole proprietorship The simple, oldest and most common type of business, where only one person acquires all the benefits and risks of running a company. There is no legal distinction between the assets and obligations of a company and those of its owner in a sole proprietary firm.

T

Trust agreement Formal agreement to assign the trust's ownership rights (titles) to one or more assets to one or more trustees on behalf of one or more trust holders to preserve and protect them.

U

Unliquidated damages Sum of money not pre-determined for the breach of the agreement by the contracting parties but determined by the court following such breach.
Unlimited liability Indefinite responsibility to pay the debts or commitments of an undertaking relating to their own personal assets beyond the investments of the owner(s) of an undertaking, investors or shareholders.

V

Void contract A contract that satisfies any of the following criteria: (1) that is unlawful from the moment the contract is concluded; (2) valid, but ruled void, by court on the grounds that it violates fundamental principles such as equality or is contrary to public policy.

W

Without prejudice In the settlement negotiations, parties involved in a disagreement frequently add "without prejudice." The other party can not use communications marked as evidence in court as' without prejudice.' Thereby, without the risk of the other side using this information later, the parties may discuss openly the subject-matter at issue.
With prejudice A term that means that (1) an appeal by a judge as rejected removes the likelihood that a new case can be filed in the same manner as an appellate case, and (2) the final appeal order is so issued.
Walk in walk out An arrangement in which the purchaser of a business takes on the settlement day all existing stocks and debtors.