Jargon Buster — Day One
The real estate glossaryfor people on day one.
Every term new agents hit in the first fortnight, in plain English. No PDFs, no Latin, no assumptions.
Sales
- CMA
- Comparative Market Analysis — evidence-based price range from recent comparable sales.
- A written report used to justify an appraisal range to a vendor. Built from recently sold, actively listed and withdrawn properties in the same market segment, with adjustments for land size, condition, aspect and improvements.
- Vendor
- The seller — the person or entity you're acting for on a listing.
- In residential and commercial sales, 'vendor' is the legal term for the seller. Your fiduciary duty runs to the vendor once the agency agreement is signed.
- Appraisal
- A written estimate of a property's likely selling range, supported by evidence.
- Not a valuation (which requires a licensed valuer). An appraisal is your professional opinion of a range the market is likely to pay, defensible with comparable sales.
- Commission
- The fee the agency earns on a successful sale, usually a % of sale price.
- Structures vary: flat fee, percentage, tiered (higher rate over a stretch target) or hybrid. Most agents are paid a split of the agency's commission, less desk costs and marketing.
- GCI
- Gross Commission Income — total commission written before splits and expenses.
- The number principals track and agents are ranked on. Your take-home is GCI × your split − desk fees, marketing and tax.
- Cooling-off
- A statutory window a buyer can withdraw from a private-treaty contract.
- Varies by state (e.g. 5 business days NSW). Does NOT apply to auction sales or waived contracts.
- Section 32 (VIC)
- The vendor's statement — legally required disclosure pack in Victoria.
- Must be provided before contract signing. Includes title, planning, rates, easements, owners corporation details. Missing or defective statements can void the contract.
- Open home
- A scheduled inspection window where buyers can walk through the property.
- Typically 20-30 minutes on Saturdays. Your listing presentation, buyer qualification and follow-up loop all hinge on how you run it.
- EBU
- Exclusive Buyer's Agent — represents the buyer, not the vendor.
- Increasingly common in prestige markets. Different regulatory disclosures apply since the fiduciary duty runs to the buyer.
Trust & Compliance
- Trust Account
- A statutory bank account holding client money — bonds, deposits, rent.
- Regulated under each state's Property, Stock and Business Agents legislation. Money in trust never belongs to the agency and is subject to strict reconciliation, audit and record-keeping rules.
Auctions
- Vendor bid
- A legally disclosed bid placed on the vendor's behalf at auction.
- Used to move the auction toward the reserve. Must be announced clearly by the auctioneer and disclosed in advertising. Each state caps the number and timing of vendor bids.
- Reserve
- The minimum price the vendor will accept at auction.
- Set in writing before the auction. Once the bidding passes the reserve the property is 'on the market' and will sell to the highest bidder.
Property Management
- Bond
- A residential tenancy security deposit lodged with the state authority.
- Held by NSW Rental Bonds Board, RTBA (VIC), RTA (QLD) etc. — never by the agency. Refunded at the end of tenancy subject to condition report and agreement.
- Ingoing report
- A dated, photographed condition record taken before a tenant moves in.
- Also called an entry condition report. Signed by tenant within a set window (varies by state). Your primary evidence in any bond dispute.
Commercial
- Face rent
- The headline rent quoted on a commercial lease before incentives.
- Contrast with effective rent — the true annualised rent once incentives (rent-free, fit-out contribution, cash) are amortised across the term.
- Effective rent
- The true annualised rent after incentives are amortised across the lease term.
- Formula: (Face rent × term − total incentives) ÷ term. The number landlords actually earn and tenants actually pay.
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