To determine the approximate worth of a piece of real estate, an appraisal is necessary. The mortgage lender hires an appraiser to provide a professional assessment of the property's value during the home transaction. This aids the lender in determining if the property is worth the loan amount that the prospective buyer is requesting.
Appraisal contingency
A clause known as an appraisal contingency gives the buyer the right to end the deal if the home's appraised worth is lower than the sale price.
Agent
A person who is authorized to act on behalf of another (typically the owner) in the purchase, sale, rental, or management of real estate. frequently used to describe approved real estate professionals and agents.
Advertising
Information regarding the time, location, contents, and arrangements of an auction is disseminated to the general public or, in certain situations, to certain groups of potential customers using impersonal, paid media like newspapers, radio, direct mail, and television.
Advertised price sale
Selling at a price that is advertised indicates that the seller has said how much they hope to get for the property.
Above building standard
Specialized designs and improved finishing are required to meet a tenant's needs.
Amortization
Repayment of a house loan is planned over a predetermined time frame when it is granted. The prearranged plan that the borrower follows to progressively pay off the obligations over the allotted time is known as amortization.
Abandonment
The willful giving up of ownership rights or another interest (such an easement) by not using the property and intending to abandon (give up the interest).
Assessed Value
A expert estimate of a home's market worth for property tax purposes is called assessed value. The home's location, condition, and similar properties are taken into account while determining its assessed value.
B
Real Estate Terms
Glossary
Building Byelaws
The Ministry of Urban Development's Town and Country Planning Organization has established a number of laws and regulations. These regulations govern a number of essential building elements, including height, design, and structural safety. Together, these are referred to as building byelaws.
Backup offer
A buyer who wants to buy a property that is already under contract with another party has the option to make a "backup offer" in case the initial deal doesn't work out. To make sure it is the next offer in line, a backup offer still needs to be negotiated and any funds, including earnest money, provided. Since you cannot have a backup to the backup, there can only be one backup offer permitted by law.
Bank Letter of Credit
A bank's letter attesting to a particular individual's eligibility for a specific credit level. At auctions, this is frequently asked of potential bidders or purchasers who are not making cash payments.
Branch manager
A branch manager may oversee salespeople performing real estate agency work and is authorized by the Real Estate Agents Act of 2008 to perform real estate agency activity on behalf of an agent.
Balloon risk
The possibility that a borrower won't have enough money to make a balloon (lump sum) payment at maturity.
Built-up Area
The total space in an apartment is known as the built-up area. Taking into account the thickness of the walls and ducts, it covers the carpet area. Usually, it is ten to fifteen percent larger than the carpet area.
Back Office
The area of a business devoted to administrative and support staff who do not interact directly with clients is known as the back office. Settlements, clearances, record keeping, accounting, IT services, and regulatory compliance are examples of back-office operations.
Blanket Mortgage
Multiple land parcels funded by the same borrower are covered by blanket mortgages. Time and money can be saved by doing this. A blanket mortgage, for instance, can be used by a seller who wants to purchase a second property before their first has sold to access equity from the first property to apply to the second.
Biweekly Mortgage
Instead of making mortgage payments once a month, a borrower with a biweekly mortgage can do it every two weeks. Instead of 12 payments over a year, the outcome is 26 half payments, or 13 full payments. The additional payment will hasten the mortgage's payoff.
C
Real Estate Terms
Glossary
Carpet Area
Measuring and seeing the floor covered with carpets are two simple ways to remember that just the floor surface is considered the carpet area. Carpeting does not include any of the other spaces listed above, such as terraces, balconies, utility rooms, ducts, etc.
Conventional sale
When a property is owned outright (with no mortgage left on it) or the owner owes less on their mortgage than the market suggests they could sell it for, this is known as a conventional sale. Compared to non-traditional sales like foreclosures, sales connected to probate, and short sales, these conventional sales frequently proceed more smoothly.
Capital Expenditure
As opposed to cash outflows for expense items that are typically regarded as a component of the current period's activities, those things are significant additions or replacements to existing properties or for new developments. General maintenance and repair items are not included in capital expenditures.
Caravan Auctions
A number of live auctions promoted by a single marketing effort.
Certificate of Title
A legal document known as the title lists the property's owners and important details.
Call Date
Regular or ongoing powers granted to the lender to ensure that the entire principle amount is paid before the maturity date.
Certificate of Origin
In international trade, a certificate of origin (CO) certifies that the items being exported came from a certain nation.
Capitalization Rate
The capitalization rate used to calculate the value of income property (acceptable to the average buyer).
Clear Title
The uncontested, legitimate owner of the land is indicated by a clear title. This indicates that there are no liens or levies from creditors or other parties that could lead to misunderstandings in the law.
D
Real Estate Terms
Glossary
Down Payment
A buyer is expected to pay a down payment. Typically, the down payment is a limited portion of the total amount you pay up front for the home.
Days on Market
When a property is advertised for sale on the local real estate brokers' multiple listing service (MLS), the number of days that pass until the seller and buyer sign a contract for the sale of the property is known as the DOM.
Development Approval
Permission to build, add, modify, or alter a property's structure from the appropriate planning authority.
Dual Agency
The simultaneous representation of buyers and sellers, who are opposing principals.
Deadline Sale
When a property is promoted for a predetermined amount of time with an end date that is publicized, this sale approach is employed. The seller is free to accept an offer at any time throughout the listing period and is not required to do so.
Deal Structure
Deals might be leveraged, unleveraged, traditional debt, participating debt, participating/convertible debt, or joint ventures when it comes to financing an acquisition.
Deed
A written instrument that transfers a real estate estate or interest from one individual to another. An individual who transfers interest is referred to as the "grantor." A person who obtains the interest is referred to as the "grantee." Grant deeds, administrators' deeds, executors' deeds, quitclaim deeds, and so on are examples of deeds. The language of the deed, the grantor's legal competence, and other factors determine which deed should be used.
Debt-To-Income Ratio
Your monthly debt payments (home, auto, credit card, student loan, etc.) divided by your monthly gross income is your debt-to-income ratio. This percentage is used by lenders to assess your capacity to repay a possible loan.
E
Real Estate Terms
Glossary
Escrow
In the context of real estate, an escrow is a third party tasked with keeping money. This is a contract that the buyer and seller sign to ensure that specific requirements are fulfilled before the seller receives the money.
Earnest Money Deposit
The first money a buyer is requested to provide after a seller accepts their offer is known as an earnest money deposit (EMD), also known as a "good faith deposit." It not only demonstrates the buyer's seriousness about the purchase, but also their willingness to follow through on their promises.
Effective Cause of Sale
In cases where a buyer and vendor engage into a legally binding agreement for the sale of a property, the efforts of a specific real estate agent are thought to have been a crucial component. Generally speaking, an agent who is deemed to be the effective cause of sale is eligible to receive a commission for that sale.
Estate Sale
Selling a person's belongings after they pass away. Real estate and/or personal belongings may be sold in an estate auction.
Equity
The difference between a property's market value and the mortgage balance is known as equity. If the property is sold, the equity is the money left over after the mortgage is paid off.
Earnest Money
Earnest money, sometimes referred to as a "good faith deposit," is a quantity of money that a buyer pays a seller to demonstrate their commitment to a deal. Until the transaction is completed or canceled, this deposit—which is frequently a modest percentage of the total purchase price—is held in an escrow account.
Earnings
Earnings are a company's net profits after taxes. This represents the bottom line or profitability of the business.
Earnest Money Deposit
A down payment, deposit, or partial payment given by a buyer of real estate as proof of good faith.
Eminent Domain
If the owner is appropriately compensated, the government is still allowed to seize private property and turn it into public use. Eminent domain is the name given to this right.
F
Real Estate Terms
Glossary
Foreclosure
If the buyer defaults on the loan, the lender sells the collateral property to recoup the remaining sum. We term this process foreclosure.
Fixed Rate Mortgage
Your interest rate remains constant for the term of the loan when you have a fixed rate mortgage. They are frequently offered as loans with terms of 10, 15, 20, and 30 years. According to Mortgageloan.com, 15- and 30-year house loans are by far the most common, making up over 75% of all residential mortgages in the United States.
Fireproofing
Utilizing inflammable materials to shield a building's structural elements so that it may sustain a total fire without compromising its structural soundness.
Fee Simple / Freehold
The sole possession of the property and any related structures, notwithstanding any interests listed on the title.
Fair Market Price
The price at which a property would be sold between a willing buyer and a willing seller who are both reasonably aware of the pertinent circumstances and are not under any obligation to buy or sell.
Floor Space Index (FSI)
The Floor Space Index (FSI), which controls urban density by dividing a building's floor area by its plot area, is a crucial term in any real estate lexicon. According to city regulations, FSI is determined by dividing the total floor area by the plot area.
Facility
A formal financial assistance program provided by a lending institution to a business in need of operational capital is called a facility. Overdraft services, deferred payment plans, swingline loans, term loans, letters of credit, revolving credit, and lines of credit (LOC) are examples of facility types. In essence, a facility is just another term for a loan that a business has taken out.
Fannie Mae
Consumer privacy is safeguarded under the Fair Credit Reporting Act (FCRA), which also establishes guidelines for credit bureaus' information collection and dissemination. Under the FCRA, your lender may ask for your credit report when you apply for a mortgage.
G
Real Estate Terms
Glossary
Gross External Area
The entire area of a building is referred to as its gross external area, or gross floor area. It covers every surface, including the outside of walls, roofs, terraces, roof shafts, etc.
Grace Period
A window of time before a loan defaults, such as when a mortgage payment is past due.
Government Value of Property
The rateable value (RV) is a value that is used to determine local body rates. Since the GV may be several years old and may not take into account recent improvements to a property or changes in the local market, it is not the market value of a property.
General Contractor
The prime contractor who hires someone to create a whole building or project instead of just a part of it. The general contractor is in charge of hiring subcontractors, managing all work, and making sure they are paid.
Gift in Trust
By creating a trust fund, gifts in trust are frequently utilized to transfer money from one generation to the next.
Grant
Adeed that transfers real estate between people. A transfer of real estate from a sovereign is achieved via patent or royal decree.
H
Real Estate Terms
Glossary
Homeowners Association
A complex of apartments is a community unto itself. It will inevitably need some supervision to run smoothly. In this situation, the Homeowners Association (HOA) comes into play and makes sure that the property is kept up properly, that community regulations are followed, and that routine repairs are completed on time.
Home Sale Contingency
A house sale contingency allows a buyer to inform a seller that their capacity to close on their present property is a prerequisite for buying the seller's property. A contract's clause or an addendum are frequently used to negotiate this.
Holding Deposit
A sum paid by a buyer to the seller's real estate agent. It typically represents 10% of the purchase price and demonstrates the buyer's sincere interest in the property.
Home Inspection
A home inspection looks at the state of a house to identify any significant structural or safety problems. The exterior, roof, plumbing, water, HVAC, and electrical systems of a house are often examined during an inspection.
Hammer Price
The last bidder sets the price, which the auctioneer acknowledges before lowering the hammer or gavel.
Highest & Best Use
Using undeveloped land or an improved property in a way that is legally permitted, physically viable, financially reasonable, and yields the best value
Hazard Insurance
Depending on the coverage, real estate insurance protects against vandalism, fire, and some natural disasters. Liability insurance and expanded personal property coverage are frequently added by buyers.
Home Equity Line of Credit
With a home equity line of credit, you can take out loans against the equity of your house whenever you want to, rather than all at once. This loan has a maximum borrowing amount and a time frame that have been agreed upon.
I
Real Estate Terms
Glossary
Immovable Property
An asset that is immovable is referred to as immovable property in real estate. For instance, a house, land, etc. Furniture and curios are easily movable, even if they are regarded as possessions.
Implied Covenant
A clause in a lease that is suggested rather than specifically stated. This could include the asset being suitable for the use for which it is rented and permitting peaceful enjoyment on the part of the lessor. The lessee may be responsible for maintaining the cleanliness of the property.
Investment Property
A property that the owner does not live in but that yields a profit for them by renting or leasing to a renter.
Income Capitalization Value
The indication of value obtained for an income-producing property by discounting the annual cash flows for the holding period at a given yield rate or by directly capitalizing the expected income and turning its expected benefits into property value.
Industrial Real Wstate
Any property utilized for research & development, production, distribution, manufacturing, and storage.
Impounds
To safeguard their security, lenders set up a trust-type account where borrowers can save assets to pay taxes, mortgage insurance premiums, and/or future insurance policy premiums.
J
Real Estate Terms
Glossary
Joint Tenancy
When multiple people hold land in common and there is a right of survivorship, the entire land passes to the surviving owners upon the death of one joint owner.
Just Compensation
When land is taken for public use through condemnation (eminent domain), the owner and the general public should receive fair compensation.
Judgment Lien
A lien placed on a judgment debtor's assets. an unintentional lien.
Jumbo Loan
Conventional loan limitations are set annually in January by government-sponsored companies Freddie Mac and Fannie Mae. Jumbo loans that above these thresholds are considered nonconforming.
K
Real Estate Terms
Glossary
KIO
Key in office
L
Real Estate Terms
Glossary
Lender
In the context of real estate, a lender is a bank or other financial organization that provides a home loan to an individual. In fact, it is predicated on a number of terms that the borrower and the lender have agreed upon. Within the allotted time, the borrower must return the money to the lender plus interest.
Land Lease
When you buy a house, you usually own both the house and the land on which it is situated. A land lease may be involved in some situations, where you would own the house while paying the landowner rent.
Line of Credit Loan
A loan that functions similarly to a credit card and allows you to take out money as needed. Regular, minimum, interest-only repayments are sometimes required.
Listing Broker
A real estate broker who cooperates with the auction firm by letting the auction agreement take precedence over their listing agreement and who holds a listing on a property.
Listing Agreement
An agency agreement is a written contract that authorizes an agent to conduct services for the owner on behalf of a vendor (seller).
Landlord's Warrant
A landlord's warrant to seize personal belongings (furniture, etc.) from a tenant and sell them at a public auction in order to enforce rent payment or the fulfillment of another clause in the lease.
Land
Comprises agricultural properties including farms, orchards, ranches, and timberlands, as well as undeveloped and unoccupied land.
Land Contract
An installment contract for the sale of land in which, until the full purchase price is paid, the vendor (seller) retains legal title and the buyer (vendee) has equitable title.
Lien
By granting the lien holder a legitimate claim to the property, a lien ensures payment. Since your lender has the legal right to take back your property if you don't make your payments, a mortgage is a form of lien.
M
Real Estate Terms
Glossary
Mortgage
A mortgage is a loan secured by real estate. A mortgage loan can be used for any purpose, in contrast to a home loan, which can only be used to purchase real estate. When taking out a mortgage loan, the lender utilizes the property as security.
Multiple Listing Service
Real estate agents and brokers can access and contribute details about properties for sale in a region using an MLS, which is a database. A listing agent logs a house into the local MLS when it is put up for sale. To find out what properties are for sale and what comparable homes have sold for, buyer's agents frequently search the MLS.
Maintenance
Maintaining an asset in a state that allows it to effectively execute the function for which it is used, or the cost involved in doing so.
Market Value
The highest price in monetary terms that a property will fetch in an open, competitive market with all the requirements for a fair sale, provided that both the buyer and the seller act sensibly, intelligently, and with the assumption that the price is not influenced by excessive stimulus.
Multi-Offer Process
A selling strategy in which potential customers are urged to make their best offers, and the seller selects the one that most appeals to them. Real estate agents are not permitted to imply that there are competing offers if none exist; instead, there must be multiple written offers.
Magic Page
The magic page, which is part of the offering prospectus, is a predicted growth story that explains how a new REIT will meet its future goals for operating funds or distribution funds.
Mechanics Lien
A statutory lien that attaches to both the land and the improvements and is established to ensure priority payment for the cost of the labor done and the materials provided in the building or repair of improvements to land.
N
Real Estate Terms
Glossary
No-Cost Mortgage
The borrower is not required to pay closing charges or other expenses when they have a no-cost mortgage. Nevertheless, the borrower must repay the loan over time because it includes the same expenses. Naturally, a no-cost mortgage will have a higher interest rate and larger monthly payments.
Natural Hazards Disclosure Report
Most jurisdictions demand a report that reveals whether a property is situated in an area with a higher risk of natural hazards. Usually, the seller covers the cost of the report, which is then delivered to the buyer at escrow.
Notice of Termination
The borrower is not required to pay closing charges or other expenses when they have a no-cost mortgage. Nevertheless, the borrower must repay the loan over time because it includes the same expenses. Naturally, a no-cost mortgage will have a higher interest rate and larger monthly payments.
National Real Estate Auction Committee
Most jurisdictions demand a report that reveals whether a property is situated in an area with a higher risk of natural hazards. Usually, the seller covers the cost of the report, which is then delivered to the buyer at escrow.
Nominee
Someone who, in a limited sense, represents or acts on behalf of another. It may refer to the individual the buyer designates to assume the buyer's ownership of the property upon settlement in a sale and purchase agreement.
O
Real Estate Terms
Glossary
Occupancy Certificate
The occupation certificate, or OC, is yet another crucial document that attests to the fact that a property was constructed in accordance with the plans that the authorities have authorized. It guarantees the buyer that the property has all the essentials, including water supply, electricity, and sanitary facilities, and is issued by the relevant municipal authorities.
Offer/Counter Offer
A formal offer is made by buyers for the house they wish to buy. The whole list price or what you and your agent agree is a fair market value may be the offer.
Open Agency Agreement:
The contract that creates an Open Listing between a vendor and an agent.
On-site Auction
An auction that takes place on the property's grounds.
Off the Plan
To buy a property after simply viewing the drawings, before a building or residence is constructed on the property.
Operating Cost Escalation
Even though escalation clauses come in a variety of forms, they are always designed to modify rents in accordance with outside benchmarks like published indexes, agreed-upon pay scales, or costs associated with property ownership and maintenance.
Occupancy Certificate (OC)
An essential term in real estate, the occupancy certificate shows that a structure was built in accordance with authorized designs and local rules and is ready for occupation. This legal document is necessary to sell a property at a reasonable price and guarantees the safety of the property.
Owner's Policy
A title insurance policy typically protects a real estate owner from losses brought on by flaws in, liens against, or the unmarketability of their title.
P
Real Estate Terms
Glossary
Promoter
The term "promoter," which is often used in the real estate industry, is somewhat general. Simply said, a promoter is any one in charge of creating and marketing a real estate property.
Property Inspection
A licensed professional inspector visits the house and prepares a report on its condition and any necessary repairs after purchasers pay for the inspection. The due diligence stage frequently includes the inspection, which allows purchasers to decide whether they want to purchase a home as is or request that the seller make or pay for specific repairs.
Proof of Funds
Sellers will ask you to provide evidence of finances when you make an offer. It demonstrates to them that you have the money for both the down payment and closing costs if you are purchasing a home with a mortgage. Your proof of funds proves that you have the money if you're paying with cash.
Planning Approval
Permission to use property for a specific purpose from the appropriate authority.
Preview
A legal instrument that gives someone (the lawyer) permission to act on behalf of another person. A power of attorney may be granted full authority or it may be restricted to specific actions and/or time frames.
Power of Attorney
The amount of rentable square feet per parking space is calculated by dividing the building's total rentable square footage by the total number of parking spaces.
Parking Ratio
A homeowner must pay an additional fee known as the preferential location price, or PLC, when they reserve a unit with a location advantage over others. Apartments that front a park, for example.
Preferred Location Cost (PLC)
A homeowner must pay an additional fee known as the preferential location price, or PLC, when they reserve a unit with a location advantage over others. Apartments that front a park, for example.
Personal Property
Anything that isn't legally classified as real property, such as cash, products, debt proof, action rights, furniture, and cars.
Preapproval
The process of determining how much a borrower can afford to pay for a loan is known as preapproval. During the preapproval procedure, lenders will examine your income, assets, obligations, credit, and other data.
Q
Real Estate Terms
Glossary
Qualified Plan
Any employee benefit plan that meets IRS criteria for being exempt from taxes. The assets of the plan must, among other things, be held in trust for the exclusive benefit of the employees it covers.
Qualified Lead
Any request for residential or commercial real estate that is received by a broker or builder is referred to as an inquiry, and a qualified lead is created once the adviser verifies that the information provided matches the requirements for the property.
Quitclaim Deed
A release deed that does not contain a guarantee of a legitimate interest or title in the grantor but is meant to transfer any title, interest, or claim that the grantor may have in the property.
R
Real Estate Terms
Glossary
Real Estate Agent
Both buyers and sellers may be represented by a real estate agent, who works for a licensed real estate company or broker. A real estate agent is involved in some of the most important aspects of a transaction, from the standpoint of the buyer, including sales discussions, paperwork, monitoring legal compliance, etc.
Rent-Back
The term "rent-back" or "leaseback" describes a contract in which the buyer, who is now the new homeowner, consents to let the seller, who is now the renter, remain in the home after escrow closes. A lease deposit, a daily rental rate, and the maximum amount of time permitted are frequently included in the terms, which are negotiated before the circumstance arises.
Rental Bond
Consideration that is typically retained under a lease to guarantee that the terms and conditions are met. Refunds are typically granted provided the property is returned in acceptable condition.
Real Property (Movable)
All of the advantages, privileges, and interests associated with real estate ownership. Unlike real estate, which is a tangible asset, real property is a legal notion. Additionally, there can be restrictions on real estate ownership rights.
Real Property (Immovable)
From the earth's center, land extends forever above the surface, encompassing both natural features and man-made enhancements to a permanent natural area. For instance, appurtenant rights, buildings, trees, and minerals.
Referring Broker
A real estate broker who recommends a possible seller for an auction to the auction firm but does not have a listing on the property. Typically, referring a product to an auction company generates a flat fee commission.
Resource Consents
When a group or individual conducts an activity or development on a land that is not allowed by the district or regional plans, a resource consent is necessary. In contrast to building consents, resource consents are directly related to the regulations outlined in the Resource Management Act of 1991 and district or regional plans.
Rating Agencies
For investors' advantage, independent companies are hired to rate the creditworthiness of assets. Moody's Investor Service, Standard & Poor's, and Fitch Ratings are the three main rating agencies.
RERA
The Indian Parliament passed the Real Estate (Regulation and Development) Act in 2016, which aims to safeguard homebuyers' interests while enhancing the real estate industry's responsibility, transparency, and efficiency.
S
Real Estate Terms
Glossary
Sanction Plan
The developer needs permission from the relevant authority before beginning any real estate project. This is acquired following the filing of a variety of documents, including building plans, structural plans, parking and circulation plans, site plans, service plans, blueprints, and so on. The authorities have the authority to penalize the developer or even demolish the property if there is a breach.
Seller Disclosure
A seller's disclosure is information that, to the best of the seller's knowledge, is disclosed about the property or that may influence a buyer's choice to buy it.
Seller’s Market
The situation that arises when supply and demand pressures are so strong during a competitive market that market prices are comparatively high, providing the seller with an advantage. Prices are rising due to an undersupply.
Sale Manager
The individual assigned by the auction firm to oversee the planning of an auction's specifics. Project manager is another name for it.
Settlement Statement
A lawyer or conveyancer's breakdown of the payments made during the property sale. Payments for the deposit, agent commission, unpaid interest, and loan payments will all be included in the settlement statement.
Sale-Leaseback
A contract whereby a property's owner-occupant consents to sell all or a portion of the property to an investor, then lease it back and keep using the space as a renter.
Separate Property
One spouse's real estate, regardless of the other spouse's interest.
T
Real Estate Terms
Glossary
Townhouses
A townhouse is a tall, narrow structure with a roof of its own and side-by-side apartments. A townhouse may occasionally have both a front yard and a backyard.
Termite Report
Termites are tiny, soft-bodied, pale insects that consume wood. They can do a great deal of damage. A map of the property and the locations of recent and/or past WDI activity are included in the WDI (wood-destroying insect) report, commonly referred to as the termite report.
Tenancy Agreement
A type of lease, usually in a condensed form. It could be listed on the title certificate of the owner.
Tie Bids
When the auctioneer must decide between bidders who are placing identical bids at the same time.
Trust Account
A bank account that is managed by a real estate company or law firm to hold money for other people. When a buyer makes a deposit, the real estate agent keeps the money in a trust account until the sale and purchase agreement is finalized.
Tag-Along Rights
A clause in a contract that safeguards a minority stakeholder. The minority shareholder has the right to participate in the transaction and sell their minority investment in the business if the majority shareholder sells theirs. (See Drag-Along Rights as well.)
Title Insurance
Insured declaration of real estate ownership or title conditions. The named insured and their heirs are shielded from title defects, liens, and encumbrances that were in effect on the policy date and weren't expressly excluded for a one-time payment. Should a claim arise, the title company defends the policyholder in court and covers any insured damages brought on by the claim.
Title
A property's ownership is shown by its title. A title is not a physical document like a deed, which is how they are different. A property, vehicle, boat, etc. can all have a title, which is a representation of ownership.
U
Real Estate Terms
Glossary
Unimproved Value
This statutory notion of value, which is primarily utilized for rating and taxation purposes, views the land as being in its virgin state but benefiting from all outside variables that affect its value on a particular date. The worth of a piece of property as if all of its current improvements, such as site work, had never been constructed or developed, but taking into account all other lands as they are right now, including all roads, services, amenities, and improvements.
Upset Price
Often referred to as the reserve price.
Unconditional Agreement
Wherein a buyer and seller reach an unconditional agreement to purchase and sell a property. When every condition is satisfied, a conditional sale turns into an unconditional one.
Under Construction
The time frame following the start of construction but before to the issuance of the certificate of occupancy.
Underwritten Company
In exchange for a percentage of the premium, a title firm that does title searches but lacks the necessary qualifications to provide insurance issues policies from a qualified title insurer (underwriter).
Underwriting
The process of establishing loan terms and shielding lenders from monetary risk is known as underwriting. To assess loan eligibility, underwriters may consider a borrower's credit, debt, and work history in addition to the state of the property.
V
Real Estate Terms
Glossary
Valuation
Understanding a property's potential for appreciation over time is crucial when purchasing it. We refer to this evaluation as valuation. The location of a property is the primary determinant of its value.
VA Loan
The Department of Veteran Affairs (VA) guarantees VA loans, which are offered to current and former military personnel as well as select qualifying spouses at reasonable rates and fees with little to no down payment.
Valuation Report
A record of the assignment's guidelines, the goal and foundation of the appraisal, and the findings of the analysis that produced the value opinion. In addition to providing useful information utilized in the study, a valuation report may also describe the analytical procedures followed in creating the assessment. Written or spoken reports might be used for valuations. The intended user, legal requirements, the type of property, and the assignment's complexity all influence the report's format, content, and length. Sometimes, the words "Valuation Report" and "Valuation Certificate" are used interchangeably.
Verifiable
Each year, licensees must complete 10 hours of continuing professional development that can be verified in addition to 10 hours of continuing professional development that cannot be verified. Training providers who have been approved by REA give verifiable training.
Vacancy Factor
The amount of gross revenue, typically represented as a percentage of the total amount of rentable square feet available in a building or project, that pro forma income statements predict will be lost due to vacancies.
Variable Interest Rate
An interest rate that is subject to change if the going rate goes up or down; it varies with the current cost of money.
W
Real Estate Terms
Glossary
Without Reserve
An auction expression that indicates the highest bid will win because no reserve price has been set.
Withdrawal
The reserve price was not met or there was not enough bidding.
Working Drawings
The collection of building or project blueprints that make up the contract paperwork that specify the exact way a project is to be constructed.
Waive
To consciously and willingly give up a recognized privilege, right, or claim.
Y
Real Estate Terms
Glossary
Yield
A property's calculated percentage return based on its market value or price and net income. It is computed by taking the opening market value or price and dividing it by net income.
Yield Spread
The yield differential between a benchmark value, usually U.S. Treasuries of the same maturity, and a debt instrument or other investment.
Z
Real Estate Terms
Glossary
Zoning
A local planning tool to regulate land development, including residential, commercial, and industrial uses, both now and in the future.
Zoning ordinance
The body of laws and rules governing how land is used and how improvements are built in a certain location.
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