The act of voluntarily giving up a right (of ownership or lease
or any other right) over a property.
Owner of a property who resides elsewhere (usually in another
city or country)
The right of ownership of legal estate in registered land; a
title that is guaranteed by the state that no one has a better
title that is subject to any minor interests or overriding interests.
Adjacent or contiguous to. For example, if a property is adjacent
or next to another, it can be said to abut each other.
A clause in your mortgage which allows the lender to demand
payment of the outstanding loan balance for various reasons.
The most common reasons for accelerating a loan are if the borrower
defaults on the loan or transfers title to another individual
without informing the lender.
Annexes to a building such as servants’ quarters, sheds, garages,
The unpaid interest accumulated from an investment or a loan
The cost of acquiring a property; includes purchase price and
all other allied cost like insurance and legal fees, brokerage,
An area of land of any shape containing 43,560 squares feet
or 4,840 square yards or approximately 4,047 square meters.
act of god
Damage caused by nature. Examples: floods, hurricanes, tsunamis,
etc. Also known as force majeure. An unexpected event that prevents
one from complying with certain terms and conditions in a contract
actual cash value
The price at which property can be sold at a given point of
Literally, according to the value. Applied, for instance, to
a scale of stamp duty, inheritance tax and fees.
Something that is added to an existing document. Example: supplementary
to an agreement
A mortgage in which the interest changes periodically, according
to corresponding fluctuations in an index. All ARM’s are tied
The date the interest rate changes on an adjustable-rate mortgage
A person appointed by a court to manage an estate while testamentary
proceedings are on. This person also distributes the estate
of a deceased person in accordance with the orders of the court.
A survey of an area made by taking sequential photographs from
an aircraft; plans are then drawn from photographs.
The value of a property deriving from its architectural beauty
or natural or mandmade surroundings.
A statement or declaration made in writing and under oath before
a competent (usually court) official.
Substitute for an oath.
Person or body corporate acting under the orders and authority
of another The scope of such authority is usually specified
in the agreement between the two parties.
agency agreement (agency
The term describing a listing under which the broker’s commission
is protected against a sale by other agents and often by the
One who acts on behalf of a principal.
The fee payable for services rendered by real estate professional
It is a contract by which land or property is leased or sold
by one party to another.
This is the right to use the space above a property. It does
not include the right to use the land surface which the property
A narrow path
Modifications in a building without changes to its dimensions.
A change or alteration in agreement or court document.
Those facilities, like swimming pools, jogging tracks, health
The loan payment consists of a portion which will be applied
to pay the accruing interest on a loan, with the remainder being
applied to the principal. Over time, the interest portion decreases
as the loan balance decreases, and the amount applied to principal
increases so that the loan is paid off (amortized) in the specified
A table which shows how much of each payment will be applied
toward principal and how much toward interest over the life
of the loan. It also shows the gradual decrease of the loan
balance until it reaches zero.
A planning term describing the use of a property in a manner
different from, but functionally related to, its main use.
annual percentage rate
This is not the note rate on your loan. It is a value created
according to a government formula intended to reflect the true
annual cost of borrowing, expressed as a percentage. It works
sort of like this, but not exactly, so only use this as a guideline:
deduct the closing costs from your loan amount, then using your
actual loan payment, calculate what the interest rate would
be on this amount instead of your actual loan amount. You will
come up with a number close to the APR. Because you are using
the same payment on a smaller amount, the APR is always higher
than the actual not rate on your loan.
annual sinking funds
A sinking fund where payments and interest accumulated are calculated
A form of property ownership in which each owner holds title
to his/her individual unit, similar to western definition of
A property offering guests a complete self-contained sole occupancy
unit consisting of bedrooms, a living room, a kitchen with full
cooking facilities and dining area. Usually requires a hotel
license to operate as such. Serviced apartment which are let
on a daily basis function like apartment hotel.
The form used to apply for a mortgage loan, containing information
about a borrower’s income, savings, assets, debts, and more.
A written justification of the price paid for a property, primarily
based on an analysis of comparable sales of similar homes nearby.
An opinion of a property's fair market value, based on an appraiser's
knowledge, experience, and analysis of the property. Since an
appraisal is based primarily on comparable sales, and the most
recent sale is the one on the property in question, the appraisal
usually comes out at the purchase price.
An individual qualified by education, training, and experience
to estimate the value of real property and personal property.
Although some appraisers work directly for mortgage lenders,
most are independent.
The increase in the value of a property due to changes in market
conditions, inflation, or other causes.
A method of resolving a disagreement between two parties by
presenting their different views to an independent arbitrator.
The award is binding on the parties but an arbitrator’s decision
can be challenged in a court of law under certain circumstances.
A clause in a contract providing for disputes arising from the
contract to be referred for the decision of a third party (arbitrator).
Common examples are disputes over rent review clauses in leases
or the terms of buildings contracts.
An impartial person who is appointed to settle a difference
between two parties
High-rise building with a height of 23 meters or more
Extra large buildings that have gross floor area of 10,000 sq.m.
- money paid after the due date.
Thus a debt is in “arrears” if unpaid after the due
- Rent is said to be paid in
arrears where the lease provides for the rent for particular
period to be paid at the end of the period
“as is” condition
The sale, purchase, lease or conveyance of a property or item
in its existing state, i.e., without any change, improvement,
addition, alteration or repair. Also called “as is where is”
in some countries
The valuation placed on property by a public tax assessor for
purposes of taxation.
The placing of a value on property for the purpose of taxation.
A public official who establishes the value of a property for
Items of value owned by an individual. Assets that can be quickly
converted into cash are considered "liquid assets." These include
bank accounts, stocks, bonds, mutual funds, and so on. Other
assets include real estate, personal property, and debts owed
to an individual by others.
In the property market, this expression is applied to the valuation
of land and buildings or plant and machinery. The term is often
used to describe an expert opinion of the worth of a property
which may be incorporated into company accounts, where the ownership
of the asset is not necessarily to be transferred but the valuation
is of interest to, for example, shareholders or is required
for company takeovers, share floatation or mortgage.
Transfer any interest or the right of ownership over property
or any other asset
One who receives the right of ownership over a property or any
When ownership of your mortgage is transferred from one company
or individual to another, it is called an assignment.
A mortgage that can be assumed by the buyer when a home is sold.
Usually, the borrower must "qualify" in order to assume the
assignment of lease
The transfer by a lessee of all his rights over a leased property.
In such a case, the assignee becomes a lessee under the original
lessee. Some leases contain clauses specifying the condition
under which leases can be assigned. Assignment of lease is different
from sub –lease and the two should not be used as synonyms.
The person who assigns an agreement to another.
Refers to charge for the building and common area maintenance.
This is also sometimes referred to as condominium dues.
The term applied when a buyer assumes the seller’s mortgage.
The fee charged by a lender for processing the paperwork required
for transferring and existing loan to another person
assumption of deed
Agreement by which a buyer agrees to take over the liabilities
for the payment of an existing mortgage or deed of trust. The
lender usually has to approve the buyer before such transaction
can go through.
A process of selling land or property by the public bidding
The necessary sign-off by council, fire department, government,
etc., confirming design compliance with laws to enable a facility
to be constructed or a transaction to be completes.
to refill ground that had been dug up for construction or development
Secondary offer made to protect one’s interests in case
the first offer fails.
A report showing the financial position or condition of a business
at a given date. Also called Statement of Financial Position
or Statement of Financial Condition
An area with a wall or bars around it that is joined to the
outside wall of building on an upper level
A mortgage loan that requires the remaining principal balance
be paid at a specific point in time. For example, a loan may
be amortized as if it would be paid over a thirty year period,
but requires that at the end of the tenth year the entire remaining
balance must be paid.
The final lump sum payment that is due at the termination of
a balloon mortgage.
By filing in federal bankruptcy court, an individual or individuals
can restructure or relieve themselves of debts and liabilities.
Bankruptcies are of various types, but the most common for an
individual seem to be a "No Asset" bankruptcy which relieves
the borrower of most types of debts. A borrower cannot usually
qualify for an "A" paper loan for a period of two years after
the bankruptcy has been discharged and requires the re-establishment
of an ability to repay debt.
property that is delivered to buyer without decoration.
The minimum rent for a commercial property without taking into
account any add-ons like percentage of sales/profit that make
up the total lease package
Commercial instrument like bonds, checks,etc.. that give the
person having it (bearer) the right to encash it.
Someone who receives property or offer assets in a will. Someone
for whose benefit a trust is set up
To give property by the way of the will
Property that is given to someone by a will
The highest rent which can reasonably be expected by a landlord
in the circumstances of a particular case.
Any improvement to a property
An offer to buy or construct or build something where more than
one party is (usually) interested.
bill of quantities
A schedule of all labor and material items required to construct
a facility that is priced on an itemized basis.
bill of sale
A written document that transfers title to personal property.
For example, when selling an automobile to acquire funds which
will be used as a source of down payment or for closing costs,
the lender will usually require the bill of sale (in addition
to other items) to help document this source of funds.
The rights and duties agreed upon and described in an agreement
executed between two parties that are binding upon the parties
to an agreement (eg. Landlord and tenant or vendor and purchaser)
A mortgage in which you make payments every two weeks instead
of once a month. The basic result is that instead of making
twelve monthly payments during the year, you make thirteen.
The extra payment reduces the principal, substantially reducing
the time it takes to pay off a thirty year mortgage. Note:
there are independent companies that encourage you to set up
bi-weekly payment schedules with them on your thirty year mortgage.
They charge a set-up fee and a transfer fee for every payment.
Your funds are deposited into a trust account from which your
monthly payment is then made, and the excess funds then remain
in the trust account until enough has accrued to make the additional
payment which will then be paid to reduce your principle. You
could save money by doing the same thing yourself, plus you
have to have faith that once you transfer money to them that
they will actually transfer your funds to your lender.
A legally binding document executed by the board member of the
corporate which authorizes certain acts or decisions to be carried
out by the company. A board resolution can form part
Legal term meaning actions, or individuals that are honest and
in good faith.
Usually refers to the daily buying and selling of thirty year
treasury bonds. Lenders follow this market intensely because
as the yields of bonds go up and down, fixed rate mortgages
do approximately the same thing. The same factors that affect
the Treasury Bond market also affect mortgage rates at the same
time. That is why rates change daily, and in a volatile market
can and do change during the day as well.
The value wich is ascribed to a property shown I nthe accounts
as a capital asset but is not necessarily current market value,
since it may be basedon actual cost
The line or structure separating two contiguous properties states
breach of contract
An act or omission, contrary to one or more provisions in a
contract and therefore giving the aggrieved party a right to
enforce specific performance, to rescind the contract and/or
to claim damages, the remedy available depending upon the nature
of the breach.
breach of covenant
Failure to adhere to the terms of promise
breach of warranty
Failure to comply with a constructual undertaking e.g., the
failure of a vendor to pass title or give vacant possession
when such has been warranted. Such a breach normally entitles
the innocent party to damages, although the breach of a warranty
in an insurance contract by the insured normally entitles the
insurer to treat the contract discharge.
A clause in the lease which gives the landlord and/or the tenant
a right, in specified circumstance, to terminate the lease before
its normal expiry date. It usually defines the length of the
notice to be given and may be subjected to contractual or statutory
The value of a specific property, e.g. an estate of land and
building, based on the assumption that it is lotted and sold
in parts, in such a manner as to achieve the best possible price.
A loan which is generally given to allow the borrower to tide
over some immediate requirement while he awaits a more permanent
or long-term solution to his financial needs.
Not used much anymore, bridge loans are obtained by those who
have not yet sold their previous property, but must close on
a purchase property. The bridge loan becomes the source of their
funds for the down payment. One reason for their fall from favour
is that there are more and more second mortgage lenders now
that will lend at a high loan to value. In addition, sellers
often prefer to accept offers from buyers who have already sold
Broker has several meanings in different situations. Most Realtors
are "agents" who work under a "broker." Some agents are brokers
as well, either working form themselves or under another broker.
In the mortgage industry, broker usually refers to a company
or individual that does not lend the money for the loans themselves,
but broker loans to larger lenders or investors. (See the Home
Loan Library that discusses the different types of lenders).
As a normal definition, a broker is anyone who acts as an agent,
bringing two parties together for any type of transaction and
earns a fee for doing so.
- Commission paid to the broker
- The activity of a broker in
bringing together two parties in transaction
The amount paid consideration to a broker
buffer strip (buffer
Portion or strip of land between two areas
build to suit
A property custom built to suit the specifications of the long-term
One who build buildings
A bond issued by a builder to ensure the completion of a building
(see bank guarantee)
A mandmade structure where people live, meet or carry out business.
Example: house, office, mall, temple, etc.
An application to the local authority relating to the detailed
designed and construction of a proposed building.
A list of laws, conventions and practices that govern the construction
and maintenance of real estate assets.
The date provided by the landlord by which date the building
is made operational in all aspects including all onsite and
offsite works ( described in detail in the agreement), obtaining
the necessary approvals including Occupation Certificate, for
the demised promises to be occupied
A contract between an owner or occupier of the land and a building
contractor, setting forth the terms under which construction
is to be undertaken. A contract will normally include details
of work to be carried out, basis of remuneration, time-scale,
penalties, if any,for failure to comply with terms of the contract.
A builder who enters into a contract under which he becomes
obligated to carry out building or engineering works of a nature,
extent and specification described in the contract and usually
within a prescribed period.
The estimated construction costs of a replacement building.
It is to be covered by insurance policy against losses due to
structural damage caused by fire only and does not include any
consequential loss and liabilities to third parties
The line on a street or area beyond which no construction can
take place. Its purpose is to ensure that buildings are not
built too closed to each other or to the street.
A permit granted by the construction or building authority to
construct a building
Restraints placed on the absolute right of a property owner
from building whatever he wants.
Utilinarian items like cupboards, bathtubs,stoves.ovens, etc.,
that are built into the building so as to make them immovable
Something that provides support to a wall
In the property market, a condition of supply and demand in
which those seeking to purchase are in a relatively strong negotiating
position because of a degree of oversupply
Usually refers to a fixed rate mortgage where the interest rate
is "bought down" for a temporary period, usually one to three
years. After that time and for the remainder of the term, the
borrower’s payment is calculated at the note rate. In order
to buy down the initial rate for the temporary payment, a lump
sum is paid and held in an account used to supplement the borrower’s
monthly payment. These funds usually come from the seller (or
some other source) as a financial incentive to induce someone
to buy their property. A "lender funded buydown" is when the
lender pays the initial lump sum. They can accomplish this because
the note rate on the loan (after the buydown adjustments) will
be higher than the current market rate. One reason for doing
this is because the borrower may get to "qualify" at the start
rate and can qualify for a higher loan amount. Another reason
is that a borrower may expect his earnings to go up substantially
in the near future, but wants a lower payment right now.
Internal rules that govern the activities of a company association
Similar to the acceleration clause.
Clause in an agreement that sets out the conditions under which,
and the terms on which, the contract can be cancelled or terminated
Adjustable Rate Mortgages have fluctuating interest rates, but
those fluctuations are usually limited to a certain amount.
Those limitations may apply to how much the loan may adjust
over a six month period, an annual period, and over the life
of the loan, and are referred to as "caps." Some ARMs, although
they may have a life cap, allow the interest rate to fluctuate
freely, but require a certain minimum payment which can change
once a year. There is a limit on how much that payment can change
each year, and that limit is also referred to as a cap.
The estimate of a property’s value on the basis of its earning
A payment made by a property owner to a prospective tenant to
secure a letting in times of oversupply on terms which would
otherwise be unacceptable. In essence it can be regarded as
the opposite of a premium and, as such, is a form of reverse
or negative premium
cashier’s check (cheque)
A check where a bank draws a check upon itself instead of its
depositor’s account. The depositor, who instructs the bank to
do so and provides the money for it, does not have the right
to stop payment. Buyers often insist on this mode of payment
while closing sales. Also called a Banker’sDraft, Bank Check
or Demand Draft in some countries
When a borrower refinances his mortgage at a higher amount than
the current loan balance with the intention of pulling out money
for personal use, it is referred to as a "cash out refinance”.
Raised road usually across low lying lands
Latin for buyers beware. Legal term meaning the quality risk
in transaction vests with the buyer, unless specifically stated
otherwise or unless fraud or deception can be proved. Most countries,
however, now have strict laws protecting buyers from shoddy
workmanship, finish and quality
certificate of occupancy
Certificate issued by a local authority stating that a building
is fit for occupation.
certificate of deposit
A time deposit held in a bank which pays a certain amount of
interest to the depositor.
certificate of deposit
One of the indexes used for determining interest rate changes
on some adjustable rate mortgages. It is an average of what
banks are paying on certificates of deposit.
certificate of occupancy
Certificate issued by a local authority stating that a building
is fit for occupation
certificate of practical
Under a building contract a certificate issued by the architect,
surveyor or supervising officer stating that the works have
been substantially completed and the building is ready for occupation.
This certificate will : a) release an agreed percentage of any
retention money; b) begin the defects liability period; and
c) transfer responsibility for insurance from the contractor
to the employer
certificate of purchase
Certificate issued to a buyer, usually following a court-ordered
sale, stating that he has purchased a certain property. The
buyer will be entitled to transfer the title to the property
to his own name if the original owner does not redeem the property
within a specified date.
certificate of use
The document from the competent official certifying that land
has already been put to use.
a personal check which a bank guarantees to pay. The bank usually
ensures that the issuer has enough funds in his account to honour
the check and does not clear other checks if they deplete the
funds in the issuer’s account to the point where there’s not
enough money to cover the amount of the certified check. Banks
also do not honor stop payments on certified checks.
A document that is certified by a competent authority to be
a true copy of its original
chain of title
An analysis of the transfers of title to a piece of property
over the years.
A passageway for the passage of wiring, sewage, water or gas.
A channel may be open or covered, on the ground or underground.
Also means a long, open-ended depression through which water
chanote (also called
Is a certificate of ownership of real property in which the
person, whose name appears as the owner, has a real property
right to transfer, sell, dispose of and mortgage the Land upon
registration with the relevant local land department, including
Acts as an encumbrance on title and involves no transfer of
title to, or of possession of the property as a security for
the loan. The property is designated as that which can
be taken in execution of the debt on default.
Legal action for remedy against some wrong that is not criminal
All laws other than dealing with crimes
Demand for some action or right
Legal action brought by a group of people who have similar claims
against a common party
A title that is free of liens or legal questions as to ownership
of the property.
This has different meanings in different states. In some states
a real estate transaction is not consider "closed" until the
documents record at the local recorders office. In others, the
"closing" is a meeting where all of the documents are signed
and money changes hands.
Closing costs are separated into what are called "non-recurring
closing costs" and "pre-paid items." Non-recurring closing costs
are any items which are paid just once as a result of buying
the property or obtaining a loan. "Pre-paids" are items which
recur over time, such as property taxes and homeowners insurance.
A lender makes an attempt to estimate the amount of non-recurring
closing costs and prepaid items on the Good Faith Estimate which
they must issue to the borrower within three days of receiving
a home loan application.
See Settlement Statement.
cloud on title
Any conditions revealed by a title search that adversely affect
the title to real estate. Usually clouds on title cannot be
removed except by deed, release, or court action.
An additional individual who is both obligated on the loan and
is on title to the property.
In a home loan, the property is the collateral. The borrower
risks losing the property if the loan is not repaid according
to the terms of the mortgage or deed of trust.
When a borrower falls behind, the lender contacts them in an
effort to bring the loan current. The loan goes to "collection."
As part of the collection effort, the lender must mail and record
certain documents in case they are eventually required to foreclose
on the property.
Property that is used for business purpose only
The mixing of different kinds of funds. For example, if a company
mixes funds it has collected as fixed deposits (which should
be accounted for separately) with money collected as advance
from buyers, it is known as commingling
Most salespeople earn commissions for the work that they do
and there are many sales professionals involved in each transaction,
including Realtors, loan officers, title representatives, attorneys,
escrow representative, and representatives for pest companies,
home warranty companies, home inspection companies, insurance
agents, and more. The commissions are paid out of the charges
paid by the seller or buyer in the purchase transaction. Realtors
generally earn the largest commissions, followed by lenders,
then the others.
common area assessments
In some areas they are called Homeowners Association Fees. They
are charges paid to the Homeowners Association by the owners
of the individual units in a condominium or planned unit development
(PUD) and are generally used to maintain the property and common
Those portions of a building, land, and amenities owned (or
managed) by a planned unit development (PUD) or condominium
project's homeowners' association (or a cooperative project's
cooperative corporation) that are used by all of the unit owners,
who share in the common expenses of their operation and maintenance.
Common areas include swimming pools, tennis courts, and other
recreational facilities, as well as common corridors of buildings,
parking areas, means of ingress and egress, etc.
wall separating two properties owned by different people.
In some states, especially the southwest, property acquired
by a married couple during their marriage is considered to be
owned jointly, except under special circumstances. This is an
outgrowth of the Spanish and Mexican heritage of the area.
When more than one person sign a mortgage, they are said to
be co mortgagors. Also means the person who guarantees the repayment
of the amounts due, who signs the mortgage deed along with the
person receiving the money.
Recent sales of similar properties in nearby areas and used
to help determine the market value of a property. Also referred
to as "comps."
Payment made for damages. Money paid by the government following
the acquisition of land.
The competent officials acting under this Code and other officials
appointed by the Minister to act under this Code.
The final step in the legal process of transferring ownership
of property, e.g., when the documents in connection with a sale
of land are signed, sealed and delivered.
Certificate from a local authority stating that a building under
construction is ready and complete
The acquisition, in accordance with statutory procedures and
practice, of interests in land by a public or private body empowered
so to do by an Act and authorized to do so by the appropriate
minister’s or government entity’s confirming a compulsory purchase
order. Such a purchase entitles the purchaser to deprive the,
usually unwilling, owner of his property on payment of such
compensation as it is provided for statue.
Permission granted by the owner of land or property to another
party to use the said land or building for some business, in
return for some monetary consideration
conditional sales contract
Sale of real estate where the title remains with the seller
until the buyer fulfills certain conditions
conditional sale of
Land sale where the consideration amount is paid in installments.
The title vests with the seller until the full amount is paid.
The buyer has only equitable title until he pays the agreed
amount in full.
Condominium is defined by the Condominium Act B.E. 2522
(1979) (Thai law) as a building that can be have its separate
portions sold to individuals or groups for personal property
A type of ownership in real property where all of the owners
own the property, common areas and buildings together, with
the exception of the interior of the unit to which they have
title. Often mistakenly referred to as a type of construction
or development, it actually refers to the type of ownership.
Changing the ownership of an existing building (usually a rental
project) to the condominium form of ownership.
A condominium project that has rental or registration desks,
short-term occupancy, food and telephone services, and daily
cleaning services and that is operated as a commercial hotel
even though the units are individually owned. These are often
found in resort areas like Hawaii.
A body formed by the owners of individual dwelling units in
a condominium that looks after and maintains the common services
essential for the use of the condominium. It also represents
the common interests of individual dwelling unit owners with
Strictly the payment, promise, object, or forbearance given
by one party to a contract in return for a promise or pledge
given by the other party. In property law, the term is applied
particularly to the price offered by the purchaser in a contract
to acquire an interest in land
The merger of two or more properties into one
The total cost of building a structure or house
A short-term, interim loan for financing the cost of construction.
The lender makes payments to the builder at periodic intervals
as the work progresses.
Where a contractor is engaged to manage the construction of
a project for an agreed fee and the trade contractors are engaged
either directly by the client or an open book analysis
The length of time elapsing from the date a building or other
similar project is started, or deems to start, until the works
involved are finished. The finishing date is frequently known
as the date of practical completion, being the date when the
architect certifies that all the relevant works have been carried
out in satisfactory manner.
A company or individual who provides specialist advice and or
services (typically architect, engineer, project manager).
A condition that must be met before a contract is legally binding.
For example, home purchasers often include a contingency that
specifies that the contract is not binding until the purchaser
obtains a satisfactory home inspection report from a qualified
Fees that are paid only if some event takes place in the future.
An oral or written agreement to do or not to do a certain thing.
contract for sale
- Of land: An agreement whereby
the seller (vendor) agrees to transfer an interest in
land to put purchaser for a consideration. The agreement
is affected by the exchange of copies of the agreement
document between the parties. Rights to possession are
not conferred upon the purchaser until the purchaser
is completed, but the purchaser has an insurance has
an insurable interest in the property from exchange
of contracts. A non-returnable deposit is usually paid
by the purchaiser on exchange
- Of goods: The transfer of
ownership of chattels from a seller to a buyer for a
money price where ownership is transferred immediately
The amount of rent stipulated in the lease contract
A collective name for any clause in a lease allowing a tenant
to reduce in size either temporarily or permanently (eg., sub-lease,
One who undertakes to build a building or other structure in
return for a fee.
Overhead expenses like cost of office, interest cost, etc.,
that a contractor has to incur
interest Refers to home loans other than government loans (VA
An adjustable-rate mortgage that allows the borrower to change
the ARM to a fixed-rate mortgage within a specific time.
To transfer title
The act of transferring title
Tax levied by the (usually local or state) government on the
value of a property sale.
The legal procedures employed in the creation, transfer and
extinguishment of ownership of interests in land, including
preparation of contracts, enquiries, searches, land registration
( where appropiate0 and completion of the transaction
A type of multiple ownership in which the residents of a multiunit
housing complex own shares in the cooperative corporation that
owns the property, giving each resident the right to occupy
a specific apartment or unit.
A long passage in a building usually with rooms on either side
Someone, usually the guarantor, who signs a mortgage deed along
with the person taking loan. The liability for the loan falls
upon the co-signatory in case the loanee defaults.
cost of living index
An idex that tracks the living expenses of an average person
cost of funds index
One of the indexes that is used to determine interest rate changes
for certain adjustable-rate mortgages. It represents the weighted-average
cost of savings, borrowings, and advances of the financial institutions
such as banks and savings & loans.
Tenancy taken on by two or more parties.
A rival offer made in reponse to an initial offer
Any agreement whether written or implied between two parties
covenant of quiet enjoyment
Clause in a lease which guarantees peaceful possession to a
covenant running with
Easement that pass with the title to the land.
An agreement in which a borrower receives something of value
in exchange for a promise to repay the lender at a later date.
A record of an individual's repayment of debt. Credit histories
are reviewed my mortgage lenders as one of the underwriting
criteria in determining credit risk.
A person or entity to whom money or it’s equivalent is owed.
A report of an individual's credit history prepared by a credit
bureau and used by a lender in determining a loan applicant's
An organization that gathers, records, updates, and stores financial
and public records information about the payment records of
individuals who are being considered for credit.
Mutual easements annexed to two adjoining tenements, e.g., mutual
rights of support between two contiguous buildings in different
Drainage ditch which passes under a ramp or road
Exterior wall which lends no structural support to a building,
but acts merely to enclose
- The date on which an agreement
or clause in an agreement cease to have effect.
- The last day of period for
calculating a certain payment or cost relating an agreement
Money that courts order parties to pay as compensation for some
loss they have caused to others. Also means a decline in the
quality of material due to breakage, leakage, etc.
Reference point against which positions are plotted or measured
Line used to measure height
An amount owed to another.
A person or entity who owes money or its equivalent to a creditor;
someone who is in the obligation to paying a debt
The movement of people or transfer of power from a central position
or authority to the suburbs or to subsidiary authorities
The act of adding to the beauty of a structure by making superficial
An order of court
The gift of private property for public use. Also means structure
or equipment that is used for a single purpose only
The legal document conveying title to a property.
Short for "deed in lieu of foreclosure," this conveys title
to the lender when the borrower is in default and wants to avoid
foreclosure. The lender may or may not cease foreclosure activities
if a borrower asks to provide a deed-in-lieu. Regardless of
whether the lender accepts the deed-in-lieu, the avoidance and
non-repayment of debt will most likely show on a credit history.
What a deed-in-lieu may prevent is having the documents preparatory
to a foreclosure being recorded and become a matter of public
deed of trust
Some states, like California, do not record mortgages. Instead,
they record a deed of trust which is essentially the same thing.
Failure to make the mortgage payment within a specified period
of time. For first mortgages or first trust deeds, if a payment
has still not been made within 30 days of the due date, the
loan is considered to be in default.
Title that is flawed
defects liability period
A specified term 9normally 12 months) following practical completion
of facility when the contractor remains responsible to rectify
any defective work
repairs that are required to restore a property t good condition
an occurrence that impacts on the time to complete an activity
Failure to make mortgage payments when mortgage payments are
due. For most mortgages, payments are due on the first day of
the month. Even though they may not charge a "late fee" for
a number of days, the payment is still considered to be late
and the loan delinquent. When a loan payment is more than 30
days late, most lenders report the late payment to one or more
The act of handing over physical possession of a property to
- A communication from a lender
seeking payment of money owed to them. Various meanings
in real estate, including level of leasing activity.
- Level of interest in investment
Old expression for a life-long lease
In town planning, a term applied to the number of units permitted
per acre (or hectare), usually in relation to residential accommodation
Reduction in the value of a property
A sum of money given in advance of a larger amount being expected
in the future. Often called in real estate as an "earnest money
A decline in the value of property; the opposite of appreciation.
Depreciation is also an accounting term which shows the declining
monetary value of an asset and is used as an expense to reduce
taxable income. Since this is not a true expense where money
is actually paid, lenders will add back depreciation expense
for self-employed borrowers and count it as income.
An entrepreneur who has an interest in a property, initiates
its development and ensures that this is carried out (for occupation,
investment or dealing) and from the outset accepts the ultimate
responsibility for providing or procuring the funds needed to
finance the whole project.
the Director-General of the Land Department. Section 7 of Thailand’s
Land code provided that The Director-General shall have the
duty to inspect, allocate, and take a census of the land to
learn its natural abundance, and suitability for use in the
interests of the state and of the people
making information available, especially to the public, as in
case of a quoted company producing and distributing a detailed
and comprehensive report usually each year, which presents a
true and fair picture of its financial position (capital and
revenue) and of the activities undertaken during the period
under the review. Public opinion has, over the year, called
for less secrecy, more accountability and more openness in the
type, breadth and depth of information which is disclosed. The
underlying reason is to minimize the risk of dishonest or otherwise
improper conduct of business affairs. The more open a company
or country is, the more transparent it is said to be.
In the mortgage industry, this term is usually used in only
in reference to government loans, meaning FHA and VA loans.
Discount points refer to any "points" paid in addition to the
one percent loan origination fee. A "point" is one percent of
the loan amount.
an administrative area smaller than a state
Narrow, shallow channel
Absolute returns expressed as a percentage of total investment.
Legal term indicating the place or country in which one is permanently
Land which does not have access to a public road which is given
a right of way through an adjourning land.
The part of the purchase price of a property that the buyer
pays in cash and does not finance with a mortgage.
The main business hub of a city
Private road leading from a road or public place up to a house
An agent who represents and is paid commissions or consideration
by both buyer and seller.
The date on which the rent is due and payable to the landlord
A provision in a mortgage that allows the lender to demand repayment
in full if the borrower sells the property that serves as security
for the mortgage.
dwelling unit (dwelling
House or apartment where one resides
A sum deposited, before an agreement is binding in law, by one
of the parties with the other as an indication of his good faith
and his intention to honor the terms of the agreement, e.g.,
a pre-contract deposit
earnest money deposit
A deposit made by the potential home buyer to show that he or
she is serious about buying the house.
A right of way giving persons other than the owner access to
or over a property.
A relatively cheap apartment catering to families or individuals
with lower incomes, in which the price is dominated or guided
by the government
The estimation of the age of a building based on its condition,
and not chronological age. Obviously, better maintained buildings
will have a lower effective age than others
Rental paid by a tenant after taking into account incentives
offered in the leasing of space
An appraiser’s estimate of the physical condition of a building.
The actual age of a building may be shorter or longer than its
The action of leaving or exiting a property. Also means the
right to use another person’s land or property.
The view of the frontal façade of the building, or the height
ofa place above the sea.
The right of a government to take private property for public
use upon payment of its fair market value. Eminent domain is
the basis for condemnation proceedings.
An improvement that intrudes illegally on another’s property.
Anything that affects or limits the fee simple title to a property,
such as mortgages, leases, easements, or restrictions.
An agreement that includes the attached exhibits/ annexures
and constitutes the entire agreement between the landlord and
the tenant with respect to demised premises
A separate identity, as of a company or body corporate
The area surrounding a property
A homeowner's financial interest in a property. Equity is the
difference between the fair market value of the property and
the amount still owed on its mortgage and other liens.
An item of value, money, or documents deposited with a third
party to be delivered upon the fulfillment of a condition. For
example, the earnest money deposit is put into escrow until
delivered to the seller when the transaction is closed.
Once you close your purchase transaction, you may have an
escrow account or impound account with your lender. This means
the amount you pay each month includes an amount above what
would be required if you were only paying your principal and
interest. The extra money is held in your impound account (escrow
account) for the payment of items like property taxes and homeowner’s
insurance when they come due. The lender pays them with your
money instead of you paying them yourself.
Once each year your lender will perform an "escrow analysis"
to make sure they are collecting the correct amount of money
for the anticipated expenditures.
The use of escrow funds to pay real estate taxes, hazard insurance,
mortgage insurance, and other property expenses as they become
The ownership interest of an individual in real property. The
sum total of all the real property and personal property owned
by an individual at time of death.
One who acts for, and usually advises, a principal in respect
of transactions involving real estate, e.g. sales purchases,
The lawful expulsion of an occupant from real property.
examination of title
The report on the title of a property from the public records
or an abstract of the title.
Rents which are greater than the fair rental value of property
exclusive agency agreement
An agreement that prohibits a principal from appointing more
than one agent. An agreement that gives an agent exclusive rights
to deal on behalf of a principal.
A written contract that gives a licensed real estate agent the
exclusive right to sell a property for a specified time.
A person named in a will to administer an estate. The court
will appoint an administrator if no executor is named. "Executrix"
is the feminine form.
The continuation of an agreement under existing terms and conditions.
An acronym for free of charge. Includes any goods or services
The front face of a building
The quotes rent without taking out the effect of rent –free
periods, rebates or incentives, if any.
The management of owned and occupied corporate real estate and
the services provided for the occupants
They building or area constructed specifically to accommodate
the occupiers’ needs
fair market value
The highest price that a buyer, willing but not compelled to
buy, would pay, and the lowest a seller, willing but not compelled
to sell, would accept.
The market rent of a property
Plot ratio or the building to land ratio
The greatest possible interest a person can have in real estate.
fee simple estate
An unconditional, unlimited estate of inheritance that represents
the greatest estate and most extensive interest in land that
can be enjoyed. It is of perpetual duration. When the real estate
is in a condominium project, the unit owner is the exclusive
owner only of the air space within his or her portion of the
building (the unit) and is an owner in common with respect to
the land and other common portions of the property.
The date following the defects liability period when a project
is deemed complete and all final payments have been paid
The rate of interest and other service charges needed to obtain
A fee paid to an unlicensed broker for an introduction.
A lender’s agreement to make a loan to a specific borrower on
a specific property.
The mortgage that is in first place among any loans recorded
against a property. Usually refers to the date in which loans
are recorded, but there are exceptions.
first refusal right
A right given by one party to another whereby the first party
is obliged to give the second party a chance to acquire an asset
before he offers it to anyone
The physical components included in a facility constructed to
enable the occupier to utilize the space
Expenses incurred in fitting out premises prior to occupancy
Period wherein lessee may perform fit-out works
Items which are affixed to land or buildings and which are easily
fixed price contract
A building contract in which the total price is fixed at the
outset usually subject only to changes due to subsequent variations
in statutory undertakers’ charges.
A mortgage in which the interest rate does not change during
the entire term of the loan.
A rent that cannot be changed during the entire period of a
lease or , at the date when the lease is being valued, will
be unaltered for such a length of time that no change in capital
value would be attributed to the prospect of a different rent
during the remainder of the lease
Personal property that becomes real property when attached in
a permanent manner to real estate.
A separate set of premises, normally all on the same floor,
formingpart of the building,divided horizontally from some other
part of the building, constructed or adapted for the purposes
of a private dwelling and occupied wholly or mainly as a private
An act of god (natural calamities), or an act of a man (war,
riots) beyond the control of the parties to a control of the
parties to a contract which make it impossible for one of the
parties to fulfil the terms of that contract. Many contracts
have a force majeure clauses.
free standing building
A standalone building which is not attached to any other building
Insurance that compensates for physical property damage resulting
from flooding. It is required for properties located in federally
designated flood areas.
An architectural sketch of various rooms, balconies, bathrooms,
An easement by convention that allows water from lands at higher
levels to flow into and through lands located at lower levels
even though there may be no agreements to such effect
The legal process by which a borrower in default under a mortgage
is deprived of his or her interest in the mortgaged property.
This usually involves a forced sale of the property at public
auction with the proceeds of the sale being applied to the mortgage
The loss of a right, privilege, property, or money because of a crime, breach
of obligation, or neglect of duty.
Means an individual who is neither a citizen nor a resident,
but is not an illegal foreigner
An act that is done with the intent of acquiring property or
money by deceipt
free and clear
Property that is not encumbered
A term used in real estate, meaning land held in fee simple,
as opposed to leasehold
Any interest in real property
which is a life estate or of uncertain or undetermined duration
(having no stated end), as distinguished from a leasehold which
may have declining value toward the end of a long-term lease
(such as the 99-year variety).
freehold Title Deed
This type of title grants the holder of this document the full
right over the land. The holder has absolute authority over
A hundred per cent occupancy in a commercial or residential
property or hotel
furniture and fixtures
Accounting term covering furniture and other items that are
used in an office or home but not part of the property.
- The use of borrowed money
to generate a higher yield through investment in real
- The relationship between
a company’s loan capital and its equity capital. This
is usually expressed as the ratio of loan capital to
net asset value
Contractor who assumes responsibility for completing a construction
project, under contract to the owner, and hires, supervises
and pays all subcontractors.
going concern value
The total value of a business as carried on, with all its assets
and liabilities, good will and potentialities. If the premises
used are owned by the business, they form part of the going
concern value on the basis of their value to the business.
Transaction done with good intention, honesty, fairness without
deceit and with honorable intention
A period of time after a payment such as loan or insurance premium,
becomes due, before one is subject to penalties, late charges,
forfeiture or cancellation.
A clause in the legislation that allows the continuation of
a business, practice, activity, etc., that was permitted by
legislation but currently considered not permissible by a change
in the legislation
A term that refers to a transfer of property by deed or the
property so transferred
A deed, conveying property owned by an individual or a company,
to another individual or a company. Contains clauses that secure
it against any prior conveyances or encumbrances.
The person to whom an interest in real property is conveyed.
The person conveying an interest in real property.
A lease in which the lessor pays all the costs of operation.
A gross lease is a lease at a fixed amount allowing the lessee
to know exactly how much rent will be due and payable each period
during the term of the lease. The lessor pays all taxes,insurance,
and maintenance on the property.
the rent paid by the lessee for the use of land
A person who makes or gives guarantee.
The rent paid by a lessee for the use of the land.
An agreement by which one person assumes responsibility for
paying another’s debts or fulfilling another’s responsibilities
The metal accessories used in construction such as doorknowbs,
hinges; locks, etc
Insurance coverage that in the event of physical damage to a
property from fire, wind, vandalism, or other hazards.
An apartment that is more luxurious than standard apartment,
but does not have all the amenities and facilities to be a “luxurious
An apartment building having a comparatively large number of
stories, considered “high” in the area where it is built and
equipped with elevators.
The length of time an asset was held, that is, the time between
the trade date of the purchase and the trade date of the sale
home equity line of
A mortgage loan, usually in second position, that allows the
borrower to obtain cash drawn against the equity of his home,
up to a predetermined amount.
A thorough inspection by a professional that evaluates the structural
and mechanical condition of a property. A satisfactory home
inspection is often included as a contingency by the purchaser.
A non-profit association that manages the common areas of a
planned unit development (PUD) or condominium project. In a
condominium project, it has no ownership interest in the common
elements. In a PUD project, it holds title to the common elements.
An insurance policy that combines personal liability insurance
and hazard insurance coverage for a dwelling and its contents.
A type of insurance often purchased by homebuyers that will
cover repairs to certain items, such as heating or air conditioning,
should they break down within the coverage period. The buyer
often requests the seller to pay for this coverage as a condition
of the sale, but either party can pay.
A commercial establishment offering lodging to travellers and
sometimes to permanent residents, and often having restaurants,
meeting rooms, stores, etc., that are available to the general
A building in which people live or a residential structure
An agreement created by actions of the parties involved
See real property
An agreement created by actions of the parties involved but
not written or spoken
Land that has been developed for use and has had installation
of such utilities as water, sewer, roads, and building structures.
These improvements make the raw land increase its usability,
thereby increasing the market value
An assessment term that comprises of total value of land along
with improvements, instead of the separate values of each
Generally, physical changes which enhance the capital value
of land or buildings. These may include additional buildings,
installation of new services, e.g., central heating and air
conditioning and infra structure works, On the other hand, mere
replacement by a modern equivalent of something worn out would
normally be regarded as a repair rather than improvement.
Of endless duration; forever.
An inducement offered by a landlord to a potential tenant. Can
take several forms including contribution to fit-out costs or
rent free periods.
Claim or lien or interest in a property that complicates the
title process, interfering with its use or transfer Restrictive
Written agreement between two or more persons having different
Value estimated provided by someone who has no participation
in ownership of the property in question.
One who is hired to do a particular job and is subject to the
direction of the person in charge. Independent contractors pay
for their own expenses and taxes and are not viewed as employees
An area zoned with planned for the purpose of industrial development.
Usually locate outside the main residential Industrial property.
Property that is zoned and used for industrial use such as factories,
manufacturing, research and development, warehouse space and
Increasing price levels. A loss in the purchasing power of money
Apparatus, buildings and structures providing essential services
to any real estate development. Includes roads, water, gas,
telephone, electricity, broadband, etc.
ingress and progress
Access from a land parcel to a public road or other means of
exit. Right to enter and exit through land owned by another
A court order issued to a defendant in an action either prohibiting
or commanding the performance of a defined act. Violation of
an injunction could lead to a contempt of court citation
Property such as schools, colleges, hospitals, universities,
Policies that guarantee compensation for losses from a specific
cause. Various forms of insurance cover against fire, flood,
earthquake, liability, etc.
Nonphysical assets with continuing value, such as goodwill,
copyrights, trademarks and franchise
Nonphysical valuables, such as contracts or mortgages, employee
loyalty or customer good will, which are distinguished from
physical property such as building and land
Payment by borrowers of funds to compensate llenders for the
use of their funds
The percentage of principal amount of a loan that is charged
for use of that loan. This amount determines are monthly payment
Office development which meets a list of Grade A criteria and
is wholly owned, managed to international standards and has
a superior set of tenant amenities.
interruption of services
This refers to a breakdown or interruption of building services
that is to be provided by landlord or tenant in a building-
e,g, provision of electrical power and air-conditioning in an
office building. In a situation whereby the interruption of
services losses, the tenant may seek compensation or rental
rebate to defray or make good his losses
The value of the thing itself, rather than any special features
that make its market value different.
Expenditure to buy property or other capital assets that generate
income. Alternatively, securities or real estate companies or
Real estate, such as rental properties which generate income.
The annual percentage return which is considered to be apporpiate
for a specific valuation or an investment, being expressed as
the ratio of annual net income (actual or estimated) to the
A construction built of inferior and cheap materials. Poor quality
Used to indicate a common property ownership interest in real
estate. Indicates a shared liability in terms of contractual
Two or more agents jointly instructed by a principal to act
on his behalf. In the case of estate agents this is normally
on the basis that if any one of the agents affects the sale,
letting or other disposition of the property, being the subject
of the principal’s instructions, the other joint agent(s) will
share the remuneration in agreed proportion
Ownership of real estate between two or more parties who have
been named in one conveyance as joint tenants. Upon the death
of a joint tenant, the decedent’s interest passes to the surviving
joint tenant or tenants by the right of survivorship
An agreement between two or more parties to invest in a specific
single business property
A form of ownership or taking title to property which means
each party owns the whole property and that ownership is not
separate. In the event of the death of one party, the survivor
owns the property in its entirety.
A decision made by a court of law. In judgments that require
the repayment of a debt, the court may place a lien against
the debtor's real property as collateral for the judgment's
A type of foreclosure proceeding used in some states that is
handled as a civil lawsuit and conducted entirely under the
auspices of a court. Other states use non-judicial foreclosure.
Includes a firm, corporation, union, association, or other
organization capable of suing and being sued in a court
Ground Lease Premium
Real estate investment trust
the land surface everywhere and includes mountains, hills, streams,
ponds, canals, swamps, marshes, waterways, lakes, islands and
A person or body corporate that owns the land.
land particulars certificate
The paper showing the inquiry for the purpose of issuing
a title deed and shall also include the plot identification
Creation of habitate land by filling up low-lying lands, wetlands,
lakes or portions of the seashore.
The records maintained under the provisions of, or for the purpose
of, the relevant land venue code and includes a copy of maps
and plans or a final town planning scheme, improvement scheme
or a scheme of consolidating of holdings that has come into
force in any area under any law in force
land use planning
The drawing up for a long-term plans for the use of land in
a particular area of region
A flat platform at the top, bottom or in the middle of a flight
A plot of land entirely surrounded by other privately owned
The owner of a property that has been leased
Any work of a capital nature, i.e., other than maintenance or
repair, undertaken by landlord, or by the tenant at the landlord’s
expense, which increases the value of the landlord’s interest
in a property.
The setting of the land surrounding a building or structure.
Nowadays, this is often done artificially to increase the value
of the property.
Design, plan or arrangement of any given space, such as the
rooms or apartment, etc.
The penalty a borrower must pay when a payment is made a stated
number of days. On a first trust deed or mortgage, this is usually
A written agreement between the property owner and a tenant
that stipulates the payment and conditions under which the tenant
may possess the real estate for a specified period of time.
An agreement recording a lease between lessor and lessee
lease with option to
A lease agreement which gives the lessee the option of purchasing
the property within or on or after a specified date. The price
and conditions under which such purchase will take place are
usually mentioned in the agreement.
The real estate which is the subject of a lease (a written rental
agreement for an extended period of time). The term is commonly
used to describe improvements on real property when the improvements
are built on land owned by one party which is leased for a long
term (such as 99 years) to the owner of the building.
Additions, alterations and improvements made to a leasehold
property by the lessee
A way of holding title to a property wherein the mortgagor does
not actually own the property but rather has a recorded long-term
lease on it.
Total value of a leasehold right.
An alternative financing option that allows home buyers to lease
a home with an option to buy. Each month's rent payment may
consist of not only the rent, but an additional amount which
can be applied toward the down payment on an already specified
A property description, recognized by law, that is sufficient
to locate and identify the property without oral testimony.
A term which can refer to the institution making the loan or
to the individual representing the firm. For example, loan officers
are often referred to as "lenders."
A person or corporation or trust with a legal title over a property.
Title recognised by law as the root of most other subordinate
forms of title, e.g., lease or mortgage. However, legal title
can be encumbered by a lease or mortgage, such that transfer
of the title will not affet the rights of those with other forms
of interest over property
An individual or corporate body which loans money that has to
lessee (also called
The person renting the property under a written lease from the
To enhance the demised premises for the tenants business operations,
the tenant is entitled to carry out interior works with prior
intimation to the landlord and subject to necessary approvals
from the local authorities.
The lessee will indemnify the lessor/landlord against all and
any loss or damage which the lessor/landlord may sustain by
reason of claims brought against the lessor alleging bodily
harm, injury and death to any person
lessor (also considered
The owner of real property who rents it to a lessee pursuant
to a written lease.
The lesse will indemnify the lessor/ landlord against all and
any loss or damage which the lessor/landlord may sustain by
the reason of claims brought against the lessor alleging bodily
harm, injury and death to any person or damage to property which
has been mutually discussed, described and agreed in the agreement
Floor area allocated to a unit or space and quoted for leasing
purpose. The area is usually measured from the exterior of the
enclosing walls of the units and includes the unit’s share in
the common area.
letter of intent
A letter written by a party or joint venturer expressing an
intention to proceed with the transaction in the future. A letter
of intent is not usually legally binding
Leasing or renting
A person's financial obligations. Liabilities include long-term
and short-term debt, as well as any other amounts that are owed
Insurance coverage that offers protection against claims alleging
that a property owner's negligence or inappropriate action resulted
in bodily injury or property damage to another party. It is
usually part of a homeowner’s insurance policy.
An official document giving a person or corporate body the permission
to do something, such as enter, live in or use a property.
A person who has a license
A legal claim against a property that must be paid off when
the property is sold. A mortgage or first trust deed is considered
For an adjustable-rate mortgage (ARM), a limit on the amount
that the interest rate can increase or decrease over the life
of the mortgage.
A person whose lease rights are valid only during his or someone
The maximum amount a person participating in a business can
lose or be charged in case of claims against the company or
its bankruptcy. A stockholder in a corporation can only lose
his/her investment, and a limited partner can only lose his/her
investment, but a general partner can be responsible for all
the debts of the partnership
line of credit
An agreement by a commercial bank or other financial institution
to extend credit up to a certain amount for a certain time to
a specified borrower.
A cash asset or an asset that is easily converted into cash.
A sum of borrowed money (principal) that is generally repaid
Also referred to by a variety of other terms, such as lender,
loan representative, loan "rep," account executive, and others.
The loan officer serves several functions and has various responsibilities:
they solicit loans, they are the representative of the lending
institution, and they represent the borrower to the lending
How a lender refers to the process of obtaining new loans.
After you obtain a loan, the company you make the payments to
is "servicing" your loan. They process payments, send statements,
manage the escrow/impound account, provide collection efforts
on delinquent loans, ensure that insurance and property taxes
are made on the property, handle pay-offs and assumptions, and
provide a variety of other services.
The percentage relationship between the amount of the loan and
the appraised value or sales price (whichever is lower).
Area just inside an apartment, building, hotel, theater or house
that leads on to the more functional areas
Geographical position of a person or thing or structure. Good
or bad locations depend on the intended use of the property.
An agreement in which the lender guarantees a specified interest
rate for a certain amount of time at a certain cost.
The time period during which the lender has guaranteed an interest
rate to a borrower.
A lease agreement that is valid for a long period of time. The
legal definition of “long-term’ varies from country to country
A portion or part of a property
An apartment that has the top luxury facilities and amenities
Periodic expenditure needed to preserve a property’s original
status rather than to improve that property. Activity required
for compensating wear and tear.
Monthly assessment by association of owners and used for maintenance
and repair of common areas. Usually a monthly fee paid.
The destruction of or damage by reasons beyond the control of
either party to all or any part of the demised premises or the
building and such destruction or damage cannot be rebuilt or
repaired as reasonable determined by the architect.
- Person or persons responsible
for managing a property or overseeing a job.
- The act of managing, controlling
or directing and carrying on a business.
A contract between the owner of a property and the party who
agrees to manage it. Fees are based on a percentage of income
but can be a flat incentive fee basis.
The difference between the interest rate and the index on an
adjustable rate mortgage. The margin remains stable over the
life of the loan. It is the index which moves up and down.
A small dock, for small yachts and cabin cruisers having suppliers,
and maintenance facilities.
Independently appraised value of real estate in a free competitive
marker. The highest price a buyer would pay and the lowest price
as seller would accept, assuming that both were willing but
not compelled to do so
A controlling lease in an apartment or office building that
Document that describes, in narrative and with maps, an overall
development concept including both present property uses as
well as future land development plans. The plan may be prepared
by a local government to guide private and public development
or by a developer on a specific project.
The date on which the principal balance of a loan, bond, or
other financial instrument becomes due and payable.
merged credit report
A credit report which reports the raw data pulled from two or
more of the major credit repositories. Contrast with a Residential
Mortgage Credit Report (RMCR) or a standard factual credit report.
- A unit of length in the metric
system that equals to 39.37 inches.
- A measuring device used for
measuring the usage of utilities, such as water, electricity,
Balcony or low ceiling overhang just above the main floor and
below the next storey. In a theatre, a mezzanine is the first
balcony above the stage.
An untrue statement, misinterpretation is a form of fraud that
could lead to cancellation of contract and could lead to liabilities
such as criminal and/or civil proceedings against the party
who made such misrepresentation.
Occasionally, a lender will agree to modify the terms of your
mortgage without requiring you t refinance. If any changes are
made, it is called a modification.
month to month tenancy
A tenancy when rent is being paid monthly and where the lease
can be renewed for each succeeding month or terminated at the
option of either party with sufficient notice
A legal document that pledges a property to the lender as security
for payment of a debt.
A document (or a process) in which the owner, called a “Mortgager”
pledges his/her title of real property and/or personal property
to a lender, called a “Mortgagee”, as security for a loan described
in a promissory note. (Under Section 702 of Civil and Commercial
Code of Thailand).
A mortgage banker is generally assumed to originate and fund
their own loans, which are then sold on the secondary market.
However, firms rather loosely apply this term to themselves,
whether they are true mortgage bankers or simply mortgage brokers
A mortgage company that originates loans, then places those
loans with a variety of other lending institutions with whom
they usually have pre-established relationships.
The lender in a mortgage agreement.
Insurance that covers the lender against some of the losses
incurred as a result of a default on a home loan. Often mistakenly
referred to as PMI, which is actually the name of one of the
larger mortgage insurers. Mortgage insurance is usually required
in one form or another on all loans that have a loan-to-value
higher than eighty percent. Mortgages above 80% LTV that call
themselves "No MI" are usually a made at a higher interest rate.
Instead of the borrower paying the mortgage insurance premiums
directly, they pay a higher interest rate to the lender, which
then pays the mortgage insurance themselves. Also, FHA loans
and certain first-time homebuyer programs require mortgage insurance
regardless of the loan-to-value.
The amount paid by a mortgagor for mortgage insurance, either
to a government agency or to a private mortgage insurance (MI)
mortgage life and disability
A type of term life insurance often bought by borrowers. The
amount of coverage decreases as the principal balance declines.
Some policies also cover the borrower in the event of disability.
In the event that the borrower dies while the policy is in force,
the debt is automatically satisfied by insurance proceeds. In
the case of disability insurance, the insurance will make the
mortgage payment for a specified amount of time during the disability.
Be careful to read the terms of coverage, however, because often
the coverage does not start immediately upon the disability,
but after a specified period, sometime forty-five days.
The borrower in a mortgage agreement.
See personal property
Properties that provide separate housing units for more than
one family, although they secure only a single mortgage.
Arrangement where the real estate listings of many local agents
Some adjustable rate mortgages allow the interest rate to fluctuate
independently of a required minimum payment. If a borrower makes
the minimum payment it may not cover all of the interest that
would normally be due at the current interest rate. In essence,
the borrower is deferring the interest payment, which is why
this is called "deferred interest." The deferred interest is
added to the balance of the loan and the loan balance grows
larger instead of smaller, which is called negative amortization.
The omission to do something which are reasonable person would
ordinary do under the circumstances, or doing something which
a reasonable person would ordinarily not do under the circumstances.
The failure to take reasonable care given the circumstances.
Capable of being negotiated; transferable by assignment or endorsement
to another person; as a negotiable note or bill of exchange.
Equivalent to 400 square meters
no cash-out refinance
A refinance transaction which is not intended to put cash in
the hand of the borrower. Instead, the new balance is calculated
to cover the balance due on the current loan and any costs associated
with obtaining the new mortgage. Often referred to as a "rate
and term refinance."
Many lenders offer loans that you can obtain at "no cost." You
should inquire whether this means there are no "lender" costs
associated with the loan, or if it also covers the other costs
you would normally have in a purchase or refinance transactions,
such as title insurance, escrow fees, settlement fees, appraisal,
recording fees, notary fees, and others. These are fees and
costs which may be associated with buying a home or obtaining
a loan, but not charged directly by the lender. Keep in mind
that, like a "no-point" loan, the interest rate will be higher
than if you obtain a loan that has costs associated with it.
A bank loan where the borrower has both ceased to make full
interest payments, such that the lender has stopped earning
interest and one where the borrowers is likely to default on
Property that is not owned by the occupant but is held under
lease or license.
Nor Sor 3
Is a certificate issued by the relevant local Land Department
Authority certifying the usage of land of the person entitled
thereto. The land has no exact boundaries.
Nor Sor 3 Gor
Is a certificate issued by the relevant local Land Department
Authority certifying the usage of land of the person entitled
thereto. The land is measured by the Land Department; therefore,
it has its exact boundaries.
Nor Sor 4
A legal document that obligates a borrower to repay a mortgage
loan at a stated interest rate during a specified period of
The interest rate stated on a mortgage note.
Almost all lenders offer loans at "no points." You will find
the interest rate on a "no points" loan is approximately a quarter
percent higher than on a loan where you pay one point.
notice of default
A formal written notice to a borrower that a default has occurred
and that legal action may be taken.
A legal notification required by law or agreement or imparted
by operation of law as a result of some fact.
A land use incompatible with surrounding land uses. Any activity
by a property owner that annoys or seriously disturbs the neighbourhood
making it difficult for other property owners to use or enjoy
their own property.
null and void
That which cannot be legally enforced or is not legally binding.
Occupancy rates represent rooms nights occupied expressed as
a percentage of room nights available, during any given period.
For other properties (other than a hotel), it is the measure
of the percentage of floor space occupied by tenants as compared
to the total lettable area of the building.
A document issued by the local municipal authority building
proposal department that provides no objection to occupy the
building under reference for its specified use. The OC is issued
only once the building has been completed in all respects and
can be occupied. A corporate can carry out its commercial activity
only once the premises/building has received its OC.
An expression of willingness to purchase or sell a property
at a specified price; presenting for acceptance a price for
a property parcel; the bid price in a real estate or security
offer and acceptance
These two requirements of a contract signifying mutual consent
combined with valuable consideration are the major elements
of a bidding contract
An entity that receives an offer
An entity that makes an offer
A room, set of rooms, or building where the business such as
paperwork, administration, clerical services
Improvement or activities taking place away from the site or
located away from the site
Development of land adjacent to the property to make it habitable
such as side-walks, paved access road, sewers, etc.
An agreement permitting a real estate agent to sell the property
whilealso allowing the homeowner or other agents to attempt
to make the sale
The right to buy or sell an item at a specified price withtin
a given period of time. The right, if not exercised after a
specified time, expires. For example, a lease of a property
with the option to buy.
The term refers to a verbal contract made between parties where
there is partial or no written agreement. These types of contract
have a very week legal standing and are dependent on witnesses
to the said contract
A statue enacted by a city or town especially enactments of
the legislative body of a municipal corporation or a county
Minor day-to-day repair and maintenance of a property to prevent
wear and tear.
An entity possessing ownership rights to a property
A property that is occupied by an entity that posses ownership
rights to the said property
The total amount of principal owed on a mortgage before any
payments are made.
On a government loan the loan origination fee is one percent
of the loan amount, but additional points may be charged which
are called "discount points." One point equals one percent of
the loan amount. On a conventional loan, the loan origination
fee refers to the total number of points a borrower pays.
A property purchase transaction in which the property seller
provides all or part of the financing.
A broadlandscape highway, often divided by a aplanted median
A payment that is not sufficient to cover the scheduled monthly
payment on a mortgage loan. Normally, a lender will not accept
a partial payment, but in times of hardship you can make this
request of the loan servicing collection department.
Local development tax only that’s applied to land. Typically
it ranges from baht 0.5 to baht 400 per rai (1,600 sq. m) (2005)
Value added tax (VAT), which is a consumption tax based on the
value of goods and services offered by traders, business or
persons in Thailand. It is calculated from the price of the
goods and services. The standard rate is 7% (2005)
House and land tax. This is a tax on assessed rental income
and only applies to properties that are rented out. Rental contracts
are typically split into three components that are taxed separately
as follows 1) rental : subject to a house land and tax of 12.5%
of annual rental receipts;2) lease of furniture: subject to
a 7% VAT; and 3) service charge: subject to 7% VAT (2005)
An area adjoining the house that is paved with concrete, flagstones,
brick, etc. and is used for relaxation or recreation purposes
payment change date
The date when a new monthly payment amount takes effect on an
adjustable-rate mortgage (ARM) or a graduated-payment mortgage
(GPM). Generally, the payment change date occurs in the month
immediately after the interest rate adjustment date.
Bridge constructed over a highway, railway, roads, etc., for
the use of pedestrian.
By the year On a yearly basis. For each year.
The boundary lines of a property expressed in terms of measurement
periodic payment cap
For an adjustable-rate mortgage where the interest rate and
the minimum payment amount fluctuate independently of one another,
this is a limit on the amount that payments can increase or
decrease during any one adjustment period.
periodic rate cap
For an adjustable-rate mortgage, a limit on the amount that
the interest rate can increase or decrease during any one adjustment
period, regardless of how high or low the index might be.
The condition of being never ending. In legal terms it refers
to an interest under which property is less than completely
alienable for longer than the law allows
personal property (also
called movable property)
Any property that which can be moved from one place to another.
Any property that is not real property.
Perpendicular support piece of structure, driven into the ground,
which supports the foundation
A long, slender, perpendicular used as a support
Slope of roof. Pitch is the ratio of vertical rise to horizontal
This stands for principal, interest, taxes and insurance. If
you have an "impounded" loan, then your monthly payment to the
lender includes all of these and probably includes mortgage
insurance as well. If you do not have an impounded account,
then the lender still calculates this amount and uses it as
part of determining your debt-to-income ratio.
A cash amount that a borrower must have on hand after making
a down payment and paying all closing costs for the purchase
of a home. The principal, interest, taxes, and insurance (PITI)
reserves must equal the amount that the borrower would have
to pay for PITI for a predefined number of months.
planned unit development
A type of ownership where individuals actually own the building
or unit they live in, but common areas are owned jointly with
the other members of the development or association. Contrast
with condominium, where an individual actually owns the airspace
of his unit, but the buildings and common areas are owned jointly
with the others in the development or association.
plat (plat map)
A map or a parcel of land showing the boundaries of individual
properties that has been divided into lots
1) an area of land is used for a specific purpose such as a
2) The term may refer to a piece of land on which a structure
or improvements are to be built.
Plan represented in the form of a scale diagram that shows the
proposed or existing use of a specific parcel of land such as
the location of the structures within boundaries of the property,
utility services, compass direction, etc.
A point is 1 percent of the amount of the mortgage.
A team used to describe all insurance contracts.
Actual or physical holding or occurency of a property with or
without rightful ownership
Incorporating a later date on an instrument such as check or
dead than the date on which it was signed
power of attorney
A legal document that authorizes another person to act on one’s
behalf. A power of attorney can grant complete authority or
can be limited to certain acts and/or certain periods of time.
When a facility is completed to a stage where it is fit for
occupation (minor defects may remain at this time)
A loosely used term which is generally taken to mean that a
borrower has completed a loan application and provided debt,
income, and savings documentation which an underwriter has reviewed
and approved. A pre-approval is usually done at a certain loan
amount and making assumptions about what the interest rate will
actually be at the time the loan is actually made, as well as
estimates for the amount that will be paid for property taxes,
insurance and others. A pre-approval applies only to the borrower.
Once a property is chosen, it must also meet the underwriting
guidelines of the lender. Contrast with pre-qualification
Space directly pre-leased in buildings prior to their completion
the document showing authorization of temporary occupation of
The right of first refusal or to make an offer before others.
A modular structure built of blocks manufactures elsewhere and
assembled at the site.
A technique whereby a large units of a building or a part of
it are produced in factories to be assembled, ready-made, on
the building site
preliminary title report
A report filed by a lawyer who has conducted a preliminary search
of a property’s title. Preliminary title reports are followed
by final title reports that may confirm the finsings of the
earlier report or provide data on additional facts which come
to light following a more detailed search.
1) the preliminary or explanatory statements or facts of a documents,
as in a deed.
2) Land and the buildings on it
1) a sum of money or bonus paid in addition to a regular price,
salary, or other amount.
2) The amount paid, often in addition to the interest, to obtain
3) The amount paid or payable, often in installments, for an
4) The amount at which something is valued above its par or
nominal value, as money or securities
5) The amount at which a securities option is bought or sold
Any amount paid to reduce the principal balance of a loan before
the due date. Payment in full on a mortgage that may result
from a sale of the property, the owner's decision to pay off
the loan in full, or a foreclosure. In each case, prepayment
means payment occurs before the loan has been fully amortized.
A fee that may be charged to a borrower who pays off a loan
before it is due.
This usually refers to the loan officer’s written opinion of
the ability of a borrower to qualify for a home loan, after
the loan officer has made inquiries about debt, income, and
savings. The information provided to the loan officer may have
been presented verbally or in the form of documentation, and
the loan officer may or may not have reviewed a credit report
on the borrower.
1) the amount as of money or goods, asked for or given in exchange
for something else
2) the cost at which something is obtained
The interest rate that banks charge to their preferred customers.
Changes in the prime rate are widely publicized in the news
media and are used as the indexes in some adjustable rate mortgages,
especially home equity lines of credit. Changes in the prime
rate do not directly affect other types of mortgages, but the
same factors that influence the prime rate also affect the interest
rates of mortgage loans.
The amount borrowed or remaining unpaid. The part of the monthly
payment that reduces the remaining balance of a mortgage.
The outstanding balance of principal on a mortgage. The principal
balance does not include interest or any other charges. See
The contractor responsible for the site and all activities that
are carried out on it whilst under construction (has a major
implication regarding safety)
taxes, and insurance (PITI)
The four components of a monthly mortgage payment on impounded
loans. Principal refers to the part of the monthly payment that
reduces the remaining balance of the mortgage. Interest is the
fee charged for borrowing money. Taxes and insurance refer to
the amounts that are paid into an escrow account each month
for property taxes and mortgage and hazard insurance.
private mortgage insurance (MI)
Mortgage insurance that is provided by a private mortgage insurance
company to protect lenders against loss if a borrower defaults.
Most lenders generally require MI for a loan with a loan-to-value
(LTV) percentage in excess of 80 percent.
Property owned by a privateindividual, company, corporation
or a non-governmental body
A piece of planned work or an activity which is completed over
a period of time and intended to achieve a particular aim, normally
the construction of a facility
The process of planning organizing, staffing, directing and
controlling a project
The right and interest in lands and chattels to the exclusion
of others. Something owned; any tangible or intangible possession
that is owned by someone.
Official dividing line between two properties. Legal boundary
The range of functions concerned with looking after a building,
including collection of rents, payment of outgoings, maintenance
including repair, provision of services, insurance and supervision
of start employed for services, together with negotiations with
tenants or prospective tenants. The extent of an responsibility
for management between landlord and tenants. The e
A written promise to repay a specified amount over a specified
period of time.
A meeting in an announced public location to sell property to
repay a mortgage that is in default.
Planned Unit Development
A project or subdivision that includes common property that
is owned and maintained by a homeowners' association for the
benefit and use of the individual PUD unit owners.
A written contract signed by the buyer and seller stating the
terms and conditions under which a property will be sold.
purchase money transaction
The acquisition of property through the payment of money or
Calculations that are used in determining whether a borrower
can qualify for a mortgage. There are two ratios. The "top"
or "front" ratio is a calculation of the borrower’s monthly
housing costs (principle, taxes, insurance, mortgage insurance,
homeowner’s association fees) as a percentage of monthly income.
The "back" or "bottom" ratio includes housing costs as will
as all other monthly debt.
A deed that transfers without warranty whatever interest or
title a grantor may have at the time the conveyance is made.
Equivalent to 1,600 square meters (4 ngan)
Official assessed value
A commitment issued by a lender to a borrower or other mortgage
originator guaranteeing a specified interest rate for a specified
period of time at a specific cost.
rate of return
The annual percentage return from an investment
Term for land that does not have facilities or services such
as water, traffic, electricity, communication infrastructure
or gas. Virgin land
Of or relating to land and property
real estate agent
A person licensed to negotiate and transact the sale of real
real estate broker
A person who brings buyers and sellers or lessors and lessees
or tenants and landlords together and receives a percentage
of the deal value as compensation
real estate license
A license issued by a competent authority for carrying on the
business of a real estate broker developer.
real property (also
called Immovable Property)
Land and appurtenances, including anything of a permanent nature
such as structures, trees, minerals, and the interest, benefits,
and inherent rights thereof. Any property that which cannot
be moved from one place to another.
A real estate agent, broker or an associate who holds active
membership in a local real estate board that is affiliated with
the National Association of Realtors.
recision of a contract
The abrogation of facts in a deed or agreement
Explanation of facts in a deed or agreement
The transfers of title to a mortgaged property from a trustee
to equitable owner after all sums due plus interest have been
rectification of boundaries
The correction or adjustment of the line(s) separating two properties
in order to correctly reflect the title of lands.
The public official who keeps records of transactions that affect
real property in the area. Sometimes known as a "Registrar of
Deeds" or "County Clerk."
The noting in the registrar’s office of the details of a properly
executed legal document, such as a deed, a mortgage note, a
satisfaction of mortgage, or an extension of mortgage, thereby
making it a part of the public record.
Legal term for for an owner retaining some rightsin a sale or
The improvement of land in terms of an urban development
The right to retake possession of a property that has been given
to another party by way of mortgage, lease, rental, etc. Legal
action is often necessary to enforce the right
The process of paying off one loan with the proceeds from a
new loan using the same property as security.
The act of renovating or upgrading an existing property either
internally or externally.
REIT(real estate investment
A REIT is a corporation or trust that uses the pooled capital
of many investors to purchase and manage real estate assets
and/or mortgage loans. REITs are traded on major stock exchanges
like normal stocks. They are often also granted special tax
considerations. Key benefits of REITs are their inherent liquidity
and their instant pricing. REITs enable investment in all major
asset types including shopping centers and other commercial
or industrial properties
The amount of principal that has not yet been repaid. See principal
The original amortization term minus the number of payments
that have been applied.
The improvement of structure by changing its plans or functions
The drawing of a plan or sketch of a building
The act of trying to impose on an existing agreement. Some agreements
specifically allow the renegotiation of certain terms like rents
or rate of interest after given intervals.
An agreement to continue an existing contract on similar or
slightly modified terms at the end of the previous term.
A clause in an agreement that gives either or both parties the
right but not the obligation.
Upon the conclusion of the initial term as mentioned in the
agreement, the lessee at its option may renew the agreement
for the additional period (usually three to five years) which
is described in the agreement as the renewal term
Same as reconditioning
rent free period
Period during which the landlord does not charge rents from
the lessee. This is usually at the beginning of the contract
period when the lessee needs time to furnish property to make
it fit for use.
rent loss insurance
Insurance that protects a landlord against loss of rent or rental
value due to fire or other casualty that renders the leased
premises unavailable for use and as a result of which the tenant
is excused from paying rent.
A provision in a lease whereby the amount of the rentis to be
rent is to be reconsideredat stated intervals, e.g. every three
or five years, or on specified dates. The method and procedure
for reviewing the rent are outlined in the lease. Failing agreement
between the parties there is normally provision for reference
to a third party, i.e., an arbitrator or independent expert.
The are in square feet or square meters that a landlord can
charge rent for.
A periodic payment for the use of land or property made by a
tenant to a landlord under a lease or tenancy agreement. Rent
is therefore both a charge on occupation and also a return to
owners of property.
A real estate broker who helps a landlord to find a tenant,
in return for a consideration, usually a percentage of the annual
or monthly rent.
An agreement between a landlord and a tenant setting forth the
terms of the lease
Refers to a date when the lessee’s obligation to pay rent commences.
At the end of the initial term of the agreement, the rental
review comes into place based on the then market conditions.
Rental reviews is usually pre-determined and the increase is
capped at the time of execution of the initial term of the agreement.
The market rent of a property.
The replacement of broken or damaged portion of a property.
The substitution of a broken or damaged portion of a property
with a similar item.
The cost of a similar or identical property
The cost of replacing damage items with new items. It will often
be greater than the value of the original items before damage
occrued. In the case of valuable antiques, replacement may be
impracticable regardless of cost.
An arrangement made to repay delinquent installments or advances.
A fund set aside for replacement of common property in a condominium,
PUD, or cooperative project -- particularly that which has a
short life expectancy, such as carpeting, furniture, etc.
to cancel a contract
a right that has been retained by an original owner of land.
Also refers to land that has been aside by the government for
a particular purpose or group of people.
The setting aside of funds
A designed area where water is stored
A building in which people live.
A full service lodging establishment located in a place frequented
by people for relaxation or recreation.
Property that people visit on vacations or weekends for fun
The carrying out of repairs to a building in order to make it
appear as it did originally
Wall that restrains water or soil from flowing into an inappropriate
An agreed sum held from the contractors payments until completion
in case of non performance of the contractor
The extensive renovationto a building often involving major
changes to its layout, services and structures, to enhance its
functionality and update or improve its appeal and marketability
with a view to achieve better investment returns and capital
Same as reassessment
A credit arrangement, such as a credit card, that allows a customer
to borrow against a pre-approved line of credit when purchasing
goods and services. The borrower is billed for the amount that
is actually borrowed plus any interest due.
rights in land
ownership and also includes possessor rights.
right of first refusal
A provision in an agreement that requires the owner of a property
to give another party the first opportunity to purchase or lease
the property before he or she offers it for sale or lease to
right of ingress or
The right to enter or leave designated premises.
right of survivorship
In joint tenancy, the right of survivors to acquire the interest
of a deceased joint tenant.
right of way
the right to pass over land not legally ot specifically belonging
to the user.
The height of slope
root of title
Document that establishes beyond dispute the title of an unregistered
land. It traces the title to the property back in time, sometimes
up to hundred years or more, and from that point to the present,
leaving no scope for any dispute over the right and title of
the current owner
Residential houses within a housing estate having two or three
floors, constructed next to each other, having common walls,
foundations and facilities. Also referred to as “terraced houses”
in Singapore and Malaysia
Of or relating to the countryside, as opposed to cities.
The floor area exclusively allocated to the unit including balconies
and verandahs but excluding common areas such as stairs, lift
shafts, lobbies, etc. The saletable area is measured from the
exterior of the enclosing walls of the units and to the center
line of the party wall between two units
A technique in which a seller deeds property to a buyer for
a consideration, and the buyer simultaneously leases the property
back to the seller.
The realizable value of goods or construction material that
can be recovered and sold from a building that is being demolished.
Example: doors, windows, marble slabs, steel rods, etc.
The repayment in full of debt or a payment in full and final
settlement of an outstanding amount.
- model depicting what a structure
physically looks like. The dimensions are drawn on a
proportionate basis to the real thing such as 1:100
scale, which equals one centimeter to one meter.
- A series of marks used in
measuring or registering or comparing weights
- Peeling or flaking of a surface
marked by discoloration
The level of the surface of the sea; any surface on the same
level with the sea.
Identifier used on a document as a mark of genuineness and authenticity
An offer usually in form of a tender, submitted in a sealed
package on the understanding that it will be opened simultaneously
with other competitive offers at a stated time and place. In
some circumstances tenderers are permitted to be present when
the bids are opened
The reviewing, of all recorded transaction in the public record,
to discover any title defects, which could interfere with the
transfer of ownership of a property.
A mortgage that has a lien position subordinate to the first
Property which is below that of prime in relation to rentals,
Location that is less advantageous than desired.
The buying and selling of existing mortgages, usually as part
of a "pool" of mortgages.
A parcel of land whose boundaries are shown on a survey plan
A loan that is backed by collateral.
The property that will be pledged as collateral for a loan.
Any loan agreement that includes a charge on a fixed asset
A deposit by a tenant kept with a landlord
An agreement in which the owner of a property provides financing,
often in combination with an assumable mortgage.
A market in any property or commodity where the circumstances
are such that the seller has an advantage over a potential buyer
to the extent that he can command a higher price than otherwise
would be obtainable.
The collective name for the cost of air-conditioning and other
services and management charges passed on to the tenant.
Fully furnished apartment where tenants are provided services
such as house keeping, security and concierge or reception or
front office. Serviced apartments combine the features of a
hotel and an apartment
An organization that collects principal and interest payments
from borrowers and manages borrowers’ escrow accounts. The servicer
often services mortgages that have been purchased by an investor
in the secondary mortgage market.
The collection of mortgage payments from borrowers and related
responsibilities of a loan servicer.
Refers to anything that functions like a sign. The tenant and
the landlord, on mutual discusiion, will agree on the location
for the tenant to erect their signage. Usually signage is provided
by the landlord in the building directory and on the common
lobby of the demised premises
single family house
A house that is designed for occupation by one family only,
as opposed to an apartment block that is designed for occupation
by several families.
A sum of money set aside at regular interval to earn interest
on a compound basis either: 1) to be set off against the diminution
in value of a wasting asset, e.g., a lease; or 2) to meet some
future cash liability. In property valuations, it is usually
assumed that the money will be invested at a “risk free” which
si regarded as appropriate according to market conditions. The
total amount calculated to accumulate by the sinking fund may
be the same as the original investment or liability but possibly
with an adjustment to reflect the view taken on future fluctuations
in the value of money
An examination of a property to decide if it is suitable for
a particular use. Or an examination of a property with the purpose
of deciding its most appropriate use.
Improvements made to a plot of land to make it suitable for
building, such leveling uneven ground, laying of sewer and underground
utility lines, etc.
Diagrams, sketches or maps showing the outline and location
of a particular plot along with all features in it.
A lease, securing exclusively use by a lessee and its nominees,
of the air space above a plot of land. Example: nowadays, airport
operators demand sky leases above the airports they develop
A sole agency precludes all other agents from working on the
sale of the property, although another agent may approach the
sole agent if it has a suitable party. The sole agent would
handle the approach to the principal.
Layout plan for the interior of a building. Involves both construction
as well as interior design
The distance between two pillars, walls or other load bearing
A fixed tax chargeable on the execution of documents pertaining
to certain transactions (e.g., leases)
statue of limitations
Law that stipulates that a legal action to redress a wrongdoing
has to be brought before a judicial forum within a set time,
after which no legal remedy will be available.
A lien or restriction created on the operation of land. Example:
outstanding property taxes may create a lien against the property
Sewer that drains rainwater
A person who receives and acts upon instructions from an agent
A contractor engaged by a general contractor to execute specific
job. The overall building contract is given to the general contractors,
plumbing contractors, etc., to do specialized jobs.
A housing development that is created by dividing a tract of
land into individual lots for sale or lease.
Detailed drawing of a real estate or administrative subdivision
showing boundaries and other features
Conditional upon, for example, a buyer may agree to purchase
a property subject to the existing title holder paying off all
existing liens on it within particular period.
A lease granted by a person who himself enjoys only a lease
interest over that property. Here, the sub-lessor cannot grant
rights he does not have. Example: A leases a plot of land to
B for 25 years. If allowed in his contract with A, B can sub-lease
the land to C for the remaining period of his lease term, but
cannot sub-lease it for 26 years.
Vacant space which is available for lease from the contracted
tenant of the premises
Any mortgage or other lien that has a priority that is lower
than that of the first mortgage.
A summons issued by court
New or refurbished spaced entering the market
A drawing or map showing the precise legal boundaries of a property,
the location of improvements, easements, rights of way, encroachments,
and other physical features.
Contribution to the construction or rehabilitation of a property
in the form of labour or services rather than cash.
- the right and the period of
possession of real estate by ownership or rental
- (MYS) a rental agreement for
a period not exceeding three years and not required
to be registered on the title.
tenancy in common
As opposed to joint tenancy, when there are two or more individuals
on title to a piece of property, this type of ownership does
not pass ownership to the others in the event of death.
A person who occupies real property owned by another based upon
an agreement between the person and the landlord/owner, almost
always for rental payments
Charges, typically to a property, to accommodate specific needs
of a tenant. The cost of such improvements may be borne by the
landlord or shared by both, the tenant and the landlord as may
be agreed upon by the two
- an offer of money or service
in payment of an obligation
- a written offer to contract
goods or services at a specified cost or rate; a bid.
the length of time or condition under which something, such
as a piece of property, is held. The duration of ownership rights
The period of time during which something is in effect. A stated
number of years. A condition specified in an agreement.
The legal right of the lessee/licensee to vacate the demised
premises and terminate the agreement. The right to termination
of lease/license is described in detail in an agreement
A process by which a lender uses another party to completely
or partially originate, process, underwrite, close, fund, or
package the mortgages it plans to deliver to the secondary mortgage
Ownership for a specific period of time, of a property, by several
persons. Applicable to condominiums and resorts. For example
a unit or apartment in a resort may be sold to 12 persons or
entities where each is given the right to the unit for a period
of one month every year. Weekly ownership is the most common
period of time share
A legal document evidencing a person's right to or ownership
of a property.
A company that specializes in examining and insuring titles
to real estate.
the document showing ownership of the land and includes land
title deed with map, pre-emption title deed and pre-emption
certificate stamped “ALERADY PUT TO USE”.
Insurance that protects the lender (lender's policy) or the
buyer (owner's policy) against loss arising from disputes over
ownership of a property.
A check of the title records to ensure that the seller is the
legal owner of the property and that there are no liens or other
A survey of an area by mapping the physical features of the
Art of mapping the physical features of a region. The topography
describes the characteristics of an area, such as its contours,
flatness, mountains, etc.
trade in land
The acquisition and disposition of land for commercial profit
by the sell, exchange or conditional sell (hire-purchase) of
Taxes, legal fees and other costs incurred in transaction property
An assessment and imposition of tax by state or local government
when a piece of property changes hands.
transfer of ownership
Any means by which the ownership of a property changes hands.
Lenders consider all of the following situations to be a transfer
of ownership: the purchase of a property "subject to" the mortgage,
the assumption of the mortgage debt by the property purchaser,
and any exchange of possession of the property under a land
sales contract or any other land trust device.
State or local tax payable when title passes from one owner
An adjustable-rate mortgage (ARM) that has one interest rate
for the first five or seven years of its mortgage term and a
different interest rate for the remainder of the amortization
two- to four-family
A property that consists of a structure that provides living
space (dwelling units) for two to four families, although ownership
of the structure is evidenced by a single deed.
A fiduciary who holds or controls property for the benefit of
A development in which a developer completes the entire project
on behalf of a buyer. All the new tenant or owner has to do
is “turn the key” to the apartment or office in a newly constructed
building because everything is completed and ready for occupancy
Refers to a development where actual building construction has
Raw land in its natural state has no installed improvements
Segregated part of a structure i.e., one apartment in an apartment
building or an office in a commercial building.
1) keeping possession of real property without a right, such as after a lease
has expired, after being served with a notice to quit (vacate,
leave) for non-payment of rent or other breach of lease, or
being a "squatter" on the property. Such possession entitles
the owner to file a lawsuit for "unlawful detainer," asking
for possession by court order, unpaid rent and damages.
2) a legal action to evict a tenant or other occupier of real
property in possession, without a legal right, to declare a
breach of lease, and/or a judgment for unpaid rent and other
damages. Such lawsuits have priority over most legal cases,
and therefore will be calendared for trial promptly.
The ratio of the number of buildings or floor area of built-up
space of a particular use to a given area
An individual who uses a property or has a right over a property.
Levy of excessive rate of interest on a loan that is considered
illegal as it is not accepted by law.
Services such as water, gas, electricity, etc., provided to
land or private utility companies
Utility such as water and power for the demised premises is
separately charged/meters to the tenant. The tenant is usually
responsible to pay to the concerned utility company the charge
for such utilities as per the bills raised by the the
Room that contains the appliances necessary for the maintenance
of of that establishment such as a room used for laundry, heating
equipment telephone wiring, janitorial purposes, etc.
A house or apartment or shop space or office space that is available
for rent or sale.
Land without structures.
To move out of a house, apartment, office, retail or industrial
- the process of making an estimate
of the worth of real property or other assets for a
particular purposes, e.g., letting, purchase, sale audit,
rating, compulsory purchase of taxation. That purpose
and the relevant circumstances will determine assumptions
and facts that are appropriate and hence the process
- A statement, usually in writing,
setting out the facts, assumptions, calculations and
- Colloquially, the value arrived
at as a result of valuation process
The financial worth of a thing
value-added tax (VAT)
Value-added tax is a form of sales tax. It is a tax on consumption
levied on the sale of goods and services.
Having the right to use a portion of a fund such as an individual
retirement fund. For example, individuals who are 100 percent
vested can withdraw all of the funds that are set aside
for them in a retirement fund
Equivalent to 4 square meters.
To give up, renounce, submit or surrender a right, benefit,
privilege or claim
Refers to a legal document that proves the relinquishment of
rights or claims. It may also mean deliberate relinquishment
of rights or claims
Building that is used specifically for the purpose of storing
or keeping merchandise
The act of holding mortgages for the purpose of later securitizing
and selling the same to other investors or lenders
warranted price contract
An agreement between parties to design and construct a facility
for a maximum price to an agreed brief where any savings maybe
shared between the parties.
Legally binding agreement given at the times of sale , by the
seller to the buyer, containing certain assurances as to the
terms and condition of the property being sold
The legal right of a landowner to the water found on his property.
Property with a body a water in front of it. Alternatively,
a contiguous area of similar properties near the large body
of water which has a commercial port.
wear and tear
Deterioration or decline in the value of a property due to use,
physical damage, old age or environmental factors
The wear and tear of the exterior of a building caused by exposure
to the weather
Building part, which is concerned to, but leading away from
the main structure.
A phrase used to enable parties to negotiate an agreement or
settle a dispute, either orally or in writing, without any statement
or admission made being subsequently quoted or produced in evidence
at any legal hearing bearing on the subject-matter of the proposed
agreement or dispute. In claiming this privilege, care must
be taken to avoid statements which are untrue or of a defamatory
nature, which might entitle the court to allow their admission
in evidence at the request of the other party. In any event,
the privilege applies only to the proceedings in question, so
that “ without prejudice” statements (verbal or written) can,
in certain circumstances, be produced in evidence in some other,
A company is not responsible to a third party when an account
or financial instruments is not honored by the debtor with creditor’s
only recourse being to the debtor’s property
The return on an investment compared to the total cost of
investment over a given period of time: e.g., if an investment
of $1,000 gives return of $ 100 in one year, the yield on
the investment is 10%
Geographically location with designated boundaries such
as district. May also refer to a specific land use within
a designated boundary or area as a part of the master plan
for a large scale development such as a township. E.g.,
residential zone or commercial zone, etc.