The attempt to induce someone to sell their home because someone from a protected class is rumored to be moving into the neighborhood. The classic example of this would be a real estate agent passing out her card to neighbors while telling them that a minority family is moving in down the block and they should sell now before the neighborhood gets any worse. This is illegal.
Body Corporate
A sum of money paid by a tenant and held by the Rental Bond Boaard to ensure against defaulting on payment and damage to the property.
Bond
A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal.
Bond Market
Usually refers to the daily buying and selling of thirty year treasury bonds.
Boot
Money or property given to make up any difference in value or equity between two properties in an exchange.
Boundary
A line separating adjoining properties.
Breach of Contract
An act, or omission, contrary to enforce specific performance to rescind the contract and / or to claim damages, the remedy available depending upon the nature of the breach.
Brick Veneer
A system of building in which a structural timber frame is tied to a single brick external wall.
Bridging Loan
A short term loan (usually at a higher rate) taken out to cover the financial gap between buying a new property and selling an existing property.
Broker
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.
Broker/Dealer
A person or company who acts as a medium of bringing owners and proposed buyers together with a view to complete a real estate transaction.
Brokerage
Commission paid to a broker.
Build Out
The space improvements put in place per the tenant's specifications. Takes into consideration the amount of Tenant Finish Allowance provided for in the lease agreement.
Building bye laws
Local authority control of building standards promulgated to regulate and control the usage of land, property and areas in cities and towns.
Building Code
Based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building.
Building Contract
A contract between an owner or occupier of land and a building contractor, setting forth the terms under which construction is to be carried out, basis of remuneration, time scale, and penalties, if any, for failure to comply with terms of the contract.
Built up Area (BUA)
BUA, over and above the carpet area, would include the space covered by the thickness of the inner and outer walls of the flat. The BUA thus would generally be around 15% more than the carpet area of the flat.
Bullet Loan
Any short-term, generally five to seven years, financing option that requires a balloon payment at the end of the term and anticipates that the loan will be refinanced in order to meet the balloon payment obligation.
Business Center
Commercial premises usable by the occupiers for a short period on a membership basis of the centre. Usually, a business centre charges for the full service accommodation, which is generally substantially higher than the rental of a standard office space and usually includes cost of HVAC, housekeeping, electricity, and security systems.
Business Day
A standard day for conducting business. Excludes weekends and public holidays.
Business park
A landscaped area containing high tech, other amenities for business purposes, as distinct from high-tech park or a science park. Building density is lower than would be usual in a traditional industrial estate. Business parks are preferentially located where motorway, rail and airport communications are within a short distance.
Buy-Out Rate
In a funding agreement between a developer and a prospective purchaser, the pre-determined investment yield which will be used to capitalize the annual income receivable at the time of sale to determine the buy out price.
Buyer's Market
When the demand for property is less than supply so the advantages shift to the buyer. Contrast with Seller's Market.
Capitalization
1. At a given date the conversion into the equivalent capital worth of a series of net receipts, actual or estimated, over a period. 2. A method of calculating a final purchase price for a development using an agreed formula to convert actual, or assumed, income from initial lettings into a capitalism. Such capitalised sums may be offset against a purchasing fund's interim finance payments, any excess being paid to the developer.
3. In relation to a company's reserves, the conversion into capital of money, which is then distributed as a capitalisation issue.
Carpet Area
Carpet area may be defined as the area of the flat where a carpet can be laid and thus is the net useable area. Until two decades back flats were sold on this basis. Carpet area is the area from the inner sides of wall to wall. However this concept is rarely used today and as a result, flats today are generally sold on the basis of Built up area and super built up area.
Catchment area
1. The area of land from which finds its way into a particular watercourse, lake or reservoir.2. By analogy, the area which contains those people who can be expected to obtain goods, services, employment or other benefits from a particularly property. More especially related to retail premises, where the success of forecasting depends on the accuracy of estimating the number of purchasers (catchment population) likely to be attracted from the different parts of the area and the average expenditure which might be expected from them.
Central business district
The functional centre around which the rest of a city is comparison shopping, office accommodation, leisure facilities, buildings for recreational use, public museums, art galleries and governmental functions. Generally the area of highest land values within a city.
Cents
Unit of Area Measurement. 1 cent = 40.51 square metre
Certificate of Occupancy
Certificate of Occupancy.
Certificate of Title
A description of a property with the name of the registered owner, encumbrances, i.e. mortgages or easements on the property. It must be produced by the vendor before the sale of the property.
Chataks
Unit of Area Measurement. 1 chatak = 41.85 square metre
Chattels
Movable items of personal property such as furniture that may be included in a sale.
Clear Title
A title that is free of lien or legal questions as to ownership of the property.
Clearance Area
An area that is to be cleared of all buildings. Generally promulgated by way of a government declaration, which is normally followed by the acquisition of the land and the clearance of the area.
Collateral
An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.
Commercial Bank
A financial institution authorized to provide a variety of financial services, including consumer and business loans (generally short-term with full recourse to the Borrower). Commercial banks may be members of the Federal Reserve System.
Commission
A proportion (usually a percentage) of the sale price of a property paid to a real estate agent for negotiating a real estate transaction.
Commitment fees
This interest is charged if you do not draw the sanctioned loan within a period of 6-9 months. The rate of interest is usually about 1-2% a months.
Common Law
An unwritten body of law based on general custom in England and used to an extent in Australia.
Common Law Title
See Old System Title.
Common Price Index
Measures inflation in relation to the change in the price of a fixed market basket of goods and services purchased by a specified population during a "base" period of time.
Common Property
Areas of a building, land or amenities within a strata title property that are shared by all owners, e.g. a driveway.
Company Title
See Stratum Title.
Completion certificate / Occupation Certificate
This is given by the municipal corporation to the developer. It is a very crucial document as this certificate is issued only after the developer completes all the required formalities. Some of these formalities include getting water connection and electricity connection for the project and the construction being completed as per the permissions given in the commencement certificate and the approved plans.
Completion Certificate/Statement
1. (UK) statement prepared by solicitors, usually those acting for a purchaser and a vendor respectively, following the conveyance of an interest in property, giving a schedule of sums received leading to a balance being the final amount due to the vendor. In some case the statement is prepared at a later date and may show a figure recoverable by the purchaser from the vendor.
2. A certificate issued by the local development authority certifying that all necessary works have been completed and that the property is fit for occupation.
Condominium
A form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the owner also shares financial responsibility for common areas.
Conduit
An entity which issues mortgage- backed securities backed by mortgages which were originated by other lenders.
Construction Loan
Also called Building Loan. A short-term, interim loan (only paid to registered builders) for financing the cost of construction. The lender makes payments to the builder at periodic intervals as work progresses.
Contiguous Space
(1) Multiple suites/spaces within the same building and on the same floor which can be combined and rented to a single tenant. (2) A block of space located on multiple adjoining floors in a building.
Contingency
A condition that must be met before a contract is legally binding.
