FOR EASY reference, I thought the simplest way would be to split these Common Property Terms up into three alphabetic sections.
And so, you can now sift through this next section from …
D to M
Date of Settlement
The day, under the terms of the contract, when a vendor is
obliged to transfer a property to the purchaser.
Deferred Income
Future income as from a lease, which includes periodic rent
increases.
Depreciation
Drop in a property’s value due to passage of time,
deterioration of the improvements, or changes to the
neighbouring properties. Also: Book Depreciation is
the amount you can claim for tax purposes for the
replacement of an asset.
Developer
A person who buys property; and by improving it through sub-
division or construction for instance, lifts its value.
Direct Costs
Site costs (purchase price + legal expenses + commission),
plus improvement cost (plans and permits + professional fees
+ construction).
District Business Centre
The heart of a substantial shopping centre within a suburb.
Easement
The contractual right for one person to use a portion of
another persons land, usually providing for electricity or
drainage; or as a driveway for access.
Economic Life
The potential number of years a building could remain profitable.
Effective Rate
The real rate of (return or repayment), as opposed to the
nominal rate.
Environmental Impact Study
An expert’s assessment of long-term environmental effects of
a particular land-use scheme.
Essential Services
Statutorily monitored services within a property including:
air conditioning, fire services, lifts, electrical equipment and
so on — which will attract significant fines for you as the owner,
for non-compliance.
Equity
The percentage of a property an owner holds after outstanding
loans have been deducted from its market value.
Facade
The front face of a building.
Foreclosure
The legal action to possess a property, which a mortgagee
takes when a mortgagor defaults on the loan payments.
Freehold
A property that is owned outright and for unlimited duration.
General Law Title
Such a title pre-dates the Torrens Title System, under which
ownership is government-recorded by Certificates of Title; it is
based on an ongoing history or ownership.
Head Room
The distance from floor to ceiling.
Heavy Industry
A zoning term covering noisy, smelly or otherwise unattractive
industries.
Hectare
The metric measurement of land area equal to 10,000 square
metres, or 2.47 acres.
Height Density
Another zoning regulation limiting the height of buildings in
a particular area.
High Rise
A residential building over three or four storeys, usually requiring a
lift. It is an indefinite term. In offices, a building over 30 storeys.
Home Units
Individually-owned homes in a development of two or more
homes — usually owner-occupied rather than rented.
Industrial Park
A considerable development over a large area tailored to the requirements of industry
Insurable Interest
As soon as you sign a contract to buy a property, you have an
insurable interest and are wise to cover it by insurance.
Interest-only Loan
Here the borrower is obliged to pay interest over the term of
the loan but not to amortise the principal — repaying it as a
lump sum at the end.
Interim Development Order
Enables a planning authority to control development of an area,
before the final scheme is formally gazetted.
Investment Return
The rate per month (or year) of return on investment, produced
by rental and resale.
Irrevocable
Cannot be undone.
Joint Venture
Two or more people (or companies) combine to carry out a project
or enterprise.
Landlord
The owner of a property available for leasing.
Land Usage
Determined by zoning regulations: residential, industrial, etc.
Lease
The formal arrangement by which one party has use of another’s
property: in return for rent.
Lease with Option to Purchase
A lease embodying the right of the lessee to buy the property
at an agreed price, within an agreed time.
Lessor
The party who grants a lease.
Leverage
Means putting into a property a small amount of capital, and
borrowing the balance to achieve a better return on your capital.
Maintenance
The expenditure required to keep a property in an efficient
and proper operating condition.
Managing Agent
A real estate agent authorised by you to manage your property.
Market Price
The price paid for a property is real, whereas “market value”
is only an estimate.
Mezzanine Floor
An intermediary floor, usually between the ground and first
floors.
Mortgage
A document pledging a property as security for the repayment
of the money you borrow against the property.
Mortgagee
The lender on the mortgage.
Mortgagee in Possession
The mortgagee gets a court order to take possession of the
property, usually after a mortgagor defaults.
Mortgagor
You as the borrower.
