We are done with A & B and are moving on to C:
Call
A demand for repayment of loan.In India and some other countries,it also refers to an informal short-term inter-corporate loan market.where money is lent and borrowed by large companies based on verbal agreementsbetween the parties.
Call Date
Date on which a call (loan) is due.
Call Option
A contract whereby one party has the option to purchase the other party’s interest in a property,usually within a specified time, at a stated or calculable price andl’or in defined ircumstances. It is binding against a third party only if registered as an estate contract.
CAM Charges
Acronym for Common Area Maintenance (CAM) charges. In a multi-tenant retail building, the common areas used by all tenants (such as the Iobby.elevators.restrooms or parking lots) attract
a monthly rent payable by retail tenants. Landlords usually determine each tenant’s pro rata share of the common areas. and then add that percentage to the “rentable” square footage.
Cancellation Clause
Clause in an agreement that sets out the condition under which a contract can be cancelled or terminated.
Capital Asset Pricing Model (CAPM)
Quantitative model explaining asset returns based on the relative risk of associated returns and the risk-free rate.
Capital Gains
Profits earned from the sale of capital assets.
Capital Gains Tax
A tax payable on capital gains resulting from property and other investments.
Capital Value
The overall value of a property as distinct from its annual periodic return. Capital value may be established in a number of different ways. In the simplest case it is calculated by multiplying the annual return (net rent) by the inverse of the yield.
Capitalisation Approach
Refers to a method of computing the capital value of a property by multiplying its net annual income by the inverse of the capitalisation rate. Also known as the Investment Method of Valuation.
Capitalisation Rate
The yield at which the net income from an investment is discounted to ascertain its capital value at a given date.
Capitalisation Ratio
The relationship that each security (debt or equity) bears to total debt and equity. less intangible assets,expressed as a ratio.
Carpet Area
CarpetArea of a property is defined as the net usable area from the inner sides of one wall to another. The expression “carpet area” shall mean and comprise of the following: the carpet area of the demised premise.toilet areas within the demised premises.AHU roomis within the demised premises and dedicated service areas for the demised premises.
Carrying Charges
The cost of maintaining an income-producing property during periods when it is not doing so,e.g. maintenance costs of a new house that has not yet been leased or the cost of maintaining a house between two subsequent lease periods.
Cash Accounting
A system of accounting which takes into consideration incomes and expenditures only when money exchanges hands and not when they are transacted.
Cash flack
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.
Cash Flow
The actual or estimated movement of money by way of income and outgoings during the life of a project.Cash Flow Analysis ! Statement Cash flow portrayed as a table of
successive periods, i.e. monthly.quarterly or yearly. It has many applications relating to financial viability, e.g. forecasting losses,breakeven or profit: discounted cash flow exercises; or as a basis for budget control.
Cashier’s Cheque
A cheque where a bank draws a cheque 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’s Draft. Bank Cheque or Demand Draft in some countries.
Catchment Area
The area and a population from which a city or commercial property such as a mall or market attracts visitors or customers.
Category Killer
Category killer is a term used to describe a product, service.brand.or company that has such a distinct sustainable competitive advantage that competing firms find it almost impossible to operate profitably in that industry.The existence ofa category killer will eliminate almost all market entities.whether real or virtual.Also a national retail chain that is dominant in its product category 7 usually by offering an extensive selection at low prices — to the point of putting smaller players out of business.
Caveat
A document. which any person,who claims to have an interest in the property. may lodge against the title of property at the Registry of Land Titles.
Central Business District (CBD)
The functional centre around which the rest of a city is structured. Characterised by the presence of comparison retail.office accommodation. leisure facilities, buildings for recreational use. public museums. art galleries and governmental functions.
Central City
Main city of a cluster of cities.Also refers to the downtown area of a city.
Certificate of Deposit (CD)
A document issued by a bank or any other institution certifying that a person has deposited a certain sum of money with it for a specified period of time.The depositor is paid a fixed or floating rate of interest. but cannot withdraw any sum of money before the maturity date without paying a penalty (usually in form of forfeiting part of the interest promised).
Certificate of Occupancy
Certificate issued by a local authority stating that a building is fit for occupation.
Certificate of Practical Completion
Under a building contract, a certificate issued by the architect or a project manager 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 of the property to his own name if the original owner does not redeem the property within a specified date.
Certified Cheque
A personal cheque which a bank guarantees to pay. The bank usually ensures that the issuer has enough funds in his account to honour the cheque and does not clear other cheques if they deplete
the funds in the issuer’s account to the point where there is not enough money to cover the amount of the certified cheque.Banks also do not honour stop payments on certified cheques.
Certified Copy
A document that is certified by a competent authority to be a true copy of its original.
Chain of Title
The chronological list of owners of a property since the earliest records to the present times.
Chain Store
Several stores belonging to the same owner having similar layout design and other features which point to a central authority and which distinguishes them from others.
Chattel
Property, other than real estate.owned by an individual. Also called personal property.
City Development Corporation
Entities formed by state government in order to boost development activities in the city.Their responsibilities include both commercial and residential development of the city.They are also responsible for the overall infrastructural development in the city.
City Municipal Corporation
Government bodies which provide civic services to the citizens in the city. They also provide services to rural and urban villages which might include resettlement colonies, regularising unauthorised colonies, squatter settlements and slums.
Claim
Demand for some action or right.
Claw-Back
A lawful recovery of a part or the whole of a payment which was previously due.The term is specifically used in relation to tax — originally as “the clawing back” by a taxpayer of some element of tax paid by him which proved to be excessive or on other grounds recoverable;more recently it tends to be a “clawing back” by the tax authority ofsome element of payment previously made to a taxpayer by way of tax relief.
Clear Height
The vertical dimension from the finished floor level to the lowest underside point of the false ceiling.
Clear Title
Unencumbered title to real property. against which there are no claims. mortgages, voluntary liens, etc.
Clearing House
A place where. at agreed dates.transactions of a commercial nature are settled by financial payments which equal the net result of any transactions carried out by parties concerned since the
last date. In particular. that part of a financial market for commodities.securities or other assets which arranges for settlements of transactions at regular intervals.
Collateral (Security)
Traditionally used to mean some security in addition to the personal obligation of the borrower. but commonly used to refer to a security provided in addition to the principal one.
Commercial Mortgage Backed Security (CMBS)
Security issued on a portfolio of loans each of which is secured by commercial property
Commingling
The mixing of different kinds of funds. E.g. 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.
Commission
The payment of a percentage of a deal value as compensation to a broker for services rendered.
Commitment
1) Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title and the steps necessary to complete the transfer of title as contemplated by the buyer and seller.
2) A written promise to make or insure a loan for a specified amount and on specified terms.
Commitment to Insure
A promise by a title insurance company to insure any buyer at a specific premium upon purchase.
Common Area
The space within a shopping centre or other estate or campus-type development which is not intended to be leased.It may include landscaped areas.pedestrian precincts and service facilities.
Co—Mortgagor
When more than one person signs a mortgage,they are said to be to-mortgagors. Also refers to the person who guarantees the repayment of the amounts due or who signs the mortgage deed
along with the person receiving the money.
Comparables
Similar properties to which a property can be compared in order to determine its value.
Completion
The final step in the legal process of transferring ownership of a property. eg. when the documents in connection with a sale of land are signed. sealed and delivered.
Completion Certificate Statement
Certificate from the local authority stating that a building under construction is complete and ready for fit outs.
Compound interest
Interest that is paid on the principal as well as on the interest that accumulates over time.
Condition Precedent
A condition to be performed before an agreement becomes effective or some right vests or accrues.
Condominium
A grouping of apartment blocks or other buildings with several dwelling units. usually with a range of shared facilities such as swimming pools. tennis courts.health club and landscaped gardens. etc. Each unit is owned by a different person and the common areas are jointly owned by all such individual owners.
Construction Period
The length oftime elapsing from the date a project (building.complex. single units.infrastructure project, etc.) is started or deemed to start until the works involved are finished.
Consumer Price Index (CPI)
CPI is the measure of the level of inflation It measures the change in the cost of basic goods and services like housing, electricity, food. transportation, etc. in comparison with a fixed base
periodAlso called cost-of-living index.
Contract For Sale
An agreement whereby the seller (vendor) agrees to transfer an interest in land to a purchaser for a consideration.The agreement is effected by the exchange ofcopies of the agreement document
between the parties.Rights to possession are not conferred upon the purchaser until the purchase is completed but the purchaser has an insurable interest in the property from exchange of
contracts. A non-returnable deposit is usually paid by the purchaser on exchange.
Contraction Rights
A collective name for any clause in a lease allowing a tenant to reduce the leased space either temporarily or permanently (e.g. sub-lease,surrender. etc.).
Contractor’s Overhead
Overhead expenses like cost of office. interest costs. etc., that a contractor has to incur
Contractor’s Profit
The selling price of a property,excluding input costs like land,labour, materials. interest on loans and overheads.
Convenience Store
Small centrally located store featuring ease of access, late-night hours and a limited line of merchandise designed for the convenience shoppe.They typically sells staple groceries.
snacks and day to day use items.
Convertible Securities
A debt or equity security: that may under certain circumstances be exchanged for or converted into another security. generally
common stock.
Corporate Real Estate (CRE)
Real estate held by a corporation to support its core business.
Co-signatory
Someone. usually the guarantor.who signs a mortgage deed along with the person taking a loan.The liability for the loan falls upon the co—signatory in case the loanee defaults.
Cost-Plus Contract
A building contract where the price is based upon the estimated or actual cost of the works together with a proportion or agreed amount to represent the contractor’s profit.
Co-Tenancy
Tenancy taken on by two or more parties.
Co-Trustee
When a trust is managed by more then one trustee who have equal rights and powers they are called co-trustees.
Covenant
Any agreement whether written or implied between two parties to engage in or refrain from a specified action.
Covenant of Quiet Enjoyment
Clause in a lease which guarantees peaceful possession to a tenant.
Covenants Running with the Land
A promise contained in a deed to land or real estate which is binding upon the current owner and all future owners.
Credit Report
A report on the past history of a person or company in meeting his debt repayment obligations.
Cross-Easements
Mutual easements annexed to two adioining tenements e.g. mutual rights of support between two contiguous buildings in different ownership.
Cubic Foot
A unit measure of volume defined as the volume ofa cube with sides (length,width B: depth) of one foot: 35.3 cubic feet is equivalent to one cubic meter.
Cubic Yard
A unit measure of volume defined as the volume ofa cube with sides (length,width at depth) ofone yard; |.3 cubic yard equals one cubic meter.
Curable Depreciation
Building repairs which are necessary for maintaining the value of a property but which have not been made.
Current Assets
Accounting term for cash-in-hand.cheques in clearance, short-term debtors and other assets which are easily encashable.
CurrentYield
The actual annual returns in percentage terms from an investment. E.g. if a bond with a market value of $ | .000 gives an annual return of $75, its current yield is 15 per cent.
Tags: A-Z, ABC, real estate alphabet
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