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Property Terms

  • Acre

    A unit of area.  One acre is equal to 4,047m2. The acre is often used to express areas of land. An acre is approximately 40% of a hectare.
  • Agreement of sale

    Written agreement setting out the terms and conditions of a property sale.
  • Amortization

    The periodic payment amount due on a loan based on the amortization process
  • Appreciation

    A term used in accounting relating to the increase in value of an asset. In times of high inflation, appreciation will be common to all balance sheet assets. Generally, the term is reserved for property or, more specifically, land and buildings. In any viable modern economy, such property tends to increase in value over the years - if only because of the scarcity of usable land forces its price in a competitive situation
  • Capitalization rate

    Capitalization rate (or "cap rate") is a measure of the ratio between the net operating income produced by an asset and its capital cost (the original price paid to buy the asset)
  • Commercial property

    Refers to buildings or land intended to generate a profit, either from capital gain and/ or rental income. Commercial property includes office buildings, industrial property, medical centers, hotels, retail stores and many states residential property containing more than a certain number of units is regarded as commercial property.
  • Conveyance

    Legal process of transferring the ownership of a property from one to another.
  • Depreciation

    Depreciation is a term used in accounting, economics and finance to spread the cost of an asset over the span of several years. In simple words we can say that depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, economic obsolescence, depletion, inadequacy, rot, rust, decay or other such factors.
  • Due diligence

    The process of gathering information for assessment in property acquisition. Due diligence should include fact verification and can be thought of as an investigation of sorts
  • Greenbelt

    A green belt or greenbelt is a policy or land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighbouring urban areas. Similar concepts are greenways or green wedges which have a linear character and may run through an urban area instead of around it. A green belt is basically an invisible line that goes around a certain area, stopping people from building there so that some of the wild and agricultural land can be saved