Glossary

SKB Glossary

Terms	Definition
Advertising	Space in newspaper, magazine or other medium used create exposure on availability for a property that is up for sale or lease
Agency Fee	Fees that are charged to the vendor/landlord upon successful closing of transactions and signing of Sale and Purchase Agreement / Tenancy Agreement.
Appraisal	Estimation and opinion of the value of a property derived from analysis of transaction of similar properties
Appraised Value	Assessed value of real property in the opinion of a qualified appraiser or valuer
Appreciation	Increase value of an asset over the normal life-time
Assessment	The value set upon a property for taxation purpose
Auction	A public sale of property to the highest bidder
Certification of Fitness (CF)	A certificate or permit issued by a government authority indicating that the building is fit for use or occupyancy according to the laws that the authority enforces.
Client Referral	Leads from your existing client
Co-Agency	Joint effort by two or more different agency in concluding a dealing
Comparative Market Analysis (CMA)	A form to show the recently transacted properties in the surrounding area and the price. It will also indicate the market trends for the property of the area in question.
Commercial Property	Different types of property including office buildings, factories, shoplots etc. with one common trait, they have the capability of generating profit, in terms of capital gains or rental returns.
Condominium	A type of joined property in which certain section of the property is commonly owned and the other is individually owned
Conveyance	Transfer of the ownership of a property with unregistered title from the seller to the buyer
Earnest Deposit	Deposit towards the purchase of a real estate by a buyer to demonstrate that they are serious about wanting to complete the purchase
Encumbrance	Anything that affects or limits a title of the property such as mortgages, leases or restrictions
Escrow	Legal arrangement in which an asset is delivered to a third party to be held in trust pending a contingency or the fulfillment of a condition or conditions in a contract such as payment of a purchase price
Ethics	A code of professional standards, containing aspects of fairness and duty to the real estate profession.
Exclusive Marketing Agency	One agent or agency has the exclusive rights to sell a property.
Foreclosure	The legal process in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust".
Freehold	This is the legal term for the way that an owner holds the property. With freehold land the owner owns the property/land outright subject only to any mortgages, charges, easements, covenants etc. shown by the deeds.
Housing Tenure	Housing tenure refers to the financial arrangements under which someone has the right to live in a house or apartment.
Interest Rate	The amount a lender charges a borrower for a loan presented as a percentage of the total amount borrowed.
Land Bank	A supply of land allocated for a specific use
Lease	A contract granting use or occupation of property during a specified time for a specified payment
Leasehold	An estate or interest in the land defined by a lease contract for a specific period and usually for the payment of rent. The lease transfers the rights of occupation of the property to the lessee who is often subject to covenants as to use, term and rental etc.
Letter of Appointment (LA form)	A legal binding document in which the seller appoints the real estate agent or agency to rent or sell the property on the seller's behalf.
Letter of Offer	A legal contract stating the terms and conditions of a loan.
Listing Contract	Agreement whereby an owner engages a real estate company for a specified period to sell property, for which upon sale the agent receives a commission.
Mortgage	An instrument for lending money on real estate. The property is pledged as security for the loan, and the lender has the right to take over the property if the borrower defaults on the terms of the loan.
Mortgage Banker	A specialized lending institution that lends money solely with respect to real estate and secures its loans with mortgages on the real estate.
Offer Price	The buying price at which the prospective buyer is currently willing to purchase or rent the property.
Open Listing	A type of listing agreement in which more than one real estate agent may be employed to sell the property. The owner pays a commission only to the agent who finds the buyer.
Periodic Tenancy	A tenancy that is not bound to a lease with a fixed period, but follows another period such as a month-to-month tenancy or a week-to-week tenancy.
Pricing	Deals with the valuation (finance) of a property. There are three main methods: appraisals with comparable properties, capitalization rate comparisons with similar income producing properties, and discounted present value of expected future cash flows.
Prospecting	The step in the selling process that identifies potential customers for a product.
Qualifying	Process of demonstrating a person is credit worthy and has enough money to buy a property.
Real Estate Agency	A legal relationship in which an real estate owner-principal engages a real estate broker-agent in the sale of real estate property or real estate
Real Estate Agents	A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
Real Estate Developer	An individual or company who combines raw land, roads, utilities, buildings, financing, and promotion into a completed operating property
RealEstate Investment Trust (REIT)	Publicly traded trusts or associations that pool investors' capital to invest in a variety of real estate ventures, such as apartment and office buildings, shopping centers, medical facilities, industrial buildings, and hotels.
Real Estate Negotiators	A person representing the real estate company to negotiate and transact the sale of real estate on behalf of the property owner.
Refinancing	Refinancing is the process of obtaining a new loan to replace an existing loan or lease balance.
Sale and Purchase Agreement (SPA)	A written contract signed between the buyer and seller stating amongst others, the terms and conditions under which a property will be sold.
Second Mortgage	A second loan on real estate that already has a mortgage. It is subordinate to the first mortgage. Usually of shorter term and often at a higher interest rate.
Stamp Duty	A government tax on the execution of certain documents, such as the conveyancing of land or property purchases.
Subletting	Letting of the property by the leaseholder to a third party.
Tenant	A person who leases or rents a premises from a landlord. The premises rented is often an apartment, room or house.
Tenancy Agreement	This is a legal binding document containing details about the rental terms. Sometimes known as a rental agreement.
Title	Title is a legal term for an owner's interest in a piece of property. It may also refer to a formal document that serves as evidence of ownership.
Trustee	A person (or institution) to whom legal title to property is entrusted to use for another's benefit.