call
A demand for repayment of a 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 agreements between 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 and/or in defined circumstances. It is binding against a third party only if registered as an estate contract.

cancellation clause
Clause in an agreement that sets out the conditions under which, and the terms on which, the contract can be cancelled or terminated.

cap
The upper limit of something. For example, a cap of 7 per cent in a floating rate interest agreement means the maximum interest charged cannot exceed 7 per cent.

capita
Heads. Usually used in conjunction with the prefix “per.” Per capita means per head.

capital
Wealth usually derived from direct or indirect savings, in the form of permanent or durable assets or employed in industrial, commercial or other productive enterprises as the financial base upon which they are established and operate. This is with a view to making a profit, which may be either income or a capital gain, or both. Typically, it is the money invested by the purchase of stocks and shares in a corporate body, the aggregate of which represents the capital of that company. In taxation, distinction between capital and income has to be drawn, as different rates of tax often apply to each.

Capital Asset Pricing Model (CAPM)
Quantitative model explaining asset returns based on the relative risk of associated returns and the risk-free rate.

capital assets
Permanent assets the benefits of which are expected to be enjoyed beyond the financial year in which they were purchased. For example, trucks bought by a transport company are capital assets for the buyer but for the automobile company that makes and sells them, they are stocks or inventory.

capital expenditures
Money spent on assets the benefit of which is expected to be enjoyed well beyond the financial year in which such expenditure is incurred. For example, expenditure incurred on buying plant and machinery, land and buildings, etc.

capital flow
Movement of funds between different property markets/ sectors.

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 improvement
Work carried out on an asset with a view to enhancing its value, but not including repairs or maintenance.

capital markets
Markets which deal in financial products such as stocks, bonds, etc.

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.

capitalization
The estimation of a property’s value on the basis of its earning capacity.

capitalization approach
Refers to a method of computing the capital value of a property by multiplying its net annual income by the inverse of the capitalization rate. Also known as the Investment Method of Valuation.

capitalization rate
The yield at which the net income from an investment is discounted to ascertain its capital value at a given date.

capitalization ratio
The relationship that each security (debt or equity) bears to total debt and equity, less intangible assets, expressed as a ratio.

capitalized value
The present value of a property as determined by capitalizing its future estimated income.

carpet area
Carpet area 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 room/s 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, eg., maintenance costs of a new house that has not yet been leased, or the cost of maintaining a house between two leases.

case law
Judicial interpretation of statutes in areas not specifically covered by any laws or judgments that interpret laws in a manner not originally intended by the framers of that law. The judgments, thus, create precedents which form the basis of future interpretations.

cash accounting
A system of accounting which takes into account incomes and expenditures only when money exchanges hands and not when they are transacted.

cash back
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 flows
The actual or estimated movement of money by way of income and outgoings during the life of a project.

cash flows analysis / statement
Cash flow portrayed as a table of successive periods, eg., monthly, quarterly or yearly. It has many applications relating to financial viability, eg., forecasting loss, breakeven or profit; discounted cash flow exercises; or as a basis for budget control.

cashier’s check (cheque)
A check where a bank draws a check 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 Check or Demand Draft in some countries.

casino
A licensed public room or building for gambling and other entertainment.

catchment area
Area served by a commercial property such as a mall or market, or an area serviced by a school or a hospital. Also means the area drained by a river.

causeway
Raised road usually across low lying lands.

caveat (SGP)
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.

caveat emptor
Latin for buyers beware. Legal term meaning the quality risk in a transaction vests with the buyer, unless specifically stated otherwise or unless fraud or deception can be proved. Most countries, however, now have strict laws protecting buyers from shoddy workmanship, finish and quality.

cavity wall
Two brick walls joined at the top and hollow inside.

cc&r’s (covenants, conditions and restrictions)
Limits and restrictions placed on properties.

central business district (cbd)
The functional center around which the rest of a city is structured. Characterized by the presence of comparison shopping, 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 means the downtown area of a city.

Certificate of Deposit (CD)
A document issued by a bank or 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, surveyor or 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 to the property to his own name if the original owner does not redeem the property within a specified date.

certified check
A personal check which a bank guarantees to pay. The bank usually ensures that the issuer has enough funds in his account to honor the check and does not clear other checks if they deplete the funds in the issuer’s account to the point where there’s not enough money to cover the amount of the certified check. Banks also do not honor stop payments on certified checks.

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.

channel
A passageway for the passage of wiring, sewage, water or gas. A channel may be open or covered, on the ground or underground. Also means a long, open-ended depression through which water flows.

Chanote
The highest standard for land ownership in Thailand, which includes all the legal rights to that land. The deed is evidence of ownership and proof that the land has clearly defined boundaries.

charge
Acts as an encumbrance on title and involves no transfer of title to, or of possession of, the property as security for the loan. The property is designated as that which can be taken in execution of the debt on default.

chattel
A property other than an interest in land. Property, other than real estate, owned by an individual. Also called personal property.

Chinese wall
A term used, particularly in relation to the world of business and finance, to describe an intangible barrier existing within an organization to prevent the improper flow and subsequent use of information from someone who is on one side of the barrier to anyone. The type of information not allowed to cross the barrier is that which, if disclosed, would be a breach of confidentiality and prejudicial to one or more clients of the organization or to anyone else to whom they owe a duty. Such improper disclosure can only be prevented if the operational system adopted by an organization is efficient, understood by all to whom it applies, and imposes adequate penalties if breached.

city
Large urban settlement with modern amenities.

civil action
Legal action for remedy against some wrong that is not criminal in nature.

civil law
All laws other than laws dealing with crimes.

claim
Demand for some action or right.

class action
Legal action brought by a group of people who have similar claims against a common party.

claw-back
A lawful recovery of part or the whole of a payment which was properly due at the time it was made. 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 of some element of payment previously made to a taxpayer by way of tax relief.

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.

commercial property
Property that is used for business purposes only.

commingling
The mixing of different kinds of funds. For example, 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 the 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 center or other estate or campus-type development which is not intended to be let. It may include landscaped areas, pedestrian precincts and service facilities.

common wall
Wall separating two properties owned by different people.

community property
Property owned jointly by a husband and wife. Also, in some countries, certain properties like forests, etc., owned collectively by the local, indigenous residents where individual members of that community have the right to use that property but no right of individual ownership or sale. The transfer of such properties to outsiders is not allowed.

community shopping center
Mid-sized shopping center.

co-mortgagor
When more than one person sign a mortgage, they are said to be co-mortgagors. Also means the person who guarantees the repayment of the amounts due, 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.

compensation
Payment made for damages. Money paid by the government following the acquisition of land.

completion
The final step in the legal process of transferring ownership of property, eg., when the documents in connection with a sale of land are signed, sealed and delivered.

completion certificate/statement
Certificate from a local authority stating that a building under construction is ready and complete.

compound interest
Interest that is paid on the principal as well as on the interest that accumulates over time.

compulsory purchase
The acquisition, in accordance with statutory procedures and practice, of interests in land by a public or private body empowered so to do by an Act and authorized to do so by the appropriate minister’s or government entity’s confirming a compulsory purchase order. Such a purchase entitles the purchaser to deprive the, usually unwilling, owner of his property on payment of such compensation as is provided for by statute.

computer listing
A listing (of real estate, among other things) done on the internet that allows any user to zero in on their requirements (area of apartment, number of rooms, etc.).

concealed heating
Heating system which passes hot air, steam or hot water through a network of pipes or coils concealed in walls, ceilings or floors.

concession
Permission granted by the owner of land or property to another party to use the said land or building for some business, in return for some monetary consideration.

condition precedent
A condition to be performed before an agreement becomes effective or some right vests or accrues.

conditional sale of real property
Land sale where the consideration amount is paid in installments. The title vests with the seller until the full amount is paid. The buyer has only equitable title until he pays the agreed amount in full.

conditional sales contract
Sale of real estate where the title remains with the seller until the buyer fulfills certain conditions.

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.

condominium map (plan)
Map showing the common and private areas in a condominium.

condominium owners’ association
A body formed by the owners of individual dwelling units in a condominium that looks after and maintains the common services essential for the use of the condominium. It also represents the common interests of individual dwelling unit owners with outsiders.

conduction
The transmission of electricity or heat.

conduit
Channel through which something else passes.

consideration
Strictly the payment, promise, object, or forbearance given by one party to a contract in return for a promise or pledge given by the other party. In property law, the term is applied particularly to the price offered by the purchaser in a contract to acquire an interest in land.

consolidation
The merger of two or more properties into one.

construction cost
The total cost of building a structure or house.

construction loan
Loan taken to finance the cost of construction.

construction management
Where a contractor is engaged to manage the construction of a project for an agreed fee and the trade contractors are engaged either directly by the client or on an open book basis.

construction period
The length of time elapsing from the date a building or other similar project is started, or deemed to start, until the works involved are finished. The finishing date is frequently known as the date of practical completion, being the date when the architect certifies that all the relevant works have been carried out in a satisfactory manner.

consultant
A company or individual who provides specialist advice and or services (typically architect, engineer, project manager).

consumer price index
Official indicator of price index of items used by a person in his daily life.

contemporary architecture
Modern architectural design.

contiguous
Bordering on.

contingency
Something that depends on something else to happen.

contingent fees
Fees that are paid only if some event takes place in future.

contract
Legally binding agreement.

contract for sale
1) Of land: 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 of copies 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. 2) Of goods: The transfer of ownership of chattels from a seller to a buyer for a money price where ownership is transferred immediately.

contract rent
The amount of rent stipulated in the lease contract.

contraction rights
A collective name for any clause in a lease allowing a tenant to reduce in size either temporarily or permanently (eg., sub-lease, surrender, etc.).

contractor
One who undertakes to build a building or other structure in return for a fee.

contractor’s overhead
Overhead expenses like cost of office, interest costs, etc., that a contractor has to incur.

contractor’s profit
Selling price of a property minus input costs like land, labor materials, interest on loans and overheads.

convertible securities
A debt or equity security that may under certain circumstances be exchanged for or converted into another security, generally common stock.

convex
Curved outward.

convey
To transfer title.

conveyance
The act of transferring title.

conveyance tax
Tax levied by the (usually local or state) government on the value of a property sale.

conveyancing
The legal procedures employed in the creation, transfer and extinguishment of ownership of interests in land, including preparation of contracts, enquiries, searches, land registration (where appropriate) and completion of the transaction.

cooperative apartment
A form of apartment ownership where the property itself is not sold; only shares in the company which owes the apartment are sold; one share entitles the owner to an apartment. Not very popular in many countries as financing is difficult to obtain in the absence of clear cut apartment ownership.

corner lot
A property located at the crossing of two streets and having a frontage on both.

Corporate Real Estate (CRE)
Concerned with property related infrastructure which is integral to the running of a business.

corporation
A corporate body that is set up for the purpose of running a business.

corridor
A long passage in a building usually with rooms on either side.

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 of living index
An index that tracks the living expenses of an average person.

cost report
A regular report that monitors the commitment and expenditure against the budget and may forecast the anticipated final cost.

cost-benefit analysis
A method or technique to assist in decision-making, involving the consideration and measurement in financial terms of all costs and benefits, including social aspects, when comparing alternative projects or courses of action.

cost-of-living clause
A clause in a contract, eg. a lease providing for adjustment in price, rent or other financial item based upon an index such as the Retail Price Index.

cost-plus contract
A building contract where the price is based upon the estimated or actual cost of the works together with (i.e., “plus”) a proportion or agreed amount to represent the contractor’s profit.

co-tenancy
Tenancy taken on by two or more parties.

co-trustee
Joint trustee.

counsellor
Lawyer.

counter offer
A rival offer made in response to an initial offer.

county
Administrative division within a country.

covenant
Any agreement whether written or implied between two parties.

covenant of quiet enjoyment
Clause in a lease which guarantees peaceful possession to a tenant.

covenants running with the land
Easements that pass with the title to the land.

creative financing
Innovative financing options in lending.

credit
The act by a bank of transferring money into a customer’s account. It is also an accounting term for funds that have or will be received.

credit report
A report on the past history of a person or company in meeting his debt repayment obligations.

critical path analysis
A management technique (especially in project management) whereby a project is analyzed, and its activities and events (an activity taking place between two events) are portrayed as a network. The network may be used to demonstrate the project’s duration.

cross section
Graphic representation of a section formed by a plane that cuts an object, usually at right angles to its axis.

cross-easements
Mutual easements annexed to two adjoining tenements, eg., mutual rights of support between two contiguous buildings in different ownership.

cubic content
The total volume in cubic feet of a building.

cubic foot
The total volume enclosed by a cube that is 1 foot long x 1 foot wide x 1 foot deep. 35.3 cubic feet is equivalent to one cubic meter. A metric unit of volume, commonly used in expressing concentrations of a chemical in a volume of air.

cubic yard
The total volume enclosed by a cube that is 1 yard long x 1 yard wide x 1 yard deep. 1.3 cubic yard equals one cubic meter.

cul de sac
A street that is open at one end only.

culvert
Drainage ditch which passes under a ramp or road.

curable depreciation
Building repairs which are necessary for maintaining the value of a property but which haven’t been made.

curb line
The line separating the sidewalk or footpath from the road. Also called kerb line.

current assets
Accounting term for cash-in-hand, checks in clearance, short-term debtors and other assets which are easily encashable.

current cost accounting
A method of preparing a company’s accounts in which the fixed assets are stated at their value to the business having regard to current rather than historic costs. The net current replacement cost is generally used, i.e., the present cost of acquiring a replacement asset that will provide the same service and output.

current liabilities
Short-term debts.

current ratio
The relationship of current assets to current liabilities, expressed as a ratio.

current yield
The actual annual returns in percentage terms from an investment. For example, if a bond with a market value of $1,000 gives an annual return of $75, its current yield is 7.5 per cent.

curtain wall
Exterior wall which lends no structural support to a building, but acts merely to enclose.

cut-off date
1) The date on which an agreement or clause in an agreement ceases to have effect. 2) The last day of a period for calculating a certain payment or cost relating to an agreement.