A
Abatement
notice A
notice served on the owner(s) or occupier(s) of a property from which a
private nuisance arises, warning them of the intention to enter on the
land in order to abate the nuisance.
Absolute
title 1.
The right of ownership of a mortgage deed, which gives the right, in
certain specified circumstances, to demand repayment in full, of the
outstanding debt than the due date. 2. A clause in a deed or contract,
which provides for the early termination of an exciting interest in land,
in certain specified circumstances, thereby advancing the future interest.
Agreement
for lease/sale
A contract to enter into a lease (or sale), which in order to be
enforceable either must be evidenced in writing and signed by the person
against whom action is taken for the breach of the alleged contract and
there must be a sufficient act of part performance.
Alternative
user value
The value of land and buildings which reflects a prospective use which is
different from that of the current use.
Amortisation
1.(UK) The concept of writing off the capital cost of a wasting physical
asset by means of a sinking fund. 2. (USA) Payment of a debt in equal
installments of principal interest, as opposed to interest -only payments.
Anchor
tenant
One or more department or variety chainstores, or supermarkets, introduced
into a shopping centre in key positions to attract the shopping public
into the centre for the purpose of encouraging other retailers to lease
shops n route . The larger the developments the more anchors required.
Annuity
A sum of
money paid each year during the life of the recipient. An annuity is
usually paid as a legal obligation under a contract or undertaking, as
through a pension scheme, and may be paid in installments more frequently
than once every twelve months.
Asset
valuation
In the property market this expression is applied to the valuation if land
and buildings or plant and machinery. The term is often used to describe
an expert opinion of the worth of a property which may be incorporated
into company accounts, where the ownership of the asset is not necessarily
to be transferred but the valuation is required for the company takeovers,
share flotation or mortgages.
Assignment
The
transfer of a property interest, especially a lease, from one party to
another.
Atrium
An
entrance hall of a building, often rising through a number of storeys and
containing lifts, reception areas and plants. Originally the hall or chief
apartment of a Roman house.
B
Balloon
payment A repayment of a
loan bond, usually but not necessarily the final repayment, which is
larger in amount than other installments.
Bare
shell Depicts the
condition of any property after completion of construction activity and
installations of basic building services. A bare shell includes basic
flooring - tiled, mazaic, cement or granite and plastered walls. Apart
from this, pantry and toilet facilities may also be operational in such
condition .
Basic
rent A monthly rental net
of maintenance and interest costs charged or quoted by landlords for any
property. The base rent comprises of only the payment made for
Usage
of the subject property under a lease agreement. Imputed costs such as
holding costs, fit out costs and building service charges are not usually
included in the base rent.
Bayana
An Indian term used to
denote the token money given to the landlord to informally freeze
negotiations on a particular property, after the initial terms and
conditions have been formalised.
Breach
of contract An act, or
omission, contrary to enforce specific performance to rescind the contract
and / or to claim damages, the remedy available depending upon the nature
of the breach.
Broker/dealer
A person or company who acts as a medium of bringing owners and proposed
buyers together with a view to complete a real estate transaction.
Brokerage
1. Commission paid to a
broker. 2. The activity of a broker in bringing together two parties in a
transaction.
Building
bye laws Local authority
control of building standards promulgated to regulate and control the
usage of land, property and areas in cities and towns.
Building
contract A contract
between an owner or occupier of land and a building contractor, setting
forth the terms under which construction is to be carried out, basis of
remuneration, time scale, and penalties, if any, for failure to comply
with terms of the contract.
Business
centre Commercial
premises usable by the occupiers for a short period on a membership basis
of the centre. Usually, a business centre charges for the full service
accommodation, which is generally substantially higher than the rental of
a standard office space, and higher than the rental of a standard office
space, and usually includes cost of HVAC, housekeeping, electricity, and
security systems.
Business
park A landscaped area
containing high tech, other amenities for business purposes, as a distinct
from high-tech park or a science park. Building density is lower than
would be usual in a traditional industrial estate. Business parks are
preferentially located where motorway, rail and airport communications are
within a short distance .
Buy-out
rate In a funding
agreement between a developer and a prospective purchaser, the
pre-determined investment yield which will be used to capitalize the
annual income receivable at the time of sale to determine the buy out
price.
C
Capitalisation
1. At a given date the
conversion into the equivalent capital worth of a series of net receipts,
actual or estimated, over a period.
2.
A method of calculating a final purchase price for a development using an
agreed formula to convert actual, or assumed, income from initial lettings
into a capitalism. Such capitalised sums may be offset against a
purchasing fund's interim finance payments, any excess being paid to the
developer.
3.
In relation to a company's reserves, the conversion into capital of money,
which is then distributed as a capitalisation issue.
Catchment
area 1. The area of land
from which finds its way into a particular watercourse, lake or reservoir.
2.
By analogy, the area which contains those people who can be expected to
obtain goods, services, employment or other benefits from a particularly
property . More especially related to retail premises, where the success
of forecasting depends on the accuracy of estimating the number of
purchasers (catchment population) likely to be attracted from the
different parts of the area and the average expenditure which might be
expected from them.
Central
business district The
functional centre around which the rest of a city is comparison shopping,
office accommodation, leisure facilities, buildings for recreational use,
public museums, art galleries and governmental functions. Generally the
area of highest land values within a city.
Clearance
area An area which is to
be cleared of all buildings . Generally promulgated by way of a government
declaration, which is normally followed by the acquisition of the land and
the clearance of the area.
Completion
certificate/statement 1.
(UK) statement prepared by solicitors, usually those acting for a
purchaser and a vendor respectively, following the conveyance of an
interest in property, giving a schedule of sums received leading to a
balance being the final amount due to the vendor. In some case the
statement is prepared at a later date and may show a figure recoverable by
the purchaser from the vendor.
2.
A certificate issued by the local development authority certifying that
all necessary works have been completed and that the property is fit for
occupation.
Condominium
(USA) A building or a structure of two or more units, the interior space
of the individually owned and the balance of the property (both land and
building) being owned in common by the owners of the individual units.
Conveyance
A document transferring title to land from one person to another.
Current
yield The remunerative
rate of interest which is, or would be, a appropriate at the date of
valuation, assuming the property to be let at its full rental value. It
will be the same as the reversion yield where the reversion is to full
rental value, and the same as the term yield where the rent receivable
under the lease is full rental value.
D
Developer
An entrepreneur who has
an interest in a property, initiates its development and ensures, that
this is carried out ( for occupation, investment or dealing) and from the
outset accepts the responsibility for providing or procures the requisite
funds needed to finance the whole project.
Development
control The powers of a
local planning authority t control the development and use of land, which
includes inter alia,
a
the refusal or grant (with or without conditions ) of planning permission;
b
the issue of enforcement notices;
c
the making of revocation, modification or discontinuance orders;
d
the grant or refusal of listed building consents;
e
the designations of conversion areas;
Development
yield In a valuation to
ascertain a ground rent, the rate at which costs are decapitalised to find
the annual deduction from the occupation rents; it comprises:
a
an investment yield
b
an annual allowance for developers risk and profit and, in some instances
c
an annual sinking fund element
Discounted
cash flow analysis
Techniques used in investment and development appraisal whereby future
inflows and outflows of cash associated with a particular project are
expressed in present -day terms by discounting . The most widely used
forms of DCF are the internal rate of return (IRR) and net present value (NPV).
The techniques may be used for such purposes as the valuation of land and
investment, the ranking of projects or their components.
E
Easement
(UK) A right appurtenant to a parcel of land entitling a dominant owner to
use the land of the servient owner in a particular manner, or constraining
the legal rights otherwise enjoyed by the servient owner, eg. A right of
way, right to light, right to support. Strictly speaking, easements cannot
exist "in gross", ie personal and unattached to the ownership of
land, but rights similar to easements can be created by statute, usually
for the benefit of public utility undertakings, and these are commonly
referred to as "statutory easements".
Effective
rent The gross rent
payable per month by the occupiers which includes the base rent,
maintenance charges, imputed costs of loss of interest on security deposit
and rental advance. The effective rent indicates the total cash outflow of
an occupier every month on account of leasing any property.
Equity
linked mortgage A
mortgage whereby the interest on the principal in part or in whole is
calculated, usually yearly, by reference on the security, eg. It may
reflect annual increase or possible decreases, in the annual return on, or
the value of, the property in which the mortgage is secured.
Escalation
clause specified in lease
agreements wherein renewals of lease period are built in. It involves an
increment in the base rent at every renewal of a lease agreement in the
base rent at every renewal of a lease agreement and is generally a
percentage rate that is either pre agreed or negotiated before the renewal
of the lease agreement.
F
Facilities
management The
coordination of many specialist disciplines to create the optimum working
environment for staff.
Fail
rent The rent determined
by a rent officer (or, on appeal, by a rent assessment committee) under a
regulated tenancy and registered.
FERA
An act to regulate
certain payments dealing in foreign exchange, securities, the import &
export of currency and acquisition of immovable property by foreigners.
Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of
1973, It is mandatory for foreign corporations, which are not incorporated
in India to obtain permission from the Reserve Bank Of India (RBI) to
acquire, hold, transfer or dispose off in any manner (expect by way of
lease for a period not exceeding five years) any immovable property in
India.
Fire
certificate A certificate
covering matters of safety required under the legislation for hotels,
boarding houses, factories, offices shops and railway premises, excluding
those buildings containing less than a minimum number of employees. In
order to obtain a fire certificate, one must apply to a fire certificate,
one must apply to a fire officer, who then inspects the building and
issues a list of requirements (eg. Fire doors). Once the fire officer is
satisfied that those requirements have been met he will issue the fire
certificate. It enables fire officers, in the event of an emergency, to
have prior knowledge inter alia of the permitted number of people on each
floor; it also informs officials if any authorised inflammables
/explosives materials on the premises.
Fitouts
Relate to the interior
permanent furnishings required in a property including HVAC ducting, fire
protection system implementation, establishment of workstations and
telephone/computer cabling among other, in order to make the property fit
for usage.
Flatted
factory An industrial
building of more than one storey, usually with two or more goods lifts,
and constructed or converted for multiple occupation. The building is
subdivided into small, separately occupied units which are used for
manufacturing, assembly and associated storage.
Force
majeure A force, which
cannot be resisted, in other words, something beyond the control of the
parties involved . It includes acts of God and acts of man, eg. Riots,
strikes, arson. In many contracts and insurance policies, specific
provision is made for damage or injury arising from force majeure. For
example, the financial liability of a building contractor for failure to
complete by a specific date may be relieved to the extent it was caused be
force majeure. This is a common clause in most property contracts.
Foreclosure
1. (UK) The mortgagees
restricted power to extinguish the mortgagor's right of redemption by
transferring the mortgagor's interest in the property to himself, if the
mortgagors defaults in paying his dues or in complying with any other
terms of the mortgage deeds. 2. (USA) The legal process by which a
mortgagee can sell the mortgagors interest in the property to satisfy
debt: also called "foreclosure sale". Also applied to the
extinguishment of a mortgagors right of redemption..
Freehold
In general parlance this is used as shorthand for the tenure of an estate
in fee simple absolute in possession. Strictly speaking, however, freehold
includes fee simple, entailed interests and tenancies for life.
Frontage(line)
The full length of a plot of land or a building measured alongside the
road on to which the plot or building fronts. In the case of contiguous
buildings individual frontages are usually measured to the middle of any
party wall.
G
Greased
lease back The disposal
by a freehold or leasehold owner of his interest on a property or
leasehold interest where the rent payable is geared to a fixed percentage
of some variables, often rack-rental value.
Gold
cause (UK) A clause in a
lease which provides for the rent to be reviewed by reference to the price
of gold.
Green
field site An area of
land, usually in the edge of a town or city or away from substantial urban
areas, hitherto undeveloped but for which development is now proposed.
Gross
External Area (GEA) The
aggregate superficial area of a building taking each floor into account.
As described in the RICS/ISVA Code of Measuring Practice (UK), this
includes: external walls and projections, internal walls and partitions;
columns; piers, chimney-breasts, stairwells, and lift wells; tank and
plant rooms, fuel stores whether or not above main roof level and
open-sided covered areas and enclosed car-parking areas, terraces etc.
H
Hi-tech
building(high technology
building) Primarily a modern industrial building which is particularly
suited to the flexible uses and space needs of business organisations
engaged in modern technologies. Such activities usually require more
office or laboratory space than a traditional factory and also more
sophisticated and adaptable installations for services and communications.
High
point loading A
concentration of abnormally heavy floor-loading at one point or more
particular places in a building or other structure where extra support may
be required.
HVAC
Refers to the heating,
ventilation, air conditioning system installed in a buildings to regulate
temperature. This includes air conditioning plants, chillers and ducting
systems, which ensure the uniform transfer of the cold or hot air, as the
case may be throughout the building.
I
Indian
Stamp Act, 1899 A legal
statute, which provides for the payment of stamp duty in case of all real
estate transactions to duty to the local government. The value of the
stamp duty depends on the rental payable and the lease term or the sale
value as the case may be. This duty is paid by purchasing non judicial
Indian Stamp Paper, on which the lease/sale agreements are documented.
Improvements
Generally, physical
changes which enhance the capital value of land or buildings . These may
include additional buildings, extensions to existing buildings,
installation of new services, eg. Central heating and air conditioning and
infrastructure works. On the other hand, mere replacement by a modern
equivalent if something worn out would normally be regarded as a repair
rather than an improvement. The distinction has legal and taxation
consequences.
Indenture
a deed between two or
more parties, each party having his own copy. Originally copies were all
included in a single document from which each was torn or cut along a wavy
(intended) line.
Institutional
investors These are
generally taken to include banks, pension funds, insurance companies, unit
trusts and investment trusts, which are together commonly referred to in
the investment field as the "institutions".
Investment
yield The annual
percentage return which is considered to be for a specific valuation in an
investment being expressed as the ratio of annual net income (actual or
estimated) to the capital value. It is therefore a measure of an
investor's opinion about the prospects and risks attached to that
investment. The better the prospects and lower the risks, the lower the
expected yield and thus the greater the capital value. The required yield
from an investment is estimated in the light of such factor as:
a
the security in real terms of the capital invested;
b
the security in real terms and regularity of income;
c
the ability to adjust the income to reflect market conditions;
d
the complexity and cost of management;
e
the ease and likely cost of realizing the capital;
And
f
the tax position
Internal
rate of return (IRR) 1.
The rate of interest (expressed as a percentage) at which all-future cash
flows (positive and negative) must be discounted in order that the net
present value of those cash flows should be equal to zero. It is found by
trial and error by applying present values at different rates of interest
in turn to the net cash flow. It is something called the discounted cash
flow rate of return.
2.
An alternative explanation might be: the highest rate of interest (
expressed as a percentage) at which funded f cash flow generated is to be
sufficient to repay the original outlay at the end of the project life.
J
Joint
agent One or two or more
agents jointly instructed by a principal to act on his behalf. In the case
of estate agents this is normally on the basis that if any one of the
agents effect the sale, letting or other joint agent(s) will share the
remuneration in agreed proportions. None of these agents would be entitled
to a commission if the transaction is concluded as a result of someone
else's introduction.
Joint
sole agent One of two or
more agents jointly instructed as the only agents entitled to represent
the principal. It is customary for the joint agents to share any
commission earned on an agreed basis, irrespective of which agent effects
the sale or letting.
K
Kiosk
A small enclosed retailed outlet, normally without toilet facilities
and in the retail area, frequently located in a public concourse or other
place where it may remain open place where it may remain open only during
peak times and be closed securely when there are no customers. Kiosks are
now sometimes included in managed shopping schemes.
L
Land
assembly The process of
forming a single site from a number of land, usually for eventual
development or redevelopment. This will include acquisition of individual
interest the eventual development or redevelopment . This will include
acquisition of the individual interests, removal or discharge of any
restrictive covenants or other encumbrances and obtaining physical
possession, when required, from occupiers.
Landlord
The owner of an interest
in land who, in consideration of a rent or other payment (eg. A premium),
grants the right to exclusive possession of the whole or part of their
land to another person for a specific or determinable period by way of a
lease or tenancy.
Lease
agreement An agreement,
usually written, between the lessor and the lessee, which allows for the
conveyance of property to the tenant under a contract, and confers usage
and control rights to the tenant for the duration of lease. Apart from
financial terms and conditions, several clauses describing the other
binding terms and conditions of the agreement are also documented.
License
The lawful grant of a
right to do something which would otherwise be illegal or wrongful. It may
be gratuitous, contractual or coupled with an interest in land. The
grantor of license is the licensor and the grantee is the licensee. A
gratuitous ("Mere" or "bare") license can always be
revoked (ie. Cancelled), but revocability of a contractual license depends
on the terms of the contract. A license coupled with an interest in land
may be irrevocable and unlike the other two categories, may be binding on
successors in title of the licensor. One example of license is permission,
usually required in writing, given specifically by an owner to a tenant,
enabling something to be done which otherwise would be in breach of a term
of the lease. A license does not itself transfer any interest in the land
but may authorise the licensee to enter the licensor's land for some
specific purposes of the license; the licensor may enter the land and use
it in any way not inconsistent with the rights of the licensee. However, a
landlord may authorise by license some act or omission by a tenant, which
would otherwise be a breach of the terms of the lease.
Load
bearing The capacity of
an element in a building structure to support a weight in addition to its
own, whether vertically or laterally. Thus a load bearing wall is one
which supports part of the structure in addition to its own weight.
M
Maintenance
In property parlance, the
keeping of a building, structure or other physical feature in a specified
eg. Wind and weather tight, condition. The approved cost of maintenance
may be deductible for income taxation.
Mattha
Frontage of a building
with the main road
Mortgage
The conveyance of a legal
or equitable interest in freehold or leasehold property as security for a
loan and with provision for redemption on repayment of the loan. The
lender (mortgagee) has powers of recovery in the event of default by the
borrower (mortgagor). A mortgage is a form of land charge and can be
either legal or equitable.
N
Negotiation
Discussion, written or
otherwise, between two or more parties no different sides, the aim being
to reach a common agreement.
Non
confirming use The use of
a property which does not conform to the allocation of the area for
planning purposes. Such a property may have been built in conformity with
the planning requirement at the time and a policy change ensued; more
usually, the property was constructed before planning control was
introduced.
Net
present value method (NPV) A
method used in discounted cash flow analysis to find the sum of money
representing the difference between the present value of all inflows and
outflows of cash associated with the project by discounting each at a
target yield.
O
Open
market value 1. The best
price which might reasonably be expected to be obtained at arms' length
for an interest in a property at the date of valuation, subject to any
statutory assumptions which may be required.
2.
For the purpose of asset valuations this is defined by the Royal Institute
of Chartered Surveyors (UK) as the best price which might reasonably be
expected to be obtained for an interest in a property at the date of
valuation assuming:
-
a
willing seller
-
a
reasonable period in which to negotiate the sale
-
that
values will remain static during that period
-
that
the property will be freely exposed to the market; and
-
that
no account will be taken of any higher price that might be paid by a
person with a special interest.
Outgoings
Costs incurred by the
owner of an interest in property, usually calculated on a yearly basis. Eg.
management, repairs, rates, insurance and rent payable to the holder of a
superior interest, as appropriate to his contractual or other liabilities.
It is prudent to make annual provision for future items involving
expenditure at intervals of more than one year.
P
Patwari
Usually denotes the
person appointed by a local government or land authority to maintain and
update land ownership records for a specific area as well as to undertake
the collection of land taxes
Penal
rent A financial
punishment of a tenant for failing to honour his obligation to pay rent at
the proper time, taking the form of a vastly higher figure being payable
during the period of default
Permitted
one Colloquially, either
1. A use authorised by a grant of planning permission or
2.
A use allowed by the deemed grant of planning permission under the local
development control norms
Pre-stressed
concrete A type of
reinforced concrete in which all or some of the ordinary steel
reinforcement is replaced by high-tensile steel bars or wires which are
tensioned by 'pre-tensioning' or 'post-tensioning'. The number and
positioning of wires or tendons can be arranged to eliminate all tension
in the concrete, thereby preventing cracking and so rendering the concrete
water-tight and gas-tight as well as increasing in durability.
Pre-stressed concrete structures can achieve greater spans and carry
higher loading.
Premium
rent 1. A rent above the
level which a property could reasonably be expected to command in the open
market on normal terms. Such rents may be justified in instances where the
tenant receives a present or future benefit against the market. Eg. in
inflationary conditions where upward-only rent reviews are normally
required at three-yearly intervals, the tenant may be prepared to pay a
higher rent if fixed for a longer period of say, 5 years.
2.
A rent which is higher than would reasonably be expected because the
tenant is particularly anxious to secure the property
Private
treaty The most common
method of disposal of real property, in which negotiations are
carried out between the vendor and prospective purchasers (or their
respective agents) privately and in comparative secrecy, normally without
any limit on the time within which they must be completed .before
contracts are exchanged.
Project
management (development management) The
leadership role which plans, budgets, co-ordinates, monitors and controls
the operational contributions of property professionals, and others, in a
project involving the development of land in accordance with a client's
objectives in terms of quality, cost and time.
Property
investment trust A public
company, having certain tax advantages and complying with rules applicable
to its operation and investment activities, managed by a professional
specialist team and established for the purpose of acquiring mainly shares
in property companies-public or private. To such an extent, as is
permitted legally, without prejudicing its beneficial tax treatment, it
may invest in other securities, own property directly or undertake
development. It provides shareholders with an interest in a wide ranging
portfolio and the reassuring knowledge that investment policy is in the
hands of experts.
Property
management The range of
functions concerned with looking after buildings, including collection of
rents, payment of outgoings, maintenance including repair, provision of
services, insurance and supervision of staff employed for services,
together with negotiations with tenants or prospective tenants. The extent
of and responsibility for management between landlord and tenant depend on
terms of the lease(s). The landlord may delegate some or all of these
functions to managing agents.
Property
portfolio management The
unified management of a group of properties which are held in one
ownership. Decisions taken in respect of any issue are reached on the
basis of achieving the maximum benefit for the owners, having regard to
the effect on the portfolio as a whole rather than on an individual
property.
Pugree
An Indian term used to
describe an interest free security deposit given to landlords which is
refundable at the expiry of the lease term to the outgoing tenant by the
successive tenant
Q
Qualified
Covenant A restriction contained in a legal document which limits the
rights of a person having an interest in the land but, by its wording
envisages the possibility of removing the limitation on terms agreed
between the parties eg. a covenant by a lessee not to assign or sublet
without the landlord's written consent. In certain cases, such as the one
quoted, statute law strengthens the applicant's position by importing such
words as "such consent not to be unreasonably withheld".
R
Rack-rent
A rent representing the
full, or nearly the full, letting value of a property on a given set of
terms and conditions
Rateable
value The figure upon
which property tax is charged in India. This value is determined by the
tax authorities and thereafter the tax liability is charged to the owner(s)
of the property on the basis of certain pre-determined tax slab rates.
corporate
stock. In order to qualify, a trust must, among other requirements, be
owned by a least 100 shareholders and invest most of its capital in real
estate loans or properties and receive income in the hands of shareholders
Real
Estate Investment Trust (USA/UK) A
legally constituted organisation (entitled to preferential tax treatment)
which enables investors to own and transfer shares of an interest in a
property or properties; the shares can be dealt with in a manner similar
to corporate stock. In order to qualify, a trust by at least 100
shareholders and invest most of its capital in real estate loans or
properties and receive income from them. The special feature is that such
a trust reduces its own taxable income by a distribution to shareholders
with no tax deducted, but this is taxable income in the hands of
shareholders according to their own tax status. To maintain the trust's
right to gross distributions these must, in aggregate, be equal to minimum
of 90% of the total trust income.
Refurbishment
Improvement and
modernisation of a building falling short of rebuilding or redevelopment
and thus not normally requiring planning permission (other than for
alterations to the external appearance), except in the case of listed
buildings.
Registration
and mutation: It is
mandatory for the sale deed of all high value property transactions to be
registered at the regional sub registrar's office of the local municipal
authority. Thereafter, the buyer has to apply for mutation, which involves
a change in the title records to incorporate the name of the buyer of the
property. In order to complete the transfer of property, it is mandatory
for the seller to furnish or arrange a valid "certificate of
completion" issued from the local municipal authority to the buyer.
Renewal
As distinct from repair,
this is "reconstruction of the entirely meaning not necessarily the
whole subject matter"
Rent
Act (s) Legislation
promulgated by various states in India, which regulates the terms and
conditions of the rental market with a view to curb profiteering and
hoarding. Though its restrictive nature has not allowed owners to enjoy
economic returns from same categories of property, thereby allowing market
inefficiencies.
Rent
free period An agreed
period, usually for several weeks or months, during which a lessee is
allowed to occupy the subject premises without payment of rent:
-
in
consideration for the tenant incurring expenditure on such matters as
fitting out premises or carrying out repairs or improvements;
-
to
reflect market conditions which favour tenant eg. where the space
available for letting exceeds the total tenant demand in that area; or
-
by
virtue of both a and b
Rentable
area The area of floor
space for which rent is calculated even though other areas, within or
outside the premise, are lawfully used by the tenant. For example, in an
office building it is customary to exclude from the direct calculation of
rent the space used for corridors, atrium and stairways.
Rental
advance Comprises a lump
sum payment to the landlord at the beginning of the lease term, which is
thereafter adjusted in equal installments over the lease term against the
monthly base rental payable by the tenant. The advance amount generally
ranges between 3 to 18 months depending on the city, type, location of
property and the period of the lease.
Root
of title (UK) In
conveyancing of unregistered land, a document which forms a solid basis to
establish the title to the land. It must go back, sufficiently for
identification, showing a disposition of the whole interest contracted to
be sold and containing nothing throwing any doubt on the title.
S
Sale
and leaseback An
arrangement whereby a freeholder or lessee sells his interest in a
property for an agreed sum and takes back a lease on the whole or part of
the property from the purchaser, generally either at a rack rent or at
some lesser rent related to the price paid.
Science
park A development of an
industrial nature suited to accommodate high technology, with supporting
amenities, which is associated on site with or is close to a higher
educational research establishment to provide cross-fertilisation of ideas
between entrepreneurs and researchers for the purpose of enabling academic
knowledge to be applied to effective commercial use.
Security
deposit Comprises of an
interest free lump sum payment to the landlord at the commencement of the
lease, which is refundable at the end of the lease term. Though the
deposit amount varies depending on city, property type, location and the
period of the lease, it may range anywhere between 6 to 18 months of
monthly rental. It is not uncommon for some landlords to provide a bank
guarantee to the tenant as security for the repayment of the initial
deposit amount.
Serviced
accommodation Suites of
offices or rooms where the landlord provides a range of services within
the individual premises extending beyond the traditional ones associated
with the maintenance and management of the building itself or the
operation and maintenance of the installation or plant therein eg.
furniture, telephone, fax machine, room cleaning, and/or provides
centralised specialised services, such as a receptionist and secretarial
and communication facilities.
Shopping
Mall A group of retail
outlets designed and built with ways for pedestrians on one or more levels
to form a unified whole under one roof.
Site
Plans A drawing of an
area of land, on a horizontal plane, showing the boundaries and physical
extent of the land included in a particular parcel. It may also show any
existing buildings or the proposed layout of a development
Speculator
A person (usually a
dealer) who undertakes a transaction in property in expectation of asking
a profit but with the risk of not doing so
Strata
Title Freehold title to a
horizontal titles above and/or below. Satisfactory arrangements for
management usually involve a statutory obligation for the setting up of a
management corporation with responsibility for the maintenance of common
facilities and areas.
Sub
Leasing A method wherein,
the primary lessee of a property has the right to further lease out a part
or whole of the property to another occupier or lessee. Essentially, the
right to sub lease is decided beforehand at the time of signing the main
lease agreement and is with the consent of both the lessor and the lessee.
Suspended
ceiling A ceiling, not
being part of the structural framework of a building, installed below the
level of the underside of the floor above or of the roof. Commonly used to
provide space for services eg. cables, recessed lighting and piping; to
reduce the cost of heating in a room; to improve the acoustics; or to
produce more aesthetically pleasing proportions
T
Tax
clearance (37-1) The
Income Tax Act, 1961 specifies that any lease transaction for not less
than 12 years or any sale transaction, above a prescribed transaction
value limit tax, has to undergo a clearance process from the appellate
body known as the Income Tax Appropriate Authority, constituted under the
Income Tax Act. A joint application by the parties involved in the
transaction is submitted along with processing fees to the Income Tax
Authority, which takes upto a maximum of three months to grant the
clearance, without which the sale transaction is not complete. This
procedure is popularly known as the 37-(I) clearance, which is the
application form number used for this purpose.
Technology
Park A landscaped
development usually comprising of high specification office space as well
as residential and retail developments, designed to encourage localisation
of high technology companies such as information technology, software
development etc., thereby giving each the benefit of economies of scale.
Usually, technology parks are located outside the inner city areas as
these are quite land intensive in nature.
Tenancy
1. Strictly speaking, the
interest of a person holding property by any right or title.
2.
More usually, an arrangement, whether by formal lease or informal
agreement, whereby formal lease or informal agreement, whereby the owner
(the landlord) allows another (the tenant) to take exclusive possession of
land in consideration for rent, with or without a premium, either:
for
an agreed period of
on
a periodic basis until formally terminated
Tenant's
improvements Improvements
to land or buildings to meet the needs of and carried out wholly or partly
at the expense of the tenant.
Town
and country planning The
determination of policy for the development and use of land and the
control of its implementations in urban and rural areas by district and
country planning authorities.
Turnover
rent A rent which is
calculated as a proportion of the annual turnover of the lessee's
business. Usually, it does not fall below a base rent. More commonly used
in the USA, although in recent years being applied with increasing
frequency in the Europe and the mature markets of Asia, especially in the
case of he more profitable retail outlets.
U
Uplifted
rent A rent which
reflects lease terms which are more beneficial to the tenant than
prevailing commercial terms, eg. a higher rent to reflect, say, 14-yearly
reviews, rather than the more common five-yearly reviews.
Urban
Land Ceiling and Regulation Act (ULCRA)
A legislation promulgated in 1976 as a social equity measure with a view
to curb profiteering and hoarding in the urban land market as well as
prevent urban congestion. Urban centers i.e. cities were classified into
categories such as A, B and C and a ceiling on the maximum permissible
usage on land by respective owners was set under provisions of the act.
User
1. The use or enjoyment
of a property or of a right over property.
2.
A person who uses, enjoys or has a right over a property.
V
Vaastu
shastra A traditional
Indian architectures and design system, which specifies the detailed
methodology of designing buildings, buying land etc. in order to maximise
benefits from the same for the occupier. This system relies in harmonising
any real estate development with the five elements of Indian Mythology
namely air, water, earth, fire and space.
Valuation
1. The process of making an estimate of worth of real property or real
property or other assets for a particular purpose eg.letting, purchase,
sale, audit, rating, compulsory purchase or taxation. That purpose and the
relevant circumstances will determine assumptions and facts that are
appropriate and hence the process used.
2.
A statement, usually in writing, setting, out the facts, assumptions,
calculations and resultant value.
3.
Colloquially, the value arrived at as a result of the valuation process.
Value
1. The price that might
an interested in property or some other asset might reasonably be expected
to fetch if disposed of at right
Vertical
slice participation A
method of multi-participation in a venture, usually a development, whereby
each of the participants owns a separate legal interest in the whole of
the property concerned by way of he freehold, head lease or a subordinate
interest. The documentation normally ensures that rental and other income
and /or capital receipts as well as the cost of any revenue or capital
liabilities are shared by the participants in predetermined percentages
related to their respective contributions, whether financial or otherwise.
W
Warehouse
Premises designed and
built for the purpose of bulk storage of raw materials or finished or
partly finished goods, pending either onward transit or division into
smaller batches and subsequent distribution..
Willing
seller-willing buyer An
assumption sometimes made for valuation purposes that the owner of the
property concerned is willing to dispose of his interest therein and that
there is at least one genuine purchaser in the market for that interest,
whether or not such is actually the case at the date of valuation.
Written-down
value At a given time,
the result of making one or more annual of periodic deductions for
depreciation against capital cost or worth.
X
Xystus
1. A covered colonnade, as originally used for exercise by Greek
athletes. 2. A garden walk, usually bordered by trees.
Y
Yield
up Give up possession, especially by the tenant at the end of a lease
.
Z
Zone
A defined area of land or
part of a building which is allocated for a particular purpose, eg.
development plans may allocate areas of land for different uses or values
of property may distinguish between areas of floorspace of a building and
ascribe different values to them.
Zoning
In planning terms, the
dividing of an area by a local planning authority into zones for
particular uses or activities.
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