Glossary / Abbreviations

To help you understand the some of the terminology and 'jargon' that may be used when purchasing a property, we have complied this listing.

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ac, a/c - air conditioning

Accessory - A second building structure on a property and is not considered to be the main building, e.g. a storage shed or a parking space.

adjusted sale price - The figure produced when the transaction price of a comparable sale is adjusted for elements of comparison.

Administrator - A person appointed by a probate court to administer the estate of a person who died intestate (without a will).

alc - alcove

amen - amenities

Amenity - A feature that increases attractiveness or value, especially of a piece of real estate or a geographic location.

Amortise - The repayment a mortgage with regular payments which cover both principal and interest of the mortgage.

Annuity - is an investment providing a defined and regular income.

anticipation - The perception that value is created by the expectation of benefits to be derived in the future.

Appreciation - The increase in the value of a property, this may arise due to changes in market conditions like supply and demand.

arm's length transaction - A transaction between unrelated parties under no duress.

Asking Price - The listed price of the property that is on the market for sale.

assemblage - The combining of two or more parcels, usually but not necessarily contiguous, into one ownership or use.

Assessed Value - The valuation of a property for the purposes of taxation by an authority.

Asset Class - There are three asset classes: cash and fixed interest investments, property and shares. The essential characteristic of investments in all asset classes is that you can earn income: as interest, rent and dividends. Any capital growth in these investments is because there has been, or potentially may be, an increase in the level of income received from the investment.

Assignment - Transfering of a mortgage from one person or entity to another

Auction - The sale of a real estate property that is sold to the highest bidder, if the vendor accepts the highest bid.