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
Alternative user value The value of land and buildings which
reflects a prospective use which is different from that of the current
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
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 en 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 of 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.
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, mosaic, 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
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
usually includes cost of HVAC, housekeeping, electricity, and security
Business park A landscaped area containing high tech, other amenities
for business purposes, as 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.
Capitalisation 1. At a given date the conversion into the equivalent
capital worth of a series of net receipts, actual or estimated, over
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
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
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
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
Development control The powers of a local planning authority
to 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 rates 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
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
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 and is generally a percentage
rate that is either pre agreed or negotiated before the renewal of the
Facilities management The co-ordination 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 officer, who then inspects the building and issues
a list of requirements (eg. Fire escape doors/stairways). 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 are found 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 others,
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
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 by 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 default 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
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
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.
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
Gold cause (UK) A clause in a lease which provides for the rent
to be reviewed with 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,
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.
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 building 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.
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 part 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 factors 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.
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
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 agent 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.
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 only during peak times and be
closed securely when there are no customers. Kiosks are now sometimes
included in managed shopping schemes.
Land assembly The process of forming a single site from a number
of lands, usually for eventual development or redevelopment. This will
include acquisition of individual interest and the eventual development
or redevelopment, removal or discharge of any restrictive covenants
or other encumbrances and obtaining physical possession, when required,
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.
Maintenance In property parlance, the keeping of a building,
structure or other physical feature in a specified condition eg. wind
and weather tight conditions. 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.
Negotiation Discussion, written or otherwise, between two or
more parties of different sides, the aim being to reach a common agreement.
Non conforming 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.
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:
there is a willing seller
there is 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.
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
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.
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 with-held".
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.
In order to qualify, a trust must, among other requirements, be owned
by at 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 must be formed 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
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
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.
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
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
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 for a profit but with the risk
of not doing so.
Strata Title Freehold title to a horizontal title 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
(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
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
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 the more profitable
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
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
2. A person who uses, enjoys or has a right over a property.
Vaastu shastra A traditional Indian architecture 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
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 The price that might an interested in property or some
other asset might reasonably be expected to fetch if disposed of at
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 the 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.
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
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.
Xystus 1. A covered colonnade, as originally used for exercise
by Greek athletes. 2. A garden walk, usually bordered by trees.
Yield up Give up possession, especially by the tenant at the end of
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.