Are you looking to get into the real estate business or make an investment in real estate? Understanding the terms used in real estate is essential for making knowledgeable decisions and navigating the market with confidence, whether you are a first-time buyer, a seasoned investor, or simply curious about the sector.
We take the complex and simplify it so that you can feel powerful and obtain clarity throughout your real estate experience.
In this article, we have compiled a comprehensive guide to the essential real estate terms you should know. From common jargon to specific industry phrases, we break down these terms in a way that’s easy to understand, ensuring you won’t miss out on critical information when it comes to buying, selling, or investing in properties.
Here are a couple of essential Real estate terms you should know:
Real Estate Market: The overall condition of the real estate industry in a specific area.
Commercial Real Estate: Real estate used for commercial purposes such as offices, retail, and industrial spaces. The opposite is residential Real estate, which is used for living spaces.
A purchase and sale agreement: Commonly referred to as a written contract between the buyer and seller, which outlines the terms of the parties to sell and purchase real property.
Real Estate Law: The legal framework that governs real estate transactions.
Land Payment Receipt: A document that shows proof of payment for the purchase of land.
Real Estate Law: The legal framework that governs real estate transactions.
Property Management is The management of a property by a third-party manager.
Property Insurance: Insurance that protects a property owner from financial loss due to damage or loss of their property.
Closing is when the sale is considered final, which typically includes all parties’ signatures on all required documents, and all monies conveyed.
Deed of conveyance: A legal document that transfers ownership of a property from one person to another.
Fractional home investment: The practice of purchasing a portion of a property to be shared among multiple investors.
Development Levy: A fee paid to the government for the development of an area.
Valuation: The process of calculating a property’s value.
Real Estate Investment Trust: A type of investment that allows investors to pool their money to invest in real estate.
Capital Appreciation: The increase in value of a property over time.
Survey Plan: A document that shows the boundaries and measurements of a property.
Real Estate Agent: A licensed professional who represents buyers or sellers in real estate transactions.
Land Certificate: A legal document that proves ownership of land.
