Glossary of Real Estate Terms

Below is a sample list of some of the terms used in connection with real estate and property market. Browse from A to Z and help you become familiar with the meaning of these terms and give a better understanding of the real estate industry.

A

Accounting Date
Date on which is recorded, registered or imputed. Not valid for any calculations.

Administrative private agency
Company that deals with the management of the deeds of purchase - sale and mortgage until its perfect registration in the Land Registry. The fees charged by the private agency for this service are deductible on the tax return.

Administrator
Organization and/or person that have properties from others. The administrator of a community of owners (or property administrator) can be one of the members of the community (mainly president or secretary). His labor consist in manage the accounts, collect receipts, manage all the administrative tasks, to inform about the content of the Horizontal Property Law. The administrator will be responsable for all the administration tasks as well as the right functioning of the community.

Administrator Certificate
Certificate Awarding administrator the homeowners in which collects the actual debt situation with the Community Owner.

Age
Corresponding or relating to the age of a building.

Aliquot
Proportional share in equal parts, equivalents and/or matched.

Amortization
Coming soon!

Amortization
Payment realized to reduce the debt on a loan or fully pay the debt.

Amortization Period
Time in which the principal of the loan and interest are returned.

Arbitrage
Way of solving a litigation between parts without having to appeal to jurisdiction. Is a conflict resolution tactic base don negotiation, meditation and conciliation.

Arrangement fee
Cost paid when a loan is formalized, in consideration of the management services generated in the contract. It is usually a percentage of the funded capital.

B

Bare ownership
Breakdown of property rights: the actual value of the property is applied to displaying the bare ownership, and use the loan secured.

Benchmark
Value used as the basis for calculating the interest rate to be applied to a credit variable rate, when the time of the review occurs. The revised rate of interest is calculated by summing the benchmark by a margin or spread. The indices of expertise are: Euribor at 1 year mibor 1 year IRPH Banks, Banking IRPH, IRPH Joint Entities, ECSC and type of government bond yields between 2 and 6 years.

Binding offer
1 In the case of a mortgage subrogation between financial institutions, the binding offer document is the entity that wants to be subrogated to the credit sent to the first lending institution, with the new conditions of interest rate to be applied customer if it finally change entity. 2. new mortgages the binding offer is a document that credit institutions are obliged to deliver to the customer, and must contain all the financial terms of credit.

Board of Proprietors
Supreme body of a residents organized in horizontal property regime. The agreements, except in some cases where unanimity or qualified majority is required, can be taken by majority vote.

Bonus
Or insurance is what pays the holder thereof to the Insurance Company to provide a future and uncertain event called sinister.

Bookkeeping entry
Each one of the entries on the property registration book to keep track of that specific property use.

Building book
Graphic and written documents that define and describe a newly built and is delivered to the buyers for their knowledge and building maintenance. It is necessary that the developer give it to the homeowners as the Law on Building. The book building should protect the project and all modifications and gotten in the play, the act of acceptance of the work, the identifying relationship of the agents who participated in the work, instructions for use and maintenance of the building and its facilities.

Burden
Restrictions of the property of a real estate or link to the payment. It must be inscribed on the Property registry booked.

Buying off plan
Buying a property on the graphic definition (drawings) and / or without memory qualities that the product has been built yet.

C

Cancelation
Capital from a credit that is returned before the initial stablished dates for its total payment. This cancelation may be partial or total. It´s usually comes associated with a bank fee.

Cancellation fee
Amount paid on ​​the last term of the loan or advance any fees.

Capital
Nominal amount of the mortgage loan, excluding interest.

Capital Gain
Benefit or increase in value of a property set between two dates.

Certificate of occupancy
Assurance that the home meets basic living conditions. It is necessary to hire some services such as electricity and gas.

Certificate of Registration
Legitimized Certificate issued by the Land Registry, in which the burden situation of a farm is declared.

Cheque
Accounting document is based on an order that gives the signer to a credit institution in which he has deposited money for the entity to pay, out of such deposit, to a particular person (personal check) or bearer title, a certain amount.

Cirbe
Central Credit Register of the Bank of Spain, database where the  acquired debt with Spanish financial institutions are included.

Claims-waiting period
Period of interest payments (not the actual debt) or/and period free of debt repayments and interests.

Claims-waiting period of capital
Period free of capital payment in which only interests are paid.

Claims-waiting period of capital and interests
Period free of interest payments and debt repayments.

Co-Borrower
Holder with another (s) of person (s) of credit.

Common Areas
Spaces within a group of houses, which are all members of the homeowners proportionate (gardens, stairs, elevators, patios...).

Community owners
Group formed by all owners of a split in horizontal property regime building. Regulated by statutes which contemplate the details of coexistence and the proper use of services and common things.

Comunero
Owner of a property belonging to a community of owners. It has indivisible part with another or others in a building.

Condition subsequent
Requirement that ensures a certain commitment (a deferred payment amount) through the termination of the contract, in case is not conducted.

Condo Law
Regulates the field of housing in multifamily buildings gathered (example, urbanization).

Confirmed deposit
With this payment cancelling the transaction between a seller and a buyer won´t be possible. It does secure the reservation.

Construction declaration
Public document, which sets out the existence of a building or a new one. Its inscription in the Land Registry involves the creation of a registered property by disappearance of the registered property of origin.

Content
Objects contained within a building/real estate.

Contract
Oral or written agreement between the parties, which are imposed on certain item or material, and whose compliance must be mandatory.

Contract of Sale
Agreement whereby one party (the seller) promises to deliver a home and the buyer to pay for it at an agreed price in cash or other mean.

Cooperative housing
Independent association of persons united voluntarily to meet their housing needs and aspirations. Have legal personality and its activity is based on the democratic participation of the partners.

D

Data Protection Act
It aims to secure and preserve, as regards the processing of personal data, public freedoms and fundamental rights of physical and fundamentally their honor and personal and family privacy people.

Debtor
Which is obliged to pay a debt.

Decennial insurance
Assured by the developer / builder of buildings and successive owners of the property for 10 years for defects affecting the structural safety of the building.

Deposit
Economic Dowry by the contractor giving good security in fulfillment of his obligation.

Deposit or pledge
Amount of money that is given by the buyer in advance from the total of the property´s price to the seller as a warranty to close the deal on a specified period.

Differential
Proportion adds to benchmark each revision of interest rate on variable rate loans.

Disposal
Mode of transmission of real estate.

Distribution mortgage
It's how the aggregation of mortgage debt, ie not only the principal owed is distributed but also the parties than it answers such debt, as interest on arrears, the mortgage guarantee the responding debt, the value of pricing, etc.

Duplex
Property arranged over two floors, located in a single building registered.

E

Early Amortization
Credit capital returned before the dates set initially. This payment can be partial or total.

Earnest money contract
Amount paid by the buyer to the seller as security for the completion of the contract of sale of the property that have agreed but is still in the process of formalizing. (establishing a delivery that ensures the binding force of the agreement for future purchase). Criminal arras (contract obligation secured by the loss of the deposit by the buyer or his bent back by the seller in case of default).

ECSC
Official reference used to review credits with floating interest rate. Middle to rates on personal loans between one and three years and the mortgage loans over 3 years type.

Endorsement
Special guarantee from a third party, usually somebody from the buyer´s family that secure the payment of the debt in case the buyer can´t.

Endorser
Whoever asume the responsability to pay in case the buyer can´t asume any of the payments or interests from a debt.

Euribor
Simple benchmark overnight interest rates adapted to cross the period of one year interbank deposits in the area of monetary union operations measure.

Eviction
Eviction Tenancies, in the following cases: for non-payment of rent or other amounts payable by the tenant, for lack of payment or security update, sublease without consent, intentionally conducting damage on the farm or construction without consent when the landlord's permission necessary, when housing annoying, unhealthy, noxious, dangerous or illegal activities take place, when the land ceases to be the primary way intended to meet the permanent housing needs.

Excusing
Ridding obligations, care, guilt, etc.

F

Financing
Amount of money borrowed. For the purchase of a home usually vary between 70% and 80% of the actual value of the property you are buying.

Finca
Heading a property in the Land Registry. It is said that each house is a "registered property".

First occupation license
Administrative document that lets you use the built and credits his approval regarding the requirements in the building permit. This document can be substitute for the certificate of occupancy.

Fixed-rate loan
Credit in the nominal interest rate remains unchanged throughout the life of the loan, regardless of changes in the mortgage market.

Forgiveness
If a creditor of a debt waiver of the benefit payable by the debtor and which is the extinction of the debt.

Free of burden
Villa, property and / or property over which weighs belonging to your domain. That is, on which there are no mortgages, surveys, cancellation clauses, leases, or other limitations.

Frequency of revision of interest
Times the change in the interest rate is made on credit at variable interest.

H

Hidden defects
Hidden imperfections, if manifest within six months after the sale, entitle the buyer to claim the seller to repair the property sold.

Home loan
Amount of money allocated for a financial institution to a natural or legal person, with the additional security of a property. The purpose of the credit can be very varied but the most common is to finance the purchase of a property.

Horizontal division
Documentation public title, by which a property is divided into several distinct farms registry asides, with assignment to each coefficient of a co-ownership or consortium in the total property, enrolled in the Registry of Property.

Housing Savings Account
Savings account which is intended to provide funds for the acquisition, construction or rehabilitation of the residence of the holder thereof. Limit 9015.18 €, having a 15% deduction in the income statement.

I

Interest
Amount paid as compensation for the order of a sum of money that is taken in advance.

Interest on late payments
Aggregate percentage charged on the unpaid installments of a credit provided to the days of late payment. Its purpose is to compensate the creditor of the debtor's delay in its payment obligation.

IRPH
Official benchmark. It has 3 modes: the banks (average rate on mortgage loans over 3 years to purchase private housing, provided by banks); the Banks (same above definition but "granted by banks"); and the set of entities (is the average of the other 2).

L

Land Registry
Statiscal registration of the urban and rustic properties which object is to give to know the property and its characteristics.

Lease
Agreement whereby one party (lessor) agrees to give another (lessee) the enjoyment or use of a building defined by time and money.

Lender
He who lends money to another person named borrower, which has to pay that amount with interest within the stipulated period.

Lien
Mandatory burden on a building.

Loan ceiling
Mortgage loan type, where you have stipulated a maximum and / or minimum interest rate revision occurred.

M

Main
A nominal amount outstanding credit or return or repay.

Margin
Percentage in relation to each revision of interest rate on variable rate loans to find the new interest rate applicable.

Material Quality
Natural description of the qualities and materials to be used in the work.

Maturity
The deadline for a debt.

Mibor
Official reference to mortgages signed before 1/1/00. It is the cost of money in the interbank market in Madrid (cost at which banks and savings banks lend money to each other). It will be published only when they continue to give the necessary technical requirements for processing; the days when no operation is crossed, is replaced by the Euribor, to calculate the monthly average.

MLS
Coming soon!

Mora
Defect make timely delivery, when the borrower defaults on its payment obligations when due and there is a delay.

Mortgage
A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money. A mortgage in itself is not a debt, it is the lender's security for a debt... Wikipedia

Mortgage
Property right that is established to guarantee compliance commitment contracted with a third party (credit, letters). In addition to the payment of principal, ensures collection of common, default interest, costs and expenses derived from the possible judicial application in case of default in payment. Although not exclusively, the most common mortgages are on property. Formalized in a public document and their rights are with the inscription in the Registry of Property.

Mortgage
The mortgage is a security interest and value realization, which is established to ensure compliance with an obligation on a good which, although taxed, remains with its owner, where the mortgagee can, if non-guaranteed debt.

Mortgage liability
Sum of the concepts which are protected under the mortgage (borrowed capital, ordinary interest and default interest, court costs, expenses, etc.). About this quantity and / or sum the costs of formalization of a mortgage is calculated.

Mortgage Loan
Agreement establishing a financial institution provides credit to the beneficiary until a stipulated amount for a specified period, regularly receiving interest on the amount drawn, forcing the recipient to repay the financial institution the amounts agreed by the agreed deadline.

Municipal Building permit
Document issued by the City for which the right is granted to build and start work, authorizing administrative verification that the work was subject to urban and techniques established by the relevant municipal ordinances governing their location conditions.

Municipal Capital Gain
Previous name of the Tax Increase Land Value.

Municipal mediator of capital gain
Old calification of the capital gain tax increased value of lands and properties.

N

Non-refundable
To give a grant or credit and not recover it.

Notary
Public officer approves and faith on certain documents, such as contracts of sale and mortgages. The notary will consider the legality of all the clauses of the contract and act independently of the parties. Their fees are regulated by law.

Novation
Changing the terms of a contract following a new agreement between the contracting parties. In a mortgage, according to Law 2/94, the novation is free from stamp duty tax provided that the correction relates to the conditions of the interest rate or jointly to the interest rate and the term of credit.

O

Onerous
The agreements and onerous contracts establish a commitment to one or both contracting parties.

P

Participation fee
Measures of a property corresponding to each owner. Depending on the cost, charges and expenses which have to face the owner of each property is calculated.

Percentage of funding
Amount of the mortgage amount plus pricing. Example, a property valued at € 200,000 with a mortgage of 160,000 funding percentage is 80%.

Personal contribution
Saving money or part of  it that the purchaser of a building intended to purchase, excluding the amount obtained by external financing.

Pour
Is the eventual expenses of the community of owners. Increasing the value of the shares.

Prepayment Commission
Part of the partial amount returned in advance, will be paid to deserving entity.

President of the community
Member of the Owners of a housing, which is the representation of that community and the choice is made according to define the statutes governing the same activity.

Private document
One who gathers the will of the one who gives. For example, if a purchase or sale, gathers the will of the parties to transfer ownership of a property. Is not signed by any notary public, or enroll in any registry.

Promissory Note
Title value that includes the promise and obligation of the issuer to pay a stipulated amount to another person or to his order, and place certain date.

Promoter
Natural or legal person who determines, plans and finances the building works. It can be personal or other. In this approach the owners create in their own benefit, to a condominium and cooperative housing is included.

Property Tax (IBI)
A tax that charges the property of an estate. It is paid annually and the cost depends on the assessed value assigned to the property. Formerly known as "Urban Land Contribution".

Provision of Funds
Amount of money given as advance to cover a certain expenses, the exact amount is unknown. After purchasing the settlement of bills such provision is made.

Provisions
Partial amount of the loan amount, to be used as the lease term progresses.

Public Document
One who gathers the will of the one who grants authorized by a notary, which enables him to be registered in the Land Registry. Also known as writing, the most common are: mortgage, buying / selling, new construction, horizontal division, etc.

Public notary
Generic designation for a Notary and other officials who allocate public faith.

Purchase option
Requirement or clause added to a contract, by which the elector or offeror grants the beneficiary the right to make the purchase of a good in a set period. Leases, leasing, ...

Q

Quota
Amount to the holder or holders of credit payable periodically undertake intended to pay the share of the requested principal and its interest.

Quota Limitation
Control of some mortgages available to preserve hikes fees interest rates. One possibility is to limit the increase in the share of the rise in the CPI.

R

Rateable value
Charging that the City gives the property for tax purposes and the taxable sets IBI. Composed by the price of land or land and building, by reference to their market value.

Real Estate
Related to buildings, land etc, this definition encompasses everything related to real estate (who is engaged in real estate management).

Real Estate Agent
Professional who practices as intermediary in a Real Estate negotiation.

Real Estate community
The time when several people come together to buy (usually at the same%) land, or real property.

Refund
Amount returned early form of capital credit. It may be partial or total and of the associated commission.

Registering property
State agency that is responsible for officially publishing the status that affects property at some point. Only one register with multiple offices, distributed according to the registration area.

Registrar verification
Reviewing the position of the property in the Land Registry.

Registration
Annotations executed in the Registry of Property Owners. The most common are: presentation seats, notations, and cancellations.

Registry cancelation
Is the total elimination of the inscription of a real estate on the Property registry book. A bank loan can be totally paid off, but the loan still shows on the registry. To make it dissapear completely, a cancelation contract should be firmed (which currently is exempt of taxes) and subsequently must be inscribed on the registry, canceling this way the previous regitration.

Registry note
Paper submission to the Land Registry, in which the situation regarding to a property burden is exposed.

Repayment system
Define how to calculate the loan installments. The most widely used is the French system, which is constant if no fee vary the interest rate and the term.

Representative
Who receives the duties from another person to represent and act on his name.

Revaluation
Setting the valuation of a property or a rental fee based on parameters such as time elapsed.

Review
In variable credits occurs when the interest rate to be applied, which is acquired by adding some changes to the benchmark. Its frequency depends on the agreement.

Right of first refusal
It is a right of pre-emption whose owner is able to acquire, with priority to any other person, one thing that will be awarded by the owner to a third party for the same amount that the third party would pay. The owner is required to notify the holder of the right to repurchase its intention to sell well as the conditions under which wants to. The withdrawal is the right of subrogation to the buyer's place acquiring the thing that was the subject of the purchase agreement on the same terms that the buyer, in which position is subrogated, satisfying the same price more necessary expenses incurred in the sale.

Rising mortgage
Procedure is to provide for liquidated mortgage debt and raise taxes established in favor of the bank, for which it will be reviewed to find the debt paid in full.

S

Stamp Duty tax (stamp duty)
Tax burden certain acts in public, and monetary amount registrable document such as purchase - sales and mortgages. Its cost is 0.5% of the mortgage liability in the case of mortgages, and deed amount in the purchase - sale of new properties.

Statutes
Law enforcement rules for the ruling of an organism. Regulate the activity of the Owners.

Subletting
Legal situation that occurs when the tenant agrees in turn part or all of the property lease that he has rented. This agreement shall be legally agreed between the owner and the main tenant.

Suitable for credit
Whoever fits the necessary conditions to obtain credit or funding.

Surety
Policy that insures the buyer for compensation if the developer did not get to finish the houses.

T

TAE
Represents changes in financial conditions to its annual, taking into account the expenses and commissions. In its calculation shall take into account the timing of payment, the nominal interest rate, term, and initial charges.

Tax on the Increase in Value of Urban Land
City tax load growth that land values​​. Also known as goodwill. By law the seller is subject to tax, except otherwise agreed, the case must be reflected in the deed of purchase - sale. The amount depends on the years since the last settlement in the town, and even the area where the apartment is located located.

Tax relief
Cash expense that affects the annual income of per capita income, reducing the benefit of it, and the tax burden.

Termination of contract
Termination or completion of contract.

Transfer Tax (ITP)
Tax burden second and subsequent transfers of assets to undertake an exchange of goods. The current rate is 8% overall in the Spanish territory, having no exceptions.

Turnkey
Delivery of housing to its owner (the construction of the home being sold is completed).

U

Undivided
The farms with no viable partition.

Unfair terms
That breach of good faith and fair balance between the rights and obligations between the consumer and professional, to the detriment of the consumer which has not been individually negotiated between the two parties.

Urban Certificate
Certificate of planning regulations applicable to land. It refers to the planning regards the said land, and indicates the authorized uses, buildable, occupation ... This certificate is obtained at City Hall.

Urban contribution
Property Tax (IBI)

Usufruct
Right of use or enjoyment that a person has "beneficial ownership" on the property of another person "remainder beneficiary". It is a property right in another's property, produced from the breakdown of ownership.

V

Valuation
Rating a building certified companies formed for the purpose. With this certificate, the actual value of the property is known, besides serving as a reference to obtain the necessary financing.

Value Added Tax (VAT)
Tax that loads the first transfer of immovable property whose cost is 4% of the amount deed.

Value date
Date on which an action is performed, is a reference for calculation.

Variable rate loan
Credit in which the interest rate is examined at specified intervals. There is a certain type of initial interest, a review period (which marks the frequency of the variation in type), a benchmark index (evolving upward or downward, depending on the market trend) and a margin or spread which adds to the benchmark to establish the new rate to apply.

VPO
Public housing. The characteristics, dimensions and prices are regulated by the government, the conditions of eligibility for certain economic advantages, prosecutors buyers.

W

Writing
Signed by a notary attesting  its content and authorizing it to its registration in the Public Register document.