Brief real estate glossary
A
Adjustable Rate Mortgage:
Loan with an interest rate that changes periodically.
Administration:
Management and maintenance of investment properties.
Amortization:
Gradual reduction of mortgage debt through regular payments.
Appraisal:
Estimation of the value of a property.
Appraisal:
Professional evaluation of the value of a property.
B
Business:
Activity of buying, selling or renting properties for profit.
C
Capital Gains:
Profit obtained from the sale of a property.
Capitalization Rate:
Expected rate of return on a real estate investment.
Clean Title:
Property without liens or debts.
Commercial Area:
Area designated for commercial activities.
Commercial Real Estate:
Properties used for commercial purposes.
Construction Guarantee:
Quality guarantee for new works.
Corrective Maintenance:
Repair of problems in a property.
Crowdfunding:
Collective financing method for real estate projects.
D
Deed Closing:
Final process of a real estate transaction.
Demand for Housing:
Number of people looking to buy or rent homes.
Depreciation:
Decrease in the value of a property.
Diversification:
Investment strategy in several properties to reduce risks.
Down Payment:
Initial amount paid when purchasing a property.
E
Equity:
Set of assets, including real estate, that a person or company owns.
Escrow:
Account where the funds of a real estate transaction are held.
Evaluation:
Determination of the value of a property.
Eviction:
Legal process to remove a tenant from a property.
F
Financial Intermediary:
Person who facilitates the financing of real estate projects.
Financing:
Obtaining money to invest in properties.
Fixed Rate Loan:
Loan with a constant interest rate throughout the term.
Flipping:
Purchase properties to renovate and sell at a profit.
G
Glusvalía:
Increase in the value of a property due to improvements.
Gross Rental Income:
Total income generated by rentals before expenses.
H
Home Staging:
Preparation of a home for sale.
Housing Unit:
Individual living space in an apartment building.
Housing:
Residence where people live.
I
Income:
Income generated from renting properties to tenants.
Inflation:
General increase in prices that can affect property values.
Interest Rate:
Percentage applied to the mortgage loan.
Investment Project:
Planning and development of an investment in real estate.
Investment Return:
Profits generated by an investment in real estate.
Investment:
Placement of capital in properties to obtain long-term benefits.
J
Joint Tenancy:
Purchase of shared ownership by multiple investors.
L
Land Registry:
Government office that registers property.
Landlord:
Person who rents a property to a tenant.
Listing:
Property available for sale.
Long-Term Investment:
Purchase of properties with the intention of holding them for many years.
M
Market Value:
Price of a property based on supply and demand.
Marketing:
Property promotion and sale process.
Metropolitan Area:
Region that includes a main city and its surroundings.
Mortgage Bank:
Institution that grants mortgage loans.
Mortgage Collateral:
Property used as security for a loan.
Mortgage Credit Line:
Renewable credit based on the value of the home.
Mortgage Credit:
Loan to buy a home.
Mortgage Debt:
Amount outstanding on a mortgage loan.
Mortgage Interest:
Cost of the mortgage loan.
Mortgage Subsidy:
Financial assistance from the government for the purchase of homes.
Mortgage:
Loan secured by a property.
Multifamily Housing:
Building with multiple housing units.
N
New Construction:
Newly built properties.
Notary:
Legal professional who authenticates the real estate transaction.
P
Personal Credit Line:
Credit based on the personal solvency of the borrower.
Preventive Maintenance:
Regular care of a property to maintain its value.
Profitability:
Return on investment in real estate.
Promoter:
Person or company that develops and sells real estate projects.
Property Appraisal:
Professional evaluation of the value of a property.
Property Deed:
Legal document that demonstrates ownership of a property.
Purchase and sale:
Transaction of purchase and sale of properties.
Purchase Price:
Amount paid for a property.
R
Real Estate Arbitration:
Strategy of buying and selling properties to obtain benefits.
Real Estate Broker:
Professional who facilitates the purchase and sale of properties.
Real Estate Bubble:
Excessive rise in property prices, followed by a fall.
Real Estate Debt:
Debt associated with investment in real estate.
Real Estate Development:
Construction of new real estate projects.
Real Estate Investment Fund:
Pooled investment in real estate.
Real Estate Market:
Economic environment that involves the purchase and sale of properties.
Real Estate:
Properties that include land and buildings.
Rehabilitation:
Renovation of properties in poor condition.
Rent:
Periodic payment for the use of a property.
Rental Guarantee:
Additional payment to the landlord as a guarantee in case of damage.
Rental Income:
Money obtained from tenants.
Residential Property:
House used for living.
Residential Real Estate Broker:
Specialized in the sale of homes.
Residential Zone:
Area designated for housing.
Revaluation:
Increase in the value of a property over time.
S
Sale Price:
Amount for which a property is sold.
Short Sale:
Sale of a property for less than what is owed on the mortgage.
Stocks:
Parts of a company owned by an investor, sometimes used in real estate.
Subletting:
Rental of a property that is already being rented.
Supply and Demand:
Economic principle that affects property prices.
T
Tax:
Financial burden imposed by the government on property and real estate transactions.
Taxes:
Financial charges imposed by the government on real estate investment.
Tenant:
Person who rents a property.
Tenant:
Person who rents property from the landlord.
Tender:
Offer to buy a property at auction.
Title of Property:
Legal document that demonstrates ownership.
Trusts:
Financial instrument that allows investing in real estate.
V
Vacation Rental Property:
Home temporarily rented to tourists.
Variable Rate Loan:
Loan with an interest rate that can change over time.
VAT:
Value Added Tax applied to real estate transactions.
Z
Zoning:
Rules governing land use in a specific location.