There are a variety of real estate abbreviations and real estate acronyms in the industry. Whether you are a beginner, an expert in the real estate field, or an investor who wants to enter the field of real estate investment, you must be familiar with these words and terms used by real estate professionals. In the following lines, we will learn about some basic terms, especially when purchasing an investment property.
Brooker
Real estate broker
If you are a beginner real estate broker, you must first understand what a real estate broker is before entering this field. It seeks to obtain the necessary licenses to conduct business.
Real estate broker or real estate agent :
It is an independent person, office, or company licensed by the government to negotiate real estate transactions. It represents the seller or buyer of real estate, whether individuals, property owners, or real estate development companies. The role of the broker is to prepare sale or purchase agreements, prepare administrative documents, and provide guidance and assistance. In facilitating the procedures for completing the transaction, in exchange for a percentage of commission agreed upon by all parties for these services. The commission percentage is generally 1% collected from each party (buyer and seller) of the total selling price of the property.
Brokerage office _
The real estate broker works through his license as sales agents and is responsible for them as Real Estate Agents. Real estate brokers and agents are divided into four categories of representation:
- Seller’s Agents, commonly called “listing brokers” or “listing agents,” are hired by owners to help market a property for sale or lease.
- Buyer’s agent: They are brokers or sales representatives who assist buyers by helping them find and purchase the properties they are looking for.
- Dual Agent: They are agents who can help both the buyer and the seller in the same transaction, and a dual agent is only a real estate broker.
- Transactional Agent: A transaction broker assists the buyer, seller, or both during the transaction and does not represent the interests of either party who may be considered a client. The assistance provided are the legal documents of the agreement between the buyer and the seller regarding the specific method of transfer of ownership.
Real estate terms
First: Research and Prospecting
Prospecting is the first step in the sales process, which involves identifying potential customers, also known as leads. The goal of prospecting is to develop a database of potential customers and then approach them systematically in hopes of converting them from potential customers to existing customers.
Second: Lead Potential client
Often referred to in the real estate industry as a lead, it is information about a potential buyer or seller. It is more effective to target individuals who have thought about purchasing or listing real estate than the general public.
Third: Announcing the sale or rental of real estate (Listing).
An agreement that represents the right of the real estate agent or broker to deal with the sale of real estate and to receive a fee or commission in exchange for performing these services. There are different types of real estate listings.
- A general or open registration is the right to sell that may be granted to more than one agent or broker at a time.
- The listing of an exclusive (sole) agency is the right of the real estate agency to act as the sole party, excluding the owner who has the right to sell the property for a certain period of time. This is done with an exclusive authorization to sell the existing property (property).
- Multiple listing is when an agent with an exclusive listing provides a number of brokers or agents with information about the property and shares the commission with the agent who can find a buyer.
- A net listing is an arrangement whereby the seller sets a minimum price to take for a property, and the agent’s commission is the amount for which he sells above that minimum.
Fourth: Important abbreviations
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Price on request Price on application (POA)
This means that when you are on a real estate selling site like Bright Vision , you will see the POA, the price upon request and the reason they want to keep the price private. This term is usually used for large projects, plans, or unique or expensive homes.
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Return on Investment ( ROI )
It means that an investment is not described as a real investment unless it pays off. “This sentence describes the importance of ROI. This sentence is important, for any investment made, its owner expects better results in the future. But it is not just wishful thinking, it should have a clear ability to calculate ROI and work towards improving ROI over time The return on investment is calculated by dividing the net profit by the investment value and multiplying it by 100 to get the return on investment as a percentage.
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Built up area ( BUA)
An architectural, constructional, real estate term that represents the total of the covered building areas within the plot of land and all floors of the building.
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Freehold (Freehold) .
A person who owns a freehold property owns the property and land indefinitely. Freehold property is inheritable and there are no restrictions on the property owner’s right to transfer ownership. Freehold ownership can be transferred by registering a sale deed.
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Leasehold _
What is a lease? A lease is an accounting term for the asset being leased. An asset is usually property such as a building, space within a building, or land. The tenant contracts with the landlord (landlord) to obtain the right to use the property in exchange for a series of pre-determined payments over the term of the lease, which may reach many years. You can buy and sell physical property.
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Rent to own _
Rent-to-own contracts are alternatives to traditional home loans. Initially, these arrangements are very similar to traditional leases that landlords and tenants might sign. The buyer and seller specify the purchase price of the home in the contract. At some point in the future, a buyer could purchase the home at that price — regardless of the home’s true value.
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Deposit or advance payment
It is the amount paid by the buyer upon signing the ownership contract (real estate contract). The remaining amount is paid upon closing and transfer of ownership of the property.
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Closing process (completing the deal)
Once the seller accepts the purchase offer, signs it and returns it to the buyer (purchase agreement), the closing process officially begins. It is also the last step in purchasing and financing the property. On the closing day, ownership of the property transfers from the seller to the buyer. The following parties are usually present at closing: the seller, the buyer, as well as brokers, agents, attorneys, and mortgage lenders.
Fifth: Important terms specific to projects under construction, off-plan property
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Master plan for embarkation
The general structural plan of the land to be developed according to its classification for residential, commercial or industrial use. The master plan of the project includes all the details of the project, including the buildings and their classification. As well as locations of public services, parking lots, gardens, parks, places of worship, clubs, roads, etc.
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Selling the property off-plan before its construction Off-plan (Primary sales)
Off-plan sale is when real estate developers offer and sell residential or commercial units to an investor or end-user in the primary market as the first sale of that unit, so that the buyer can obtain more favorable financing from lenders. Real estate investors also buy off-plan with the aim of achieving significant profits.
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Resale (Secondary market)
Some in the real estate industry believe that it is the primary market or new properties that contribute the most to sales due to attractive advertisements and marketing of new projects. Contrary to popular belief, the resale or secondary real estate market accounts for the majority of residential real estate transactions as it provides more options in established locations.
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Flats / Apartments types
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Studio _
The studio apartment is a small-sized apartment that consists of a single room combining a bedroom, living room, and kitchen with a full, independent bathroom.
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One bedroom Flat / Apartment
An apartment usually consists of one separate bedroom, a living room, a kitchen, and one or two bathrooms (a suite).
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Flat / Apartment
An apartment is called according to the number of rooms it consists of, for example a two-room apartment, a three-room apartment, a four-room apartment, etc. In addition to the kitchen and the number of shared bathrooms, Awan Sweet.
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Duplex _
The duplex apartment consists of two units in one building, interconnected and of the same size. Duplex apartments have their own entrance and usually have living spaces on both the upper and lower floors.
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Triplex _
A triplex is an apartment consisting of three residential units intertwined in one building. Like duplexes, they have their own entrances, are similar in size and contain multiple living spaces. The third floor usually includes a master room with a bathroom, a guest room with a bathroom, in addition to a shared bathroom and kitchen
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Pent house
It is a villa or apartment, usually on the last floor and rooftop of a residential building, high-rise building, hotel, or tower. Penthouses are often distinguished from other apartments by luxurious features. Architecturally, it is equipped with ultra-luxurious fixtures, finishes and designs that differ from all other residential floors in the building. They also differ in size, space, luxury, and thus in price.
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Villa types
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Town House
A townhouse is a residential complex that usually consists of 2 to 16 multi-unit residential units consisting of one, two or three floors. It is considered a type of villa with a small area compared to independent villas, which share one or two walls with neighboring villas but have their own entrances.
The villas are at the beginning and end of the complex and are on the corner and have two facades, called End type. As for the villas that are located in the middle, share two walls, and have one facade, they are called Middle type.
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H Villa (Double Villas) Twin House
Atash villas (double houses) consist of two houses sharing only one wall in a structure, and may be a mirror image of another with a different design, with each owner owning their share of the house and land.
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Stand-alone villa ( Detached)
The detached villa is considered self-contained and does not share any walls with a neighboring building, that is, it is one space open on all sides and there are no residences above or below it (other than its own parking lot or canopy). And it’s expensive.
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Mansion _
A palace is generally a house. Only when it reaches a certain level of quality and area (no less than 1,000 square meters) can it rise to the status of a palace. Space is not the only factor, the house should be luxurious and impressive. It has a large number of bedrooms, bathrooms and additional rooms designed specifically for an individual purpose. It also has a lot of amenities such as a swimming pool, tennis courts, spacious gardens, walking trails, water features (waterfalls) and additional parking.
High ceilings, large windows and beautiful exterior walls add to the luxury. In addition to the quality of construction materials used in the building, such as high-quality wood, high-quality stonework, custom fabrics and furniture, marble floors, decorative granite shelves, and advanced equipment that includes smart and energy-efficient technologies.
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Purchase and Sale Agreement / Purchase and Sale Agreement
Sales & Purchase (SPA) or Pay Settlement (PSA) Agreement
Purchase and sale agreement? A purchase and sale agreement, SPA or PSA, is a written document signed after the buyer and seller mutually agree on the price and terms of the transaction and define all the various rights and obligations of both the buyer and seller.
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Addendum agreement
It is an attachment subsequent to the contract that adds new additional conditions or amends or changes some or all of the original terms and conditions in the previously concluded contract. This usually adds something new to a pre-existing document. Once all parties named in the contract agree to the contract addendum, it becomes part of the new contract.
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Annex to agreement
It is a post-contract attachment that constitutes an immediate extension of the contract. Sometimes a contract can be kept very short, for example if it is modeled after a framework contract or if it is a copy of an earlier contract. An addendum has no established significance in contract law unless it is established and included in the main agreement, meaning that it must be mentioned and described in the body of the basic contract.
Attachments are often used to attach price lists, license terms, schedules, promotional materials, product descriptions, or large purchase and sales agreements. And sometimes to add some form of documentation to the agreement process. Or determine how the agreement will be interpreted. A contract addendum should not be confused with an additional agreement to the contract.
Conclusion:
A set of real estate definitions and abbreviations were explained and discussed that help the broker or real estate agent to deal with buyers, tenants, and even investors. To understand real estate abbreviations in the field of real estate that help and facilitate the completion of real estate transactions.