Glossary of Real Estate and Property Terms in Thailand : Page ALL

abandonment
The act of voluntarily giving up a right (of ownership or lease or any other right) over a property.

absentee landlord/owner
Owner of a property who resides elsewhere (usually in another city or country)

absolute title
The right of ownership of legal estate in registered land; a title that is guaranteed by the state that no one has a better title that is subject to any minor interests or overriding interests.

abut
Adjacent or contiguous to. For example, if a property is adjacent or next to another, it can be said to abut each other.

acceleration clause
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

accessory buildings
Annexes to a building such as servants’ quarters, sheds, garages, etc.

accrued interest
The unpaid interest accumulated from an investment or a loan

acquisition costs
The cost of acquiring a property; includes purchase price and all other allied cost like insurance and legal fees, brokerage, charges, etc.

acre
An area of land of any shape containing 43,560 squares feet or 4,840 square yards or approximately 4,047 square meters.

act of god
Damage caused by nature. Examples: floods, hurricanes, tsunamis, etc. Also known as force majeure. An unexpected event that prevents one from complying with certain terms and conditions in a contract

actual cash value
The price at which property can be sold at a given point of time

ad valorem
Literally, according to the value. Applied, for instance, to a scale of stamp duty, inheritance tax and fees.

addendum
Something that is added to an existing document. Example: supplementary to an agreement

adjustable-rate mortgage (ARM)
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARM’s are tied to indexes.

adjustment date
The date the interest rate changes on an adjustable-rate mortgage

administrator
A person appointed by a court to manage an estate while testamentary proceedings are on. This person also distributes the estate of a deceased person in accordance with the orders of the court.

aerial survey
A survey of an area made by taking sequential photographs from an aircraft; plans are then drawn from photographs.

aesthetic value
The value of a property deriving from its architectural beauty or natural or mandmade surroundings.

affidavit
A statement or declaration made in writing and under oath before a competent (usually court) official.

agency
Person or body corporate acting under the orders and authority of another The scope of such authority is usually specified in the agreement between the two parties.

agency agreement (agency listing)
The term describing a listing under which the broker’s commission is protected against a sale by other agents and often by the principal.

agent’s commission
The fee payable for services rendered by real estate professional
agreement for lease/sale
It is a contract by which land or property is leased or sold by one party to another.

air rights
This is the right to use the space above a property. It does not include the right to use the land surface which the property is located.

amenities
Those facilities, like swimming pools, jogging tracks, health clubs, etc.,

amortization
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

ancillary use
A planning term describing the use of a property in a manner different from, but functionally related to, its main use.

annual percentage rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

annual sinking funds
A sinking fund where payments and interest accumulated are calculated yearly.

apartment
A form of property ownership in which each owner holds title to his/her individual unit, similar to western definition of condominium

apartment hotel
A property offering guests a complete self-contained sole occupancy unit consisting of bedrooms, a living room, a kitchen with full cooking facilities and dining area. Usually requires a hotel license to operate as such. Serviced apartment which are let on a daily basis function like apartment hotel.

application
The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.

appraisal
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

appraiser
An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation
The increase in the value of a property due to changes in market conditions, inflation, or other causes.

arbitration
A method of resolving a disagreement between two parties by presenting their different views to an independent arbitrator. The award is binding on the parties but an arbitrator’s decision can be challenged in a court of law under certain circumstances.

arbitration clause
A clause in a contract providing for disputes arising from the contract to be referred for the decision of a third party (arbitrator). Common examples are disputes over rent review clauses in leases or the terms of buildings contracts.
arbitrator
An impartial person who is appointed to settle a difference between two parties

ar-karn-yai-pi-ses (THA)
Extra large buildings that have gross floor area of 10,000 sq.m. or more

“as is” condition
The sale, purchase, lease or conveyance of a property or item in its existing state, i.e., without any change, improvement, addition, alteration or repair. Also called “as is where is” in some countries

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessor
A public official who establishes the value of a property for taxation purposes.
Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

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 of interest to, for example, shareholders or is required for company takeovers, share floatation or mortgage.

assign
Transfer any interest or the right of ownership over property or any other asset

assignee
One who receives the right of ownership over a property or any other asset.

assignment
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

assumable mortgage
A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.

assignment of lease
The transfer by a lessee of all his rights over a leased property. In such a case, the assignee becomes a lessee under the original lessee. Some leases contain clauses specifying the condition under which leases can be assigned. Assignment of lease is different from sub –lease and the two should not be used as synonyms.

association dues
Refers to charge for the building and common area maintenance. This is also sometimes referred to as condominium dues.

assumption fee
The fee charged by a lender for processing the paperwork required for transferring and existing loan to another person

assumption of deed of trust
Agreement by which a buyer agrees to take over the liabilities for the payment of an existing mortgage or deed of trust. The lender usually has to approve the buyer before such transaction can go through.

authority approvals
The necessary sign-off by council, fire department, government, etc., confirming design compliance with laws to enable a facility to be constructed or a transaction to be completes.
backfill
to refill ground that had been dug up for construction or development purposes.

backup offer
Secondary offer made to protect one’s interests in case the first offer fails.

balance sheet
A report showing the financial position or condition of a business at a given date. Also called Statement of Financial Position or Statement of Financial Condition

balcony
An area with a wall or bars around it that is joined to the outside wall of building on an upper level

balloon mortgage
A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

balloon payment
The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy
By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

base rent
The minimum rent for a commercial property without taking into account any add-ons like percentage of sales/profit that make up the total lease package

bearer instruments
Commercial instrument like bonds, checks,etc.. that give the person having it (bearer) the right to encash it.

beneficiary
Someone who receives property or offer assets in a will. Someone for whose benefit a trust is set up

best rent
The highest rent which can reasonably be expected by a landlord in the circumstances of a particular case.

bid
An offer to buy or construct or build something where more than one party is (usually) interested.

bill of quantities (BoQ)
A schedule of all labor and material items required to construct a facility that is priced on an itemized basis.

bill of sale
A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

binding obligations
The rights and duties agreed upon and described in an agreement executed between two parties that are binding upon the parties to an agreement (eg. Landlord and tenant or vendor and purchaser)
biweekly mortgage
A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. Note: there are independent companies that encourage you to set up bi-weekly payment schedules with them on your thirty year mortgage. They charge a set-up fee and a transfer fee for every payment. Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle. You could save money by doing the same thing yourself, plus you have to have faith that once you transfer money to them that they will actually transfer your funds to your lender.

board resolution
A legally binding document executed by the board member of the corporate which authorizes certain acts or decisions to be carried out by the company. A board resolution can form part

bona fide
Legal term meaning actions, or individuals that are honest and in good faith.

bond market
Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

book value
The value wich is ascribed to a property shown I nthe accounts as a capital asset but is not necessarily current market value, since it may be basedon actual cost

boundary
The line or structure separating two contiguous properties states or countries

breach of contract
An act or omission, contrary to one or more provisions in a contract and therefore giving the aggrieved party a right to enforce specific performance, to rescind the contract and/or to claim damages, the remedy available depending upon the nature of the breach.

breach of warranty
Failure to comply with a constructual undertaking e.g., the failure of a vendor to pass title or give vacant possession when such has been warranted. Such a breach normally entitles the innocent party to damages, although the breach of a warranty in an insurance contract by the insured normally entitles the insurer to treat the contract discharge.

break clause
A clause in the lease which gives the landlord and/or the tenant a right, in specified circumstance, to terminate the lease before its normal expiry date. It usually defines the length of the notice to be given and may be subjected to contractual or statutory financial provisions.

break-up value
The value of a specific property, e.g. an estate of land and building, based on the assumption that it is lotted and sold in parts, in such a manner as to achieve the best possible price.

bridge financing
A loan which is generally given to allow the borrower to tide over some immediate requirement while he awaits a more permanent or long-term solution to his financial needs.

bridge loan
Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favour is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

broker/ dealer
Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

build to suit
A property custom built to suit the specifications of the long-term lease

builder bond
A bond issued by a builder to ensure the completion of a building (see bank guarantee)

building
A mandmade structure where people live, meet or carry out business. Example: house, office, mall, temple, etc.

building application (BA)
An application to the local authority relating to the detailed designed and construction of a proposed building.

building code
A list of laws, conventions and practices that govern the construction and maintenance of real estate assets.

building completion date
The date provided by the landlord by which date the building is made operational in all aspects including all onsite and offsite works ( described in detail in the agreement), obtaining the necessary approvals including Occupation Certificate, for the demised promises to be occupied

building contract
A contract between an owner or occupier of the land and a building contractor, setting forth the terms under which construction is to be undertaken. A contract will normally include details of work to be carried out, basis of remuneration, time-scale, penalties, if any,for failure to comply with terms of the contract.

building contractor
A builder who enters into a contract under which he becomes obligated to carry out building or engineering works of a nature, extent and specification described in the contract and usually within a prescribed period.

building insurance replacement cost
The estimated construction costs of a replacement building. It is to be covered by insurance policy against losses due to structural damage caused by fire only and does not include any consequential loss and liabilities to third parties

building line
The line on a street or area beyond which no construction can take place. Its purpose is to ensure that buildings are not built too closed to each other or to the street.

building permit
A permit granted by the construction or building authority to construct a building

building restrictions
Restraints placed on the absolute right of a property owner from building whatever he wants.

built-ins
Utilinarian items like cupboards, bathtubs,stoves.ovens, etc., that are built into the building so as to make them immovable

buyer’s market
In the property market, a condition of supply and demand in which those seeking to purchase are in a relatively strong negotiating position because of a degree of oversupply

buydown
Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower’s payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower’s monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

by-laws
Internal rules that govern the activities of a company association or society
call option
Similar to the acceleration clause.

cancellation clause
Clause in an agreement that sets out the conditions under which, and the terms on which, the contract can be cancelled or terminated

cap
Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

capitalization
The estimate of a property’s value on the basis of its earning capacity

cash back
A payment made by a property owner to a prospective tenant to secure a letting in times of oversupply on terms which would otherwise be unacceptable. In essence it can be regarded as the opposite of a premium and, as such, is a form of reverse or negative premium

cashier’s check (cheque)
A check where a bank draws a check upon itself instead of its depositor’s account. The depositor, who instructs the bank to do so and provides the money for it, does not have the right to stop payment. Buyers often insist on this mode of payment while closing sales. Also called a Banker’sDraft, Bank Check or Demand Draft in some countries

cash-out refinance
When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance”.

caveat emptor
Latin for buyers beware. Legal term meaning the quality risk in transaction vests with the buyer, unless specifically stated otherwise or unless fraud or deception can be proved. Most countries, however, now have strict laws protecting buyers from shoddy workmanship, finish and quality

certificate of occupancy
Certificate issued by a local authority stating that a building is fit for occupation.

certificate of deposit
A time deposit held in a bank which pays a certain amount of interest to the depositor.

certificate of deposit index
One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit.

certificate of occupancy
Certificate issued by a local authority stating that a building is fit for occupation

certificate of practical completion
Under a building contract a certificate issued by the architect, surveyor or supervising officer stating that the works have been substantially completed and the building is ready for occupation. This certificate will : a) release an agreed percentage of any retention money; b) begin the defects liability period; and c) transfer responsibility for insurance from the contractor to the employer

certificate of purchase
Certificate issued to a buyer, usually following a court-ordered sale, stating that he has purchased a certain property. The buyer will be entitled to transfer the title to the property to his own name if the original owner does not redeem the property within a specified date.

certificate of use
The document from the competent official certifying that land has already been put to use.

certified check
a personal check which a bank guarantees to pay. The bank usually ensures that the issuer has enough funds in his account to honour the check and does not clear other checks if they deplete the funds in the issuer’s account to the point where there’s not enough money to cover the amount of the certified check. Banks also do not honor stop payments on certified checks.
certified copy
A document that is certified by a competent authority to be a true copy of its original

chain of title
An analysis of the transfers of title to a piece of property over the years.

channel
A passageway for the passage of wiring, sewage, water or gas. A channel may be open or covered, on the ground or underground. Also means a long, open-ended depression through which water flows.

chanote (also called Title Deed)
Is a certificate of ownership of real property in which the person, whose name appears as the owner, has a real property right to transfer, sell, dispose of and mortgage the Land upon registration with the relevant local land department, including the lease.

charge
Acts as an encumbrance on title and involves no transfer of title to, or of possession of the property as a security for the loan. The property is designated as that which can be taken in execution of the debt on default.

civil action
Legal action for remedy against some wrong that is not criminal in nature

class action
Legal action brought by a group of people who have similar claims against a common party

clear title
A title that is free of liens or legal questions as to ownership of the property.

closing
This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands.

closing costs
Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

cloud on title
Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.

co-borrower
An additional individual who is both obligated on the loan and is on title to the property.

collateral
In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

collection
When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.

commingling
The mixing of different kinds of funds. For example, if a company mixes funds it has collected as fixed deposits (which should be accounted for separately) with money collected as advance from buyers, it is known as commingling

commission
Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.
common area assessments
In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas.

common areas
Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

community property
In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. This is an outgrowth of the Spanish and Mexican heritage of the area.

co-mortgagor
When more than one person sign a mortgage, they are said to be co mortgagors. Also means the person who guarantees the repayment of the amounts due, who signs the mortgage deed along with the person receiving the money.

comparable sales
Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."

compensation
Payment made for damages. Money paid by the government following the acquisition of land.

Competent authority
The competent officials acting under this Code and other officials appointed by the Minister to act under this Code.

completion
The final step in the legal process of transferring ownership of property, e.g., when the documents in connection with a sale of land are signed, sealed and delivered.

completion certificate/statement
Certificate from a local authority stating that a building under construction is ready and complete

compulsory purchase
The acquisition, in accordance with statutory procedures and practice, of interests in land by a public or private body empowered so to do by an Act and authorized to do so by the appropriate minister’s or government entity’s confirming a compulsory purchase order. Such a purchase entitles the purchaser to deprive the, usually unwilling, owner of his property on payment of such compensation as it is provided for statue.

concession
Permission granted by the owner of land or property to another party to use the said land or building for some business, in return for some monetary consideration

conditional sales contract
Sale of real estate where the title remains with the seller until the buyer fulfills certain conditions

conditional sale of real property
Land sale where the consideration amount is paid in installments. The title vests with the seller until the full amount is paid. The buyer has only equitable title until he pays the agreed amount in full.

condominium
Condominium is defined by the Condominium Act B.E. 2522 (1979) (Thai law) as a building that can be have its separate portions sold to individuals or groups for personal property ownership.
A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

condominium conversion
Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.

condominium hotel
A condominium project that has rental or registration desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the units are individually owned. These are often found in resort areas like Hawaii.

condominium owner’s association
A body formed by the owners of individual dwelling units in a condominium that looks after and maintains the common services essential for the use of the condominium. It also represents the common interests of individual dwelling unit owners with outsiders
consideration
Strictly the payment, promise, object, or forbearance given by one party to a contract in return for a promise or pledge given by the other party. In property law, the term is applied particularly to the price offered by the purchaser in a contract to acquire an interest in land

construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

construction management
Where a contractor is engaged to manage the construction of a project for an agreed fee and the trade contractors are engaged either directly by the client or an open book analysis

construction period
The length of time elapsing from the date a building or other similar project is started, or deems to start, until the works involved are finished. The finishing date is frequently known as the date of practical completion, being the date when the architect certifies that all the relevant works have been carried out in satisfactory manner.

consultant
A company or individual who provides specialist advice and or services (typically architect, engineer, project manager).

contiguous
Bordering on

contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

contingent fees
Fees that are paid only if some event takes place in the future.

Of land: An agreement whereby the seller (vendor) agrees to transfer an interest in land to put purchaser for a consideration. The agreement is affected by the exchange of copies of the agreement document between the parties. Rights to possession are not conferred upon the purchaser until the purchaser is completed, but the purchaser has an insurance has an insurable interest in the property from exchange of contracts. A non-returnable deposit is usually paid by the purchaiser on exchange
Of goods: The transfer of ownership of chattels from a seller to a buyer for a money price where ownership is transferred immediately

contract rights
A collective name for any clause in a lease allowing a tenant to reduce in size either temporarily or permanently (eg., sub-lease, surrender,etc.).

contractor
One who undertakes to build a building or other structure in return for a fee.

contractor’s overhead
Overhead expenses like cost of office, interest cost, etc., that a contractor has to incur

conventional mortgage
interest Refers to home loans other than government loans (VA and FHA).

convertible ARM
An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.

conveyance tax
Tax levied by the (usually local or state) government on the value of a property sale.

conveyancing
The legal procedures employed in the creation, transfer and extinguishment of ownership of interests in land, including preparation of contracts, enquiries, searches, land registration ( where appropiate0 and completion of the transaction

cooperative (co-op)
A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

co-signatory
Someone, usually the guarantor, who signs a mortgage deed along with the person taking loan. The liability for the loan falls upon the co-signatory in case the loanee defaults.

cost of living index
An idex that tracks the living expenses of an average person

cost of funds index (COFI)
One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans.

covenant of quiet enjoyment
Clause in a lease which guarantees peaceful possession to a tenant.

covenant running with the land
Easement that pass with the title to the land.

credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.

credit history
A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.

credit report
A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

credit repository
An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

cross-easement
Mutual easements annexed to two adjoining tenements, e.g., mutual rights of support between two contiguous buildings in different ownership

curtain wall
Exterior wall which lends no structural support to a building, but acts merely to enclose

damages
Money that courts order parties to pay as compensation for some loss they have caused to others. Also means a decline in the quality of material due to breakage, leakage, etc.

debtor
A person or entity who owes money or its equivalent to a creditor; someone who is in the obligation to paying a debt

decentralization
The movement of people or transfer of power from a central position or authority to the suburbs or to subsidiary authorities

decorate
The act of adding to the beauty of a structure by making superficial changes

dedicated
The gift of private property for public use. Also means structure or equipment that is used for a single purpose only

deed-in-lieu
Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

deed of trust
Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.

default
Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.

defects liability period
A specified term 9normally 12 months) following practical completion of facility when the contractor remains responsible to rectify any defective work

deferred maintenance
repairs that are required to restore a property t good condition

delinquency
Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit
bureaus.

delivery
The act of handing over physical possession of a property to a buyer

density
In town planning, a term applied to the number of units permitted per acre (or hectare), usually in relation to residential accommodation

deposit
A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit"

depreciation
A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

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 ultimate responsibility for providing or procuring the funds needed to finance the whole project.

director-General
the Director-General of the Land Department. Section 7 of Thailand’s Land code provided that The Director-General shall have the duty to inspect, allocate, and take a census of the land to learn its natural abundance, and suitability for use in the interests of the state and of the people

disclosure
making information available, especially to the public, as in case of a quoted company producing and distributing a detailed and comprehensive report usually each year, which presents a true and fair picture of its financial position (capital and revenue) and of the activities undertaken during the period under the review. Public opinion has, over the year, called for less secrecy, more accountability and more openness in the type, breadth and depth of information which is disclosed. The underlying reason is to minimize the risk of dishonest or otherwise improper conduct of business affairs. The more open a company or country is, the more transparent it is said to be.

discount points
In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.

dividend yield
Absolute returns expressed as a percentage of total investment.

domicile
Legal term indicating the place or country in which one is permanently resident.

dominant estate
Land which does not have access to a public road which is given a right of way through an adjourning land.

down payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

dual agency
An agent who represents and is paid commissions or consideration by both buyer and seller.

due-on-sale provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

dwelling unit (dwelling house)
House or apartment where one resides
earnest money
A sum deposited, before an agreement is binding in law, by one of the parties with the other as an indication of his good faith and his intention to honor the terms of the agreement, e.g., a pre-contract deposit

earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

easement
A right of way giving persons other than the owner access to or over a property.

economical housing
A relatively cheap apartment catering to families or individuals with lower incomes, in which the price is dominated or guided by the government

effective age
The estimation of the age of a building based on its condition, and not chronological age. Obviously, better maintained buildings will have a lower effective age than others

effective rental
Rental paid by a tenant after taking into account incentives offered in the leasing of space

effective age
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

egress
The action of leaving or exiting a property. Also means the right to use another person’s land or property.

elevation
The view of the frontal façade of the building, or the height ofa place above the sea.

eminent domain
The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

encroachment
An improvement that intrudes illegally on another’s property.

encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

entire agreement
An agreement that includes the attached exhibits/ annexures and constitutes the entire agreement between the landlord and the tenant with respect to demised premises

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

escrow account
Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner’s insurance when they come due. The lender pays them with your money instead of you paying them yourself.

escrow analysis
Once each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.

escrow disbursements
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

estate
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

estate agent
One who acts for, and usually advises, a principal in respect of transactions involving real estate, e.g. sales purchases, lettings, etc.

examination of title
The report on the title of a property from the public records or an abstract of the title.

exclusive agency agreement
An agreement that prohibits a principal from appointing more than one agent. An agreement that gives an agent exclusive rights to deal on behalf of a principal.

exclusive listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

executor
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

extension
The continuation of an agreement under existing terms and conditions.
FOC
An acronym for free of charge. Includes any goods or services provided gratis.

face rent
The quotes rent without taking out the effect of rent –free periods, rebates or incentives, if any.

facilities management
The management of owned and occupied corporate real estate and the services provided for the occupants

facility
They building or area constructed specifically to accommodate the occupiers’ needs

fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

fee simple estate
An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.

final completion
The date following the defects liability period when a project is deemed complete and all final payments have been paid

financing costs
The rate of interest and other service charges needed to obtain a loan.

firm commitment
A lender’s agreement to make a loan to a specific borrower on a specific property.

first mortgage
The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

first refusal right
A right given by one party to another whereby the first party is obliged to give the second party a chance to acquire an asset before he offers it to anyone

fit-out
The physical components included in a facility constructed to enable the occupier to utilize the space

fittings
Items which are affixed to land or buildings and which are easily removed

fixed price contract
A building contract in which the total price is fixed at the outset usually subject only to changes due to subsequent variations in statutory undertakers’ charges.

fixed-rate mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.

fixed rent
A rent that cannot be changed during the entire period of a lease or , at the date when the lease is being valued, will be unaltered for such a length of time that no change in capital value would be attributed to the prospect of a different rent during the remainder of the lease

fixture
Personal property that becomes real property when attached in a permanent manner to real estate.

flat
A separate set of premises, normally all on the same floor, formingpart of the building,divided horizontally from some other part of the building, constructed or adapted for the purposes of a private dwelling and occupied wholly or mainly as a private dwelling

force majeure
An act of god (natural calamities), or an act of a man (war, riots) beyond the control of the parties to a control of the parties to a contract which make it impossible for one of the parties to fulfil the terms of that contract. Many contracts have a force majeure clauses.

free standing building
A standalone building which is not attached to any other building

flood insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

floor plan
An architectural sketch of various rooms, balconies, bathrooms, etc.

flowage easement
An easement by convention that allows water from lands at higher levels to flow into and through lands located at lower levels even though there may be no agreements to such effect

foreclosure
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

forefeit
The loss of a right, privilege, property, or money because of a crime, breach of obli