Virtual Realty - Jargon Buster

Glossary of Property Terms

A & S fees

In insurance, these are architects, surveyors, incurred in the reinstatement of a damaged or destroyed property.

A COELO USQUE AD CENTRUM

By custom, a phrase indicating that a right of ownership in land will theoretically extend both up to heaven and down to the centre of the earth.

A FORTIORI

With stronger reason.

A/C

(1). Air conditioning. (2). Account.

AB INTIO

From the beginning. For example a contract is void ab initio if it is (or should be) known to both parties it is illegal from the start.

ABANDONMENT

1.Surrender of a legal right, especially a right of ownership of property. 2. Relinquishment of a claim or part of a claim in a civil action or appeal.

ABATEMENT

1.Reduction or cancellation of a debt. For instance, a lease usually provides for rent if the building demised is damaged or destroyed by fire. 2. Removal of termination of a nuisance, especially the right of an aggrieved person himself to terminate the cause of the nuisance.

ABATEMENT NOTICE

A notice served on the owner or occupier of a property form which a private nuisance arises warning him of the intention to enter on the land in order to abate the nuisance.

ABORTIVE EXPENDITURE

Money which does not achieve the purpose for which it was spent i.e. it has been wasted.

ABSOLUTE COVENANT

In a legal document, a positive or restrictive undertaking which is neither conditional nor determinable during its lifetime.

ABSOLUTE TITLE

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

ABSTRACT OF TITLE

In establishing a person's ownership of an interest in land, a summary of evidence which has been extracted form the title deeds and other regular documents as required by a purchaser or mortgagee.

ABSTRACTION OF WATER

The taking of water from a natural source of supply e.g. a river.A license is usually required from the relevant body,but not:
a. for moderate quantities
b. when required for domestic or agricultural use (other than for spray irrigation);or
c. when removed in the course of land drainage for fire fighting.

ABUT

To adjoin or border on, to the extent of touching physically.

ABUTMENT

A point at one building provides lateral support to another.

ABUTTALS

The boundaries of a plot bordering and physically touching an adjacent property.

ACCELERATION

In relation to property the coming into possession of a future interest in land earlier than thereby accelerating the reversion to the landlord.

ACCELERATION CLAUSE

1. A clause used in a mortgage deed which gives the right, in certain specified circumstances, to demand repayment in full of the outstanding debt earlier than the due date.
2. A clause in a deed or contract which provides for early termination of an existing interest in land, in certain specified circumstances, thereby advancing the future interest.

ACCEPTANCE

The written or oral agreement of the terms of an offer which creates, or may lead to the creation of the legally binding contract, usually subject to the satisfaction of other requirements.

ACCOMMODATION AGENCY

A business which provides details of residential accommodation to let, usually looking for the prospective tenant for a fee or commission.

ACCOMMODATION LAND

1.Land which while having potential for development with buildings is meanwhile put to temporary use.
2. Sometimes understood to mean land close to a market town and used by a butcher or another person for holding animals temporarily prior to their disposal.

ACCOMMODATION WORKS

1. On the acquisition of a property, or part of a property, by an authority having powers of compulsory purchase, works carried out by the authority to other property belonging to the same owner, so as to mitigate loss or damage to the latter property resulting from the acquisition.
2. In a development, work such as demolition, clearance, construction of other operations which enable the main work of development to proceed.

ACCORD AND SATISFACTION

This is the purchase of a release from an obligation, whether arising under contract or tort, by means by means of any valuable contribution, not being the actual performance of the obligation itself. The accord is the agreement by which the obligation is discharged. The satisfaction the consideration which makes the agreement operative.

ACCOUNT (stock exchange)

A term used by the stock exchange to name the principal division of its calendar.

ACCOUNTING DATE

The day to which accounts are prepared e.g. the last day of a company's financial year.

ACCRETION

A natural increase in an area of land caused by the gradual accumulation of silt or other deposits from a river or the sea, or by dereliction.

ACCRUED DEPRECIATION

At a given time, accumulated amount of depreciation for a particular asset which has been entered in the accounts.

ACCRUED INTEREST

The unpaid interest accumulated form an investment or loan.

ACCUMULATIVE RATE

The rate of interest at which it is known or assumed that an annual sinking fund will grow. It may be expressed as gross or net of income taxation but, except in the case of a gross fund, can accumulate only at the net rate.

ACKNOWLEDGEMENT AND UNDERTAKING

-Confirmation (in a title deed) that a named party may see and have copies of relevant deeds not in his possession, with an undertaking by the holder of the deeds to keep them safely, e.g. on a part disposal of land the vendor gives such an acknowledgement and undertaking to the purchaser in relation to the deeds of the whole.

ACQUIRING AUTHORITY

Generally, a government department, local authority or other body exercising a statutory power of compulsory purchase or of acquiring a property by agreement in advance of (or under threat of) compulsory purchase.

ACRE

An imperial measure of area (4046.8564224 square meters) retained for land registration under the metrication scheme from 1 October 1995.

ACTION

A proceeding in a civil court.

ACTION AREA

An area designated by a local planning authority for comprehensive treatment by development, redevelopment or improvement of the whole or part of the area, or by a combination of such measures, the proposals being part of the local plan for the authority's area, i.e. there is no `action area plan`.

ACTIVE MANAGEMENT

An arrangement, additional to the routine duty of looking after the buildings as they are, whereby property managers undertake to keep a watching brief on properties under their management with a view to advising their principal when action should be taken in relation to the property concerned.

ACTIVE TRUST (special trust)

A trust in which the trustees have duties beyond merely handing over the trust properties to the beneficiaries, e.g. obligations to safeguard or dispose of the trust property.

ACTUAL NOTICE

IN law this, means having knowledge of a fact by direct communication.

AD HOC TRUST FOR SALE

A (former) trust for sale where the trustees are approved by the court or by their successors in office or by trust corporations. A sale of land subject to such a trust over-reaches equitable interests that would otherwise not be over-reached, i.e. if the trustees were not so qualified.

AD IDEM

Towards the same thing, the term indicates that parties are agreed.

AD MEDIUM FILIUM

Literally up to a middle line. Used to define a boundary between adjoining lands in different ownership, e.g. where a road or a river divides the two properties, rather than by the legal or physical criteria which would be used in other cases. The middle line of a stream or way is adopted as the boundary in absence of evidence to the contrary.

ADDITIONAL RENT

An additional sum due under a lease or tenancy carrying the same obligation as if it were rent.

ADJACENT

Near or close to another property, especially (but not necessarily) having a common boundary.

ADJOINING

Near or close to another property to the extent that they share the whole part of the boundary.

ADJUDICATION

Judicial decision or formal judgment by a court of tribunal.

ADJUSTED NET TRADING PROFIT (NTP)

Depending on the valuation, the NTP after particular deductions or adjustments have been made for items not actually payable in the circumstances e.g. in compulsory purchase, NTP is adjusted for any profit rent (for a lease) or rental value (for a freeholder) for interest on capital and for an estimate of what the proprietor's remuneration, if appropriate should be.

ADLER CLAUSE

Historically, a clause obliging a tenant if he wishes to dispose of his lease, first to offer to surrender it to the landlord.

ADMINISTRATION

1. Where a person dies intestate or there is no surviving executor under the will (or the executor is not willing to act), the grant of letters of administration to an administrator of the deceased person's estate.
2. The collection of assets, settlement of debts and distribution of the residue of the deceased person's estate to the beneficiaries.
3. The carrying out of duties imposed by trust concerning the property of the bankrupt or of a person of unsound mind.

ADMINISTRATION LAW

The part of constitutional law concerned with the organization, powers and obligation of the administrative authorities i.e. ministers of the crown, local authorities and the officers employed on their behalf to carry out the relevant duties and enforce the powers.

ADMINISTRATIVE ORDER

A court order obtained by a debtor for a scheme to arrange partial or complete settlement.

ADOPTION

In property context, usually either:
(a) One of several ways of acceptance by a local authority of responsibility for the maintenance and upkeep of a road or of a sewer as a public highway or public sewer respectively; or
(b) The decision of a public body such as a local authority to enforce the optical (adoptive) provisions of some statute.

ADVANCE FACTORY

A factory built before there is any specific tenant requirement, usually with a view to encouraging an occupier to lease or buy it, thereby increasing unemployment in the locality.

ADVANCE INTEREST

Where possession of land is taken by acquiring authority, accrued interest from the date of entry, may be paid in advance of final settlement and completion.

ADVANCE PAYMENTS COD

For development projects, arrangements whereby the developer or builder makes early payment to the highway authority or enters into some kind of indemnity to meet the cost of roads which will eventually be adopted.

ADVERSE GEARING

Where the total annual cost of borrowed money on a property of project exceeds the net rental income.

ADVERSE OCCUPATION

Occupation of property by a trespasser or squatter who is denying the lawful occupier or owner of his right.

ADVERSE POSSESSION

Occupation of land inconsistent with the rights of the true owner and without his permission.

ADVOWSON

The perpetual right to install (or 'present') a clergy man to a church living. It is real property and vests in the owner of the right, the patron, as an incorporeal hereditament.

AEOLIAN SOIL

Soil composed of materials deposited by the wind.

AERIAL SURVEY

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

AFFIDAVIT

A statement in writing which is made under oath.

AFFORDABLE HOUSING (social housing)

Housing units made available to the local market on favorable subsidized terms or low cost basis, e.g. as starter homes, through registered housing associations or others.

AFTERCARE

Steps required of a mineral operator to put land (from which minerals have been extracted) into good condition for a specific use i.e. agriculture, forestry or amenity.

AGENCY BOARD

An advertising board which is displayed inside or outside premises by an estate agent who is acting on behalf of the owner or landlord in the disposal of the premises by sale or letting or in their development. It is relative inexpensive but effective method of giving brief details of a property in the market. Such a board bears the name, telephone number and often the address of the agent and also sometimes a brief synopsis of the accommodation available.

AGENCY BY ESTOPPEL

An agency created by operation of law when an agent oversteps his authority but action (or failure to act) by the principal leads the person dealing with the agent to believe the authority exists.

AGENT

One who acts on behalf of the principal.

AGENT OF NECESSITY

One who justifiably acts to protect the property of or other interests of another which are not threatened by an emergency. The essential requirements giving rise to the agency are that there must be urgent circumstances and that it must be virtually impossible for the 'agent' to communicate with the person whose interests are under threat.

AGREEMENT FOR LEASE (or sale)

A contract to enter into a lease (or sale).

AGREEMENT CERTIFICATE

A certificate issued by the British Board of agreement giving an independent opinion on the performance of a product.

AGRICULTURAL HOLDING

The aggregate of the land (whether agricultural land or not) comprised in a contract of tenancy which is a contract for an agricultural tenancy, not being a contract under which the land is let to the tenant during his continuance in any office, appointment or employment held under the landlord.

AIR SPACE

The air above a parcel of land, ownership of which is included with the land concerned, subject to the rights of others and any restriction on its use imposed by or under statutes.

ALIENATION CLAUSE

1. (USA) A type of acceleration clause calling for a debt under a mortgage or the of trust to be due in its entirety upon transfer of ownership of the secured property.
2. A clause controlling a lessee's right to assign and/or sublet.

ALIENATION, RIGHT OF

The owner's right to transfer the fee simple to another in any way he chooses, i.e. by will or by deed, e.g. the sale of a freehold or the grant of a lease.

ALIMENTARY TRUST (protective trust)

A trust which last for a period of no longer than the beneficiary's life but ends on the occurrence of certain events.

ALL RISKS YIELD (ARY) (market yield)

The remunerative rate of interest used in the valuation of freehold and leasehold interests, reflecting all the prospect and risks attached to the particular investment. Current reversion and term yields are examples of all risks yields.

ALLOIDAL

A system of land tenure, e.g. dual tenure, where the land is held absolutely without any superior ownership. The crown holds land in alloidal tenure.

ALLOTMENT

(1). Generally, any parcel of tenanted land used for cultivation, being let by:
a. a local authority under allotment legislation;
b. another under in-closure and poor law legislation, so called 'parochial allotments'; or
c. private land owners.
They are variously defined in the Allotments and Smallholdings legislation.
(2). In a floatation, an allocation of shares to an investor who has subscribed to the issue.

ALLOTMENT GARDEN

A parcel of land not exceeding 0.1 of a hectare (originally 40 poles) occupied for the production of vegetables and fruit for the consumption of the occupier and his family. A tenant has security of tenure and is entitled to compensation if his lease is terminated. ALL-RISKS POLICY A standard insurance policy for a particular market, e.g. a homeowner or building contractor, which covers the common peril faced in the market.

ALLUVIUM

The gradual building up or accretion of soil caused by the flow of a river or the sea. The owner of the land which is thereby increased becomes the owner of the new land.

ALTERNATIVE USE VALUE

The value of land and buildings which reflects a prospective use which is different from that of the current use.

AMELIORATING WASTE (meliorating waste)

Such 'voluntary' waste as improves the demised premises, i.e. an unlawful improvement to a property.

AMENDMENT OF DOCUMENTS

Changes in draft legal documents, e.g. a lease or a building agreement.

AMENITY

In property terms something tangible which makes the human environment more pleasant or advantageous, e.g. a landscaped open space within an urban area or a swimming pool in private garden.

AMENITY LAND

A term often used in town planning to describe an area of land which is dedicated to or available for, public enjoyment, e.g. public open space or children's play areas.

AMORTISATION

The concept of writing off of capital expenditure or the progressive repayment of a loan.

AMORTISATION TERM

The period, usually expressed as a number of years, over which the value of an asset is written off or a loan is repaid by installments.

AMUSEMENT ARCADE

Premises fitted with gaming machines, computer games and other machines so enabling members of the public to pass the time for leisure and recreation.

ANCHOR TENANT(s)

One or more department or variety chain stores, or supermarkets, introduced into a shopping centre in key positions to attract the shopping public into the centre for the purpose of encouraging other retailers en route. The larger the development the more the anchors required.

ANCIENT DEMENSE

An obsolete form of land tenure comprising land held by freehold tenants in any manor belonging to the Crown in the time of Edward the Confessor or William the conqueror, such tenants enjoying certain immunities but being subject to certain restraints.

ANCIENT LIGHTS

Windows and other apertures for the admission of light to a permanent building for which the owner of the building has an established of light right of light.

ANCIENT MONUMENT

A 'scheduled monument' and any other monument which, in the opinion of the appropriate minister is worthy of protection by virtue of being of national interest by reason of the historic, architectural, traditional, artistic or archaeological interest attaching to it.

ANCILLARY ACCOMMODATION

The parts of a property are put to ancillary use, being relevant and proportionate e.g. offices forming part of a principally industrial property.

ANCILLARY USE

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

ANIMUS POSSIDENTI

The intention to have possession.

ANIMUS REVERTENDI

The intention of returning. The expression is sometimes used in deciding whether an absent tenant has security of tenure under the rent acts.

ANNUAL EQUIVALENT

Having regard to the period (being either a term of years or a freehold), the annual income calculated to correspond to the capital, sum such as premium, paid for an interest in land.

ANNUAL PERCENTAGE RATE (APR)

For a loan at a stated (nominal) rate of interest, the annual percentage rate of return, which takes account of the amounts and dates of interest paid and the repayment of capital other expenses associated with the loan.

ANNUAL SINKING FUND

A sinking fund where payments and interests accumulated are calculated yearly.

ANNUITY

A sum of money paid each year during the life of the recipient. It is usually paid as a legal obligation under a contract or undertaking, as through a pension scheme, and may be paid in installments more frequently than once every 12 months.

ANTECEDENT DAY

The date to which the valuation officer values properties to be included in the rating list.

ANTI-AVOIDANCE

Descriptive of taxation provisions which are designed to counter otherwise lawful arrangements which taxpayers are have made or may otherwise make to reduce their liability to one or more taxes.

ANTIPAROCHI

A Greek approach to funding a land owner's proposed development, whereby the contractor funds the construction and upon completion of the development receives part of the scheme in payment; which may be retailed or sold on.

AONB

An area of outstanding natural beauty.

APARTMENT HOTEL

A building combining features of an apartment building and a hotel. The units are furnished and may offer hotel facilities such as maid service or a restaurant, but residents may stay for months or years paying on a weekly or monthly basis.

APC

Assessment of professional competence.

APPARENT AUTHORITY

Action (or failure to act) by a principal which leads one to believe that his agent has authority which in fact the agent does not have.

APPARENT EASEMENT

An easement which, by external signs of its existence, is evident to a person of ordinary intelligence from inspection of the servient tenement, e.g. a right of way.

APPEAL

An application to a superior court or authority for the administrative or judicial examination of a decision or an issue determined by a lawyer a lower court or an inferior body or authority

APPELLATE COMMITTEE-

The judicial committee of the House lords of lords hears appeals.

APPENDENT

Descriptive of subordinate right or interest in land by operation of law and automatically passing with the conveyance of the greater interest attached to a large interest inland by operation of law and automatically passing with the conveyance of the greater interest.

APPORTIONMENT

The division of a benefit or liability proportionate to the interest of the various parties concerned, and where the necessity arises owing to an event occurring during a period defined for payment. The process is used for example, to determine how the amount of rent, rates, service charges and other costs are to be borne between landlords and tenants or among owners on sale, or occupiers on assignment of tenancies.

APPRAISAL

An assessment of the likely future performance of an investment which can be used to determine value or to assess risk.

APPRAISER

One who carries out appraisals (valuations). The term is used in the USA for a valuer.

APPROPRIATE PERSON

A person considered to be responsible or partly responsible for the pollution of contaminated land.

APPROVED INSPECTOR

An individual or corporate who, in accordance with building regulations by the construction industry council on behalf of the appropriate of the appropriate minister for the supervision of building work; he may also be someone appointed and paid for by a developer as an alternative to supervision by a local authority building control inspector.

APPROVEMENT

The common law right of a lord of the manor to enclose wasteland in his manor for his own benefit, so extinguishing the rights of others, e.g. to graze sheep or cattle on the land enclosed.

APPURTENANCE

Something belonging or attached to a property and passing with it on sale or other transfer, even if not expressly mentioned. The term is applied particularly to incorporate rights, but can include other land or buildings.

APPURTENANT

Descriptive of a subordinate right annexed or attached to and benefiting a larger interest in land by act of parties, e.g. an easement must be appurtenant to the dominant tenement.

ARBITER

The term used in Scotland for an arbitrator.

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 the court of law in 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).

ARBITRATOR

An impartial person who is appointed to settle a difference a between two parties by considering submissions made by each, either oral or in writing.

ARCADE

A covered way or gallery for pedestrians, usually, flanked by shops on one or both sides.

ARCHAEOLOGICAL REMAINS

Historical material above or below ground, including organic and non-organic material indicating human or animal occupation of the land.

ARCHAEOLOGICAL SURVEY

An investigation of a site to ascertain and interpret its archaeological remains using various types of methodology. Sometimes developers are required to allow such investigation prior to commencement or to report ad hoc discoveries so that the merits of a survey may be considered.

ARCHITECT

One who designs buildings and is qualified to do so in accordance with the law.

ARCHITECT�S CERTIFICATE

A term used colloquially to describe a certificate for payment which is issued by a supervising officer, usually an architect advising a client, to release funds to the contractor in payment for work completed under the terms of a building contract.

ARCHITECTURAL SALVAGE

From the demolition or dismantling of a building, master elements, usually with some design or functional merit, which is recycled for a new or restoration works.

ARLA

Association of Residential Letting Agents.

ARMS LENGTH

Description of a transaction between individuals or bodies who are not associated in any material way. 1. Money unpaid after the due date. Thus a debt is in 'arrears' if unpaid after the due date.
2. Rent is said to be paid in arrears where the lease provides for the rent for a particular period to be paid at the end of that period. (In modern leases rent is usually payable in advance, i.e. due at the beginning of the period.)
3. Interest on a loan is usually paid in arrears.

ARTICLES OF ASSOCIATION

A document setting out the rights and duties of the directors and members of the company in relation to its internal organization.

ASBESTOS

A carcinogenic fibrous material which comes in three principal types (blue, white and brown) and was formerly used in the construction of buildings. If the material is damaged during demolition or construction particles may be inhaled and, possibly cause cancer to workmen or others.

ASKING PRICE

The price at which a seller offers a property asset for sale. The eventual selling price may be different after negotiation with the purchaser.

ASSART

The clearing of wooded areas by grubbing up trees and bushes by the roots, usually to convert the land into agricultural use.

ASSENT

A document transferring property form personal representatives to a beneficiary under a will or on intestacy

ASSESSMENT

1. A measure of a person's liability to tax, made by an inspector of taxes unless otherwise provided by the relevant statute.
2. The process of obtaining the ratable value of a hehrditament for rating purposes.

ASSESSMENT OF PROFESSIONAL COMPETENCE

The process and accreditation of attaining membership of a professional body. ASSET For capital gains tax purposes, any form of property, including:
(A) Options, debts and incorporeal property generally;
(B) Any currency other than sterling and
(C) Any form of property created by the person disposing it, or otherwise coming to be owned without being acquired.

ASSET MANAGEMENT (property)

A comprehensive form of management, similar to property portfolio management except that the managers have a wider degree of discretion to realize property, if thought fit, and retain the cash proceeds or transfer them to other types of investment pending an expected opportunity to reinvest in property on more favorable terms. The primary objective is to maximize overall financial performance.

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 estimated market price 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 flotation's or mortgages.

ASSIGN

To transfer an interest in a property, especially lease.

ASSIGNATION (of lease)

The disposal or transfer of a lease.

ASSIGNEE-

One who receives an assignment, e.g. the transfer of the rights and obligations of a lease.

ASSIGNMENT-

The transfer of a property interest, especially a lease from one party to another.

ASSIGNOR-

One who makes an assignment.

ASSISTED AREA MAP

A map showing those parts of the country which the government state has designated as areas where investors in large mobile investment projects may be eligible for support in the form of financial incentives from governmental sources.

ASSOCIATE STATUS

Descriptive of a country which is not a member state of the European Union but has a favored position, and is in the process of adopting single market policies and practices.

ASSURANCE

A formal of a calculable sum being paid on the happening of an inevitable event, e.g. payment on death.

ATRIUM

An entrance hall of a building, or a fully enclosed central area, rising through the entire building, or a number of storey's and containing lifts; reception, meeting and staff areas; and interior landscaping. To testify or bear witness; to affirm by signature or an oath. The signature is known as attestation.

ATTORNEY

A person appointed or empowered to act on behalf of another. Usually one qualified and legally authorized to present a case in a court of law; a solicitor.

ATTORNMENT-

The transfer of property upon sale.

AUCTION

A Sale (usually in public) in which property is sold to the highest bidder, provided the amount offered exceeds any reserve, i.e. the lowest acceptable price, fixed by the vendor. Occasionally, but not often, properties may be offered without a reserve price, in which the highest bid will be accepted however low it may be.

AUCTIONEER-

At an auction an agent who conducts the sale of property or offers it for sale.

AUDI ALTERAM PARTEM (Literally hear the other side)

The principle that both parties to a dispute should be heard prior to a decision.

AUTHORIZED

Descriptive of a use of land which is or would be, permitted allowed:
(i) By a valid planning permission,
(ii) By having become an 'established' use or
(iii)By being within the same 'use class' as the 'permitted' or 'established' use.

AUTHORIZED (SHARE) CAPITAL

The maximum number of shares that a company is permitted to issue, as provided by its memorandum of association.

AUTHORIZED DEVELOPMENT

Development which has been allowed by a planning permission.

AUTHORIZED GUARANTEE AGREEMENT

The landlord's right to obtain the lessee's obligation to be responsible for the assignee's or subtenant's default. This arises either as a covenant or because it is reasonable to do so.

AUTHORIZED USE

A use of land which is or would be, permitted or alid planning permission.

AUTHORIZED PROPERTY UNIT TRUST (APUT)

A unit trust which enables investors to hold indirectly relatively illiquid property by creating smaller units in a broad range of properties.

AUTRE VIE

The life of another. An estate pur autre vie is an estate to be held during the life of another person.

AUTUMN TENANCY

A yearly agricultural tenancy which commences in the period from 1 September to 31 December.

AVERAGE

A principle of insurance (particularly insurance of property) where the insurer will pay for only the same proportion of a loss as the sum insured bears to the cost of reinstatement or to the actual value of property at the time of loss, e.g. if an item is insured for only half its value at the time it is damaged, the insurer will pay only half of any claim for repair or reinstatement.

AVOIDANCE

The arrangement of one's affairs within the law so as to make full use of exemption, reliefs and other advantages to mitigate taxation.

AVULSION

The severance of land by a change in the course of a river but where it remains the property of the original owner.

AWARD

A decision made by an unbiased third party, especially an arbitrator, after consideration of two opposing views, e.g. on rent view

BACK LAND

Land having no frontage to a highway and, frequently, inadequate access for the purpose of development.

BACK-LETTER/BACK-BOND

A document which qualifies the legal effect of some other document which otherwise would purport to give an absolute right of ownership in property.

BACK -TO-BACK

1. Description of a sale or other transaction where the buyer immediately sells on to another party, often for a greater consideration.
2. In housing, a now prohibited form of housing development, prevalent in the 19th century where one house was built with a shared party wall to a house at the rear. Thus, generally resulting in three walls being shared with other properties.

BADGES OF TRADE

A cluster of principles, derived from case law, by which the distinction is made for taxation purposes between a dealer in land and an investor in land or others, e.g. a business owner-occupier. The principles cover such matters as: intention and circumstances at date of acquisition (or disposal); use; nature, purpose and extent of any work carried out on the property; form of documentation; method of financing; repetition of activities (reiteration); and professional or trade knowledge.

BAILEE

One to whom goods are entrusted by another (the bailor) for a specific purpose, the transfer of the goods being known as bailment, e.g. a contract for hire or safe custody.

BAILIFF

An officer of the court concerned with executing writs and processes and enforcing its orders, including levying distress. Commonly applied to a sheriff's officer.

BALANCING CHARGE

An amount payable by or to a person after a charge for goods, work or services has been made based upon an estimate which proves to be inadequate or excessive when the full facts are known and the figures reconciled.

BALLPARK FIGURE

A rough estimate of the worth, value, cost or duration of something, i.e. an approximation.

BANKRUPT

An individual debtor whose assets are vested in a trustee for translation into money or calculable money's worth and then divided among his creditors in pursuance of an order of court adjudicating him a bankrupt.

BARE LICENCE

A person whose entry or presence on a property has the permission of the occupier, so that he is not a trespasser. Such permission or license, can be revoked at any time and is non-assignable.

BARE TRUST (naked or simple trust)

A trust in which the trustees hold the property for the absolute benefit of the beneficiaries who are of full age (and under no disability) and the trustees have no obligations other than to transfer the trust property to the beneficiaries at their request.

BASE FEE

A fee simple which will cease on the death of the descendant(s) of a tenant in tail in remainder, because the entailed interest has been barred without all the due formalities.

BASE REN

where there is provision in a lease for the total rent to be reviewed periodically (by some method of indexation or other formula), the minimum rent (if any) quantified in and payable under lease, even if the review formula produces a lesser sum.

BASEMENT

Rooms and other areas in a building which are below ground level and are at the lowest level except for any sub- basement, which is lower still.

BASIC PRESERVATION WORKS

This includes maintenance, repair or renewal of any part of a building or structure; clearance, repair or renewal of any drain, or other specified items; treatment or other specified works to a hedge, tree or other growing things; and works to or clearance of a ditch.

BASIC POINT-

In an interest rate, a one hundredth part of one percent.

BASTLE

A historic fortified farmhouse in the border countryside of England and Scotland.

BATNEEC-

Best Available Technique Not Entailing Excessive Cost.

BEAR

A stock exchange term for a person who believes that the market falling. Some bears may seek to sell at a specified future date and at an agreed price, securities he does not own. It is done in the hope/belief that the requisite securities can be bought cheaper during the intervening period and transferred at a profit.

BEAR MARKET

The financial market at a time when prices generally are falling, and in which 'bears' would prosper.

BED (OF A STREAM)

Land covered by water at the average or mean state of the stream/river throughout the year. Whether the bed of a tidal river includes the foreshore appears to be to be a matter of doubt, there being conflicting decisions.

BED-ROOM RATED POLICY

An insurance policy under which the premium is calculated by reference to the number of bedrooms in the property.

BEFORE-AND-AFTER VALUATIONS

Valuations which arise where some change is contemplated in the nature of an asset being valued. The asset is valued first in the existing state and secondly on the basis that the change will be made. The difference between the two values can provide a measure of the likely gain or loss due to the change.

BENCHMARK

1. In land surveying, a physical reference point of known level above or below the selected base level e.g. sea level.
2. In benchmarking for management purposes, a best standard of performance of a process, practice or price.

BENEFICIAL INTEREST

An interest in property held by a person in their own right or as a beneficiary who is not necessarily the owner of the legal interest, e.g. where a legal estate is owned by a trustee (trustees) under a trust entitling the beneficiary to the financial rewards available after meeting all due obligations.

BENEFICIAL OCCUPATION

The physical possession and control of land and/or buildings in a manner entitling the occupier to full use and enjoyment of the premises. It is one of the four ingredients of ratable occupation.

BENEFICIAL OCCUPIER-

One enjoying beneficial occupation.

BENEFICIAL OWNER

(1) The person who is the real owner of a security and thereby entitled to all consequential benefits, as distinct from a nominee who holds securities on behalf of another.
(2) A person enjoying or entitled to property for his own benefit, not for instance, as a trustee who holds the legal estate in land for the benefit of another. The owner of the legal estate is usually the beneficial owner, but if the legal estate is vested in trustees, the beneficial owner has only an equitable interest. He is then known as the beneficiary or cestui que trust.

BENEFICIARY-

A person entitled to benefit, e.g. under a trust or a will.

BENEFIT/COST RATIO

In assessing the financial potential of projects, the ratio of the total discounted value of the benefits to the sum of the discounted cost. This is a discounted cash flow technique.

BEST PRICE

Descriptive of the price to be obtained (or that which was obtained) on a disposal of property, generally being the open market value by trustees, executors and those disposing of public sector assets.

BEST RENT

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

BETTERMENT

1. (UK) any increase in the value of property which arises from the action from action by government, either local or national.
2. The increment of value added to a property by virtue of any improvement.
3. An improvement in the structure which increases the value of the property, but is not a repair, redecoration or enlargement.

BHD-

Breast height diameter.

BID

An offer to buy at particular, especially at an auction or by tender.

BIDDER

One who makes an offer to buy or to lease chattels or properties, especially at an auction or by tender.

BILATERAL CONTRACT (synallagmatic contract)

A contract in which each party undertakes to do or refrain from doing some act, thus creating mutual obligations.

BILL OF QUANTITIES

A document, usually prepared by a quantity surveyor, describing in cost terms the detail of the quantities of labour, plant and materials required for building or engineering works, together with the contractual conditions under which the works will be carried out.

BILL OF SALE

A document for passing the title to chattels, either absolutely or by way of mortgage, possession remaining with the grantor. Bill of sale is subject to many statutory bills.

BLENCH(less commonly blanch)

Descriptive of a feudal holding where the feuduty to be paid (or service rendered) by a vassal is merely nominal.

BLOCK PLAN

A plan usually of small scale, showing in simple outline the buildings and other important physical features in an area and their relationship with one another.

BLOCK WIDTH

The wall to wall dimension across an office block, or similar, adjusted to a consistent effective width in the case of premises of irregular shape, e.g. for the purpose of adjusting rental value or judging the internal spread of natural light.

BLR-

Building Law Reports.

BLUE BOOK

Colloquial name for European Valuation Standards Manual published by TEGOVA, which sets valuation standards for adoption in EU member states and beyond.

BMCIS-

Building Maintenance Cost Information Service.

BOARDING HOUSE

A private dwelling where accommodation with services, such as meals and cleaning, is provided to paying guests who occupy as licensees rather than as tenants.

BOAT-

Byways Open to All Traffic.

BOILER PLATE CLAUSE

Common or standard clauses used in formal documents for property or other transactions.

BOMA-

Building Owners and Management Association.

BONA FIDE-

Genuine; in good faith.

BONA FIDE PURCHASER

A person who in good faith is willing and able to purchase for valuable consideration.

BONA VACANTIA-

Goods and land without any apparent owner.

BOND

1. An investment by way of a loan at interest to a public body, a corporate body, or a financial institution.
2. A legally enforceable undertaking by one party to another to do or refrain from doing some act.

BOOK COST

The cost of expenditure on an asset as carried in the account ledger.

BOOK GAIN/LOSS

A notional gain or loss represented by the difference between the acquisition of cost of an asset, as shown in the accounts, and its market value at a particular time.

BOOSEY PASTURE

A right of holdover, whereby an outgoing farm tenant retains possession of pastureland to enable his cattle to feed on the preceding season's hay or straw.

BOTB-

British Overseas Trade Board.

BOUNDARY

The imaginary line which separates property in one ownership from the property from the property of its neighbors; it is therefore the limit in all surface directions to which the ownership extends. It is usually marked for example by a fence, a wall or marker stones.

BOWCOCK�S TABLES

A set of valuation tables, compiled by Philip Bowcock, which are based on the assumption that income is to be received quarterly in advance and interest, where payable more frequently than once every 12 months, is converted into its effective annual equivalent.

Basis Point.

BPF

British Property Federation.

BQA

Building Quality Assessment.

BREACH OF CLOSE

Entering upon land belonging to another person, or upon common land, without a legal right to do so, i.e. a form of trespass.

BREACH OF CONTRACT

An act or omission contrary to one or more of the 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 TRUST

Failure of a trustee or other person to act properly in discharging his fiduciary duties, thus making him legally liable for any loss thereby sustained.

BREACH WARRANTY OF

Failure to comply with a contractual undertaking, e.g. the failure of a vendor to pass title or give vacant possession when such has been warranted.

BREAK CLAUSE

A clause in a lease (or other contract) which gives the landlord and/or the tenant (or one of the parties to the contract) a right in specified circumstances, to terminate the lease (or contract) before its normal expiry date. It usually defines the length of notice to be given and may (or may not) be subject to contractual or statutory financial provisions.

BREAK POINT (break date)

The date at which a lease terminates when a break clause has been invoked.

BREAK-EVEN (point)

In a cash flow appraisal of a project, e.g. building or houses for sale or a break up operation, the time at which receipts are equal to the sum of fixed costs and variable costs.

BREAK-EVEN ANALYSIS

A cash flow technique, which, on such assumptions are made, shows for predetermined times the net income or net expenditures(profit or loss) of a project and its break-even point.

BREAK-UP OPERATION

In the property sense, when property has been acquired or held as a whole, the disposal of that property in parts usually to maximize the total sum realized.

BREAK-UP VALUE

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

BRESEC-

Building Research Establishment Sustainable Energy Centre.

BRIDGING FINANCE (loan)

1. A short term loan often made available as building finance, e.g. to a developer for a period which may be from the beginning of a building programme until such time as the developer has secured funds of a more permanent nature, from which source the bridging finance is repaid.
2. Usually money made available, e.g. a bank loan, to a borrower enabling the purchase of a property.

BRIDLE PATH (bridleway)

A public footpath along which there is also a right to ride or lead a horse.

BROCHURE

A descriptive booklet or leaflet, usually of high quality, containing illustrations and full details of the main points necessary to inform and persuade a prospective purchaser or lessee of the desirability of a property or to describe to a client or prospective client the merits of a firm.

BROWN-FIELD

site A site which has previously been developed and is available for redevelopment.

BSA

Building Societies Association.

BUFFER ZONE

A tract of land left unintentionally undeveloped and often intensively planted with shrubs and/or trees in order to shield one land use from another, e.g. residential from industrial.

BUILDING

A structure built to provide shelter for people animals or goods; usually an enclosed structure with walls and a roof.

BUILDING AGREEMENT

An agreement between the owner of a site and a developer, usually in the form of a license, whereby the developer undertakes to construct the building(s), and on due performance, becomes entitled to a lease or the land and building(s).

BUILDING BYELAWS-

Law or regulation enabling local authority control of building standards.

BUILDING CONTRACT

A contract between an owner or occupier of land and building contractor, setting forth the terms under which construction is to be undertaken.

BUILDING CONTRACTOR

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

BUILDING CONTROL

The function of setting standards by building codes of regulations, approving an owner�s proposals for building works, and monitoring the builder�s work as it progresses in order to ensure compliance with the standards or approved departures from them.

BUILDING COST INDICES

A series of indices published by the Building cost information service of the RICS relating to the cost of building work.

BUILDING LEASE

A long-term lease imposing an obligation on the lessee to erect one or more building which will pass to the landlord as part of the reversion, subject to any statutory rights of occupying lessees under for example, the landlord and tenant Act.

BUILDING LICENSE

A building agreement in the form of a license.

BUILDING LINE (set-back line)

A line usually at a fixed distance from the centre of a highway, in front of which building is not permitted.

BMCIS (Building Maintenance Cost Information service)

A subscriber service for the collection, analysis and dissemination of cost data and other information about building maintenance and property occupancy.

BUILDING PRESERVATION ORDER (BPO)

An order formerly made by a local planning authority subject to confirmation by the appropriate minister, which prohibited the demolition or alteration of a building of special architectural or historic interest.

BUILDING REGULATIONS

A code of practice issued as a statutory instrument under the housing and building control Act by the appropriate minister, which lays down methods of construction.

BUILDING RESEARCH ESTABLISHMENT (BRE)

A group of government laboratories which carry out research and development in building and construction, housing and planning, prevention and control of fire, and general environmental factors.

BUILDING SCHEME

In property law, a development project in which land is laid out in plots and sold to different purchasers or to different lessees, all of whom enter into restrictive covenants with the common vendor or lessor.

BUILDING SURVEY

Generally an examination of a building by the surveyor (which may include specific test by the surveyor or other experts) in order to produce a written or verbal report.

BUILDING SURVEYOR

An individual who is competent to undertake the building surveys, prepare building specifications, place contracts with builders, supervise repair, restoration of new work and generally manage allied works on behalf of clients whom he will owe the normal duty as an agent or employee, depending on the terms of his engagement.

BUILT DEPTH

The maximum external measurement from front to rear walls of the building, especially a shop.

BULGE

A stock exchange term for a sharp rise in the prices of securities.

BULLET

A borrowing in which the repayment of all the principal is made at maturity.

BUNDLE OF RIGHTS THEORY

The hypothesis that ownership of real property is an agglomeration of a number of separate rights which together constitute absolute ownership.

BUNGALOW

A single storey dwelling, a word of Indian origin.

BUROLANSCHAFT

A German word for a landscaped office.

BUS LANE

Part or parts of a carriageway allocated by the highway authority to be used only by buses.

BUSINESS CONDITIONS

One of the criteria for the farm business tenancy; briefly in that all or part of its land is farmed for a trade or business and since the beginning has been so farmed.

BUSINESS NAME

A name under which a business activity is carried on.

BUSINESS PARK

A landscape area containing high-tech, other specialist buildings and leisure facilities with other amenities for business purposes, as distinct from high-tech buildings in a science park.

BUSINESS PREMISES

Generally used to describe premises occupied or capable of being occupied for or retail purposes.

BUSINESS RATES

A colloquial expression for the local property tax payable under the local government Act concerned in respect of the occupation of non-domestic property.

BUSINESS SPACE

A combination of 'light industrial' and 'office space'.

BUSINESS TENANCY

A tenancy of premises used for a 'business' by an occupier who enjoys a security of tenure.

BUY

1. A term indicating that the highest bid at an auction is being made by the vendor, or by someone acting on his behalf, which in effect means that the property remains unsold.
2. To acquire a subordinate interest in property in which the purchaser already has an interest.

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 the degree of oversupply.

BUY-OUT

Where the managers and employees of a company, having arranged the necessary finance, acquire a proportion or all of the equity shares and undertake the running of the business.

BUY-OUT RATE

In a funding agreement between a developer and prospective purchaser, the predetermined yield which will be used to capitalize the annual income receivable at the time of sale to determine the buy-out price.

BYELAW (BY-LAW)

A local law operating in the area of a particular authority, made by the authority under statutory powers, confirmed by the appropriate minister, administered by the authority but enforceable in the courts of the realm.

Briefly, in the Use Classes Order, without significant provision of care, use as an hotel or boarding or guest house.

Briefly, in the use classes order, use as residential care accommodation for those in need of it(but not class C3); hospital or nursing home; or residential school, college or training centre.

Briefly, in the Use Classes Order, a dwelling house(not necessarily sole or main residence) for use by a single person, family or a household of six or less residents living together(including household with care for residents).

CAD

Computer assisted design.

CADASTRAL

Derived from the French cadastre and meaning related to a register of land ownership, usually for taxation assessment purposes.

CADASTRAL MAP

A map showing the boundaries of property ownership for the recording of title for taxation purposes.

CADASTRAL SURVERY

A survey carried out to record the boundaries of a property on a plan.

CALL CENTRE

Accommodation which is fitted with telecommunications equipment for the purposes of providing information, help or assistance or for conducting business.

CALL LOAN

A loan which is payable in full or to the lender on demand.

CALL OPTION

A contract whereby one party has the option to purchase the other party's interest in a property, usually within a specified time, at a stated, at a stated or calculable price and/or in defined circumstances. It is binding against a third party only if registered as an estate contract.

CALUS

An abbreviation for Centre For Advanced Land Use Studies, a department of the college of Estate management.

CANDLE AUCTION

An auction which is continued while a candle is burning. The last bid before the flame goes out or reaches a predetermined level, is the one which is accepted.

CAPITAL

Wealth usually derived from direct or indirect savings, in the form of permanent or durable assets or employed in industrial, commercial or other productive enterprises as the financial base upon which they are established and operate.

CAPITAL ADEQUACY

Descriptive of the level of financial reserves held by an institution as measured against some externally imposed requirement.

CAPITAL APPRECIATION

The increase in the capital value of asset over a given period, usually expressed as a percentage of the initial value.

CAPITAL EXPENDITURE

Money spent on acquiring or improving capital assets such as land, buildings, plant and machinery, as distinct from expenditure of a revenue nature such as money spent on the maintenance of other assets.

CAPITAL IMPROVEMENTS

Work carried out on an asset with a view to enhancing its value, but not including repairs or maintenance.

CAPITAL MONEY

Money from certain transactions, e.g. sales, the granting of certain leases, mortgage loans or proceeds of insurance claims, in respect of a settled land or land held on trust of land.

CAPITAL VALUE

The value of an asset as distinct from its annual or periodic (rental) value.

CAPITALISATION

In relation to a company's reserves, the conversion into capital of money, which is then distributed as a capitalization issues.

CAPITALISATION RATE

The yield at which the net income from an investment is discounted to ascertain its capital value at a given date.

CAR PARKING RATIO

A planning standard set by a local planning authority concerning the relationship between the number of car spaces and the size of a proposed building; generally different uses will have different ratios.

CARRYING CHARGE

Expenditure incurred, whether by a freeholder or the owner of a subordinate interest, in the course of holding a property vacant.

CASE LAW

The body of law established by judicial decisions.

CASE STATED

A written state of the material facts in the decision by magistrates� court, by certain tribunal(such as lands tribunal or an agricultural land tribunal)or by an agricultural arbitrator for the opinion or judgment of the high court or court of appeal on one or more questions of law.

CASH BANK

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.

CASH BURN

The rate at which an organization uses money in conducting its business; it is often expressed as so many months remaining.

CASH FLOW

The actual or estimated movement of money by way of income, outgoings, and capital receipts and payments during the life of a project.

CASH ON CASH (USA)

The mathematical relationship between the net income receivable after servicing any mortgage debt including amortization, together with other outgoings and the net purchase price paid for an investment with a continuing liability for the mortgage debt secured on the property.

CASLE

Commonwealth Association of Surveying and Land Economy.

CASTROPHIC PERILS (DRY PERILS)

In property insurance those special or unusual risk which may be covered on payment of an additional premium and subject to special conditions.

CATCHMENT AREA

1. An area of land from which water finds its way into a particular watercourse, lake or reservoir. 2. By analogy, the area which contains those people which be expected to obtain goods, services, employment, or other benefits from a particular property.

CATEGORY A WORKS/FIT OUT

Standard expectation of completeness undertaken by a landlord, generally of offices, including suspended ceiling, lighting, air conditioning, raised floor and carpet, but usually excludes power and voice and data cabling. The extent and detail can vary and usually clarified within the lease. Cattle trespass Under the Act, the owner of a straying livestock that damages another's land or property is liable for damage and any expenses of keeping or ascertaining the ownership of the livestock.

CATTLEGATE

A right to graze animals for a limited period on someone else's land. The word also means an area of pasture sufficient to support five sheep or one cow.

CAUTION

1. In land registration, one of the methods of protecting minor interest. 2. In property management, an item in a system of aide memories or remainders (or diary) that should be started.

CAVEAT ACTOR

Let the doer beware.

CAVEAT EMPTOR (LET THE BUYER BEWARE)

An old legal maxim stating that the buyer takes the risk regarding quality or condition of the item purchased, unless there is a misrepresentation or he is protected by warranty or statute.

CAVEAT SUBSCRIPTOR

Let the signer beware, e.g. of a contract.

CAVEAT VENDITOR

Let the vendor beware.

CDA

Comprehensive Development Area.

CEM

College of Estate Management.

Central Business District (CBD)

The functional centre around which the rest of the city is structured.

CERTIFICATE OF DISCHARGE

A certificate issued by the capital taxes office of the inland revenue on application by a deceased person's personal representative(s) who having supplied all the information required, has(have) agreed the figures with the revenue office and paid the tax due.

CERTIFICATE OF FAIR RENT

A certificate issued by a rent officer stating the fair rent of a dwelling house within the Rent Acts, which has been determined by either the rent officer himself or a rent assessment committee.

CERTIFICATE OF LAWFULNESS OF EXISTING USE OR DEVELOPMENT (CLEUD)

A certificate issued by the local planning authority that the use, operations or other matter in response to an application about use, operations or other matter from a person concerning a particular property, are lawful.

CERTIFICATE OF LAWFULNESS OF PROPOSED USE OR DEVELOPMENT (CLOPUD)

A certificate issued by the local planning authority establishing the potential use of(or operations concerning that building or other land, in response to an application made by a person.

CERTIFICATE OF NON-LISTING (certificate of immunity)

A certificate issued by the appropriate minister stating that for a period of at least 5 years (following an application by any concerned person) a building will not be listed as one of special architectural or historic interest or be covered by BPN.

CERTIFICATE OF PRACTICAL COMPLETION

Under a building contract, certificate issued by the architect, surveyor or contract administrator stating that the works have been substantially completed and the building is ready for application.

CERTIFICATE OF VALUE

1. A document issued by the lands tribunal certifying the value of property being sold to an authority possessing compulsory powers. 2. A form signed by the purchaser of a property attesting to the price paid, e.g. for stamp duty purposes.

CERTUM EST QUOD CERTUM REDDIT POTEST

If something is capable of being made certain, it should be treated as certain, e.g. if the amount of rent in a lease can be ascertained, it is treated as certain, and the lease is therefore valid and enforceable.

CESSER

The premature cessation of a right of interest, e.g. on destruction of premises where provision is made for the lease to be terminated in such an event.

CESSER OF RENT

Permanent or temporary release from the obligation to pay rent, usually arising only in certain circumstances specified then the lease, e.g. on the total loss of building as a result of a fire.

CESTUI QUE TRUST

A beneficiary or beneficial owner under a trust.

CHAIN STORE

One of a series of retail under a single owner, but now more commonly called a multiple retail outlet.

CHAMPERTY (CHAMPERTOUS MAINTENANCE)

A term used since medieval times to describe the illegal act of a person, who otherwise had no interest in the outcome of a court action, in giving support to a litigant on the basis of receiving a share of any benefit arising from the court decision.

CHANCERY DIVISION

That division of the High court which replaced the former court of chancery and deals principally with questions concerning rent, property, trusts, the administration of estates, patients and company law.

CHAPS

Clearing Houses Automated Payment/processing system.

CHARGE

An interest in land which secures the payment of a present or future debt.

CHARGE BY WAY OF LEGAL MORTGAGE

A deed charging the mortgagor�s land in favour of the mortgagee to secure the repayment of a mortgage debt.

CHARGE CERTIFICATE

A certificate issued to a mortgage by a Land Registry, subject to deposit of the land certificate during the period of the mortgage, and giving evidence of his title.

CHARGEABLE REALISED DEVELOPMENT VALUE (CRDV)

The realized development value on which development land tax was chargeable, i.e. after allowing for any exemptions, reliefs, concessions available to the taxpayer.

CHARGEABLE REALISED DEVELOPMENT VALUE (CRDV)

The realized development value on which development land tax was chargeable, i.e. after allowing for any exemptions, reliefs, concessions available to the taxpayer.

CHARGES REGISTER

One of the three parts into which the register of each individual title to land is divided under the Land Registration Rules.

CHARGING AUTHORITY

An authority empowered to levy non-domestic rates.

CHARTERED SURVEYOR

A surveyor who is a qualified member of the Royal Institution of Charted surveyor, being a fellow (FRICS) or member (MRICS) in one of 16 faculties, each covering a different field of activity.

CHATTEL

A property than a freehold interest in land.

CHATTEL PERSONAL

A tangible item of personal property, e.g. an item of furniture.

CHATTEL REAL

Leasehold interest in land.

CHIEF-RENT

Not in general use, but in certain parts of the country, e.g. Lancashire, a synonym for 'rent charge'.

CHOSE

An article of personal of property.

CHOSE IN ACTION

An intangible right which can be enforced by legal action, e.g. a right to a payment of the recovery of a debt.

CHOSE IN POSSESSION

A tangible object which is capable of being possessed and enjoyed, e.g. an article of furniture.

CILL

Construction Industry Law Letter.

CIOB

Chartered Institute of builders.

CIRIA

Construction Industry Research and Information Association.

CITATION

The quoting of a decided case or authority as guidance to the court.

CIVIC TRUST

A voluntary body set up in 1957 to promote the protection and improvement of the built environment.

CLA

Country Land and Business Association.

CLASS A PERSON

An appropriate person or persons who caused or knowingly permitted the contamination of land.

CLASS B PERSON

The owner or occupier of a contaminated land who may be liable for its cleanup after failed attempts to find anyone of the class A Person category.

CLAUSE

A sub-division of a bill before it is enacted, when it becomes a section of the Act.

CLAVA

Country Land Agents and Valuers Association.

CLAW-BACK

A lawful recovery of part or the whole of a payment which was properly due at the time it was made.

CLEA

An approach to making a risk assessment of contaminated land, i.e. Contaminated Land Exposure Assessment.

CLEAR HEIGHT

Defined by the RICS Code of measuring practice as The height between floor surface and lowest part of roof trusses, ceiling beams, roof beams or haunches at the eaves.

CLEAR LEASE

A lease under which the landlord has no actual or contingent liability for outgoings(other than tax), e.g. one left on full repairing and insuring terms or one where the full cost of meeting the landlord's obligations is recoverable from the tenant by an adequate service charge additional to the rent.

CLEAR TITLE

Unencumbered title to real property, against which there are no claims, mortgages, voluntary liens, etc.

CLEARANCE AREA

An area which is to be cleared of all buildings in pursuance of the declaration of the local housing authority, where they are satisfied that the houses in the area are unfit for human habitation or by reason of narrowness or bad arrangement of the streets, are dangerous or injurious to the health of the habitants of the area.

CLEARED SITE APPROACH

The use of the direct companion method to find the site value and hence the modern rent rate ground rent.

CLEARY FUND

A body which makes grants towards the cost of restoring Georgian buildings.

CLERK OF WORKS

A person employed to check the standard of construction work on a building site, being retained by the employer of the architect.

CLEUD

Certificate of Lawfulness of Existing use of Development.

CLOG ON EQUITY OF REDEMPTION

A restriction contained in a mortgage deed on the mortgagor's right to redeem the mortgage on payment of the outstanding debt or performance of any other obligations for which for which the security was given.

CLOPUD

Certificate of Lawfulness of Proposed Use of Development.

CLOSE COMPANY

A company which is controlled by not more than five participators.

CLOSE ENDED

Descriptive of an investment vehicle, e.g. an investment trust, where the capital is fixed for the foreseeable future.

CLTA

Central land trading account.

CLUSTERING

The grouping of shops(usually for comparison goods)or of service outlets, e.g. estate agents, builders societies, insurance offices etc.

CML

Council of mortgage lenders.

Certificate of occupancy.

COASTAL WATERS

The sea within the baseline and the line of the highest tide, and tidal waters up to the fresh water.

CODE OF MEASURING PRACTICE,

THE RICS First published in 1979 for valuers and surveyors, a set of practice guidelines for the measurement of buildings produced as fifth edition by the Royal Institutute of chartered surveyor in November 2001.

CODE ON TAKEOVERS AND MERGERS

A non-statutory set of rules, produced by the panel on Takeovers and mergers, with which participants in takeovers and mergers and their advisers or agents are expected to comply.

COG

Corporate Occupiers Group.

COLLAR

Descriptive of the existence of a lower limit to a variable rate of interest under a loan or mortgage; any upper limit is the 'cap'.

COLLATERAL (SECURITY)

Traditionally used to mean some security in addition to the personal obligation of the borrower but commonly used to refer to a security provided in addition to the principal one.

COLLATERAL AGREEMENT

An agreement subsidiary to the main contract, such as one whereby professionals, e.g. architects or structural engineers employed by a developer, acknowledge direct responsibility and an additional duty of care to subsequent purchasers, or tenants of the development once completed.

COLLEGE OF ESTATE MANAGEMENT (CEM)

An independent body now based on the campus of Reading University, empowered under the Royal Charter to offer educational courses, including part- time and distance learning, and to encourage research, and publish in the results, in all matters of interests to the landed professions.

COMBINATION MORTGAGE

A mortgage loan where repayment is agreed to be by a mixture of methods, e.g. part in cash and part from the proceeds of a mature endowment policy.

COMMISSION

The remuneration (usually on a percentage basis) of an agent or professional adviser for services provided, e.g. that of an estate agent who effects the sale or lease of a client's property.

COMMON AREA

The space within a shopping centre or other estate or other estate or campus-type development which is not intended to be let.

COMMON AREA CHARGES

The amounts paid by tenants for operating and maintaining a common area.

COMMON INTEREST (SCOTLAND)

An interest, as of adjoining users of a common wall, floor or garden, not amounting to common property but entitling the party interest to a say in the subject use.

COMMON LAND

Land over which commoners, e.g. the inhabitants of a particular locality, enjoy rights in common with the owner of the land.

COMMON LAW

The part of the law of the realm built up over the centuries from the principles and rules laid down by judges in cases decided in the courts of law and not by express legitimate enactment by legislative authority.

COMMON PARTS

The parts of a multi-occupied building which are not let to individual tenant but are either retained by the landlord, e.g. for the provision of services , or held in common by the tenants for the purpose of providing access for themselves and their visitors, e.g. halls, passages, lifts and stairways.

COMMON PROPERTY (SCOTLAND)

Common ownership of property without demarcation of individual boundaries but characterized by each owner's having the right to insist on a division of the property.

COMMUNITY SHOPPING CENTRE (USA)

A neighborhood shopping centre, where a small group of shops serves a community such as a village or a housing estate.

COMPANIES COURT

A title attributed to the chancery division of the high court or to a county court when hearing cases under the companies Act, particularly those concerning winding up.

COMPARISON GOODS

Goods which before making a purchase,the consumer is likely to wish to compare, as regards appearance, quality and price with alternatives available in one or more shops.

COMPARISON SHOP/STORE

A retail outlet selling comparison goods, sometimes with a limited range of convenience goods.

COMPENSATION

A payment to make amends for the removal or curtailment of rights in property or for an inquiry, including the payment to the owner for lawfully taking against his wishes, e.g. by compulsory purchase.

COMPETENT

Legally fit, having the necessary age, ability and authority to accomplish any given acts or duties.

COMPETENT LANDLORD

The landlord, not necessarily the immediate landlord, who is empowered to serve and receive notices under the landlord and tenant Act, in respect of business tenancies.

COMPLETION

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

COMPLETION NOTICE

Notice served on the owner or occupier of land (and possibly others) by a local planning authority who are of the opinion that an uncompleted development will not be completed within a reasonable period.

COMPLETION STATEMENT

A statement prepared by solicitors, usually those acting for a purchaser and a vendor respectively, following the conveyance of an interest in property, giving a scheduled of sums paid and sums received leading to a balance being the final amount due to the vendor.

COMPOUND INTEREST

Interest paid at given intervals on accumulated as well as on the principal.

COMPOUNDING

The collection of rates from the owner of several small hereditaments rather than from the individual occupiers.

COMPREHENSIVE DEVELOPMENT AREA (CDA)

An area defined as such in an old-style developmentplan which in the opinion of the local planning authority, should be developed or redeveloped, as a whole to deal with extensive war damage, bad layout or obsolete property.

COMPULSORY LIQUIDATION

The winding up of a company by court order at the request of the creditors of other qualified persons, e.g. the secretary of state for trade and industry.

COMPULSORY PURCHASE

The acquisition, in accordance with statutory procedures and practice, of interest in land by a public or private body empowered so to do by an Act and authorized so to do by the appropriate minister's confirming a compulsory purchase with or without amendment.

COMPULSORY PURCHASE ORDER

An order made by a private or public body(usually a local authority or government department) with the relevant statutory powers which, after confirmation by the appropriate minister, gives the right to acquire specified land compulsorily.

COMPULSORY RIGHTS ORDER

An order made to enable a kind of statutory easement or way leave to be created overland, e.g. for the creation of a pipeline.

COMPUTER-AIDED DESIGN(CAD)

The digital creation of plans or drawings for the purpose of design.

CON

The conveyancer.

CONACRE HOLDING (IRELAND)

A system of farming where the tenant is given access to the land for a period necessary to plant, cultivate and harvest the crop, usually on a seasonal basis, depending on the crop to be sown.

CONCESSIONAIRE

Usually the holder of a licence to trade within part of an area open to the public, such as a department store, retail shop, theatre, trade fair or leisure park.

CONCESSIONARY RENT

A rent which is lower than otherwise obtainable, interest, to a particular tenant.

CONCLUSION OF MASSIVE (SCOTLAND) EXCHANGE OF CONTRACTS

In Scotland a deposit is not usually paid at this time and the seller retains the obligation to insure or carry the risk of loss.

CONCLUSIVE EVIDENCE

Evidence which by law, must be taken to prove a fact in issue and cannot be disputed, e.g. a land certificate is conclusive evidence of ownership by the registered proprietor.

CONCURRENT INTEREST

Two or more involving joint ownership of land, e.g. a joint tenancy or tenancy in common.

CONCURRENT LEASE

A lease granted to run at the same time as and subject to an existing lease of the same premises so that the lessee of the concurrent lease becomes the immediate lessor in respect of the other lease.

CONDEMNATION

1.(USA) The acquisition of a private property by a public authority where the owner to compensation.
2. (UK) The act of deciding that a building is unfit for us or is dangerous.

CONDITION

A provisoin in a contract that its commencement or continued operation depends upon an external event (condition precedent or condition subsequent respectively).

CONDITION PRECEDENT

A stipulation not forming part of a contract but specifying some prerequisite to the contracts coming into force.

CONDITION SUBSEQUENT

A stipulation in a contract in a collateral agreement that the contract will come to an end in certain eventualities.

CONDITIONAL CONTRACT

A contract which is subject to either a condition precedent or a condition subsequent (or both).

CONDITIONAL INTEREST

An interest which under property law may qualify as a fee simple absolute in possession despite the fact that it can be forfeited by the grantor in certain specified circumstances.

CONDITIONAL PLANNING PERMISSION

Planning permission subject to one or more conditions.

CONDITION OF SALE

Conditions subject to which one or more properties are offered for sale.

CONDOMINIUM (USA)

A building or structure of two or more units, interior space of each unit being individually owned and the balance of the property (both land and building) being owned in common by the owners of the individual units.

CONGESTION CHARGE

A local tax which may be adopted at the discretion of the local authority and levied on motorist who wish to take their vehicles into a particular area of a town at certain times.

CONSENSUS AD IDEM; CONSENSUS IN IDEM (SCOTLAND)

Agreement on the same thing, i.e. there is no dispute as to the subject matter involved or what has been agreed with respect thereto.

CONSENT

Permission given by an empowered body, including that issued by a planning authority authorizing the carrying the carrying out of some activity such as building work or changing the use of an existing property.

CONSEQUUENTIAL LOSS OF RENT

Consequent upon an interruption in the occupation premises of an insured following the occurrence of a loss, this is an item of insurance which will cover any of rent payable/receivable while the premises are unfit for occupation and until such time as they are reoccupied, but in any event not exceeding the indemnity period.

CONSERVATION AREA

An area of special architectural or historic interest the character of appearance of which it is desirable to preserve or enhance, which has been designated as such as the local planning authority.

CONSERVATION AREA ADVISORY GROUP

A body comprising mainly of individuals who not members of the local planning authority, to which the authority may refer planning applications which would in the opinion of the authority, affect the character or appearance of a conservation area.

CONSERVATION AREA CONSENT

A permission to demolish an unlisted building in a conservation area.

CONSIDERATION

Strictly, the payment, promise, object, act or forbearance given by one party to a contract in return for a promise or pledge given by the other party.

CONSOLIDATION OF MORTG

Where a mortgagor has mortgaged two or more properties to the same mortgagee, the latter's right to insist that all the mortgages are redeemed at the same time, provided this is later than all their contractual dates of redemption.

CONSTANT RENT

An uplifted rent which has been calculated in accordance with constant rent tables.

CONSTANT RENT TABLES

Valuable tables of discount factor for the computation of uplift in rent, e.g. Rose's Tables.

CONSTRUCTION LOAN (USA)

Short term finance made available to meet the cost of undertaking a building or engineering project or with a specific period thereafter.

CONSTRUCTION PERIOD

The length of time elapsing from the date a building or other similar project is started, or deemed to start, until the works involved are finished.

CONSTRUCTION NOTICE

The legal presumption of knowledge by a person even if actually ignorant of the facts, e.g. the presumption that purchaser is aware of all matters which would be disclosed on proper investigation of title.

CONSTUCTIVE TRUST

A trust arising by operation of equity from a fiduciary relationship already in existence, e.g. when a trustee obtains a valuable interest in the trust property for himself, he is deemed to hold it on a constructive trust for the beneficiaries.

CONSUMER GOODS

Durable or perishable for personal or domestic consumption.

CONTAMINATED LAND

Any land which appears to the local authority in whose area is situated to be in such a condition, by reason of substances in, on or under the land, that:
(a) Significant harm is being caused or there is a significant possibility of such harm being caused or
(b) Pollution of controlled water is being or is likely to be caused.

CONTAMINATED LAND REGIME

Procedures and practice for the regulation of the remediation of contaminated land.

CONTAMINATED LAND REGISTE

An abandoned proposal for the registration of contaminated land.

CONTAMINATIVE USE

A use of land or buildings which has the potential to contaminate the property or neighboring property either by one-off accident or by inappropriate operations.

CONTANGO

Where upon payment of an additional consideration, a stock exchange settlement for securities is deferred from one account to the next.

CONTIGUOUS

Touching by means of a common boundary.

CONTIGENCY FEE

A fee related to the degree of success achieved in the task for which it is payable.

CONTIGENCY INSURANE

The protection offered by an insurance contract (policy) whereby on the occurrence of the risk or event insured against, e.g. death, the insurer will make a payment of an amount specified in the policy.

CONTIGENT INTEREST

A future interest in land giving no right at all until the occurrence of some future event which either may never happen or will happen in an unpredictable date.

CONTRACT

A legally binding agreement.

CONTRACT DEPOSIT

A sum paid for instance, by a purchaser of property under a contract and usually and usually held by a third party, e.g. an agent or a solicitor.

CONTRACT FOR SALE (OF LAND)

An agreement whereby the seller (vendor) agrees t transfer an interest in land to a purchaser in consideration.

CONTRACTOR

One who enters into a contract, especially a builder entering into a building contract.

CONTRACTOR'S BASIS/METHOD

A method of valuation used, particularly in rating, where there is an absence of market evidence of comparable lettings or sales and where the profit basis is inappropriate.

CONTRACTUAL IMPROVEMENT

An improvement to a property carried out under a legal obligation, e.g. an improvement by the tenant under the terms of lease of business premises.

CONTRACTUAL TENANCY

A tenancy created under contract as opposed to a statutory tenancy, the expression normally being applied to tenancies.

CONTROLLED TENANCY

Now obsolete, a tenancy of residential accommodation.

CONURBATION

A coalescence of adjoining towns and villages to form a large and virtually continuous built-up area.

CONVENIENCE GOODS

Goods normally purchased without making any comparison with alternatives, other than by price, including food and drink, etc.

CONVERTED TENANCY

A tenancy which has been converted from a controlled into a regulatory tenancy.

CONVEYANCE

1. The transfer of a legal interest in land from one person to another.
2. A document transferring a legal interest in land.

CONVEYANCING

The legal procedures employed in the creation, transfer, or extinguishment of an interest in land, including preparation of contracts, enquiries, searches, land registration(where appropriate) and completion of the transaction.

CO-OWNERSHIP

An arrangement whereby two or more persons are entitled to the shared ownership of land, either by joint tenancy or by tenancy in common.

COPPICE

Trees grown for cropping at regular intervals before maturity to provide a commercial crop, e.g. chestnut pailing and charcoal.

COPYHOLD

An obsolete form of land tenure enforceable only in the court of the lord of the manor, the title comprising a copy of the entry on the appropriate rolls of the court.

CORPOREAL HEREDITAMENT

Tangible real property, e.g. lands, buildings, minerals, trees, fixtures and all other things which are part of, or fixed in a legal sense, to land.

COST OF RECOVERY POLICY

Concerning contaminated land remediation, a statement prepared and adopted by a local authority, as enforcing authority, setting out its policy, e.g. in cases of hardship, on waving or reducing its cost where they have had to cleanup contaminated land instead of serving remediation notices on any appropriate person.

COST RENT (ECONOMIC RENT)

A figure calculated to provide over a period of time a rent which is sufficient to meet the cost over the same period of time of actual or notional loan interest (on the owners equity), sinking fund contributions and the cost of upkeep and management.

COST-OF-LIVING CLAUSE

A clause in a contract, e.g. a lease providing for an adjustment in price, rent or other financial item based upon an index such as the Retail Price Index.

COST-PLUS CONTRACT

A building contract where the price is based upon the estimated or actual cost of the works together with, i.e. 'plus', a proportion of agreed amount to represent to the contractor's profit.

COST IN USE

A discounted cash flow technique whereby the total cost of a building or project is expressed as the sum of the initial capital cost and the present value of the recurring costs such as repairs, maintenance, renewal of components insurance, services and perhaps, user activities.

COTTAGE HOLDING

A dwelling house and not more than one 1 acre of agricultural land which can be cultivated by the occupier and his family; but since 1970 no land can be let out or sold by an authority as cottage holding.

COTTAGE INDUSTRY

A business sector which is conducted from workers' homes, usually by their use of simple equipment or tools.

COUNTERPART

A duplicate legal document, especially landlord's copy of lease (the tenant's copy being termed the 'lease')

COUNTY

Geographically, a county or shire is an ancient division of the country.

COURT

A body set up to administer justice and or to protect interests of those unable to protect themselves.

COURT(IRELAND)

Under the landlord and tenant legislation, it is the circuit court The legislation limits the power of each circuit court to the area to within its jurisdiction.

COURT OF FIRST INSTANCE

The court in which legal proceedings are initiated or where a case is first tried.

COURT OF LAST RESORT

The final court from which no further appeal can be made.

COURT OF PROTECTION

The court which administers the property and protects the interests of persons of unsound mind.

COURT OF RECORD

Any court whose proceedings and acts are permanently recorded.

CONVENANT

1. Strictly an obligation undertaken by a party and effected by deed, e.g. lease, obligations of the landlord or tenant.
2. A subjective assessment of the character and quality of a tenant in terms of being able and willing to comply with the terms and conditions of the lease.

CULLERY

A tenancy in Carlisle.

CUM

Latin for 'with'.

CURRENT ASSET

Cash or other property (other than fixed assets) which can be converted into cash, for use in the business.

CURRENT COST ACCOUNTING

A method of preparing a company's accounts in which the fixed asset are stated at their value to the business having regard to current rather than historic costs.

CURRENT RATE

The present rate of interest on a security which has a variable rate.

CURRENT TENANCY

Tenant's request for a new tenancy as one granted for a term of years certain exceeding one year, whether or not continued.

CURRENT USE VALUE (CUV)

This was defined as the market value of an interest in land on the assumption that (with certain exceptions) planning permission would be granted for any development of a class.

CURRENT YIELD

The remunerative rate of interest which is, or would be appropriate at the date of valuation, assuming the property to be let at its full value rental value.

CURTILAGE

The ground which is used for comfortable enjoyment of a house or other building, such being regarded in law as being within the curtilage of that house or building and thereby is an integral part of the same although it has not been marked off or enclosed in anyway.

CURVED LINE DEPRECIATION

Depreciation which assumes a progressive decrease in the value of a property or other asset over a given period, so producing a curved line when plotted as a graph.

CUSTODIAN TRUSTEE

A trustee having custody and care over a trust property.

CUSTOM

A practice which by long-established usage in a particular locality has come to be accepted as part of the local law.

CYCLEWAY

Part of the highway, or a separate route, devoted by cyclists, generally enabling the separation of the cyclists from motor traffic and pedestrians for the purposes of safety.

CY-PRES DOCTRINE

The principle which enables effect to be given as near as possible to the intention of a settler or testator where it cannot be carried out precisely as directed by him.

In the use classes order, briefly eight groups of non- residential institutional uses: such uses include medical services ,health services, cr�che, education, exhibition hall, public library, public worship, etc.

In the use classes order, briefly five groups of assembly and leisure uses; the uses include cinema, concert hall, casino, dance hall and various indoor and outdoor sports or recreational uses.

DAMAGE FEASANT

Destruction of crops and/or property caused by another's animals straying and trespassing on one's land.

DAMAGES

Money recoverable by court action by one suffering a loss or injury resulting from breach of contract, breach of statutory duty, or under either statute or tort.

DANGEROUS STRUTURE NOTICE

A statutory notice issued by a local authority to a building owner requiring a building to be put into a safe condition.

DATE OF VALUATION

In current practice the date on which a property is considered to be of the value stated, regardless of the date of the signature of the valuation report.

DAYLIGHT FACTOR

An assessment of the natural light falling into a room either directly or indirectly.

DAYWORK CONTRACT

A form of contract for relatively small-scale building works where payment is based on hours worked, cost of materials, use of plant, transport charges, and a percentage for the contractor's overheads and profits.

DBA

Decibal scale.

DBF

Design Build Foundation.

DBH (USA)

Diameter breast high.

DBOM

Design, build, operate and maintain.

DCPN

Development control policy note.

DE MINIMIS

A Term applied to some act causing damage or injury, the degree of which is such that its effect is regarded in law as negligible and so may be disregarded for the purposes of enforcement of law.

DEAD RENT

A base rent for mineral-bearing land, payable whether or not the land is worked, but which may be subsumed by the royalties when they total more than the dead rent.

DEAD STOCK

Goods held for sale which have remained unsold for at least a year.

DEALER IN LAND

A person who buys and sells (or buys, builds and sells) property for profit on a basis which may be identified as such under the 'badges of trade'

DEATH DUTY

A tax which arises on death, e.g. the former estate duty and capital transfer tax and the present inheritance tax.

DECAPITALISATION

The translation of a capital sum into its periodic, usually annual, equivalent by applying a suitable rate of interest.

DECLARATION OF TRUST

A statement declaring that certain property is to be held on trust; it is often made when the intended trustee already possesses the property, which he is not entitled to hold for his benefit.

DECLARATORY JUDGEMENT

A judgement merely giving the courts opinion on a legal question or as to the parties' rights but lacking any provision for enforcement.

DEDICATION

The actual or presumed giving for public use by the owner of private land, the whole part of his interest therein, or a right over, and its acceptance by the appropriate public authority, e.g. for highway purposes or by some other body such as the National trust.

DEDUCTIONS

The amounts of payments made by a land owner allowable against the rent receivable in a computation to arrive at taxable income under leases in the UK.

DEED

A document being written evidence of a legal transaction which has been signed and delivered to testify to the agreement of the parties concerned.

DEED OF GIFT

A formal record of the transfer without consideration of an interest from the donor to the done.

DEEMED

Assumed to have certain attributes or to have taken place (of a notional event) for a specific purpose, e.g. development by a local authority, when authorized by a government department, is deemed to have planning permission.

DEEMED (TEMPORARY) LISTING

Treating an unlisted building as though it has been listed as of special architectural or historic interest.

DE FACTO

Infact as a matter of fact, e.g. a trespasser may be inoccupation of land de facto but not de jure.

DEFAULT

The failure to do something required by law, e.g. a 'judgment in default 'in favour of one party where the other fails to comply the required legal procedure.

DEFAULT NOTICE

A notice which has to be served on a party in alleged breach of contract stating the nature of the breach and requiring its remedy as a prerequisite of instituting legal proceedings for breach of contract.

DEFECTS LIABILITY PERIOD (RETENTION PERIOD)

An agreed period following practical completion of a building, engineering or other constructional operation during which the contractor is obliged to remedy any defects appearing in the building caused by the failure of materials or workmanship to meet the requirements of the building contract.

DEFENDER (SCOTLAND)

A person against whom civil action is brought. (In England called a defendant).

DEFENSIBLE

When an estate or interest in property may be brought to an end by the operation of a condition subsequent or a conditional limitation.

DEFICIT FINANCING

With a view to making profit or receiving a profitable return,the funding of a project which has the inherent risk of the initial revenue being less than the total outgoings, including any interest or notional interest payable on money borrowed or otherwise procured.

DEFINITIVE MAPS

Maps of public paths, bridleways and so on prepared by county councils, as surveying authorities.

DEFRA

Department for Environment, Food and Rural Affairs.

DEHORS

Outside of, e.g. dehors the contract means outside the scope of or irrelevant to the contract.

DE JURE

By right; as a matter of law.

DEL

Deliniavit (he/she drew it).

DELEGATED POWERS

An authority to act or to make decisions which has been passed down to another of lower status.

DELICT (SCOTLAND) TORT

A willful wrong, i.e. a deliberate breach of a legal duty to another, other than a breach of contract or where there is strict liability.

DELIVERY

In respect of a deed, this means an act so done as to indicate an intention to be bound.

DEMISE

1.Strictly speaking this is synonymous with a lease and means the grant of a right to the exclusive possession of property for a term of less than that held by the grantor.
2. Colloquially used to signify the premises demised, i.e. the area of property the subject-matter of a lease (demised premised perhaps the clearance of its site.

DEMOLITION AND DISMANTLING INDUSTRY REGISTER (DDIR)

A register of contractors who voluntarily meet proper performance and working and working criteria in demolition work.

DEMOLITION INDUSTRY GROUP TRAINING ASSOCIATION

An industry-led education and training body for supervisors, operatives and others concerned with demolition.

DEMOLITION ORDER

An order requiring a building to be demolished by law.

DENSITY

In town planning, a measure of the intensity of development on site relative to its site, e.g. the number of habitable rooms or complete units permitted per acre (hectare), usually in relation to residential accommodation.

DEPARTMENT STORE

A usually multi-level retail property varying in size from one selling an extensive, but not comprehensive, variety of goods to one selling a full range of different lines.

DEPOSIT

A sum held in an account, e.g. a bank deposit account, to earn interest at a fixed or variable rate.

DEPRECIATED REPLACEMENT COST BASIS (DRC)

A method of valuing properties of unusual character or location for which evidence of comparable transactions does not exist.

DEPRECIATING ASSET

A wasting asset or an asset which will become a wasting asset within 10 years.

DEPRECIATION

Decrease in the value of real property caused by obsolescence, deterioration in its condition or other factors.

DEPRIVAL VALUE

The value to a business of an asset, being the loss which would be suffered by the business if it were deprived of that asset.

DEPTH FACTOR (USA)

A factor which represents the differing values by percentage, of sections of a plot of land measured from a common frontage.

DERATING

The total or partial exemption by statute from rates of a specific class or classes of property.

DERELICT

Property which has been abandoned and neglected, or description of such property.

DERELICT LAND GRANT

Available to public and private organizations, funds provided under the derelict land Act for England and Wales respectively.

DERELICTION

1.Exposure of land when the sea recedes permanently.
2. The abandonment of a chattel by the owner.

DEROGATE

To destroy, prejudice or diminish a grant to, or right of, another person.

DESIGN AND BUILD CONTRACT (DESIGN AND CONSTRUCT CONTRACT)

An all embracing package whereby a contractor undertakes building, engineering work, and/or other constructional operations in accordance with a design, specification, and estimate of cost prepared by himself which are all accepted by the employer.

DESIGN GUIDE

A planning document which is not specific to any particular site but provides a general code of practice for the design of buildings, roads and other features of development in a particular area.

DESIGNATION ORDER

A ministerial order specifying that a particular area of land is to be used, developed or safeguarded for a statutory purpose. Maps, photographs, soil samples and other materials.

DESK VALUATION

An imprecise term indicating a valuation of a property by someone who has not made a physical inspection of a property for that purpose

DETAILED PLANNING PERMISSION

A full planning approval for a proposed development, including reserved matters from an earlier outline planning permission, if any.

DETERMINABLE INTEREST

An interest which will automatically terminate on some specific event which may never happen.

DEVALUATION

1.In valuation practice, the analysis of a comparable to extract the unit of comparison or other comparative evidence, e.g. the yield.
2. A reduction in the worth of a property.

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 the finance the whole project, the financial risk of the project.

DEVELOPER'S BUDGET METHOD

A cash flow appraisal of a proposed development project which breaks down the duration into periods.

DEVELOPER'S FIT OUT

The construction of an office building to the extent that it includes suspended ceilings, raised floors and carpets.

DEVELOPER'S PROFIT

The amount by which, on completion or partial completion of a development, the estimated value or the price realized on sale of the developer's interest exceeds (or is less than) the total outlay, including such figure for the land as it is considered appropriate in the circumstances (including accrued interest).

DEVELOPER'S RISK AND PROPFIT

In residual valuation the amount which is allowed to cover both.

DEVELOPMENT

The carrying of out of building, engineering, mining or other operations in, on, over or under land, or making of any material change in the use of any buildings or other land.

DEVELOPMENT APPRAISAL

An assessment of the financial and practical aspects of a development either at its inception or during its progress. It is usually used to determine the project's financial outcome e.g. profit, or residual value of the site.

DEVELOPMENT BRIEF

A statement issued by the owner of a site giving detailed requirements for its proposed development, as guidance to would-be developers.

DEVELOPMENT CHARGE

A charge levied on a developer before work authorization by planning permission can commence.

DEVELOPMENT CONTROL

The powers of a local planning under to control the development and use of land.

DEVELOPMENT CORPORATION

A body corporate set up under statute to plan, develop and manage an area of land.

DEVELOPMENT EXPENDITURE

The total cost to a developer in undertaking a development.

DEVELOPMENT LAND TAX

A tax charged on the occasion of an actual, part or deemed disposal of an interest in land, subject to exemptions, reliefs and concessions.

DEVELOPMENT NOTICE

A colloquial name for a notice published in a local paper by the local planning authority.

DEVELOPMENT PLAN

A plan for an area which has been prepared by the local planning authority to provide an up to date planning framework for the control of development.

DEVELOPMENT RETURN

The yearly net rental income (or its equivalent) from a development project, expressed as a percentage of the development expenditure.

DEVELOPMENT VALUE

1.The value of land which reflects its potential for development or redevelopment.
2.Historitically, the amount by which the value of any property for development or redevelopment differs from the property value without the prospect for development or redevelopment.

DEVELOPMENT YIELD

In a valuation to ascertain a ground rent, the rate at which cost are recapitalized to find the annual deduction from the occupation rents.

DEVISE

A gift ; to give or bequeath real property by will.

Depreciation factor

DICTUM

A formal statement on a point of law made by a judge in the course of judgment.

DIFERENTIAL RATING

Former rating practice required that a general rate had to be made at a uniform amount per pound within a rating area and charged on each ratable value.

DILAPIDATIONS

Those items of disrepair which arise through breach of contract (such as reinstatement, repair and redecoration) especially by one of the parties to lease, giving rise to a right to damages or remedial action.

DIRECT COMPARISON METHOD

A method of valuation by which the rental or capital value of a property is assessed having regard to the prices or rents recently achieved by other properties which are similar in such matters as location, size, character and accessibility and the extent to which appropriate adjustment can be made to reflect differences.

DIRECT EVIDENCE

Original evidence.

DIRECT MAIL The distribution by post or hand delivery of suitable letter and publications to a select list of recipients.

DIRECT PLACEMENT

The placing of securities directly with a financial institution or other investor without the involvement of an underwriter.

DIRECTIVE WASTE

Any waste which is regulated by the Environment Agency, meaning any substance or object which the holder discards or intends or is required to discard.

DISABILITY

A term used in rating to describe a physical disadvantage (either permanent or temporary) suffered by a property in comparison with others of a similar class.

DISCLAIMER

The renunciation, usually of a right, power, or liability.

DISCLOSURE

In litigation, disclosure is the new name which used to be called control whether they support are adverse to their case.

DISCONTINUANCE ORDER

An order made by a local planning authority requiring the discontinuance of a lawful or unlawful existing use of land or buildings and perhaps the removal or alteration of buildings.

DISCOUNT STORE (DISCOUNT WAREHOUSE)

A retail outlet which seeks to sell goods at relatively low prices.

DISCOUNTED CASH FLOW ANALYSIS (DCF)

Techniques used in investment and development appraisal whereby future inflows and outflows of cash associated with a particular project are expressed in present day terms by discounting.

DISCOUNTING

A mathematical procedure by which sums due to be received or incurred at specific dates in the future are brought to their current value at the valuation date allowing for accumulated interest at a selected rate, which is assumed would be earned during the intervening period.

DISCOVERY OF DOCUMENTS

A procedure in litigation that is now known as disclosure.

DISCRETIONARY TRUST

A trust under which the trustees have discretion over who (within a prescribed class, e.g. 'all my children') should be benefit under the trust and by how much.

DISENTAILING DEED

A deed executed by a person who is of full age and entitled to possession of an entailed interest in property enlarging his entailed interest into a fee simple.

DISENTAILMENT

The act of disentailing or barring an entailed interest, thus enlarging the interest into a simple fee.

DISMANTLE

For a building structure or machinery, to take apart piece by piece, usually with a view to putting it together again on its site or elsewhere.

DISPONE

A term formerly essential for validity, used in the conveyance of land; literally to convey formerly.

DISPOSAL (DISPOSITION)

Generally includes the transfer of land by for instance sale, assignment, grant or of a lease, death, gift or exchange.

DISREGARDS

Items which are ignored in valuations of property.

DISOLUTION

Formal termination, e.g. the formal dissolving of a company by winding up.

DISTRESS (DISTRAIT )

The act of seizure of chattels without legal process to enforce satisfaction of a demand, performance of an obligation or redress of an injury; most commonly used today as a means of recovering arrears of rent.

DISTRIBUTION

In an industrial/consumer economy the process moving goods from a production plant or a bulk storage area such as warehouse, to another place which is nearer in the chain of movement to the ultimate user.

DISTRICT PLAN

In town and country planning, a development plan, now known simply as a local for the general control of development and use of land, prepared by the local planning authority and covering that authority's area.

DISTRICT SHOPPING CENTRE

A group of shops typically anchored by at least one supermarket.

DISTRICT VALUER

Strictly a professional valuer, employed by the valuation office agency to oversee valuations for the taxation, compulsory purchase and other purposes on behalf of government departments and some local authorities.

DISTURBANCE

Interference with the legal rights of an owner or occupier.

DISTURBANCE PAYMENT

The payment of an amount of compensation in respect of a claim for disturbance.

DIVISIBLE BALANCE

In a valuation using the profits basis to assess rent, rental value or ratable value, the amount found by deducting the tenant's proper working expenses, except rent and rates from the estimated gross income.

DIVISIONAL COURT

A court comprising two or more of one of the divisions of the High court, whose function is to hear appeal on certain matters prescribed in statues and to supervise the inferior courts.

DIVORCE VALUE

Additional value released by the subdivision of a property into two or more physical parts and/or interests.

DIY (DO-IT-YOURSELF) STORE

An outlet mainly supplying the retail buyer (usually a householder) with basic materials, components and goods to be used to do his own building, plumbing, furnishing, decorating etc.

DOCUMENTARY EVIDENCE (WRITTEN EVIDENCE)

Evidence in written form.

DOCUMENTS

In disclosure as well as paper documents, they can include tapes, videos and information kept on computer.

DOMESDAY BOOK

An historic record of landownership in most of the countries of England ordered and prepared for William the conqueror.

DOMESTIC HEREDITAMENT

In local government finance, dwelling house and specified subsidiary accommodation for a motor vehicle or private storage.

DOMINANT TENEMENT

A parcel of land which benefits from an easement or any other incorporeal rights such as restrictive covenant.

DOMINIUM DIRECTUM (SCOTLAND)

The right to superiority.

DOMINIUM UTILE ( SCOTLAND)

The right subject to the right of the superior, to property granted to enjoy by a vassal.

DONALDSON'S INVESTMENT TABLES

A set of valuation tables compiled by Philip Marshall B.sc FRICS and the investment department of Donaldson's, chartered surveyors showing equated yields and utilization for certain rates of growth of rent at given frequencies of rent reviews, equivalent yields and implied growth rates.

DOUBLE GLAZING/TRIPLE GLAZING

Two or three panes of glass, one behind the other with cavities between them, which maybe installed either as factory made sealed units or as double/triple windows to provide noise insulation and /or to retain or exclude heat.

DOUBLE OPTION

A put and call option.

DOUBLE SINKING FUND METHOD

A valuation approach for lease holds devised to avoid over-recoupment of capital when valuing variable profit rents by the dual rate method.

DOWNTOWN (USA)

A colloquial expression used to indicate a central business district or shopping area of a city or large town.

DRAIN

Briefly, a means of taking surface or foul water e.g. by underground pipes, from buildings or yards appurtenant to buildings within a single curtilage.

DRAINAGE BODY

An internal drainage board or any other body having power to make maintain works for the drainage of land.

DRAW DOWN

In (development) finance, the payment of part or the whole of a loan facility.

DRINKING WATER INSPECTORATE

A government office responsible for ensuring that water suppliers comply with the drinking water standards.

DROP LOCK LOAN

A form of loan in which interest payable begins by being at a variable rate, but if a selected rate of interest used at a reference fails to or below an agreed level, then the interest payable is thereafter fixed or 'locked' at a rate, calculated according to the terms of the agreement.

DUAL RATE METHOD

A method of valuing terminable income flows e.g. profits rents under a lease.

DUAL RATE TABLE

A valuation table of years purchase calculated on the basis of individually selected remunerative and accumulative rates of interest about a legal principle but does not want to state that it is wrong.

DUE DILIGENCE

For any business, those steps taken, e.g. by prospective buyers or their professional advisers, to ensure operations are lawful and in accord with proper professional practice, including taking positive action rather than none.


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