Small dictionary of real estate terms
Most of us know what terms like "landlord", "tenant", or "sale-purchase contract" mean. However, when we talk about notions such as "usufruct", "land book", or "hidden defects", they can raise questions. Here are some common terms in the real estate market and the particularities they represent.
Broker – an authorized person who buys or sells property on behalf of an investor.
Building permit – document valid for a maximum of 12 months, issued by the local authorities, necessary for the start of construction/consolidation/extension/modification/restoration works of a permanent or temporary building.
Contractual clause – a provision passed in a contract, which may, in case of non-compliance, have legal effects for one of the contracting parties.
Detached – a house regime that allows you to move between rooms through a common hall that connects them, without having to go through one room to reach another, thus giving tenants a greater degree of comfort and privacy.
Earnest – non-refundable amount of money (representing in some cases a percentage of the sale price of a property/land), offered through a pre-contract, by the buyer, as a guarantee for the subsequent purchase of that property/land. If the seller decides not to comply with the pre-contract agreement, he will return twice the primate to the buyer.
Energy performance – the amount of energy consumed or estimated to ensure the operation of the building, including heating, hot water supply, cooling, lighting, or ventilation.
Escrow – a financial agreement that uses a third party as a means to hold and regulate the funds required to complete a transaction. Such a transaction becomes more secure, as the funds are kept during negotiations and released when both involved parties met their end of the deal.
Executor – third party instructed by the testator to supervise the observance of the provisions passed in a will until their complete fulfilment, and to defend its validity.
Extra-urban – land outside the built-up or buildable area of a locality, on which it is not allowed to build, usually used for agricultural activities and with a much lower price than urban land. In some cases, an out-of-town plot of land can pass into the built-up area by paying fees.
Hidden defects - defects of a building, not declared to the buyer, which affect its usefulness and value – for example: inadequate thermal insulation, broken pipes, poor quality paints or infiltrations.
Land registry - a document that includes information related to the identity of the owner, legal status, and area of a building/land, along with other data such as location, category of use, neighbourhoods, etc.
Mortgage loan – a bank loan intended for the purchase, construction, or renovation of a building, the payment of which is guaranteed by the home in question. Until the full repayment of the mortgage, it cannot be sold.
Real estate loan – a bank loan made to buy, build, or modernize a home, the payment of which can be guaranteed with another property.
Real estate agent – a person who deals – usually against a commission – with the promotion, rental, or sale of a property, accompanying the parties involved in the transactional process.
Semi-detached – house regime that involves entering a room – usually the living room, to get to the other.
Tabulation – final registration of a property right in the land book.
Termination – termination or cancellation of a contract, with retroactive effect, in the event of non-compliance by one of the contracting parties.
Urban planning certificate – a document necessary for starting the construction of a building (but which does not replace the construction permit), issued by the authorities at the request of individuals or companies, stating the limits on the height, position, and surface of the future building and the technical, legal, and economic regime of a building, together with data on the approvals to be obtained.
Usable area – the total area of the rooms of a house, except for spaces such as balconies, doorways, and its interior and exterior walls.
Usufruct – the right of a person to use a property with the consent of its owner (for a maximum of 30 years in the case of receiving this right from a company, and for life in the case of receiving it from individuals), and the obligation to return it in its original state.
Will – a legal document, irrevocable after the death of the testator, by which he transfers the property and titles held to an heir.
