Archives: Glossary Terms

The business in which brokers are engaged to earn money by assisting people to buy, sell, rent or lease, manage or finance property or property rights.

A type of amortizing mortgage which includes the principal, interest and other costs such as taxes and fire insurance – referred to as a PITI monthly payment – in the monthly payment

An contract whereby an owner of land offers to construct a building on his or her land as specified by a potential tenant and then to lease land and building to that party.

In appraising. the capitalization rate is used to convert an income stream into a lump sum value and where the rate for the building may differ from that of the land because the building is considered to be a wasting asset.

A systematic method established by ordinance or law of regulating and setting minimum construction standards for buildings within a municipality to protect the public’s safety and health.

1. A physical review of property as construction progresses to ensure that each major component – foundation, plumbing, electrical wiring, roofing, materials meets the building codes. 2. A periodic inspection of existing public buildings for health and safety compliance.

A line established by law or a deed restriction that determines the distance from a street in front of which an owner cannot build.

The authorization by a local government for the erection, alteration or remodeling of improvements within its jurisdiction.

In appraisal, a method of determining the contribution of an improvement to the current value of the entire property.

Limitations established by zoning legislation, covenants or deeds limiting the type, size and use of buildings.