Property Jargon
Understanding the terminology
(AMV) Advised Minimum Value - Advised Minimum Value is the auctioneer’s true opinion of value of the property going forward to auction.
(Annual percentage rate) APR - The total cost of credit to the buyer expressed as an annual percentage of the amount of credit granted.
Annuity - Fixed payments paid at regular intervals over a specified period. These are usually made after a period of investment which has helped create or purchase the annuity.
Appraisal - An estimate of the price achievable for a property for marketing purposes, which is not a Valuation.
Appreciate - An increase in value in a property.
Approval in principle – Letter from mortgage lender and it will outline how much can be borrowed.
Arrangement fees - Fees charged to arrange a loan on certain products. Usually applied to loans where a special interest rate applies, for example, fixed or capped rates.
Arrears - This is the total of late or overdue payments for a mortgage or any other regular payment.
Asking price - The initial starting price at which a seller is looking to sell their property.
Asset - Any form of property owned by a person, including currency, stocks and enforceable claims against others.
Assignment - The transfer of ownership of an insurance policy or lease.
Auction - The procedure by which a property is purchased through competitive bidding on the open market.
Auctioneer / Estate Agent - Is an individual or an organization who on their own behalf or on behalf of their organization holds a license to practice as same under the Auctioneers and House Agents Acts 1947 - 1973.
Base Rate - This is commonly used to refer to the mortgage lenders' standard variable rate.
Building Insurance - The insurance covering the structure of the building. Any mortgage lender will need their interest in the property/ home to be noted on the policy.
Bid - An offer of a specific amount of money in exchange for a property, as in an auction.
Bidding - A purchasing process where offers from different parties are communicated to the vendor for their consideration.
Booking deposit - A deposit paid usually to the vendor’s estate agent by the purchaser in an intended purchase of a property. The deposit remains refundable to the purchaser until contracts are signed.
Break clause - A break clause gives the tenant or landlord the right to terminate a Tenancy Agreement, under specific circumstances, before the date it is officially due to end. Usually requires written notice.
Bridging loan - A short-term loan commonly used to cover or 'bridge' the overlap between the purchase of a new property and the sale of an old one.
Building Energy Regulations Certificate (BER Cert) – The official assessment of the property’s energy use, mandatory for all properties now offered for sale.
Buildings insurance - An insurance policy that pays the cost of repair or rebuilding in the event your property is damaged or destroyed. Most mortgage lenders will require buildings insurance to be taken out as a condition of their loan.
Buy to let - Usually an investment property one buys to rent out to a tenant.
Buyers’ broker /Buyers’ agency – The property buyers’ representation, they act of the buyer exclusively to source, negotiate and acquire property. May include professional house-hunters.
Buy-to-let mortgage - A type of mortgage specifically designed for people buying a property with the intention of letting it out.
Capital - The amount of money either put into buying a property or the deposit placed on a property. i.e. The value of the property net of the mortgage also called equity.
Capital Gains Tax - This is a tax on profits or gains arising upon sale of investment property.
Capped rate mortgage - This is a mortgage where the interest rate is fixed at a particular interest rate for a period of time.
Caveat Emptor - This is the Latin for 'let the buyer beware'.
Chain - The situation that occurs when a buyer is reliant upon completion of the sale of their existing property in order to complete on the purchase of the new property.
Closing Date - Specified date in the contract for the sale for completion by paying the balance of the monies due and handing over ownership and possession of the property.
Collateral - Property or other assets which are acceptable to a financial institution as security for a loan.
Commission - A payment received from conducting business.
Common areas - Areas of land or buildings, such as gardens, hallways, recreational facilities and parking areas, where more than one resident shares access.
Completion - This is when all the legal documents between purchaser and vendor have been signed and full ownership and occupation has been legally transferred to the purchaser.
Conditions of Sale – Contained in the contract for sale.
Contract for sale – Agreement to buy or sell. Prepared by the vendor's solicitor setting out a legal description of the property to be sold, an indication as to how the vendor has come to own the property, and any special conditions relating to the sale.
Contract Deposit - Money paid when contracts are exchanged, usually 10% of the purchase price. In the event of a Booking Deposit having been already paid it is normal that a balancing payment is made to increase the sum to 10%.
Conveyancing - This describes the legal process whereby the title in property is transferred from the vendor to the purchaser so as to ensure that the purchaser obtains a good and marketable title together with all the rights that he needs to own and occupy the property.
Covenants - Rules and regulations governing the property, contained in its title deeds or lease.
Credit check - The procedure by which a check is made on the credit history of an applicant, usually through the ICB of Irish Credit Bureau. The check will reveal history of credit card repayments, outstanding debts, arrears and Court Judgments.
Credit history - A record of an individual's or company's past borrowing, including information about late payments and bankruptcy.
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