Glossary

[ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ]

"A"

AFTER PROPER MARKETING
This means the would be exposed in the most appropriate manner to effect its disposal the length of exposure time may vary with market conditions but must be sufficient to allow the property to be brought to attention of an adequate number of potential purchases 

ARMS LENGTH TRANSACTION
Is one between parties who do not have a particular or special relationship which may affect the price level. The transactions is presumed to be between unrelated parities each acting independently

A WILLING BUYER
A buyer who is motivated but not compelled to buy  

A WILLING SELLER
Is not a over eager or force seller and is motivated to sell the property at market term for the best price obtainable in the open market 

ACCRUED DEPRECIATION
Is the amount of depreciation from any and all sources that affects the value of the property in question on the effective Date of the Valuation
Accrued Depreciation is the difference between an improvement's cost new and its value as of the Date of Valuation. This is the same as the total loss in value suffered by an improvement on the valuation date .

A CCESS RIGHTS
The right of ingress to and egress from a property which abuts upon an existing street or highway. It is an easement in the street which is appurtenant to abutting property and is a private right as distinguishable from rights of the public. Details will be shown on certificates of Titles of both parties granting and receiving rights.

ALLOTMENT
A small area of land sufficient for building a house. An allotment also referred to as a building block, lot or block of land

AMENTITIES & SERVICES
The amentities and services enjoyed by sale and subject lands should be as clearly, alike as possible so that adjustments to allow for difference need not be unduly great

Amentities may include facilities for education, shopping centres, worships and social life whlist Services comprise of roads, transport services, water, sewerage, electricity, gas, telephone and postal services

APPURTENANCE
This refers to an interest held over another person's land, which benefits the land in ones holding. these are incidential land rights attached to ones land holding

ASSET VALUATION
Is concerned with the valuation of a company's fixed assets and includes, plant machinery and equipments as well as the real estate

"B"

BUNDLES OF RIGHT
Right to use, to sell, to dispose, to occupy, to transfer & right to refuse to do all of the above 

BUYER'S MARKET
The condition which exists when, under competitive conditions, the agent is appointed to find a specific property, eg: Industrial, Commercial, Rural and in some Residential properties. Appointments of this types are made in writing pursuant to the relevant Act in order to be enforceable at law.

BREEZWAY
A covered porch or passage open on two sides connecting house and garden or two paths of the house

BASE RENT
Meaning the minimum acceptable rental provided in a percentage lease.

BEQUEATH
To give personal property by will, eg: a legacy. The word devise is used when real property is given by will

"C"

CAPITAL IMPROVED VALUE
Of land means the sum which the land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge theron, might be expected to realise at the time of valuation if offered for sale on such reasonable terms and conditions as a bona fide seller might in ordinary circumstances be expected to require.

CAPITALISATION
The process of estimating the yearly revenue in terms of the amount of capital it would be necessary to invest in order to receive the revenue, calculated at a given rate of interest. Method of arriving at the value of a property by reference to net returns and expected percentage yield.

CAPITALISATION RATE
The interst rate at which an annual income is capitalised.

CEILING RENT
Rent established by a maximum rent regulation

COMMERCIAL PROPERTY
Property intended for use by all types of retail and wholesale stores, office building, hotels and service establishments.

COMPARABLE SALES
Are sales that are used or which can be used as bases for the valuation of lands of similar nature

CONTRACT RENT
A rental payment for use of property as designated in a lease. Used to indicate the actual rent, may differ from market rent.

"D"

DEPRICIATED REPLACEMENT COST (DRC)
Is the aggregate amount of the value of the land for the existing use or a notional (hypothetical) replacement site in the same locality and gross replacement cost of the building and other site works from which appropriate deductions may then be made to allow for the age, condition, economic or functional obsolescence, environmental & other relevant factors. All of these might result in the existing property being worth less to the owner then would a new replacement.

DEPRECIATION
Is a loss in value of an object relative to its replacement cost new, reproduction cost new or original cost whatever the causes of the loss in value.

DETACHED HOUSE
A dwelling unattached to any other building and occuiped or intended or designed for occupation as a single dwelling.

DETERIORATION
The gradual exhaustion of the usefulness of a property caused by wear and tear or decay and decline from natural causes. One of the causes of depreciation and reflecting the loss in value brought about by disintegration

"E"

EASEMENTS OVER LAND
An easement is a right over the land of another, which is a right to use land ownership in a particular way or to prevent and owner from using his land in particular way

ESTIMATED AMOUNT
Is measured as the most preferable price, it is the best price reasonably obtainable by the seller & to the buyer it is most advantageous price reasonably obtainable.

Estimated amount, not predetermined amount which a property SHOULD exchange and it is not the actual selling price of a property.

ESTIMATED FUTURE RENTAL VALUE
Estimated future rental value deals with future value. This is an opinion as to the rent which the Valuer considers on the date of valuation can reasonably be expected to be obtained in future on completion of a new letting of the subject property assuming

ESTIMATED REALISATION PRICE
This opinion to the amount of cash consideration before deduction of cost of sale which the valuer considers on the date of valuatio. this can be reasonable be accepted to be obatined on future completion of an unconditional sale of interest in the subject property

ECONOMIC OBSOLESCENCE
Is a loss in value as a result of impairment in utility and desirability caused by factors outside the property's boundaries . Loss in value of a property relative to the cost of replacing it with a property of equal utility that stems from factors external to the property. Economic obsolescence is also known by other terms as locational obsolescence or external obsolescence

ENCUMBERANCE
An encumberance is an obligation that attaches to a lease of real property. Real property may be bought or sold eventhough there encumbrance attached to the land. Encumberances are attached to the property and NOT to the property owners. so a person who buys property with the encumberance is bound to the encumberance

EXPERT EVIDENCE
Facts and oinions presented by a Valuer who is academically quailified by training & experience

EXISTING USE VALUE
An opinion of the best price of which an interest in property have been completed unconditionally on the date of valuation

"F"

F UNCTIONAL OBSOLESCENCE
Is a loss in value of a property resulting from changes in taste, preferences, technical innovations or market standards. Also, the loss in value caused by the impairment of functional capacity or efficiency brought about by over capacity, inadequacy and the need for modernization

FAIR RENT
The likely market rent tha a property could command on the open market as indicated by current rentals being paid for comparable properties.Where rent control legislation exists fair rent may be determined arbitarily by reference to specfied limitations on returns etc

FREEHOLD INTEREST
The legal freehold is absolute owner of the property and is able to do whatever he wishs and likes with his land, subject only tot he general law. Thus they can:
- develop it
- tranfer it
- or create lesser interest without the consent of any other person

"G"

GROUND IMPROVEMENTS
This is any improvement that has been made "to" the land. This may constitute drainage, landscaping, excavation, level;ing etc. The improvement may or may not be visible

GROSS LEASEABLE AREA (G.L.A)
Establishing the rental areas occupiedby tenants, particularly in shopping centers, retial stores, warehouses and industrial buildings. Gross leasable areas are measurement

"H"

HIGHEST & BEST USE
For a property to be at its highest and best use,the property must be st its current use, must be legally possible, profitable, economically possible for use and possess the some demand

"I"

IMPROVEMENTS
In realtion to land, improvements thereon or appertaining thereto whether visible or invisible and made or acquired by the owner or his predecessor in title

INSPECTION
To obtain information to assist with the valuation. Inspection must always be carried out to the extent to produce a valuation which is professionally adequate, having regard to its purpose & the circumstances of the case.The method of valuation must be in relation to the inspection (eg: cost or capitalization method)

INVISIBLE IMPROVEMENTS
Include improvements tot he land in the nature of the clearing of timber for cultivation, removal of seedlings and undergrowth.

"J"

JOINT TENANCY
This is where both parties involved in the ownership of a property have equal rights to the benefits of the property. But when one joint tenant dies his/her share passes to the surviving joint tenant by "survivorship"

"K"

"L"

LAND
Is the surface or part of the earth excluding the improvements or plants

LEASE PERIOD
Refer to "Term of Lease"

LEASEHOLD INTEREST
This interest in strict legal terms may mean "term of years". The expression is used for all leaseholders of all kinds no matter how long or short the perios is. A lease is normally subject to the payment of an annual rent and observance of covenants continued in the lease agreement. A lease is very much restricted than a freehold

LICENSES
This simply the permission to do what would otherwise be unlawful, eg. To enter upon or to occupy the land of another.

LAND VALUE
Unimproved value as equitable value concept for rating and taxing

"M"

M ARKET VALUE
Is defined as the estimated amount from which a property should exchange on the date of valuation between a willing buyer and a willing seller in a arms length transaction, after proper marketing, where by both parities have acted knowledgeable, prudently and without compulsion

" Market Value" is understood as the value of a property estimated without regard to cost of sale or purchase & without offset of any associated taxes"

MORTGAGE
This is a contact providing secuirty for the payment of a loan, which is registered against property with stated rights and remedies in the event of a default. lenders consider both the property (security) and financial work of the borrower when deciding on a mortgage loan

MISSION LEASE
Terms in which the lease runs for 99 years after that it must be renewed. Purpose is to etablish church buildings, houses for church workers. Also to accure sites for schools, hospitals, charity buildings and airstrips in remote areas which are subject to none payment of annual land rentals.

"N"

"O"

ON THE DATE OF VALUATION
The estimate on the date of valuation, we are making is a very specific time this because market condition change

 OPEN MARKET RENTAL VALUE
This definition applies to the rental valuation of a property of an assumption of a new lease as distinct from a renew. Open market rental value deals with present value.
Thus is an opinion of the best rent, which a new letting of an interest in property would have been completed at the date of valuation, assuming a willing landlord;

• that prior to the date of valuation, there had been a reasonable period for the proper marketing of the interest for the agreement of the rent and other lease conditions & for the completion of the letting

• that no premium passed & that any rent free period is in respect only of the time which would have been needed by the incoming tenant to make the subject property fit for occupation

PERIODIC TENANCIES
This happens when a property cannot physically be utilised to its full potential.This may arise because of physical deterioration or non-conformity to its surroundings.

PHYSICAL DETERIORATION
Is a loss in value due to ordinary wear & tear and the forces of nature. Physical deterioration applies to the physical structure's condition as opposed to the surrounding property uses, changes in tastes for design/layout/materials, etc.

"Q"

"R"

RATE OF CAPITALIZATION
In selecting an appropriate rate of interest for capitalization, the net annual renatl value, adequate weight must be given to factors

REPLACEMENT COST NEW
This is the cost of building a similar building with the same utilities however the style does not have to be the same though the building area must be similar to that of the subject property

REVERSIONARY INTEREST
Refer to "State Lease"

"S"

STATE LEASE
When a State Lease is created, automatically three different interests are formed; they are

"T"

TERMS OF YEARS
This refers to any lease for a fixed period, thus conveyance to 'A' fro 100 years. The dates from which a lease is to begin and end must be known before it commences

TENANCIES AT WILL
These arises when a person occupies property (land) on the terms the either party may terminate it at any time. It can be converted into periodic tenancy by the acceptance of rent by the landlord

TENANCY IN COMMON
The rights in an tenancy in common are not all necessarily equal. there is no survivorship in a tanancy in common so if a tenant in common dies then his/her shares passes under will or intestacy

TOPOGRAPHY
The general configuration of the lands surface can exert strong influences of a region or a locality

"U"

UNIMPROVED RATE
This is basically the unimproved divided by the land area which can be used to further calculate the unimproved values of lands in similar location, of similar size and similar topograpgy

UNIMPROVED VALUE
In relating to land, means the capital sum that the fee simple of the land might be expected to realize if offered for sale on a such reasonable terms & conditions a bona fide seller would require, assuming that the improvements on the land (if any), other then ground improvements, did not exist at the date to which the valuation relates, less the Ground Improvements Allowance (if any) applicable to that land.

"V"

VALUE OF IMPROVEMENTS
In realtion to land and added value which the improvements give to the land at the time as at which the value is required to be ascertained for the purposes of the Valuation Act

VALUATION
Is a process of estimating and supporting an opinion of value. Is an appropriately supported object and unbiased opinion of the value as of a specified date of an adequately and accurately described property made by a qualified person who has no undisclosed interest in the property.

VALUER
Is often regarded by the general public as a person qualified (by a reason of education qualification and experience) to provide a professional and unbiased opinion of value (of property)

VISIBLE IMPROVEMENTS
Are mainly improvements on land to be seen in the course of inspection includes walkways, stonewall, formed road and buildings

"W"

WHERE IN BOTH PARITIES
HAVE ACTED KNOWLEDGEABLY, PRUDENTLY
Is pressure both the willing buyer & willing seller are reasonably informed about the nature & characteristics of the property, its actual & potential uses & the state of market as of the date of the valuation each is further presumed to act for self interest with that knowledge & prudently

WITHOUT COMPULSION
This establishes that each party is motivated but neither is forced or on dually coerced to compete

"X"

"Y"

"Z"

ZONING
This allows land to be catergorized according to its various uses i.e Residential, Industrial, Commercial etc. Thus all properties located within their particular zone must conform to the zoning regulation.
Zoning is a function of town planning that exercises control over land use to prevent incompatible development and to protect both established and new against despoilment.