Property Management Software

Glossary - Index "C"

Real Estate Terms and Site Index "C"

• Capital Appreciation - growth or gain in the value of a property or asset over time. Added to income (rent, dividends) this contributes to the overall or total return on a property or financial investment.
• Capital Gains Tax - A tax on the gain in value of a property or financial investment - your main private residence is exempt. (see taxation)
• Capital Improvement - Work carried out to an investment property which goes beyond maintenance and repair and adds value or improves the property - has implications for taxation and service charges.
• Capitalisation - In business accounting terms capitalisation is the addition to the balance sheet as an asset of an amount that could otherwise have been treated as an expense. In Real Estate terms it is the value of an asset (property) calculated in relation to its expected future income stream (cash flow).
  
  
• Capitalization Rate (or Cap Rate) is the ratio between the net operating income produced by an asset and its original capital cost or as an alternative its current market value. Net income / purchase cost x 100 = CR. For exanple, a building earning a net rental income of £10,000pa purchased for £100,000 has a cap rate of 10 or 10%
  
  
• caveat emptor - Latin term - let the buyer beware. Traditional legal stance that the buyer takes the risk regarding defects in items bought - onus on the buyer to discover, not on the seller to disclose.
• Case Law - The body of knowledge and precedent established over time by judicial decisions made regarding the interpretation of common law and statute law rules in particular cases.
• Certificate of Fair Rent - Certificate issued by a rent officer stating the fair rent for a dwelling, this being determined by the officer or a rent assessment committee.
• Charge - Against a property, taken by lenders to secure the repayment of a loan or mortgage.
• Charge Certificate - Issued by the Land Registry as evidence of title to a mortgage who deposits the land certificate for the period of the mortgage.
• Charges Register - All properties providing security for mortgages are registered at the Land Registry on the Charges Register.
• Completion - of the sale of property. When ownership passes and the keys are handed over to the new owner in exchange for full payment. As a rule completion is about 2/3 weeks after the exchange of contracts.
• Commonhold - a relatively new form of land ownership introduced into England & Wales by the
• Commonhold and Leasehold Reform Act 2002. and concerns flats (apartment) blocks. It's an alternative to long-leasehold ownership the traditional English system of tenure for blocks of flats. Each flat is held freehold and the common parts, such as stairways, gardens, will be held and managed by a Commonhold Association (a private limited company of which the unit holders will be members). See Commonhold, Long-Leasehold and LandlordZONE.co.uk/FAQ and LandlordZONE Forum
• Common Law - Judge-made law built-up over centuries from decisions made in courts of law, as opposed to statute law made by Acts of Parliament.
• Comparables - A valuation technique in which a recently sold or let property of similar size, location and use is used to determine the value of a property. This is often used in real estate to determine the initial sale price or rental value of a property. It is particulalry relevant when doing rent reviews.
  
  
• Competent Landlord - Competent in this sense means legally empowered to accomplish legal acts such as serve notices. E.G. under the Landlord & Tenant Act 1954 a landlord that is itself a tenant must have 14 months unexpired on its own lease to serve a valid Section 25 notice.
  
  
• Condensation - caused by lack of heating, ventilation or insulation, it occurs when warm air which holds water (steam) contacts colder air or surfaces. Causes material damage over time, mould and fungus growth and can become a health risk.
  
  
• Conditional Break Clause - To protect themselves, landlords often attached specific and quite strict conditions which must be met for a tenant to legally exercise a break clause.
  
  
• Contract - A legally binding agreement requiring offer, acceptance and consideration. Property transactions must be evidenced by deeds being properly executed: signed, sealed and delivered (exchanged) to be legally enforceable.
  
  
• Conveyancing - The legal process involved in the transfer of ownership of land and property which is managed by a solicitor or licensed conveyancer.
  
  
• Counterpart - A duplicate copy of a legal document. The landlord's copy of a lease, the tenant's copy being the lease itself.
  
  
• Covenant - Variously translated as "pact," "agreement," "treaty," "a solemn promise," "an obligation". It is used in English Law (particularly property law) to express the idea of a solemn binding agreement and can therefore be interpreted as a binding contract.
  

Landlord Letting Show - Barbican London - 13th -14th Mar 2012