Real estate glossary: ​​know the most important terms in your area

 

Like any segment, the real estate market is full of terms that are not always easy to understand, even for those who have been working in it for some time. That’s why we’ve prepared this real estate glossary with the most important terms in your area.

This post will facilitate your understanding of real estate transactions and common dealings between realtors. Check out!

CUB

The Basic Unit Cost (CUB) is a monetary indicator defined by the Civil Construction Industry Unions (Sinduscons) of each Brazilian state. It serves as a parameter for the attribution of prices in real estate projects and concerns the cost per square meter that is defined for each construction pattern.

Empty report

This term is used in business involving the rental of property and refers to the breach of a lease by the owner of the property.

Currently, the empty termination applies to residential leases of 30 months or more that have already been fulfilled. Or to contracts longer than five years. When the hours are used, the tenant has 30 days to leave the property.

Fifty

Translated from English to Portuguese, fifty means fifty. The term fifty, or simply fifty, is used in a trade in which the commission is split fifty-fifty between two brokers. That is, each one gets 50% of the commission amount. It also uses fifty.

This situation occurs, for example, when one broker is in charge of showing the property and the other continues to service and close the deal. Or, when two brokers together capture the same property, which is the object of a sale.

Flat

Flats are apartments in buildings that have hotel management. They usually take in permanent residents and temporary guests. All are offered, without distinction, the services that are typical of a hotel, such as breakfast and room service, among others.

Flats can be purchased by investors and destined for rental within the pool that brings together all available units. As a result of this possibility, expressions outside the pool and inside the pool also appear.

Outside the pool refers to the flat that is not among the apartments rented as a hotel unit. Within the pool are those units that make up the rental pool.

In this case, the property must be decorated according to a pre-established pattern by the pool administrator.

Settle in

Habited-se is the name given to the document issued by the city hall that certifies that the property was built in accordance with established municipal criteria and that, therefore, it is in conditions to be inhabited.

This document gives legality to the property, from the point of view of municipal rules. It is required, for example, as a premise for obtaining real estate credit. Only properties that have the occupancy permit can be financed.

Mortgage

A mortgage occurs when any property, immovable or movable, is given as a guarantee for payment of a debt. For the duration of the mortgage, the borrower retains ownership and possession of the property.

At the end of the mortgage, if the amount owed is not paid, ownership is transferred to the lender.

ITBI

ITBI is the Tax on Real Estate Transactions. This is a tax that the municipalities collect and the rate is also defined at the municipal level.

The tax is represented by a percentage that varies from municipality to municipality — in most cases, it is between 2% and 3% of the value of the good. In general, the responsibility for payment lies with the buyer of the property.

The discharge from the ITBI is a necessary condition for the transfer of ownership of a property to be made.

Laudemia

Under certain circumstances, real estate owned by the Federal Government may be used for private purposes, provided there is proper authorization. This authorization is given in the form of a certificate of occupation or tenure, by the Secretary of Patrimony of the Union.

For example, areas on the seafront — which belong to the Union — can be occupied in this way.

The right of use can be negotiated, however, there can be no deed or registration of ownership. In addition, whenever the right of use is transferred from one person to another, the laudémio must be paid, a tax generated for the Union as a result of this type of transaction.

Loft

In an English translation, loft means attic, but it can also refer to a barn. However, in practice, the concept became popular in New York in the 1970s.

Abandoned sheds and building floors began to be occupied for housing purposes. As the rooms were large – like a large attic or a barn – and no walls or partitions were used to separate the rooms, the name started to be applied…

From then on, New York lofts began to guide an architectural trend that began to define residential properties, with large open areas and no physical divisions between the environments.

Descriptive memorial

The Descriptive Memorandum is a document produced by construction companies and specifies the materials and equipment that will be used in the construction of a property. It also contains technical data about the project and the items that make up the common area of ​​condominiums.

It is an official document that must be part of a contract for the purchase and sale of a property under construction, as it attests to the characteristics it must have when the work is finished. Therefore, it is important that brokers who trade properties on the plan, properties that have not yet been finalized and new properties have access to the Descriptive Memorandum.

From this document, it is easier to know the project’s data and it becomes safer to pass the information on to buyers.

RI

The RI is the Incorporation Registry, a document that the municipality where a work is located is to issue. It attests to the fiscal regularity of the company and the enterprise itself and consolidates the official character of the Descriptive Memorial.

The RI is an indispensable condition for a property under construction to be negotiated.

PSV

This term is widely used at all levels of negotiation of a project or of several projects of the same construction company. PSV is the acronym for General Sales Value, which is the sum of the values ​​of all units of a single development or of all units of a given developer.

Thus, if a launch has 30 units with an average unit value of R$1 million, this means that the project’s PSV is R$30 million. On the other hand, if a construction company initiates an action to sell the inventory it owns whose sum of property values ​​is R$50 million, the PSV of that construction company is R$50 million.

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