GLOSSARY IF YOU'RE STARTING OUT IN THE REAL ESTATE WORLD
Absorption. The absorption rate in real estate measures the speed at which properties are sold or rented in a market during a specific period of time.
Creditor. A real estate creditor is a person or institution that lends money or grants credit rights backed by real property (such as a house or land).
Assets. Physical properties, such as houses, buildings, or land, that have economic value and can be used to generate profit. Assets are goods and rights with monetary value owned by a company, institution, or individual.
Appreciation. An increase in the value or market price of an asset over time.
Amenities. Additional services, products, or spaces offered by a property to improve the comfort and experience of its users or residents.
Reservation Deposit. An amount of money paid to reserve a property and temporarily remove it from the market.
Capital Increase. The process by which a company increases the amount of funds available to operate and grow. Its main purpose is to provide financial resources needed for expansion projects, acquisitions, debt repayment, or operating expenses.
Green Area. Surfaces with natural or cultivated vegetation that significantly increase the commercial value and quality of life of a property.
Landlord. A person who rents out a property.
Tenant. A person who rents a property and agrees to pay an amount of money in exchange for temporary use.
Lease. A rental agreement for a property.
Real Estate Broker or Agent. A person who acts as an intermediary between a buyer and a seller to carry out transactions in financial markets or other sectors in exchange for a commission.
Guarantee (Surety). Financial security provided to support a loan or contract.
Property Appraisal. An estimate of a property's market value conducted by an authorized professional.
Bank Appraisal. A property valuation conducted by a banking institution for financing purposes.
Cadastral Appraisal. A value assigned to a property by tax authorities.
Commercial Appraisal. The estimated market value of a property.
Tax Appraisal. A valuation carried out by tax authorities for taxation purposes.
Real Property. Any property or asset permanently attached to the land that cannot be moved without damage or destruction.
Real Estate. Immovable properties, including land, buildings, houses, and apartments.
Marketing Campaign. A paid advertising strategy designed to promote properties and attract clients interested in buying, selling, or renting.
Termination Clause. A provision in a contract that establishes the conditions under which the agreement may be terminated.
Escape Clause. A clause in a lease agreement that allows the tenant to terminate the contract before its expiration date.
Letter of Intent. A preliminary document in which a buyer or tenant formally expresses interest and proposes the basic terms for purchasing or renting a property.
Real Estate Portfolio. The collection of properties or real estate assets owned and managed by an individual, company, or investment fund.
Capital. The amount of money initially invested or lent in a financial transaction.
Assignment of Rights. A legal act in which a person transfers to another the rights, obligations, or position they hold regarding a property or real estate contract, without necessarily involving a full property sale.
Property Boundaries. The limits and neighboring properties surrounding a plot of land or property.
Co-Ownership. A legal situation in which a property belongs to two or more people simultaneously.
Real Estate Broker. A licensed professional who acts as an independent intermediary between buyers, sellers, or landlords to facilitate the purchase, sale, or rental of properties.
Contract. A legal agreement between two or more parties that establishes rights, obligations, and conditions that must be fulfilled.
Lease Agreement. A legal agreement between a landlord and a tenant for the rental of a property.
Commission. A fee or payment received by a real estate agent or agency for successfully managing and facilitating the sale, purchase, or rental of a property.
Condominium. A building or residential complex with privately owned units and shared common areas.
Construction. A building or structure constructed on a piece of land.
Mortgage Loan. A loan secured by a mortgage for the purchase of a property.
Maintenance Fee. A periodic payment intended to cover the maintenance expenses of common areas in a residential community, usually under a condominium regime.
Apartment. A housing unit located within a multi-story building.
Residential Developer. A person or company dedicated to the construction and sale of real estate projects.
Residential Density. The maximum number of homes or residents that may be built on a specific area of land.
Housing Development. A group of homes constructed within a specific area.
Land Survey (Boundary Determination). A technical and legal process used to determine the exact boundaries of a property to prevent ownership disputes.
Mortgage Debt. The outstanding balance remaining on a mortgage loan.
Tax Address. The registered address of an individual or legal entity for tax purposes.
Deed of Sale. A legal document that formalizes the transfer of ownership of a property.
Public Deed. A legal document that certifies ownership of a real estate property.
Deed. A legal document that transfers ownership of real estate from a seller to a buyer.
Title Registration Process. The formal process of transferring ownership through the signing of deeds.
Down Payment. The initial amount paid by the buyer when purchasing a property. It is deducted from the total purchase price.
Urban Infrastructure and Facilities. The set of buildings, installations, structures, and public furniture located in public or shared-use spaces to provide services to the population and support daily activities.
Architectural Scale. The proportional relationship between the real dimensions of an object or construction and its representation on a drawing. For example, a scale of 1:100 means that 1 cm on the drawing represents 100 cm (1 m) in reality.
Market Study. A systematic analysis used to evaluate the feasibility of a product or service before investing resources by collecting data on supply, demand, and competition.
Property Deed. A legal document that certifies ownership of a property and is formalized before a public notary.
Exclusive Listing Agreement. A temporary contract through which a property owner grants the exclusive right to sell or rent a property to a single real estate agency or advisor.
Financing. A mechanism through which an individual or company obtains financial resources to acquire a property and repays them over time.
Subdivision. A large tract of land divided into smaller lots for the construction of homes, streets, and common areas with public services.
Trust (Fideicomiso). A legal instrument used to manage and protect assets, including real estate.
Lot Frontage. The measurement of a property's side that borders the street or primary access road.
Lot Depth. The distance from the front boundary of a lot to its rear boundary.
Lien. A legal or financial claim placed on a property.
Notary Fees. Costs related to the legal formalization of a real estate transaction, including professional fees, taxes, and government charges.
Hectare. A unit of area measurement equal to 10,000 square meters.
Mortgage. A loan secured by real estate collateral for the purchase of a property.
Urban Infrastructure. The network of public works and systems that enable a city to function, including streets, water supply, drainage, electricity, and transportation.
Real Estate Company. A company dedicated to the purchase, sale, and management of real estate properties.
Gross Income. The total income earned by an individual or business before expenses are deducted.
Tenant. A person who rents a property from a landlord.
Real Estate Investment. The allocation of capital to acquire, develop, manage, or sell real estate properties with the objective of generating profit or increasing value over time.
Interest. The cost paid for borrowing money or the return earned from saving or investing funds.
Line of Credit. The maximum amount of money that a lender is willing to lend to a borrower.
Tree Removal Permit. Authorization issued by environmental authorities allowing individuals or organizations to cut, remove, or extract vegetation in specific areas while ensuring environmental protection and conservation.
Building Permit. Authorization issued by the corresponding authority allowing construction work to be carried out in accordance with regulations.
Liquidity. The ease with which a property or investment can be converted into cash without a significant loss in value.
Lot. A parcel of land designated for construction.
Real Estate Market. The physical or economic marketplace where supply (sellers and developers) and demand (buyers and tenants) interact to conduct real estate transactions.
Monthly Payment. A recurring payment made for a mortgage loan, pre-sale financing scheme, or rental agreement.
Square Meter (m²). A unit of area measurement used to calculate the size of land, homes, and buildings.
Cubic Meter (m³). A unit of volume representing a space one meter wide, one meter long, and one meter high.
Linear Meter. A unit of length equal to one meter measured in a straight line, regardless of width or height.
Land Leveling. Work performed to equalize or adjust the elevation of land before construction begins.
Public Notary Office. The professional office where a notary public performs functions that provide legal certainty, authenticity, and legality to documents and legal acts.
Notary Public. A legal professional vested with public authority by the state to provide legal certainty and authentication for non-judicial legal acts and documents.
Offer. The price a buyer is willing to pay for a real estate property.
Square Foot (ft²). A unit of area measurement commonly used in the United States. It is approximately equal to 0.0929 square meters.
Capital Gain (Property Appreciation). The increase in a property's value over time due to factors such as location, infrastructure, services, or urban development.
Property Tax. A mandatory tax that property owners or possessors must pay annually on real estate such as houses, land, buildings, or commercial premises.
Bank Loan. Financing provided by a financial institution to an individual or business, to be repaid with interest over a specified period.
Premium / Initial Deposit. The initial payment or down payment made when purchasing a property to secure the transaction.
Property. A piece of land and any permanent structures attached to it, such as houses, buildings, or commercial spaces.
Capital Gain (Property Appreciation). The increase in a property's value over time due to factors such as location, infrastructure, services, or urban development.
ROI (Return on Investment). An indicator that measures the profitability of an investment by comparing the profit earned to the amount of money invested.
Pre-Sale. The sale of a property before it is completed or constructed, usually at a lower price than its final market value upon delivery.
Inch. A unit of measurement commonly used in the Imperial system. It is equal to 2.54 centimeters.
First Stage of Capital Gain. The initial phase of a real estate development in which property prices are usually lower and have greater potential for value appreciation as the project progresses.
Return on Investment (ROI). An indicator that measures the profitability of an investment by comparing the profit obtained with the amount invested.
Writ of Amparo. A legal remedy used to protect an individual's rights against actions taken by governmental authorities.
Condominium Regime. A set of rules and regulations governing coexistence, administration, and ownership within a condominium.
Remodeling. The renovation, improvement, or modernization of an existing property.
Monthly Rent. A recurring payment made for the use of a leased property.
Residential Area. An urban zone primarily designated for housing and residential use.
Investment Risk. The primary risk of investing in real estate is low liquidity, meaning that it may take time to convert a property into cash without losing value.
Subsidy. Financial assistance provided by the government to support the acquisition of housing.
Land. A surface of land without buildings or structures.
Interest Rate. The cost of borrowing money, expressed as a percentage of the amount borrowed.
Land Use. Zoning regulations that specify the permitted uses of a property.
Commercial Use. The designated use of a property or land for business activities, commerce, and service provision.
Residential Use. The designated use of a property or land for housing purposes, such as houses, apartments, or residential developments.
Mixed Use. The use of a property or development that combines different activities, such as residential, commercial, and office spaces.
Market Value. The estimated price at which a property would be sold in the open market.
Direct Sale. The sale of a property without the involvement of intermediaries or brokers.
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