abbreviation for real estate

The most important acronyms and terms of the real estate market

It seems silly, but knowing the most important acronyms and terms of the real estate market helps the broker to streamline some processes. More than that, the professional earns points with clients when he explains the meaning of certain words specific to this sector.

Inevitably, you will come across many real estate acronyms and terms during the buying and selling process. Especially when preparing contracts. Therefore, it is essential that you have this knowledge. Remember that any error in the documents of a real estate transaction can make it invalid.

To help you, we have separated some acronyms and terms of the real estate market that you should know the meaning on the tip of your tongue. Check out:

chattel mortgage

When the buyer acquires a property through a loan, he is in direct possession of the property. In turn, the financial institution that released the credit holds indirect ownership of the asset. Within this scenario, we usually state that the property is alienated. In other words, the buyer is prevented from putting the property up for sale until the debt with the bank is paid off.

Common area

It is a condominium space that can be used by all residents. This includes hallways, a lobby, a ballroom and a leisure area such as a gym, barbecue and swimming pool.

In the era of compact apartments, common areas gain a lot of attention. As the housing unit has little space, communal kitchens, coworking space and washing machines are shared among the residents.

Declaration of visit to the property

It is a document with legal validity that serves to support the broker in receiving the due commissions. There it also says that the customer cannot close the purchase with other professionals or directly with the owner, since it was the broker in question who invested time to carry out the service.

Therefore, when making a visit, never forget to bring the declaration for the client to sign. On the vile Imo platform, there is a template of this document for you to print whenever you want.

Property deed

It is the document that makes the real estate transaction official. In short, the deed legally represents the transfer of ownership and domain of a property from the seller to the buyer, for a specified price. To do so, it must be registered with the Real Estate Registry Office of the property’s district.

ITBI

Acronym for Tax on Real Estate Transactions, ITBI is a municipal tax that must be paid on the acquisition of a property. In fact, the purchase and sale process will only be made official after payment of this tax.

Provided for in article 156, item II, of the Federal Constitution of 1988, this tax is applied to all types of property: houses, apartments and commercial rooms. It is worth noting that this is a municipal tribute and, therefore, varies from city to city.

PSV

Another of the acronyms and terms of the real estate market, VGV stands for General Sale Value. It is a very important indicator to show whether the market is growing or losing steam. The PSV represents the sum of the value of all units in a given real estate project.

A practical example: Imagine a building with 100 apartments. Each unit costs 500 thousand reais. If all units are sold, the PSV is equal to 50 million reais.

urban zoning

Federal Law No. 10257/2001, known as the “City Statute”, determines that every municipality with more than 20,000 inhabitants must have a master plan.

In it, it is necessary to divide the city into several zones and determine how they will be occupied: residential, industrial, commercial or service properties. This planning is called “urban zoning”.

In addition to the acronyms and terms of the real estate market

Knowing these and other acronyms and terms of the real estate market is a great start to stand out in the sector. However, you need to go much further and invest in marketing and technology. After all, the realtor needs to be where his clients are, doesn’t he?

In practice, this means that you need to create a real estate website and publish your ads on the most varied communication channels, such as social networks and real estate portals. So, if you want to boost your business, in addition to acquiring more knowledge, invest in a real estate platform like vile Imo.

 

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