Real Estate Dictionary

🏠 Purchase of Property

• Bank Valuation 🧾
  Process in which the bank sends a certified expert to the property to determine its market value. It is a mandatory step in the granting of housing credit.

• Promissory Contract of Purchase and Sale (CPCV) 📄
  Document that formalizes the commitment between buyer and seller. It includes the terms of the deal, expected date for the deed, and the value of the deposit.

• Public Deed of Purchase and Sale ✍️
  Legal document signed at the notary that officializes the transfer of ownership of the property to the buyer.

• IMT (Municipal Tax on Onerous Transfers of Real Estate) 💰
  Tax paid to the State when buying a property. The value depends on the type of property and its price.

• Sign 💸
  Amount paid by the buyer to the seller at the time of signing the CPCV, as a guarantee of the deal. In case of unjustified withdrawal, this amount may be lost.

• Purchase Offer 📝
  Formal proposal made by the buyer to acquire a property, indicating price and conditions.

• Due Diligence ⏳ Deadline
  Period stipulated for the buyer or seller to meet certain conditions before the conclusion of the deal.

• Suspensive ⚖️ Clause
  Condition that makes the contract valid only if a certain event happens (example: credit approval).

• License to Use 📋
  Document issued by the city council that proves that the property is authorized for habitation or other use.

• Land 🏷️ Registry
  Official registration containing the data of the property and its owner. It is mandatory that the property is registered.

• Stamp Fee 🏛️
  Tax paid to the State on certain contracts and documents, including those related to the purchase of real estate.

• Bookkeeping 📚
  Administrative process of formalizing the transfer of ownership of the property in the notarial services.

• Resolutive 🔄 Condition
  Clause that provides for the possibility of the contract being annulled if certain conditions are not met.

• Deadline for Deed 🗓️
  Deadline for the execution of the public deed of purchase and sale.

• Non-Refundable Payment ❌💰
  Amount paid that will not be refunded if the deal does not materialize, as part of the down payment.

🔄 Property Sale

• Real Estate Commission 💼
  Amount paid to the real estate agency as compensation for the services provided in the sale of the property. It can be a percentage of the sale value.

• Energy Certificate ♻️
  Mandatory document that classifies the energy efficiency of a property (from A+ to F). It must be presented at the time of sale.

• Land 🏷️ Registry
  Official registration of the property, which states who the current owner is, if there are mortgages or other charges. It should be updated after the sale.

• Title Deed 📜
  Legal document that proves ownership of the property. Required for the deed of sale.

• Property Appraisal 🔍
  The process of determining the real value of the property for the purpose of sale or financing.

• Contractual Exclusivity 🤝
  Agreement by which the seller grants exclusivity to the agency to sell the property during a certain period.

• Promise of Purchase and Sale 📑
  Preliminary contract where the seller and buyer agree on the terms for the future sale.

• Real Estate Listing 📰
  Promotional material, such as photos and descriptions, used to advertise the property for sale.

• Property Visit 🏡
  A time when potential buyers get to know the property in person.

• Binding Offer ✍️
  Firm proposal made by the buyer to acquire the property.

• Property Condition Statement 🏚️
  Document that describes the physical and legal state of the property.

• Certificate of Content 📄
  Official document issued by the land registry that contains all the information about the property.

• Tax Settlement 💸
  Payment of taxes related to the sale, such as IMT and stamp.

• Mediation Agreement 📞
  Contract between the seller and the agency that defines the terms of the provision of real estate services.

• Seller's Responsibility ⚠️
  Legal obligation of the seller to ensure that the property is free of hidden encumbrances or charges.

🏘️ Lease

• Lease 🧾
  Contract in which the owner (landlord) cedes the use of the property to another person (tenant), upon payment of a monthly rent.

• Surety 👥
  Person who guarantees the payment of rent, if the tenant does not comply with the obligations of the contract. The guarantor is jointly and severally liable.

• Income 💵
  Amount paid monthly by the tenant to the landlord, in exchange for the use of the property.

• Lease Agreement 📑
  Legal document that establishes the conditions of the lease: duration, rent amount, charges, among others.

• Trespass 🏪
  Sale of the right to exploit a business (such as a café or store) including the use of the property, even if leased.

• Duration of the Contract ⏳
  Period of time for which the lease agreement is valid.

• Bail 🛡️
  Amount delivered by the tenant to the landlord as a guarantee against damage or default.

• Automatic Renewal 🔄
  Clause that allows the continuation of the contract after the end of the initial term.

• Eviction 🚪
  Legal procedure to remove the tenant from the property, usually for non-compliance.

• Termination of Agreement ✂️
  The act of terminating the lease early by agreement or court decision.

• Housing Charges 🧹
  Expenses related to the property, such as water, electricity, condominium, among others.

• Stamp Duty on Lease 🏛️
  Tax levied on lease contracts.

• Notification of Complaint 📬
  Formal notice to terminate the contract, usually with minimum legal notice.

• Housing for Tourism Purposes 🏖️
  Short-term rental for tourism, subject to specific rules.

• Judicial Resolution ⚖️
  Court decision determining the termination of the contract.

📑 Documentation and Technical Terms

• Autonomous Fraction 🔢
  Independent unit of a building (e.g. an apartment in a building). It has its own registration and use.

• Property Plan 📐
  Technical drawing that represents the layout of the rooms and areas of the property. Essential to understand the organization of space.

• Permanent Own Housing 🏡
  Property where the owner resides habitually and continuously. It is relevant for tax exemptions and benefits.

• Condominium 🏢
  Set of owners of fractions in a building. Responsible for the maintenance of the common parts (elevator, stairs, etc.) and for the payment of associated expenses.

• Building Permit 🏗️
  Official authorization to build or modify a property.

• Caderneta Predial 📇
  Document issued by the tax authorities that contains tax information about the property.

• Land 📝 Registry
  Registration of the property in the official register of the city council.

• Tax Assessment 🏦
  Value assigned to the property for tax purposes and tax calculation.

• Certificate of Habitability 🏘️
  Document that proves that the property meets the minimum conditions to be inhabited.

• Mortgage Registration 🔒
  Official registration indicating the existence of mortgages or encumbrances on the property.

• Descriptive 📄 Memory
  Technical document that describes characteristics and materials of the property.

• Real Rights 🏛️
  Legal rights over a property, such as ownership, usufruct and mortgage.

• Land Demarcation 🌳
  Definition and marking of the boundaries of the land.

• Cadastral 📊 Evaluation
  Determination of the value of the property for taxation purposes.

• Urban Documentation 🏙️
  Set of documents related to planning and land use.

💳 Financing

• Mortgage 🏦
  Bank loan granted for the purchase of a property. It is paid in monthly installments, with interest.

• Mortgage 🔒
  Guarantee given to the bank that the property can be seized in case of default on the payment of the credit. It is registered in the land register.

• Bank Spread 📉
  Profit margin applied by the bank on the reference rate on housing loans.

• Interest Rate 💹
  Percentage that the bank charges on the amount borrowed.

• Amortization ⏰ Term
  Period during which the loan must be repaid.

• Initial Entry 💵
  An amount that the buyer delivers directly, without resorting to credit.

• Opening Committee 🏦
  Fee charged by the bank to start the credit process.

• Life Insurance for Credit 🛡️
  Mandatory insurance that covers the repayment of the loan in the event of death.

• Multi-risk 🏠 Insurance
  Insurance that covers damage to the property.

• Risk Assessment 📊
  Analysis made by the bank to decide whether to grant credit.

• Early Repayment 🔄
  Possibility of paying part or all of the credit before the deadline, with penalties possible.

• Fixed and Variable Rate ⚖️
  Different ways of calculating credit interest.

• Nominal Annual Rate (TAN) 📅
  Annual nominal interest charged by the bank.

• Global Effective Annual Rate (APR) 📈
  An indicator that includes all credit costs, such as interest and commissions.

• Mortgage Secured Credit 🏦🔒
  Loan secured by the mortgage of the property.