Real Estate Glossary 14

The Ministry of Water Resources, Works and Housing has announced plans to introduce a Real Estate Bill to Parliament for passage into law. The Bill is expected to regulate the real estate sector as well as create an agency to oversee the activities of real estate brokers and agents. In order to make the general public more conversant with some of the real estate terminology, Jumia House Ghana presents you with some likely terms to be included in the Bill.

1. Absorption rate

The rate at which rentable space is filled, divided into gross absorption and net absorption. Gross absorption is a measure of the total square feet leased over a specific period, with no consideration given to space vacated in the same geographic area during the same time period. Net absorption is equal to the amount occupied at the end of a period, minus the amount occupied at the end of the beginning of a period. Net absorption does not take into consideration the space vacated during the period.

2. Air rights

These are the legal ability to use or control the space above a property. Air rights can be leased, rented or sold to another party.

3. Amenities

Described as the enhancements that buildings offer its owners or tenants. These usually include a doorman, health club, garage, children’s playroom and a common lounge.

4. Co-broke

This is an arrangement between two brokerage firms to share a commission. It usually occurs when one broker is the seller’s exclusive listing agent and the other broker represents the buyer.

5. Commercial zone

A commercial is an area that allows for the establishment of retail stores, restaurants, hotels and service businesses.

6. Commingling

This refers to the combination of money or property of others with personal or business funds or other property.

7. Consumer Price Index (CPI)

It refers to an index indicating the change in prices of various commodities and services, providing a measure of the rate of inflation.

8. Full bath

A full bath is a bathroom that consists of a sink, toilet, and a bathtub or shower.

9. Half bath

This is merely a powder room which consists of a sink and toilet, but does not have a bathtub or shower.

10. Listing Broker

This type of broker represents the interests of the seller or landlord in the sale or rental of his or her property.

Source:

worklife.columbia.edu