Realtor glossary: 14 terms you need to know
Every area has a list of terms that facilitate processes and ensure that formal communications and negotiations do not have double interpretations among their interlocutors. In the financial market, the one that fulfills this role is the glossary of a realtor like Blue World City.
Are you up to date with yours? In addition to facilitating notary and financial procedures, understanding each term is essential to demonstrate to your customers that you have mastery and authority in the area.
Here we list the 14 main terms in the broker’s glossary that are decisive for those who want to do a good job. Continue reading and take the opportunity to update yourself!
1. Eviction action
Refers to the lawsuit that the owner of a rental property moves in order to remove the tenant. It must be requested following the reasons provided by law.
It stands for the Association of Directors of Real Estate Market Companies, which has offices in almost all Brazilian states. Its main objective is to strengthen professionals and companies in the industry.
Legal term used in several areas. Specifically in the real estate market, it is an authorization document for the construction, incorporation or renovation of an architectural project, issued by the competent public agency.
4. Standard apartment
This is a term widely used by construction companies and refers to the standard apartment in a building, that is, one that has no differential compared to the others.
The buildings usually have standard apartments, penthouses and units with a private area. Such nomenclatures, in addition to confirming that properties have different lengths, can also be used to determine the value of condominium fees, for example.
Contracts, laws and other formal documents can be divided into chapters, items and clauses, so that all relevant issues mentioned and are easily located.
Contractual clauses determine the conditions of a negotiation and, therefore, can be used in a conversation to mention an item that is not in conformity with what was previously agreed or, if not, to include an addendum.
A clause can be included to, for example, determine that, in addition to the property, specific items of furniture will also be part of the deal.
It is an agreement signed, registered or not physically, that determines the rights and duties of the parties involved. It must be governed within the legal terms, under penalty of becoming void.
In the real estate market, the main ones are the lease contracts – used for the assignment of a property for a fixed period in exchange for a certain remuneration – and the purchase and sale contract, which specifies the definitive negotiation of the property.
Acronym for Regional Council of Realtors. Professionals in the field need to take a training course and be properly enrolled in CRECI.
The Severance Pay Fund (FGTS) is the contribution that the employer makes monthly to each employee. This income can be redeemed by the worker in case of dismissal, purchase of property or in other specific cases.
In the real estate and financial market this acronym is regularly used. Therefore, in addition to understanding its meaning, it is necessary to master the rules of use and how they fit into real estate financing processes, for example.
9. Real estate financing
This is the specific type of credit for the acquisition of real estate, whether in the plant or already built (new or old).
The individual contracts the financing of part of the value of the property and pays amortization installments on a regular basis over a period. At the end of the payment regime, the asset is finally transferred entirely to your name.
This is another term that requires a lot of mastery on the part of the broker, as it is from his knowledge of the subject that it is possible to indicate to customers the most advisable option for the purchase profile, for example.
10. Get settled
This document issued by the official inspection bodies ensures that the property was built or renovated according to the approved project and that it was inspected by other entities and services, which guarantee that the property is habitable.
The Urban Territorial Property Tax is charged annually by city halls based on the venal value of the property. Some properties and people are exempt from charging and, therefore, mastering the rules is also essential for the broker to do a good job.
The Property and Real Estate Transfer Tax (ITBI) is charged whenever there is a transfer of ownership in the Property Registry.
13. PRICE or SAC table
Modalities for calculating installment payments for real estate financing. The PRICE table keeps the parcels at constant values. The SAC table has the values gradually decreasing. Some financings also have half-yearly and annual installments that deduct from the total amount.
14. Venal value
The market value is determined by the local governments for each property, considering the size, location, purpose (residential or commercial) and characteristics.
It determines certain charges, such as IPTU, but this is not always the case for negotiations between sellers and buyers.
When to use the realtor’s glossary terms?
Whenever dealing with internal procedures, talking to other professionals in related areas, such as dispatchers and notary public employees, for example, the terms can be used to structure the dialogues in an optimal way.
However, when there is a person in the conversation who does not understand the terms, the ideal is for the broker to explain the meaning. This demonstrates knowledge, transparency in negotiations and, of course, authority in the matter.
It is necessary to be aware that the glossary of the real estate agent is constantly updated, so new terms can be added and others can be extinguished with the modernization of real estate contracts.
In other words, maintaining a knowledge update routine is essential, isn’t it? But sharing relevant information with other colleagues on the sales team can also be an interesting strategic move, because in the future, they can do the same.
So, do you want to propose a knowledge test for them? Now share this content on your social networks and ask fellow real estate agents how many terms they were sure about their meanings.