NOK Book 1

Nitrogen

The most common element in the atmosphere.

Liquidity

The speed and ease of converting an asset or investment to cash at its market value.

Market Comparison Approach

Estimated by analyzing sales prices of similar properties recently sold.

Code of Ethics and Responsibilities

Prescribed and issued by The Accredited and Integrated Professional Organization for real estate practitioners.

Special Waste

Household hazardous wastes like paints, thinners, and batteries.

Mortgage Bankers

Companies or individuals that originate mortgage loans and service monthly payments.

Encroachment

A building or obstruction that intrudes upon or invades a highway or property of another.

Easement of Right-of-Way

A right granted to a property owner for access.

Republic Act 9700

Also known as The CARPER Law.

Default

The failure to fulfill a duty or obligation.

Vicinity Map

Shows the general location of a property and its surroundings.

Locational Clearance

Authorization to develop or construct in specific areas based on zoning ordinances.

Economic Rent

The potential rent a property can demand based on comparable properties in the neighborhood.

Real Estate Economics

The study of the factors influencing supply and demand in the real estate market, including housing demand indicators like population growth and customer strength.

Leverage

Using borrowed funds to increase purchasing power and potentially enhance investment profitability in real estate.

Geohazard

Geological conditions that pose risks of widespread damage, influencing real estate development and safety measures.

Eminent Domain

The superior right of the government to acquire property for public use by condemnation and payment of just compensation.

Foreclosure

The procedure where property pledged as security for a debt is sold to pay the debt in case of default.

Environmental Management System

The system involving conservation, pollution regulation, waste management, and more.

Declaration of Restrictions

Document outlining guidelines for condominium unit owners' rights, use, and ownership.

Real Estate Dealer

Person engaged in selling, buying, or leasing real properties for profit.

Fake or Spurious

Title is ______ when not obtained through recognized titling proceedings.

Emancipation Patent (EP)

Proof of ownership for lands awarded to agrarian reform beneficiaries.

Zoning

Exercise of the State's Police Power.

Presidential Decree No. 957

Subdivision and Condominium Buyers Protective Decree.

License to Sell

Document to check before buying a subdivision lot.

Property Manager

A REIT is required to engage the services of an independent __________ who will provide services for property management, lease management, rent collection, tenant services, security, and other similar services.

Right-of-Way

An interest in land required for the purpose of constructing, maintaining, and operating a road, railway, electric or other utility transmission.

150%

would be the recapture rate on a building having a remaining economic life of 15 years.

Comparable Condominium Units

With full blast growth in condominium developments, considering comparable condominium units at discounts is important in the valuation of residential condominiums.

Units

Parts of a condominium project intended for use or ownership, including rooms or spaces in a building or buildings.

Expropriation

The procedure for enforcing the eminent domain powers of the State.

Appraisal

The act of determining the value of a property for a specific purpose on a specific date.

Income Approach of Appraisal

Valuing a property based on its future potential income.

Zoning Ordinance

Regulation by municipalities or cities to control property use.

Cost Approach

Valuing a property based on its reproduction or replacement cost less depreciation.

Encumbrance

Any right or interest in land affecting its value, like mortgages or easements.

Automatic Redemption Clause

Mortgage clause releasing properties upon full payment.

Easement

Right or privilege an individual has in another's land, like a right of way.

Break-even Point

Rent or occupancy level covering operating expenses and debt service.

Capitalization Rate

Rate used to determine the capital value of an income stream.

Closed Mortgage

A mortgage that can only be paid off upon its maturity.

Possession

When a buyer is allowed to move into a property bought from a developer before full payment.

Financing

The most crucial aspect of real estate investing according to the real estate investor's guide.

Supply and Demand

When interest rates rise, market activity tends to slow down.

Alienation

The voluntary transfer of real estate.

ROWHOUSE

Individual homes with a common wall between each unit.

Project Cost

The fair market value of raw land and its development cost.

Cost Approach

Estimates the value of an asset by reflecting obsolescence and depreciation.

Useful Life

The expected life over which an asset is available for use.