Emblements are a type of real property that refers to crops that have been planted, but not yet harvested. The term is most often used in reference to farm land, but can technically apply to any land on which crops are grown. Emblements are considered personal property, as opposed to real property, because they are … Read more
What is an encumbrance? An encumbrance is a legal claim or right against property that may reduce its value or burden its owner. For example, a mortgage is an encumbrance on a house. What is another name for a financial encumbrance? The most common type of financial encumbrance is a mortgage. What is the difference … Read more
Smart Homes: Definitions, How They Work, Pros and Cons How is IoT used in smart homes? IoT technology is used extensively in smart homes, and its applications are growing every day. Here are some of the ways that IoT is used in smart homes: Smart thermostats: A smart thermostat can save homeowners money on their … Read more
Private equity real estate (PRE) refers to a type of investment in the real estate industry that is not publicly traded on a stock exchange. Private equity real estate funds are typically raised by large institutional investors, such as pension funds, insurance companies, and endowments, and are managed by experienced real estate investment professionals. PRE … Read more
An aggregator is a real estate investing term used to describe a company or individual that collects and manages a portfolio of properties on behalf of other investors. Aggregators typically work with a large number of investors and aim to provide a hands-off investing experience. The term “aggregator” is used to describe a company or … Read more
The income approach to valuing real estate is based on the premise that the value of a property is equal to the present value of its future net cash flows. In other words, the value of a property is equal to the sum of all its future cash flows, discounted at an appropriate rate. There … Read more
A title binder is a document that proves that the person named in the document holds the title to a piece of property. The document is signed by the title holder and a witness, and it is dated. The title binder also includes the name of the property, the address, the legal description, and the … Read more
The word “viager” is derived from the Latin word “viaticus”, meaning “of or pertaining to a journey”. In the context of real estate investing, a viager is a type of property ownership arrangement whereby the owner agrees to sell the property at an agreed upon price, but only after the death of the purchaser. The … Read more
Functional obsolescence is a type of obsolescence that occurs when a property no longer meets the needs of its current owner or occupants. This can happen for a number of reasons, including changes in technology, changes in taste, or changes in the local market. Functional obsolescence can also occur when a property is not properly … Read more
The term “absorption rate” is used to describe the rate at which properties are being sold in a given market. It is a important metric for real estate investors to track, as it can give them insight into whether the market is favouring buyers or sellers. The absorption rate is calculated by dividing the number … Read more
