INCOME - Money or other benefit, generally assumed to be received periodically
(i) Effective: The estimated gross income less allowances for vacancies and rent losses.
(ii) Excess: That part of the actual rent income which is in excess of the fair rental value at the time. This might be due to a fortuitous lease or unusual management.
(iii) Extraneous: An income other than rent derived from the general property operation, such as income from a laundry service provided in an apartment house, sign rights on the side of a building. This is sometimes called miscellaneous income.
(iv) Gross: The schedule income from the operation of the business or the management of the property customarily stated on an annual basis.
(v) Net: The difference between the effective gross income and the expenses; including taxes and insurance. Usually the timer is qualified as net income before depreciation.
(vi) Operating: Income derived from the general operation of a business. Not where all direct costs of operation and all direct income from operation have been taken into the account, and nothing else. See also income, net.
(vii) Stabilised: As used in appraisal practice, represents the estimated gross income after allowance has been made for vacancies and other losses of income. It is the estimated amount of probable rent receipts for a specific period, usually a year. It includes extraneous income only when these amounts are essential elements in the operation of an enterprise and where they are customarily expected and included in the trade.
(viii) Surplus: Same as excess income.
INDUSTRIAL PARK - A controlled, park-like development, designed to accommodate specific types of industry, and providing the required appurtenances such as public utilities, streets, railroad sidings, water and sewerage facilities, etc.
IN GLOB 0 VALUE - Price that a subdivider or developer would expect to pay for land in large parcels which is suitable and ripe for subdivision into allotments and takes into account his expenses of purchase, development and a margin for profit and risk.
INTER ALIA - Amongst other things.
IN TOTO - Entirely; wholly.
IPSO FACTO - By that very fact.
JOINT TENANTS AND TENANTS IN COMMON - Property, whether real or personal, may be owned under the joint tenancy or tenancy in common. Joint tenancy is ownership in equal undivided shares, stated to have the technical requisites of unity of possession, interest, title and time. The most important feature of joint tenancy is known as survivorship; on the death of one joint tenant, his share passes to the survivors so that they remain joint tenants of the whole. Joint tenants are regarded collectively as a single person in respect of their dealings with others. In the case of tenancy in common, although each has an undivided share, such share is distinct and separate. The interests needs not be equal; thus “A” may have one undivided third share, and “B” two undivided third shares of the same property. The most important feature is that the share of a tenant-in-common may be separately disposed of by him during his lifetime, or by will. On his death it passes, not to the other tenants-in-common, but by his will, or by the laws of intestacy.
LEASEHOLD ESTATE - A non-freehold estate, the tenant’s or lessee’s interest. An estate in property created by a lease.
LEASE - A grant of the possession of real property to last for a fixed or ascertainable period at will or in perpetuity, and usually with the reservation of a rent. The person who grants the lease is called the lessor, the person to whom it is granted being the lessee. A lease must be for a less estate or term than the lessor has in the property, for if it comprises his whole interest it is a conveyance or assignment and not a lease. Where a person who is himself a lessee grants a lease of the same property to another person for a shorter term, it is called an underlease or sub-lease.
LEASEHOLD IMPROVEMENTS - The improvement and/or additions to leased properties which have been made by the lessee.
LEASEHOLD VALUE - The value of a lease from the points of view of both the lessee and the lessor. As economic conditions change, a lease may be worth more or less with the passing of time. Leasehold value is that increase in the market value of a lease over what is being paid.
LIQUIDATOR - A person appointed to carry out the winding up of a company. The duties of a liquidator are to get in and realise the property of the company, to pay its debts, and to distribute the surplus (if any) among the members.
