Real Estate Terms Part 2

To help you better understand the ins and outs of the property world, you can use this glossary to be more confident when dealing with agents, developers, or when reviewing property documents. Let’s get to know more about important terms in the real estate world!

Credit Agreement

Part of the Home Ownership Credit (KPR) / Apartment Ownership Credit (KPA) process, the credit agreement is a legally binding contract between the debtor and the creditor (Bank).

Property Agent

The party that bridges the developer and the customer (intermediary), property agents can be in the form of offices or individuals.

Collateral

Assets owned by the borrower that are given to the bank, these assets will later become the property of the bank if the borrower fails to pay the installments. In the KPR application scheme, the collateral usually given to the bank is a land certificate.

AJB

A certificate of transfer of property from one party to another due to a sale and purchase transaction.

Amortization

Debt reduction that is done by paying the debt regularly with the same amount, consisting of principal payments and interest payments on the debt.

Anami

Abbreviation for Simple Apartment Owned, the class is below commercial apartments.

Anchor Tenant

Anchor tenants are tenants of many places at once in a shophouse or mall complex, usually only big brands do this.

Annuitas Rest

A condition if the debtor pays installments more than they should be paid, this will have an impact on the repayment period which ends earlier than the tenor period.

Aparthotel

Abbreviation for Hotel Apartment, the booking system is still the same.

Architect

A professional who is tasked with designing a construction, including planning, designing, and supervising.

Backlog

The difference between the number of housing demand comparing to the number of available housing.

Balloon Payment

Credit payment system with the concept of light installment payments in advance and large installments paid off immediately in the back.

BBN

Abbreviation for Name Transfer Fee, this fee is required to change the name of a property owner from the previous owner to the new owner.

Booking Fee

A sum of money paid to show someone’s seriousness in buying a property.

BI Checking

A check on the credit history of a home debtor carried out in the Bank Indonesia Debtor Information System.

Booming

A situation where a type of property is experiencing a surge in demand.

BP Tapera

Abbreviation for the People’s Housing Savings Management Agency which is an institution to manage people’s finances so they can own their own home.

BPHTB

Land and Building Acquisition Fee is a tax imposed on property buyers.

BPN

Abbreviation for the National Land Agency, a non-ministerial government agency tasked with managing land in Indonesia.

Broker

A party that bridges property buyers with property developers/agents. Brokers profit from commissions.

Bubble Property

Describes the condition of increasing property prices in an area that tends to be unrealistic, this is due to increasing demand and speculation from experts.

Capital Gain

Profit obtained from the sale of property assets compared to the purchase price.

Cash Back

A number of cash refunds when a property purchase occurs. The amount varies and is determined by the developer.

Cash in Stages

Purchase of a house with a periodic installment payment method. Usually this method is without bank facilities, but directly from the developer.

Cluster

An environment where there are several landed houses with uniform concepts, shapes, and sizes. Generally implements a one gate system for its security system.

Co-broking

A Property sales process that is initiated by two or more property agents.

Cut & Fill

The process of leveling the land by digging one part of a hilly land to fill another part so that the final result of the land is level.

Those are some of terms that is still being used in the world of Real Estate, want to know more? we will discuss it in the next article!