Real Estate Terms You Must Know

Hello again everyone! Welcome to another informative discussion with us in Lumina Sessions. For today, we will discuss the different terms that we commonly use in the real estate industry. These words are necessary for you to remember and learn by heart, especially if you are starting or planning to pursue a career in real estate.

We will also cover the terms that you can use when introducing a property to a client and when you close a deal with them.

And since we are on the last week of our Women’s Month, we will still giveaway Php 1,000 AllEasy Load to one (1) lucky winner in line with the celebration of the Superwomen in our lives. Here are the simple steps on how you can join this promo:

1. Watch this Lumina Sessions video and spot the SOMETHING PURPLE that will pop on the screen randomly.
2. Pause the video to take a screenshot of that scene.
3. Upload your proof of entry on our website at www.lumina.com.ph/public-event-upload. On the Event field, select “Lumina Sessions: Real Estate Terms You Must Know (March 27).

So, without further ado, let’s now start with our first term:

Lot Area or LA

This is the total area where your property is located. We commonly use the square meter or sqm.—the international metric system or unit of measurement for our metric system.

Floor Area or FA

The Floor Area is the total size of your home space. If the property is a two-story home, then we need to add the area of the second floor to get the total area of your home space. This is also the reason why the floor area of a home is bigger than its lot area.

Bedroom or BR

This term is the most familiar word among the real estate terms that we will discuss today. Of course, simply said, a bedroom is a place where you can sleep.

Toilet & Bathroom or T&B or Comfort Room

This is the part of your home that contains the toilet and typically a shower.

Master Bedroom

This space is usually the bedroom of the parents or couples, and it is always the biggest size bedroom in your home.

House and Lot

When we say house and lot, these are properties that already have improvements, and the lot is already included. Lumina Bacolod offers house and lot packages such as townhouses, duplexes, and single firewall units.

Townhouse or TH

A townhouse is a house and lot that shares one or two walls with adjacent properties but have their own entrances. In Lumina Bacolod, we offer a variety of townhouse models, such as Angelique Townhouse and Angeli Townhouse.

Duplex or DX

This type of house is a two-story home with a two-unit house that only shares one common wall. For this style of home, we have available Angeli Duplex and Armina Duplex home model units.

Single Firewall or SF

When we say single firewall house, it means that one side of your house is built directly on the boundary of your lot or shares a firewall with another house. For this home model unit, we offer Angeli Single Firewall, Armina Single Firewall, and Athena Single Firewall units.

Ready For Occupancy or RFO

This term means that the property is already built, and homebuyers can immediately move in for this type of home. In Lumina Homes, we offer a lot of RFO units all over the country, such as:

• Lumina Baliwag
• Lumina San Jose
• The Balanga Residences
• Lumina Tanza
• Lumina Lipa
• Lumina Tanauan
• Lumina Quezon
• Lumina Batangas
• Lumina Bacolod
• Lumina Iloilo
• Lumina Bukidnon
• Lumina Tagum
• Lumina Butuan
• Lumina Ozamiz
• Lumina Pagadian

Pre-selling

These are the types of house and lot that are sold in advance before their actual completion. This is perfect for home seekers who would like to stay on a budget since pre-selling homes are being offered at a lower price.

Reservation Agreement Form or RA

This is a form that is filled out by the buyer to show that they are interested in buying the property. At this time, the buyers usually must pay the reservation fee first. You must also take note that the reservation fee is non-refundable and non-transferrable.

Buyer’s Information Sheet or BIS

A BIS is a form filled that must be filled out by the home buyer when he or she purchases a home. Here, the buyer must input all the information required in the form, such as their name, contact details, email address, and more.

You can have this filled out online when you make an online reservation with Lumina Homes. You can start your homeowner journey right now and make your reservations at https://onlinereservation.lumina.com.ph/.

Total Contract Price or TCP

This is simply pertaining to the total price of a property.

Reservation Fee or RS Fee

It is a payment made that will hold the property or unit for you. This can give you the assurance that no other clients will get your preferred unit.

Monthly Downpayment or Monthly DP

After 30 days from the day of your home reservation, the buyer will need to start paying the monthly DP for their chosen house and lot package. To compute the required monthly DP, the buyer can divide their DP term by the total downpayment added to the 0 interest rate.

Loanable Amount

You can compute your loanable amount by deducting your total contract price from your total downpayment. This will also be the amount that will be processed when you choose bank financing.

Monthly Amortization or MA

It is the amount that you are paying when you start your monthly payments for your bank home loan.

Income Tax Return or ITR

This is your Proof of Income from the Bureau of Internal Revenue or BIR that you can use as a requirement.

Contract to Sell or CTS

It is a formal agreement in which a person or company agrees to sell something to a buyer at a time in the future, and the buyer agrees to buy it. Some of the information that you can find in your CTS is the agreement about the prices, rules, policies, and the description of the unit.

Special Power of Attorney or SPA Form

This form will allow your representative to sign documents on your behalf. This is crucial, especially if you are an OFW. It’s also useful when you are working or reside far from the project where you purchased your property.

Real Estate Broker or REB

They are the primary movers in the real estate profession. They are also individuals with specialized expertise in the real estate industry.

Real Estate Agent

These professionals guide buyers and sellers throughout the real estate transactions and work under the supervision of a real estate broker.

And that’s all for today! We hope that you keep in mind these terms that will surely help you when you start your home investment or would like to pursue a career in the real estate industry. Enjoy your day!