Classified:
Is the process of classifying the use of a particular area of land with the local authority. It stipulates what development, if any, can be carried out on the land. Depending on the classification will determine the kinds of structures and their purpose/business, height of buildings, use of green space and building density that is allowed on the land. The term Classified is used in the UK to mean the same as Zoned in the US.
Conceptual Master Plan:
Is a detailed proposal of the buildings, amenities and overall purpose of the proposed development. It is submitted to the local authority (incorrect) and its approval will stimulate further proposals to be submitted in order to gain full planning permission for development.
Early Entry:
Is a point at which an investor may enter a development project that is earlier than normally allowed for private investors. Early entry offers investors a competitive advantage in that the cost of investment is normally lower and the returns higher at the earliest stages of the development project.
Escrow Agent:
Is a neutral, third-party to transactions who will safeguard your investment by securing the property on one side and the funds on another in an escrow account. Once all the documentation pertaining to the transaction has been examined and all the terms of the transaction deemed to be met, the escrow agent will exchange the property for funds under lawful instructions. Should the terms of the transaction not be met, at all times the funds and property remain the right of the original owner.
Escrow Account:
Is a third party bank account, normally held by the escrow agent, which holds funds safely during a transaction until all the conditions of sale are met.
Exit Options:
Are the different ways an investor can ‘cash in’ their investment to receive their initial investment amount plus an additional return, or alternatively, progress with the investment but under new circumstances that may yield additional high returns.
Land Banking:
Is the practice of purchasing raw land and holding it for future use. There are generally 2 strategies; 1) to hold onto the land until it has become profitable to sell, betting on the fact that the land will increase in value; 2) to hold onto the land until the owner is ready to develop it, betting on the fact that the land will be eligible for the required planning permissions for development.
Pre-Development Land:
Has a clearly defined process for development. The land is already zoned as being eligible for development but is yet to be granted planning permission. This will be done once a Master Plan has been submitted to the local authorities for approval, which is usually completed by the development company looking to develop the land.
Rezone:
Is to reclassify (e.g. a property or neighbourhood) the use of a particular area of land to a different zone or being subject to different zoning restrictions. See Zoning for further definition.
Title Deed:
A legal document that proves ownership of property.
Title Insurance:
An insurance policy that protects property owners against losses arising from problems or defects with the legal ownership or title of a property.
Trustee Company:
A neutral, third-party who acts on your behalf to ensure your interests are best served and protected. They may act on your behalf in a transaction to ensure all conditions of a sale are met as well as provide escrow services.
Zoning:
Is the process of planning for land use by a local authority to allocate certain kinds of structures and purposes to certain areas. It stipulates what development, if any, can be carried out on the land. Zoning includes restrictions in different zones such as the height of buildings, use of green space, density, purpose of use and types of business. Types of zoning include open space, residential, retail, commercial, agricultural and industrial. The term Zoning is used in the US to mean the same as Classified in the UK.
