The Language of Property: 40 Real Estate Terms Everyone Should Learn
Whether you’re a seasoned investor, a first-time buyer, or simply curious about the world of property, learning the language of real estate is essential.
In Nigeria and across the globe, real estate conversations often include words like “equity,” “escrow,” or “probate sale”—and if you’re not familiar with these, you might feel left out or, worse, make costly mistakes.
Too many Nigerians have lost money or signed unclear property agreements simply because they didn’t understand the terminology used during transactions.
Think about this: What if you paid millions for land only to discover later that it lacked a Governor’s Consent, was under excision, or even had an encumbrance?
These terms aren’t just “big grammar”—they’re crucial.
Let’s break down 40 real estate terms you need to understand before your next property deal. Whether you’re buying an off-plan property, negotiating a contract of sale, or considering a distress sale, this list will give you clarity and confidence.
1. Credit Score
A number that shows how reliable you are with credit. It’s important when applying for mortgages or housing loans.
2. Closing Cost
These are extra fees (legal, agency, taxes) paid at the end of a property transaction. Don’t forget to budget for them!
3. Land Document
Refers to legal papers like C of O, survey plan, or deed of assignment that prove land ownership or rights.
4. Appraisal
A professional estimate of a property’s market value, often required by banks or buyers.
5. Blind Offer
Making an offer on a property you haven’t physically seen. Risky, but sometimes done in hot markets.
6. Escrow
A neutral third party that holds money or documents until all conditions of a deal are met.
7. Equity
The difference between your property’s value and what you still owe on it. It’s your profit if you sell.
8. Inspection
A physical check of the property for defects or legal issues before purchase. Always do this.
9. Lease Land
Land rented for a fixed period. You don’t own it, but you can build and use it under agreed terms.
10. Probate Sale
Selling a deceased person’s property through a court-supervised process. It can be longer but offers deals.
11. Purchase and Sale Agreement
A legal contract between buyer and seller detailing the terms of the sale.
12. Short Sale
When a property is sold for less than the mortgage owed, usually to avoid foreclosure.
13. Land Banking
Buying undeveloped land and holding it until it appreciates. A popular long-term investment strategy.
- Unexpired Interest Rate
This refers to a locked-in loan interest rate that hasn’t expired. Useful in mortgage deals.
15. Off-Plan Property
Buying property based on architectural designs before construction is completed. Usually cheaper but requires trust in the developer.
16. Contract of Sale
A binding agreement outlining the terms of the property transaction. Don’t sign one without reading the fine print.
17. Distress Sale
A sale made urgently, often below market value. Can be a great deal—if you do your due diligence.
18. Survey Plan
A detailed diagram showing the boundaries and measurements of a property, prepared by a licensed surveyor.
19. Deed of Assignment
Transfers ownership from one party to another. Must be registered with the appropriate authorities.
20. Certificate of Occupancy (C of O)
Issued by the government to confirm the right to occupy land. A key land document in Nigeria.
21. Title Deed
Proof that you legally own a piece of land. Always ask to see this during transactions.
22. Excision
Land that’s been officially released by the government to original owners. Without it, land may still belong to the government.
23. Governor’s Consent
Required in Nigeria when land ownership changes hands. Without it, your transaction isn’t complete under law.
24. Power of Attorney (POA)
Allows someone to act on your behalf in property deals. Useful but must be authentic and verified.
25. Right of Occupancy (R of O)
Grants you the right to use land, often a precursor to getting a C of O.
26. Deed of Sublease
Used when someone who has a lease sublets the property to another person.
27. Property Valuation
A professional’s estimation of your property’s worth. Helpful in buying, selling, or securing loans.
28. Building Plan Approval
Before construction, you need the government’s approval of your building design.
29. Encumbrance
Any legal claim, like a loan or lien, that limits your full rights to a property.
30. Land Use Act
The Nigerian law that gives all land control to the state government. All land dealings must comply with it.
31. Land Grabbers (Omo Onile)
Local groups that may lay unofficial claim to land. Always buy through registered channels to avoid them.
32. Allocation Letter
Indicates that a plot has been allocated to a buyer, usually in a new estate or government scheme.
33. Real Estate Developer
An individual or company that builds and sells housing or estates. Choose developers with a proven track record.
34. Real Estate Agent
Facilitates buying and selling. In Nigeria, verify their credibility before handing over cash.
35. Mortgage
A property loan, with the property as collateral. Offered by mortgage banks and a few commercial banks.
36. Rent-to-Own
You rent a home with the option to buy it later. It’s flexible, though still emerging in Nigeria.
37. Joint Venture (JV)
A deal between landowners and developers to build and split proceeds.
38. Zoning
Regulations determining the kind of buildings allowed in an area—residential, commercial, etc.
39. Land Surveyor
Professionals who measure land boundaries and prepare Survey Plans.
40. Tenement Rate
A local tax paid on residential buildings, often to local councils or LGAs.
In Conclusion
There’s no need to feel confused or outsmarted when talking about land or housing anymore. This list equips you with the vocabulary to confidently engage with agents, lawyers, and developers.
Whether you’re evaluating equity, negotiating a purchase and sale agreement, or exploring land banking, these terms give you power and protection.
Let’s Help You Make Smarter Property Decisions
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Contact us today [+234 814 900 3508] for a free consultation.—we’ll break it all down and help you make the right move.