Alterations are physical changes to a building or plans for a building. They generally do not physically expand the property, are permanent, and go beyond mere decoration.
The principle of contribution states that the value of a property component is determined by the value it adds to the entire property.
Development rights refer to the legal entitlements attributed to property owners to improve and develop a piece of land within certain regulatory constraints set by local authorities.
The Improvement Ratio measures the relative value of improvements on a property compared to its unimproved value, providing insight into the investment in enhancements versus the land value itself.
A mechanic’s lien is a legal claim against a property as security for unpaid labor and materials supplied for the property's improvement.
Off-site improvements refer to the various infrastructural developments made to areas surrounding a specific land development or subdivision, necessary for its functional integration. These improvements can range from access streets and utilities to sewers and drainage systems.
Rehab, short for rehabilitation, refers to the process of restoring or improving a property to a better condition, often for resale or rental purposes. It typically involves fixing structural issues, upgrading systems, and enhancing aesthetics.
A rehabilitation mortgage is a unique kind of loan designed to cover both the purchase price of a property and the costs associated with its repair or improvement. The FHA’s 203(k) loan is a popular example of this type of financing.
RESTORE refers to the process of returning a building to its original quality and appearance. While modern materials are often used, the primary focus is on faithfully reproducing the original style and elements.
A site plan is a detailed architectural drawing representing the design of improvements on a parcel of land. It showcases the placement, orientation, and relationship of all structures, landscaping, driveways, parking lots, and utility connections.
Sweat Equity represents the value added to a property due to improvements as a result of work personally performed by the owner. A prime example is when property owners pour their own time and energy into repairs and renovations, thereby increasing the property's value.
Title 1 Loans are FHA-insured loans that allow borrowers to make nonluxury improvements (such as renovations or repairs) to their homes. Loans less than $7,500 do not require a property lien.
