# Glossary — Property Evaluation & Due Diligence

> 240 terms aggregated across 22 components, deduplicated, alphabetised. Each entry links to its source component for context.


## 6

- **6-Year CGT Rule** — ATO provision allowing a taxpayer to treat a former principal residence as a main residence for CGT exemption purposes for up to 6 years while it is income-producing. *([→ Seller-Side Disposal: Marketing, Method-of-Sale, Disclosure](components/17-seller-disposal.md))*

## A

- **ABS Total Value of Dwellings** — ABS quarterly release (cat. 6432.0) tracking total residential dwelling value, number of dwellings, mean price, and state-level movements; released ~10 weeks post-quarter. Key macro-cycle indicator for property investors. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **Absentee Owner Surcharge** — Extra land tax rate applied to foreign persons (and in some states, non-resident Australians) on top of standard land tax rates. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **Ad Valorem Duty (AVD)** — Stamp duty proportional to property consideration. Currently two operative scales: Scale 2 (reduced progressive rates for qualifying HKPRs buying their first home, but now also the universal scale post-Feb 2024) and Scale 1 Part 2 (historical flat rates). *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*
- **Ad Valorem Stamp Duty (AVD)** — HK's surviving stamp duty post Feb-2024 reform; Scale 2 rates (up to 4.25%); in practice borne by buyer per SPA convention; no longer supplemented by SSD/BSD on seller side. *([→ Seller-Side Disposal: Marketing, Method-of-Sale, Disclosure](components/17-seller-disposal.md))*
- **Adverse possession** — Acquisition of title by factual, exclusive possession of land for a statutory period; operates as a qualified exception to Torrens indefeasibility in VIC, WA, and TAS. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Air Rights** — Right to develop or veto development of particular volumes of space above a parcel; not proprietary in the traditional sense; function as tradeable density units through TDR (Transfer of Development Rights) mechanisms. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **ARGUS Enterprise** — Altus Group's commercial real estate valuation and cash flow platform (now part of ARGUS Intelligence Platform). Supports DCF, Capitalisation (hardcore, term-and-reversion, initial yield), and lease-by-lease income modelling. 40+ configurable reports; scenario and sensitivity analysis. Institutional adoption across 100+ countries; enterprise pricing by quote. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **Arm's-Length Transaction** — A sale between unrelated, uncoerced parties acting in their own interests; the required transaction type for a valid comparable. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **AS 4349.1** — Australian Standard for pre-purchase residential building inspections: non-invasive visual inspection of all accessible structural and internal/external elements; identifies major defects, minor defects, and safety hazards. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **AS 4349.3** — Australian Standard for timber pest inspections: non-invasive visual and instrument-assisted inspection for termites, wood decay fungi, and borers of seasoned timber. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Asbestos Register** — A mandatory workplace safety document recording location, type, quantity, condition, and date of identification of all asbestos-containing materials (ACMs) in a building constructed before 31 December 2003; required under WHS Regulation Chapter 8. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **ASP (Agreement for Sale and Purchase)** — HK formal contract, signed ≤5 working days after PASP; contains full terms, title covenants, completion date. *([→ Residential Sale-Purchase Agreement DD](components/11-residential-spa.md))*
- **Auction Reserve Price** — The minimum price at which a vendor will sell at auction; set confidentially with the agent and revealed to the auctioneer immediately before bidding opens; from 2026, Victoria mandates disclosure to buyers 7 days prior. *([→ Seller-Side Disposal: Marketing, Method-of-Sale, Disclosure](components/17-seller-disposal.md))*
- **Automated Valuation Model (AVM)** — Software system providing property value estimates using mathematical modelling (hedonic models, comparable-based algorithms, or hybrid). In Australia, deployed by CoreLogic/Cotality, PropTrack, and bank risk systems [ref: #5]. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **AVD (Ad Valorem Stamp Duty)** — Only remaining HK property stamp duty post-February 2024 relaxation; Scale 2 rates from HK$100 (≤HK$4M) to 4.25% (≥HK$21.74M). *([→ Residential Sale-Purchase Agreement DD](components/11-residential-spa.md))*

## B

- **BAL Toolbox** — Geoscience Australia ArcGIS geoprocessing toolbox (v2.1) implementing Method 1 of AS 3959-2009 *Construction of buildings in bushfire-prone areas*. Inputs: classified vegetation dataset + DEM. Outputs: BAL rasters for 8 cardinal directions plus maximum BAL map. Not a web tool; requires ArcGIS 10.2 desktop. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **Band of Investment** — A cap rate derivation technique that blends mortgage component (mortgage constant × LTV ratio) and equity component (equity dividend rate × equity ratio) into a weighted average overall rate. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Bank guarantee** — An unconditional undertaking by the tenant's bank to pay a specified amount to the landlord on demand upon tenant default; preferred over cash bonds because it sits outside the tenant's assets in insolvency. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Basis of Value** — The fundamental measurement assumption (Market Value, Equitable Value, etc.) underlying a valuation assignment; must be explicitly stated and agreed in the Scope of Work (IVS 101) and restated in the report. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **BATNA (Best Alternative to a Negotiated Agreement)** — The walk-away position; the best outcome achievable if the current deal falls through. Defined in Fisher & Ury's *Getting to Yes* (1981) and considered the primary source of negotiating power. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **BFO (Built Form Overlay) — Clause 43.06** — New 2025; applied to commercial cores of 10 pilot activity centres; removes third-party notice and review rights where all standards are met, creating fast-track pathway. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **BMO (Bushfire Management Overlay)** — Governs Bushfire Attack Level (BAL) ratings, construction materials, setbacks from vegetation, vehicle access. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Bond / Security Deposit** — Refundable security payment lodged with a government authority (AU) or held by the landlord (HK); AU jurisdictions cap the amount and prescribe lodgement timelines. *([→ Residential Rental DD & Lease Negotiation (AU + HK)](components/13-residential-rental.md))*
- **Build-to-Rent (BTR)** — A federal and state incentive regime for large-scale residential rental development; key benefits: 4% capital works deduction and 15% MIT withholding from January 2025. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **Buyer's Stamp Duty (BSD)** — A surcharge that previously applied to non-Hong Kong Permanent Residents purchasing residential property. **Abolished** with effect from 28 February 2024. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **BVI Holding Structure** — British Virgin Islands company shares are not "Hong Kong stock"; transferring BVI shares holding a HK property can avoid property conveyance stamp duty entirely (0% vs up to 4.25%). *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*

## C

- **C1Z / C2Z (Commercial Zones)** — C1Z: most flexible, town centres, multi-storey encouraged, permits retail/residential/commercial. C2Z: main roads, showrooms, restricted retail, warehouses, less residential focus. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **CAM Reconciliation** — Annual process comparing estimated common area maintenance charges billed monthly against actual incurred costs; tenants owe or receive credits based on their pro-rata NLA share of actual costs. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Cap Rate / Initial Yield** — Net operating income ÷ capital value; compressed to ~2.3% for HK Grade A office in 2018, expanding to ~3.0–3.5% by 2024. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **Capital Gains Tax (CGT) Discount** — Federal 50% discount on taxable capital gains for assets held >12 months by Australian residents; unavailable to foreign residents for assets acquired after 8 May 2012. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **Capitalisation Rate (Cap Rate)** — Ratio of stabilised NOI to property value; the all-risks yield expressing the unlevered annual return if purchased for all cash. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Caveat** — A formal notice lodged on title that prevents further dealings with the property without the caveator's knowledge; revealed by title search. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Certificate of Compliance (CC)** — Issued by the Lands Department confirming the developer has fulfilled all land lease conditions; required before the developer can assign individual units to buyers. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **CFC Rules (Australia)** — Australia's Controlled Foreign Company provisions attribute a share of a foreign company's income to Australian-resident shareholders with substantial interests if certain control tests are met. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*
- **Cladding Risk Mitigation Framework (CRMF) / MG-15** — Current Victorian regulatory framework superseding the Acquittal Guidelines, governing ongoing cladding risk management together with Minister's Guideline 15. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Cladding Safety Victoria (CSV)** — Victorian government agency administering the $600M program to rectify combustible cladding on private residential (Class 2) buildings. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Combined B&P inspection** — A single engagement covering both AS 4349.1 and AS 4349.3; the recommended minimum standard for residential pre-purchase due diligence across Australia. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Combustible cladding (ACP / EPS)** — External wall cladding panels with a highly flammable core: ACP (aluminium composite panel) with polyethylene fill, or EPS (expanded polystyrene) used as a render substrate; both were targeted in the VBA's Statewide Cladding Audit. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Comparable / Comp / Subject Property** — A recently sold property used as a benchmark for comparison; the subject property is the one being valued. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **Comparative Market Analysis (CMA)** — The residential and agent-level application of SCA; in Australia, only a licensed real estate agent or registered valuer may prepare a CMA [ref: #9]. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **Conditions Precedent (CP) Register** — Tracking register for all CPs to completion (regulatory approvals, third-party consents, board/shareholder approvals, etc.) and their satisfaction status. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **Confirmor sale** — In HK, when an original provisional-agreement buyer on-sells to a sub-purchaser before formal completion; triggerable SSD liability attaches if conditions are met. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **Confirmor sale (HK)** — A sub-sale arrangement where an existing purchaser ("confirmor") on-sells the property to a sub-purchaser before completion of the original transaction. Historically used speculatively; now subject to Special Stamp Duty (SSD) and HKMA scrutiny. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Contributory / Non-Contributory** — Heritage precinct grading. Grade A/Individually Significant: near-impossible to demolish. Contributory (B/C): generally refused unless structural compromise independently verified. Non-contributory (D/E): simpler approvals. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Cooling-off period** — A statutory window (typically 3–5 business days in most AU states) during which a buyer can withdraw from a private treaty contract with minimal penalty (usually 0.25% of purchase price). Does not apply to auction purchases. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Cooling-off period (VIC)** — 3 business days after signing during which a Victorian buyer may exit a residential property contract, paying a penalty of the greater of $100 or 0.2% of the purchase price. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **CRS/AEOI** — Common Reporting Standard: HK financial institutions report financial account information of tax residents of reportable jurisdictions to the IRD, which exchanges it with partner jurisdictions. Australia is a reportable jurisdiction since 2018. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*

## D

- **Data Room / VDR** — Virtual data room containing deal documents. Mere upload without adequate signposting may be insufficient for fair disclosure (AU case law, 2025). *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **Days on market (DOM)** — The number of days a listing has been publicly available. High DOM is a reliable signal of vendor price flexibility and reduced competition. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **DDO (Design and Development Overlay)** — Specifies height, setbacks, materials; can override the underlying zone's permitted height; DDO controls take precedence. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **De Minimis** — Per-claim floor below which individual claims are ignored; typically ~0.1% of purchase price. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **Deed of Mutual Covenant (DMC)** — A registered deed binding all co-owners of a multi-unit building. Records undivided shares, management shares, common areas, and governance structure. Runs with the land; buyers are bound by existing DMCs. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Deed of variation** — A legal mechanism in AU to formally reduce the contract price post-inspection, often saving stamp duty relative to the original figure (e.g., QLD: $1M reduced to $950K saves ~$2,000+ in transfer duty). *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Deed-based registration** — Hong Kong's current system under LRO Cap. 128. Registration records the priority of instruments (mortgages, assignments, orders), but does not validate or guarantee the underlying title. The person shown as owner on the land register may not hold indefeasible title. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Defeasance** — Mechanism for extinguishing a commercial mortgage early by replacing the property collateral with a portfolio of government-backed securities whose cash flows replicate the remaining loan schedule; cost is sensitive to the gap between the loan rate and current bond yields. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Deferred/extended settlement** — A longer settlement period offered as a concession to a buyer (or requested by a seller needing bridging time); in Victoria the standard is 30/60/90 days. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **Depreciated Replacement Cost (DRC)** — Current cost to replace an asset with one of equivalent utility using modern materials and methods, less accumulated depreciation; the primary basis for special-purpose asset valuation when comparables and income data are unavailable. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Developer's Margin** — Target profit expressed as a percentage of GDV; typically 15–20% for residential projects in Australia, rising to 25–30% for SME developers with higher finance costs. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Discount Rate (Required Rate of Return)** — Forward-looking total-return hurdle used to discount future cash flows to present value; reflects risk-free rate plus risk premia; conceptually distinct from, and typically higher than, the cap rate. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Division 40 (Plant & Equipment)** — ATO deduction for removable/mechanical assets at asset-specific ATO-prescribed effective life rates. Commercial investment property was not affected by the 2017 residential restriction—Div 40 claims on second-hand commercial P&E remain fully available. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Division 40 / Division 43** — ITAA depreciation provisions: Div 40 covers plant and equipment (diminishing value or prime cost); Div 43 covers capital works at 2.5% pa (or 4% for BTR). *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **Division 43 (Capital Works)** — ATO deduction for the structural building envelope at 2.5% p.a. for 40 years; each dollar claimed reduces the CGT cost base dollar-for-dollar at sale. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Dummy bid** — A non-genuine bid placed to artificially inflate the auction price. Illegal across all AU states and territories; penalties can reach $55,000 in NSW and $20,000 in SA. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*

## E

- **EAA (Estate Agents Authority)** — Hong Kong's statutory licensing body for all real estate agents. Buyers in HK should verify their agent's EAA licence before engaging. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **EAO (Environmental Audit Overlay)** — Flags known/suspected contamination; land cannot be used for sensitive use (residential, school, childcare) until a PRSA (Preliminary Risk Screen Assessment) or full environmental audit statement from EPA-appointed auditor is obtained. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Easement** — A right granted to a third party to use land for a specific purpose (e.g., drainage, access, utilities); easements "run with the land" and bind all future owners. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Effective Age** — Estimated age based on condition and utility rather than chronological age; key input in age-life depreciation calculations. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Effective Gross Income (EGI)** — PGI minus vacancy and credit loss allowance (typically 5% for stable AU commercial assets) plus ancillary income (parking, signage, storage). *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Effective rent** — Face rent reduced by the amortised value of landlord incentives (rent-free periods, abatements, fitout contributions) over the initial lease term; reflects actual cash received. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **EGI (Effective Gross Income)** — Potential gross income (PGI) less vacancy loss and credit/bad-debt loss. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Encumbrance** — Any charge, order, or other instrument registered against the property that burdens title: mortgages, building orders, Dangerous Hillside Orders, caveats, etc. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Entry Condition Report** — Mandatory document completed at commencement recording the property's condition; the primary evidence in any bond dispute. *([→ Residential Rental DD & Lease Negotiation (AU + HK)](components/13-residential-rental.md))*
- **EOI (Expression of Interest)** — A sealed-bid sale method in which buyers submit best-and-final offers by a deadline; used for prestige or unique properties where comparables are sparse. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **EOI / Tender** — Expression of Interest: a sealed, non-binding submission of price and terms by a set deadline. Common in commercial property; requires buyers to present best-and-final offers without knowing competitor pricing. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **EPA Vic Priority Sites Register (PSR)** — List of Victorian sites where EPA has formalised remediation requirements (Clean Up Notices, Pollution Abatement Notices, Site Management Orders for land/groundwater contamination). Available via EPA Victoria public registers portal; updated overnight. PSR is NOT exhaustive: voluntary clean-up and planning-controlled sites are excluded. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **Equitable Value (IVS 102)** — Reflects fairness between specific, identified parties; aligned with IFRS 13 Fair Value in financial-reporting contexts; not a market-based measure. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **Equivalent Yield** — The single internal rate of return that equates the present value of all future income streams (term income + reversion) to the capital value; the standard capitalisation rate in HK commercial valuations. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **ESO (Environmental Significance Overlay)** — Ecological sensitivity near waterways; buildings, works, vegetation removal trigger permit. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Essential Safety Measures (ESMs)** — Building Regulations 2018 (Vic) obligations on building owners to maintain fire, emergency, and other safety systems to required standards; must be verified in commercial due diligence. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Exit Cap Rate (Terminal / Reversion Cap Rate)** — Projected cap rate applied to terminal-year NOI to estimate resale value at end of the holding period; typically set 25–75 basis points above the going-in rate. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Expressions of Interest (EOI)** — A hybrid sale method for prestige/unique properties where buyers submit sealed confidential offers by a deadline; no public bidding, agents negotiate individually with shortlisted parties. *([→ Seller-Side Disposal: Marketing, Method-of-Sale, Disclosure](components/17-seller-disposal.md))*
- **External/Economic Obsolescence** — Loss in value from factors external to the property (zoning changes, infrastructure encroachment, market shifts); generally incurable by the owner. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*

## F

- **Face rent** — The stated (headline) annual rent per square metre without adjustment for incentives; used in capitalization-rate valuations to set property value. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Face rent vs. effective rent** — Face rent: the headline rental rate on the face of the lease. Effective rent: the actual cost per period after accounting for rent-free, fitout contributions, and other incentives — the true economic comparison metric. *([→ Commercial & Retail Rental DD & Lease Negotiation](components/14-commercial-retail-rental.md))*
- **FCI (Facility Condition Index)** — Ratio of deferred maintenance/repair costs to current replacement value (CRV): 0–5% = excellent, 5–10% = good, 10–30% = fair, >30% = needs attention; used by QS in capex forecasting and prioritisation. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **FIRB (Foreign Investment Review Board)** — Federal body controlling foreign acquisition of Australian real estate; application fees are non-refundable and scale with property value. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **FIRB approval** — Mandatory Foreign Investment Review Board approval required for "foreign persons" before purchasing Australian residential property; failure voids the purchase. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **First Home Owner Grant (FHOG)** — State grants and stamp duty concessions for first home buyers on new residential properties. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **FO / LSIO / SBO (Flood Overlays)** — FO (Floodway Overlay): primary flood path, most restrictive, frequently renders development unviable; LSIO (Land Subject to Inundation Overlay): 1% AEP flood, requires flood-resistant design and elevated floor levels; SBO (Special Building Overlay): overland stormwater flow in urban drainage deficiency areas. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Foreign Resident Capital Gains Withholding (FRCGW)** — 15% withholding on all Australian property sales by foreign residents, regardless of value, from 1 January 2025. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*
- **FSIE Regime (HK)** — Hong Kong's Foreign-Sourced Income Exemption regime, expanded in 2024 to cover dividends, interest, disposal gains and IP income; requires economic substance in HK for offshore entities to qualify for exemption. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*
- **FSR (Floor Space Ratio)** — GFA ÷ Site Area; controls building bulk; e.g. 1.5:1 FSR on 1,000 m² = 1,500 m² GFA; direct determinant of development value. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Functional Obsolescence** — Loss in value from outdated design, layout, or technology; includes "superadequacy" (over-improvement relative to what the market can support). *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*

## G

- **Geoscape Australia** — National built-environment dataset covering addresses, land parcels, building footprints, and transport networks. Distributed to NSW government agencies at no cost; key input to PropTrack AVM and state spatial portals. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **GFA (Gross Floor Area)** — All enclosed floor space measured to internal face of external walls; excludes car parking, plant rooms, lift shafts, stairwells in multi-dwellings, and genuinely open terraces. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Going-In Cap Rate** — Entry yield at acquisition: Year 1 NOI ÷ purchase price; reflects current market conditions. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Government Lease** — The title instrument for virtually all HK land, issued by the HKSAR Government. Common terms: 50 years (post-1997 new grants), 75 years renewable (historic urban leases), 99 years less 3 days from 1 July 1898 (New Territories), and historically 999 years. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **Government Rent** — Annual charge of 3% of rateable value payable by the leaseholder to government. Applies to leases granted or modified since 1985 and all new leases post-1997. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **Gross Adjustment / Net Adjustment** — Gross adjustment = sum of absolute values of all adjustments (measures how different the comp is); net adjustment = algebraic sum (positive + negative). Rule of thumb: gross > 25% or net > 15% of sale price signals a weaker comp. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **Gross Development Value (GDV)** — The aggregate market value of a completed development scheme upon sale; the starting point for residual land analysis. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **GRZ (General Residential Zone)** — Most common Melbourne zone; supports moderate growth at 3 storeys / 11 m; single dwellings on lots ≥300 m² exempt from permit as of 2026. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **GST Going Concern** — A sale structured as a going concern is GST-free if both parties are GST-registered and agree in writing; eliminates 10% GST, reducing stamp duty base. *([→ AU Tax & Transaction Costs (state-by-state)](components/18-au-tax.md))*

## H

- **Hardstand** — In industrial leases: a constructed surface (concrete, asphalt, or crushed rock) for loading/storing goods; lease must specify weight-bearing capacity, dimensions, and permitted use. *([→ Commercial & Retail Rental DD & Lease Negotiation](components/14-commercial-retail-rental.md))*
- **HCTZ (Housing Choice and Transport Zone)** — Introduced via Amendment VC257 (February 2025); HCTZ1 (core) allows 4–6 storeys; HCTZ2 (walkable catchment) lower; applied via GC252 to 10 pilot activity centres (April 2025). *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Heads of agreement (HOA)** — A short pre-lease document recording agreed commercial terms (rent, term, options, fitout, security, makegood); may be binding depending on intent; precedes formal lease drafting. *([→ Commercial & Retail Rental DD & Lease Negotiation](components/14-commercial-retail-rental.md))*
- **Heritage Overlay (HO) — Clause 43.01** — Local planning scheme protection applied to ~100,000 Victorian properties; permit required for demolition, buildings/works, subdivision, external alterations, sometimes repainting and tree removal; schedule specifies paint/tree/internal controls per property. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **HKAS 40 / HKFRS 13** — Hong Kong equivalents of IAS 40 (Investment Property) and IFRS 13 (Fair Value Measurement); govern annual revaluation of investment properties for financial reporting. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **HKIS Valuation Standards 2024** — Current operative professional standard published by the Hong Kong Institute of Surveyors, aligned with IVSC/IVS and adopted by HKEX as accepted basis for all property valuations in listed-company reports. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **HKMA Countercyclical Macroprudential Measures** — HKMA supervisory framework setting maximum LTV and DSR caps on property mortgage loans, adjusted periodically in response to market conditions. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **HKMC Mortgage Insurance Programme (MIP)** — Run by Hong Kong Mortgage Corporation Insurance Limited (HKMCI). Allows lenders to offer LTV up to 80% (or 90–95% for selected subsidised schemes) by insuring the excess above normal LTV caps. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **HKPR First-Time Buyer Concession** — A Hong Kong Permanent Resident acting on their own behalf and not owning another HK residential property qualifies for Scale 2 AVD. This was meaningful pre-2024 when Scale 1 Part 1 applied to others; post-2024, all buyers pay Scale 2 regardless. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*

## I

- **IN1Z / IN2Z (Industrial Zones)** — IN1Z: general industrial/allied commercial (Clause 33.01). IN2Z: heavy/noxious manufacturing, goods storage including hazardous goods (Clause 33.02); residential prohibited; substantial separation from sensitive uses required. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Incentive amortisation** — The accounting/financial spreading of an upfront incentive (e.g., six months rent-free) over the lease term to derive effective annual rent. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Indefeasibility / Torrens title** — The system used in every Australian state and territory. The registered proprietor holds conclusive, government-guaranteed title; bona fide purchasers need look no further than the register. HK does not yet have this guarantee for existing land. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Indefeasibility exception — fraud** — The primary exception to Torrens indefeasibility; a registered title obtained through fraud can be challenged, though identity fraud remains rare in the AU system. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Information asymmetry** — Sellers have structural information advantages (property condition, motivation, competing offers). Academic research shows non-local buyers pay 3–15% premiums as a direct consequence. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **International Valuation Standards (IVS)** — Globally recognised, principles-based standards for all assets and liabilities, developed by the IVSC and applied in 100+ countries; current edition effective 31 Jan 2025. Adopted in full by the API for Australian Valuer Members. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **Investment Value (IVS 102)** — Value to a specific owner or prospective investor reflecting that party's investment criteria, synergies, and financing; distinct from Market Value. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **IVS Compliance Statement** — Mandatory declarative text in every IVS-compliant report from 31 Jan 2025, confirming the valuation was conducted in accordance with IVS; cannot be substituted by general disclaimer language. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*

## K

- **Key money** — A payment demanded solely for granting or renewing a lease; prohibited under all Australian retail leases acts. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*

## L

- **Land Titles Ordinance (Cap. 585)** — Enacted 2004 but never commenced. The 2025 Amendment Bill activates it in staged form, starting with newly granted government land (target: first half of 2027). *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Leakage** — Transfers of value from target to seller (dividends, management fees, related-party payments) between the locked-box date and completion. SPA specifies permitted vs unpermitted leakage. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **Lease Modification / Waiver** — A leaseholder may apply to the Lands Department to permanently vary (modification) or temporarily relax (waiver) a Special Condition; approved applications attract a premium or fee reflecting enhanced value. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Liquidation Value (IVS 102)** — Value in a forced-sale or orderly-liquidation scenario; the timeline for sale is shorter than normal market exposure. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **Long-Stop Date** — Outside date by which all CPs must be satisfied; failure triggers a right to terminate. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*

## M

- **MAC Clause** — Material Adverse Change clause: entitles buyer to walk away if a material, durationally-significant adverse event occurs between signing and completion. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **Major defect** — A defect that may render the building or part of it unfit for occupation/use or could affect structural integrity; distinguished from a minor defect which does not affect structural integrity. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Make-good obligation** — A commercial lease clause requiring a tenant to return premises to a specified condition (ranging from "clean and tidy" to "base building shell") at lease end. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Makegood obligation** — End-of-lease obligation requiring the tenant to return the premises to an agreed condition (often original pre-fitout condition); poorly negotiated clauses are a major source of disputes. *([→ Commercial & Retail Rental DD & Lease Negotiation](components/14-commercial-retail-rental.md))*
- **Market Rent vs. Passing Rent** — Where a lease runs above (over-rent) or below (reversionary rent) market, direct capitalisation on passing rent misrepresents value; a term-and-reversion or DCF sub-model is required. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Market Value** — The primary basis of value for most real property appraisals: "the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction, after proper marketing, where the parties had each acted knowledgeably, prudently and without compulsion." *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **Minimum Standards (Vic)** — Statutory baseline habitability requirements under RTA 1997 s. 65A, phased in from March 2021: heating in main living area, deadlocks, window locks, adequate light, mould/damp control, smoke alarms, and more. *([→ Residential Rental DD & Lease Negotiation (AU + HK)](components/13-residential-rental.md))*
- **MRI Software / Cougar Software** — MRI Software acquired Sydney-founded Cougar Software in 2015. Cougar (est. 1992, 27-country client base) provides long-range financial modelling and investment management for real estate portfolios. MRI Property Tree handles day-to-day property management. Combined platform serves 45,000+ clients managing 23M units across 170+ countries. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **MUZ (Mixed Use Zone)** — Allows residential, commercial, light industrial; FSR typically 2:1–6:1 in activity centre MUZ precincts [ref: #58]. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*

## N

- **NatHERS / Whole-of-Home** — National House Energy Rating Scheme; under NCC 2022 (effective Oct 2023 nationally), new homes must achieve 7-stars (of 10) for the building shell and meet a Whole-of-Home energy budget covering appliances, heating/cooling, and on-site generation. *([→ Environmental, Contamination & Climate Risk DD](components/08-environmental-climate.md))*
- **Net Assessable Value (NAV)** — The taxable base for Property Tax: gross annual rent less irrecoverable rent, less Rates paid by owner, less 20% statutory allowance for repairs and outgoings. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*
- **Net lease** — A lease structure where the tenant pays base rent plus itemised outgoings; contrasted with gross lease (all-inclusive) and triple-net (NNN) where the tenant bears most property costs. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Net Operating Income (NOI)** — EGI minus operating expenses borne by the landlord (council rates, land tax, insurance, property management, maintenance, utilities). Excludes debt service, capital expenditure, depreciation, and income taxes. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **NOI (Net Operating Income)** — Effective gross income (EGI) minus total operating expenses, excluding debt service, depreciation, amortisation, and capital expenditures. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Nomination/And-or-nominee** — AU clause allowing substitution of a new purchaser; can trigger sub-sale stamp duty in some states (especially VIC) if additional consideration exists. *([→ Residential Sale-Purchase Agreement DD](components/11-residential-spa.md))*
- **Non-Compete / Restraint of Trade** — Covenant preventing vendor from competing with the acquired business post-completion. Enforceable in Australia if "reasonably necessary" to protect goodwill. *([→ Commercial SPA & Asset/Share Transaction DD](components/12-commercial-spa-asset-share.md))*
- **NRZ (Neighbourhood Residential Zone)** — Limits growth to maximum two dwellings per lot, 1–2 storeys; used by inner councils (Boroondara, Bayside, Stonnington) to preserve character. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **NSW LEP** — Local Environmental Plans set zone controls; Standard Instrument LEP standardises zone categories: R (residential), E (employment), RU (rural), C (conservation), W (waterways), SP (special purpose). *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **NSW Planning Portal Spatial Viewer** — Web-based GIS viewer for NSW planning data: LEP zones, FSR, height limits, DCP layers; integrates Geoscape datasets for site identification and assessment under whole-of-government supply arrangement since June 2022. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **NSW Valuer General Portal** — Free: land value search, property sales map (interactive), bulk CSV download. Paid: Certificate of Land Value, objection filing, Valuation Sales Report, Benchmark Component Report. Serves community, industry professionals, and government agencies. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*

## O

- **Occupation Permit (OP)** — Issued by Buildings Department upon satisfactory inspection of a completed building against approved plans; no new building may be occupied without it. *([→ HK Legal & Title Due Diligence](components/21-hk-legal-title.md))*
- **Option to renew** — A contractual right for the tenant to extend the lease for a further term; strictly time-gated and forfeited by late notice. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Outgoings** — Property operating costs (council rates, insurance, maintenance, land tax in non-retail leases) passed to tenants under a net lease; prohibited items vary by jurisdiction and lease type. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Outgoings / OpEx** — Statutory outgoings (council rates, land tax, water/sewerage, emergency services levy) plus operating outgoings (insurance, cleaning, security, HVAC maintenance, fire, R&M, management fees). Recoverability depends on the lease structure (net, gross, semi-gross). *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Overlay** — An additional control layered on top of the zone for a specific characteristic of the land (heritage, flood, bushfire, landscape). Multiple overlays can apply simultaneously; each must be satisfied independently [ref: #55]. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*

## P

- **Paired Sales Analysis** — Technique for quantifying a single adjustment: find two sales differing in only one characteristic, isolate the value of that characteristic. Unreliable in thin markets. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **PASP (Provisional Agreement for Sale and Purchase)** — HK two-page binding contract signed at offer acceptance; triggers deposit payment and ASP timeline. Despite name, not "provisional" in terms of legal effect. *([→ Residential Sale-Purchase Agreement DD](components/11-residential-spa.md))*
- **PASP / ASP** — Hong Kong's Preliminary Agreement for Sale and Purchase (primary market) and Agreement for Sale and Purchase; governed by mandatory Schedule 4 provisions under the Residential Properties (First-hand Sales) Ordinance (Cap 621). *([→ Seller-Side Disposal: Marketing, Method-of-Sale, Disclosure](components/17-seller-disposal.md))*
- **Passed-in** — When an auction closes with the highest bid below reserve; the highest bidder gets first right of negotiation, but the seller risks a ~1.3% price discount on any subsequent sale. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **Passing Rent vs. Market Rent** — Passing rent is the current contractual rate; material divergence above market with an imminent market review is a red flag that income will reset downward at the review date. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **PCBU (Person Conducting a Business or Undertaking)** — WHS Act terminology for the duty-holder obliged to maintain the asbestos register; in a property transaction, the incoming owner/manager assumes this duty. *([→ Physical Inspection, Building, Pest & Hazardous Materials](components/07-physical-inspection.md))*
- **Permit attaches to land** — Victorian planning permits generally run with the land, not the person; a new owner inherits the permit. Exception: where permit conditions specifically name an owner/operator. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **Permitted use clause** — Defines the permitted activities in the premises; the anchor clause for exclusivity and assignment compatibility. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Phase I Environmental Site Assessment (ESA)** — A non-intrusive desktop and site reconnaissance study examining historical land use, aerial photographs, regulatory databases, and site walk-over to identify Recognised Environmental Conditions (RECs) that may indicate contamination. *([→ Environmental, Contamination & Climate Risk DD](components/08-environmental-climate.md))*
- **Phase II ESA** — Intrusive investigation using soil boring, groundwater monitoring wells, and laboratory analysis to confirm or rule out contamination flagged in Phase I; the only way to conclusively determine site condition. *([→ Environmental, Contamination & Climate Risk DD](components/08-environmental-climate.md))*
- **Physical Depreciation** — Loss in value from normal wear and tear; may be curable (cost-effective to repair) or incurable (cost to cure exceeds value gained). *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Positive covenant** — Requires the landowner to carry out a specified act (e.g., maintain a fence or landscape); less common than restrictive covenants but equally binding. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Post-DD price chip** — A buyer's tactic of demanding a price reduction after completing due diligence; occurs in 20–30% of negotiated transactions. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **Potential Gross Income (PGI)** — Theoretical 100%-occupied rental income at market or contract rents; the starting point for income build-up before any deductions. *([→ Income Capitalisation & DCF](components/02-income-capitalisation-dcf.md))*
- **Pre-auction offer** — An offer submitted before the scheduled auction date, typically requiring the buyer to waive cooling-off rights; if accepted within 72 hours of auction (in VIC), cooling-off is forfeited. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Preliminary Risk Screen Assessment (PRSA)** — Victoria-specific lightweight screening tool under the Environment Protection Act 2017; determines whether a full environmental audit is required; can clear a site from EAO requirements if no significant risk is found. *([→ Environmental, Contamination & Climate Risk DD](components/08-environmental-climate.md))*
- **Price conditioning** — Agent-led process of adjusting a seller's price expectations downward (or buyer expectations upward) during the campaign, to align with market evidence. *([→ Seller-Side Negotiation Tactics & Strategy](components/16-seller-negotiation.md))*
- **Principle of Substitution** — A rational buyer will not pay more than the cost of acquiring an equally desirable substitute property; the SCA's theoretical basis. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **Priority Sites Register (PSR)** — EPA Victoria list of sites issued with clean-up or pollution abatement notices where contamination presents unacceptable risk without active management; publicly searchable via Victoria Unearthed. *([→ Environmental, Contamination & Climate Risk DD](components/08-environmental-climate.md))*
- **Profits Tax** — 16.5% (corporate) / 15% (unincorporated) on profits arising in or derived from HK. Applies to property held as trading stock; property-rental profits that constitute a business; property tax paid is offset against profits tax assessed on the same income. *([→ HK Tax & Transaction Costs](components/22-hk-tax.md))*
- **Property Adjustments** — Adjustments for items 4–6 of the hierarchy (time, location, physical) applied after transactional adjustments. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **PropTrack** — REA Group's data and analytics business (rebranded from Hometrack Australia, acquired 2018 for $130M). Two divisions: Mortgage Solutions (AVM for banks) and Property Data (market intelligence). Raw data sourced from state/territory land titles offices, Valuers General, Geoscape Australia, and realestate.com.au demand and behavioural data. Supplies automated valuations to major banks and state governments. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*

## Q

- **QLD Planning Scheme** — Each LGA maintains local planning scheme with zones; Residential (7 types: Character to Rural Residential), Centre (6 types), Industry (8 types), Tourism (4), Environmental (3), Other (8 incl. Township, Mixed Use, Special Purpose). *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **QLD Property Sales Data (QVAS)** — Valuer-General Queensland's property sales and valuation roll data under the *Land Valuation Act 2010*. Access via approved data brokers (who may set own rates) or direct purchase via Titles Queensland. Queensland Globe provides free land valuation layers. Per-record fees apply for Abbreviated Sale and Full Sale Search. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*

## R

- **Ratchet clause** — A lease provision preventing rent from decreasing at a market rent review even if market rates have fallen; void in all Australian retail leases acts. *([→ Commercial Lease Analysis](components/10-commercial-lease-analysis.md))*
- **Rateable Value (RV)** — The estimated annual rental value of a property in the open market at the designated valuation reference date, assuming the property is vacant and to let, with the landlord bearing government rent, insurance and repairs. Assessed annually by RVD; reference date is 1 October of the preceding year. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **Rates** — General revenue tax on the occupation of property, charged as a percentage of rateable value. For 2025-26: 5% for non-domestic tenements; progressive 5%–12% for domestic tenements. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **Rating and Valuation Department (RVD)** — HKSAR government department responsible for assessing rateable values, administering rates and government rent, and publishing the Hong Kong Property Review. *([→ HK Property Valuation Context](components/20-hk-valuation-context.md))*
- **RBA Statistical Tables** — Free monthly/quarterly time series: D2 (Lending and Credit Aggregates), E1 (Household and Business Balance Sheets), E1–E7 (household wealth and gearing), housing finance volumes. Essential for tracking credit conditions and mortgage lending trends. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*
- **REBAA (Real Estate Buyers Agents Association of Australia)** — Peak body for exclusive buyer's agents in AU. Membership requires ≥24 months practising as a buyer's agent, no concurrent selling activities, and professional indemnity insurance. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Regulated Tenancy / SDU (HK)** — Under the 2022 Amendment Ordinance, any domestic tenancy of a subdivided unit in HK is a "regulated tenancy" subject to prescribed terms, deposit caps, and the 10% renewal cap. *([→ Residential Rental DD & Lease Negotiation (AU + HK)](components/13-residential-rental.md))*
- **Reliance Disclaimer** — Clause limiting which parties may rely on the report; in AU mortgage contexts, Restricted Assessments are confidential to the lender and may not be passed to borrowers without the valuer's written consent. *([→ Valuation Standards & Reporting (IVS, API, RICS, USPAP)](components/04-valuation-standards.md))*
- **Rent Increase Frequency Cap** — AU law restricts landlords to one rent increase per 12 months; NSW legislated this from 31 October 2024. *([→ Residential Rental DD & Lease Negotiation (AU + HK)](components/13-residential-rental.md))*
- **Rent Roll** — A line-by-line tenancy schedule recording unit/lot, tenant name, contracted passing rent, actual collected rent, lease start/end, rent review mechanism, and any arrears balance; the primary income evidence document in DD. *([→ Financial DD: Rent Roll, Opex, NOI, Capex](components/09-financial-dd.md))*
- **Repeat Sales Index (RSI)** — Price index restricting data to properties sold twice or more; controls for quality mix by holding property constant; the Case-Shiller approach. *([→ Sales Comparison Approach (CMA)](components/01-sales-comparison-cma.md))*
- **Replacement Cost New** — Current cost to build a functionally equivalent building using modern materials and current design standards; does not replicate original materials or configuration. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Reproduction Cost New** — Current cost to construct an exact duplicate using the same materials, construction standards, design, and workmanship as the original; required for heritage/historic structures where architectural integrity must be preserved. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Reserve price** — The minimum price below which the vendor will not sell at auction. Once the bidding exceeds reserve, the property is "on the market" and must sell to the highest bidder. *([→ Buyer-Side Negotiation Tactics & Strategy](components/15-buyer-negotiation.md))*
- **Residual Land Value (RLV)** — The amount remaining for land acquisition after all development costs and required developer profit are subtracted from GDV; the maximum price a specific scheme can support. *([→ Cost Approach & Development Residual Appraisal](components/03-cost-approach-residual.md))*
- **Restrictive covenant** — A registered agreement limiting how land may be used (e.g., single dwelling only, specific building materials, setback requirements); enforceable by benefited landowners only, not government. *([→ Title & Legal DD (AU Torrens + Section 32)](components/05-au-title-legal.md))*
- **Retail Leases Act 2003 (Vic)** — The primary Victorian statute governing retail premises leases; sets disclosure obligations, minimum term, rent review rules, prohibited charges, and dispute resolution via the Victorian Small Business Commission (VSBC). *([→ Commercial & Retail Rental DD & Lease Negotiation](components/14-commercial-retail-rental.md))*
- **RGZ (Residential Growth Zone)** — Medium-to-high density near activity centres; 13.5 m / 4 storeys (discretionary); from 31 March 2025, Clause 55 Townhouse & Low-Rise Code governs up to 3 storeys. *([→ Zoning, Planning Overlays & Heritage](components/06-zoning-planning-heritage.md))*
- **RP Data (Cotality)** — CoreLogic Australia's flagship residential property intelligence platform, rebranded to Cotality in 2026. 10M+ property records, 98% AU market coverage aggregated from 7,000+ verified data sources including title registries, local councils, and industry contributors. Subscription-based ($179–$320/mo AUD). Provides CMA reports, IntelliVal AVM, suburb trend analytics, and RP Proposals for pre-listing kits. *([→ Data Sources, Portals & Practitioner Tools (AU)](components/19-data-sources-au.md))*

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*This glossary continues in the published wiki at the path above. Full 240 terms available in the bundled material at `~/Developer/research-wiki/property-evaluation-and-due-diligence/glossary.md`.*