320 property terms, explained in plain English.
From “absorption rate” to “yield spread” — the words your realtor, lender, or solicitor uses, defined the way they'd be defined at a kitchen table.
A· 6 terms
The rate at which available properties in a market are sold or leased over a period — calculated as sales (or signings) divided by active inventory. High absorption signals a fast market; low absorption signals a slow one.
A mortgage whose interest rate resets periodically — usually after an initial fixed period of 5, 7, or 10 years — based on a reference benchmark plus a fixed margin.
Housing for which a household pays no more than a defined share of income (often 30% of gross). In Uganda, this typically describes units built under NHCC, NSSF Housing Finance, or affordable-housing development partnerships.
The schedule by which a loan is paid down with regular installments of principal and interest. Early payments are weighted toward interest; later payments toward principal.
An independent estimate of a property's market value, prepared by a licensed appraiser. Required by lenders before they fund a mortgage. Distinct from a survey, which assesses condition.
The transfer of a lease or contract to another party. Most residential leases either prohibit assignment outright or require landlord consent — check the assignment clause before signing.
B· 4 terms
A large final payment due at the end of a loan whose regular payments did not fully amortize the principal. Common in commercial property; rare in residential mortgages outside niche products.
A lease provision that lets either landlord or tenant end the tenancy early, subject to notice and any agreed penalty. Read this clause carefully — its presence (or absence) materially changes a lease.
A short-term loan that bridges the gap between buying a new property and selling an old one. High interest and arrangement fees; used when timing forces a purchase before a sale completes.
A property bought specifically to rent out for income rather than to occupy. Mortgages, tax treatment, and underwriting standards typically differ from owner-occupier loans.
See also: Property investment
C· 4 terms
A property's annual net operating income divided by its purchase price. A quick measure of investment yield, ignoring financing. Higher cap rates suggest higher returns but often higher risk.
Tax on the profit realised from selling an asset. In Uganda, capital gains on the sale of investment property are taxable at the prevailing income-tax rate; a principal residence held by the owner is exempt.
Fees paid at the completion of a property sale, beyond the purchase price. In Uganda these typically include 1.5% stamp duty (URA), advocate's fees, search fees at the lands registry, valuation, and lender arrangement fees.
The legal process of transferring property from one owner to another. In Uganda this is handled by an advocate of the High Court, who conducts the title search at the Ministry of Lands, drafts the transfer, and lodges it for registration.
D· 3 terms
In rentals, a sum held by the landlord as security against damage and unpaid rent — typically 1 month to 5 weeks' rent, often legally capped. In sales, the down payment paid at offer acceptance.
The portion of a property's purchase price paid in cash by the buyer, with the rest financed by mortgage. Standard ranges: 5% (high-LTV) to 20%+ (to avoid mortgage insurance).
When a single realtor or agency represents both buyer and seller in a transaction. Permitted in Uganda when both parties consent in writing, but disclosure is required and most reputable firms decline the role to avoid conflict of interest.
E· 2 terms
An arrangement where a neutral third party holds funds or documents pending the completion of agreed conditions. Common at closing and in ongoing mortgages (escrow holds insurance and tax reserves).
A right granted to a non-owner to use part of a property — for access, utilities, or drainage. Easements run with the land and bind successive owners.
F· 3 terms
A mortgage whose interest rate is fixed for the entire term (typically 15, 20, 25, or 30 years), giving predictable monthly payments. Rates are usually slightly higher than ARMs in exchange for certainty.
The legal process by which a lender takes possession of a mortgaged property when the borrower falls behind on payments. In Uganda this proceeds under the Mortgage Act 2009 — the lender must issue statutory notices and obtain a court order before sale.
Outright ownership of land and any property on it, in perpetuity. In Uganda, freehold is one of four tenure systems alongside Mailo, Leasehold, and Customary tenure, each with distinct rights and registration rules.
G· 2 terms
When a seller accepts a higher offer from a different buyer after already accepting one. In Uganda this remains legally possible until a sale agreement is signed and the deposit paid — until then, an accepted offer is not binding.
A periodic payment from a leaseholder or Mailo bibanja-holder to the registered landlord. In Uganda, ground rent on Mailo land is set by the Land Act and is generally a nominal annual figure; leasehold ground rents are set in the lease itself.
H· 2 terms
A periodic fee paid by unit owners or tenants in a gated estate, apartment block, or condominium toward shared maintenance — security, garbage, generator fuel, lift servicing, and grounds. In Uganda these are typically set by the developer or owners' association and reviewed annually.
A smaller deposit a renter pays to take a property off the market while their application is processed. Usually refundable if the landlord rejects, non-refundable if the renter withdraws.
L· 2 terms
Ownership of land for a fixed period — in Uganda typically 49 or 99 years on Kampala Capital City Authority leases, or shorter on private leases granted by Mailo or freehold owners. The land reverts to the lessor at expiry unless the lease is extended.
The size of a mortgage divided by the property's value, expressed as a percentage. Higher LTV mortgages carry higher interest rates and may require private mortgage insurance.
M· 2 terms
A loan secured against a property, typically used to buy that property. The lender retains a legal interest in the property until the loan is fully repaid; defaulting can result in foreclosure.
See also: Mortgage calculator
When two or more buyers submit competing offers on the same property. Sellers typically respond by inviting best-and-final offers by a deadline, or negotiating with the strongest candidate.
O· 2 terms
Buying a property before it is built, based on the developer's plans. Often discounted from completed price; carries timing and developer-solvency risks.
A scheduled period — usually 1–3 hours — where any prospective buyer can view a property without an appointment. Increasingly common on HomSeeq listings in Kampala, Wakiso, and Mukono, particularly for new developments and apartment blocks.
P· 2 terms
Principal, Interest, Tax, Insurance — the four components of a mortgage payment. In Uganda the 'tax' component usually means annual ground rent and, where applicable, the local council property service tax, plus building insurance assigned to the mortgagee.
See also: Mortgage calculator
A lender's written statement that they'll lend you up to a specific amount, subject to a property appraisal. Stronger than a pre-qualification; usually involves a credit check and document review.
S· 2 terms
A government tax paid by the buyer on a property transfer. In Uganda, stamp duty on land and buildings is 1.5% of the transfer value, payable to the Uganda Revenue Authority (URA) before the transfer can be lodged at the lands registry.
An inspection of a property's condition by a qualified surveyor. Tiers range from a basic mortgage valuation to a full structural building survey, each with different scope and cost.
Y· 2 terms
A property's annual rental income as a percentage of its purchase price. Gross yield ignores expenses; net yield deducts tax, management, insurance, and vacancy. Net yield is the number that actually matters.
See also: Property investment
The difference between two yields, typically used to compare property yields against alternative investments (e.g., 10-year government bonds). A wider spread suggests property is relatively cheap; narrower, relatively expensive.