TBO Glossary
Real estate glossary
The terms used around development, funding, construction and launch marketing tables, defined in plain language. From VGV to segregated estate, each entry answers in a few lines what the term means and why it matters.
B
Branded residences
Branded residences are residential developments licensed by a recognized brand, from hospitality, fashion, gastronomy or design, which lends its identity, service standards and quality seal to the product.
Building permit (alvará)
A building permit (alvará de construção) is the municipal license authorizing construction to start according to the approved design.
C
Common area
Common areas are the parts of a condominium owned by all unit holders in ideal fractions: lobby, circulation, amenities, shared parking, façade and structure.
Construction milestone
A construction milestone (patamar de obra) is a minimum percentage of physical progress that triggers events in a development, such as disbursement measurements in construction financing or contract clauses.
CPL (cost per lead)
CPL (cost per lead) is media spend divided by the number of contacts generated.
CRI (real estate receivables certificate)
A CRI (Certificado de Recebíveis Imobiliários) is a fixed-income security backed by property credits, such as rent flows or loan portfolios, issued by Brazilian securitization companies.
CUB (basic unit cost)
CUB (Custo Unitário Básico) is the construction cost per square meter published monthly by Brazil's state builders' unions (Sinduscon), under Law 4,591/1964 and standard NBR 12,721.
D
Decorated show unit
A decorated show unit (apartamento decorado) is the model apartment fitted with full interior design to materialize a product that does not yet exist.
Digital twin
A digital twin is a complete, navigable virtual replica of a development, built in a real-time engine from the design files.
Distrato (off-plan contract termination)
A distrato is the termination of an off-plan purchase contract before delivery, with partial refund of the amounts paid.
E
F
Feasibility study
A feasibility study determines whether a development is worth pursuing before the land is bought: it crosses building potential, likely product, local pricing, construction costs, funding and schedule to project VGV, margin and cash exposure.
Financial land swap
A financial swap (permuta financeira) is a land purchase paid with a percentage of the development's sales revenue, in cash, as units are sold.
Floor area ratio (FAR)
The floor area ratio (coeficiente de aproveitamento) is the zoning index defining how many square meters can be built relative to the plot area.
Furnished floor plan
A furnished floor plan (planta humanizada) is the apartment plan rendered with furniture, textures, colors and human scale, replacing the technical line drawing.
H
I
INCC (construction cost index)
INCC (Índice Nacional de Custo da Construção) is the FGV index tracking the monthly variation of materials, labor and service costs in Brazilian construction.
Incorporation registry (RI)
The incorporation registry (registro de incorporação, or RI) is the filing at the property registry of every document Law 4,591/1964 requires before selling off-plan units: approved design, specification memorial, NBR 12,721 area schedule, and title and developer certificates.
L
Land bank
A land bank is the stock of plots a developer controls for future launches, through purchase, options or swap deals.
Launch breakeven
Launch breakeven is the point at which contracted sales revenue covers the development's committed costs, letting construction proceed without additional developer capital.
LTV (loan-to-value)
LTV (loan-to-value) is the ratio between the financed amount and the property's value.
M
P
Paid development rights (outorga)
Paid development rights (outorga onerosa) are the financial consideration paid to the municipality to build above a plot's basic floor area ratio, up to the zoning ceiling.
Physical land swap
A physical swap (permuta física) is a land acquisition paid in units of the future development instead of cash.
Pre-launch
Pre-launch is the commercial phase before the official launch, when the developer tests pricing and product with a restricted base of brokers and prospects, usually before the incorporation registry allows formal sales.
Price anchoring
Price anchoring is the technique of presenting an initial reference that calibrates how buyers perceive the value of every other option.
Price table (French amortization)
The Price table (Tabela Price) is the fixed-installment amortization system: the payment stays constant through the loan, with interest weighing more at the start and principal repayment growing toward the end.
Private area
Private area is the floor area for the owner's exclusive use, measured under Brazilian standard NBR 12,721: it covers the unit's internal area plus private balconies or terraces, and excludes common areas.
R
Real estate development (incorporação)
Real estate development (incorporação imobiliária) is the activity of conceiving, structuring and selling a development before or during construction, regulated in Brazil by Law 4,591/1964.
Real estate fund (FII)
A real estate investment fund (FII) is Brazil's listed vehicle pooling investor capital into properties or sector securities, paying monthly distributions that are income-tax exempt for individuals.
Real estate funding
Real estate funding is the mix of sources that finance a development's production: savings-account credit via SBPE, construction loans, developer equity, CRI securitizations, real estate funds and off-plan sales revenue itself.
Real estate launch
A real estate launch is the period when a development goes on sale off-plan, concentrating campaign, events and brokerage effort in the first weeks.
Real estate naming
Real estate naming is the creation of a development's name, the product's first brand decision.
Rendering (CGI)
Rendering (CGI) is the production of photorealistic images of a development from its 3D model, before it exists.
S
SAC (constant amortization system)
SAC (constant amortization system) is the loan model in which the principal portion is identical in every installment and interest is charged on a balance that falls linearly.
Sales center
A sales center (stand de vendas) is the commercial structure built on or near the site to receive prospects during a launch, typically housing a scale model, a decorated show unit and the sales team.
Segregated estate (patrimônio de afetação)
The segregated estate (patrimônio de afetação) is the legal regime separating a project's land, works and revenue from the developer's general assets.
SPE (special purpose entity)
An SPE (special purpose entity) is a company created exclusively to develop a single real estate project.
Specification memorial
The memorial descritivo is the notarized specification document detailing a development's materials, finishes, equipment and technical characteristics, unit by unit and area by area.
Success fee
A success fee is the variable share of an agency's or consultancy's compensation tied to launch results, such as a percentage of VGV sold or a bonus for hitting a sales-velocity target.
U
V
VGV (general sales value)
VGV (Valor Geral de Vendas, or general sales value) is the sum of the sale price of every unit in a real estate development.
Virtual tour
A virtual tour is a navigable experience that lets prospects walk through a development in 3D, in the browser or in VR headsets, before it is built.
VSO (sales over supply)
VSO (vendas sobre oferta, or sales over supply) is the indicator measuring the share of inventory sold in a period: units sold divided by opening inventory plus new launches.