Glossary of Property Term - A

Accelerated Depreciation
A method of cost write-off for depleting assets in which allowances for depreciation are greater in early years and decline according to a formula.

Amortisation 
The process of recovering a capital investment or loan through scheduled, systematic repayments of principal; a program of periodic contributions to a sinking fund or debt retirement fund; that portion of a fixed mortgage payment applied to reduction of the principal amount owed.

Annual Value
The estimated gross annual rent at which the holding (property) might reasonable be expected to be rented out for year to year the landlord paying the expenses of repair, insurance, maintenance or upkeep and all public rates and taxes.

Appraisal (appraisement)
Another term for valuation; more commonly used in the USA.

Appreciation
Monetary gain resulting from an increase in the value of a capital investment

Asking Price
The price at which a vendor offers a property for sale. The eventual selling price may be different after negotiation with the purchaser. 

Arm’s length
Description of a transaction between individuals or bodies who are not associated in any material.

Auction
A sale (usually in public) in which property is sold to the highest bidder, provided the amount offered exceeds any reserve price, ie the lowest acceptable price, fixed by the vendor / financial institutions / land office. Occasionally, but not often, properties may be offered without a reserve price, in which event the highest bid will be accepted however low it may be.