Commercial property, and specifically commercial property management, can seem like a world of acronyms and jargon. In this mini-series we breakdown the terms that we use day-to-day, starting with compliance and valuation terms.
Compliance Terms and Property Records:
CCC – Code Compliance Certificate which is a formal statement confirming that the council is satisfied that all the building work has been completed in accordance with the building consent.
COA – Certificate of Acceptance is given when the council are satisfied that unconsented works comply with the current standards. If work was completed that should have had a consent, you would apply for this.
CT – Certificate of Title which is an official record of land ownership.
LIM – Land Information Memorandum. This is a summary of all the information that the council holds on a property.
Valuation Terms:
GV & CV – When this term is used, we are usually referring to the government or council valuation (which is the same thing). The value used to determine your property rates.
RV – Used when talking about insurance and is the replacement value of the building.
IV – Insurance Valuation. This term is used when talking about the current value, allowing for its age and condition immediately before a loss or damage occurs.
CPI – The CPI (consumer price index) rent review may sometimes be detailed in a lease, CPI is a measure of inflation over two given periods and is used to estimate the average variation of inflation over a period.
Market Value – Is the term used when determining a price at which an asset would sell for at any given date, which can be affected by market factors such as supply and demand and interest rates.