Real Estate Glossary - Letter V

Vacancy factor

A measurement, expressed in percentage and calculated by dividing the actual gross rental income loss by the potential gross rental income.

Vacancy rate

The number, expressed in percentage, of all the occupied and unoccupied units at a given period in time.

Valid contract

A contract which contains all the requirements and pre-requisites to make it binding and enforceable.

Valuation

A report which contains the assessed value of a property.

Value analysis

A systematic method used to determine the functions of specific systems to satisfy the requirements of reliability, quality and performance at the lowest total effective cost possible.

Value calculation

The estimated value in the market place as recognized by buyers, lenders and sellers.

Value in exchange

The trading of services of goods by two persons or more.

Value in use

The value calculated based on annual cash inflows plus the disposal value and obtained from a property.

Value of property

The initial price of a real property.

Variable Rate Mortgage

A housing loan in which the interest rate depends on money market conditions; also known as floating rate mortgage.

Variable interest rate

An interest rate that is adjusted based on indices such as prime rates.

Variable interest rate loan

A housing loan in which the interest rates are based on the adjustments in prime lending rates.

Variance

Any discrepancy that departs from expectations.

Vendee

A person who buys property, services or goods.

Vendor

A person who sells property, goods or services.

Vendor’s lien

The legal right of a seller to re-possess a property or goods if buyer refuses to pay.

Verbal

Employed the use of words to communicate.

Vested

Absolute and fixed; without contingency.

Veteran’s Administration

The federal agency in charge of the VA loan guarantee as well as other services provided for eligible veterans.

Veteran’s Administration loan

A housing loan provided by the federal government to eligible veterans where they could apply for a mortgage loan with no down payment and a 1% mortgage insurance premium.

Veteran’s Administration-guaranteed mortgage

Real estate loans availed by veterans under a federal housing program.

Void contract

A contract that is not enforceable or valid.

Voidable contract

A contract that can be rejected by one or both parties.

Volume

Quantity; a measurement of amount.

Voluntary lien

Any lien placed on a title that is known to the owner.