Browse Proptionary encyclopedia

Build your real estate vocabulary to be able to communicate and invest more effectively and professionally.

Transferability of Real Estate

DEFINITION

One of the four elements that determine property value.

EXPLANATION

A clouded title not only affects a property’s marketability, but also its transferability. Some encumbered properties cannot legally be sold until existing encumbrances are removed. Transferability determines whether a property could be transferred free of any encumbrances that would affect sole ownership of the buyer.

The four elements that determine a property’s value can be found below.

How Value is Determined

Demand: What do market conditions dictate? Are there many buyers on the market looking for a similar property to the one being appraised?

Transferability: Are there any liens or encumbrances stopping the sale of a property?

Scarcity: Is the property scarce or are there many comparable listings available on the market?

Use: What is the property’s use, residential or commercial? What are the property’s features? Does the property contain any special features, such high ceilings, a gazebo, a movie theater, or other customized installments?

[quiz-new]