A sum deposited, before an agreement is binding in law, by one of the parties with the other as an indication of his good faith and his intention to honour the terms of the agreement, eg a pre-contract deposit.

The earnings of a share in a company, derived from profits net of corporation tax, expressed as a percentage of the share price, ie the reciprocal of price/earnings ratio. Cf DIVIDEND YIELD.

A right appurtenant to a parcel of land entitling the dominant owner to use the land of the servient owner in a particular manner, or constraining the legal rights otherwise enjoyed by the servient owner, eg a right of way, right to light, right of support. Strictly speaking, easements cannot exist "in gross", ie personal and unattached to the ownership of the land, but rights similar to easements can be created by statute, usually for the benefit of public utility undertakings, and these are commonly referred to as "statutory easements", eg oversail.

See LIGHT AND AIR EASEMENTS.

A servitude, also known as stillicide, which imposes on a servient tenement the burden of receiving the drippings from the eaves of a dominant tenement.

Defined in the RICS/IVSA Code of Measuring Practice as "a. Internal: The height between the floor surface and the underside of the roof covering, supporting purlins or underlining (whichever is the lower) at the eaves on the internal wall face". b. External: The height between the ground surface and the exterior of the roof covering at the eaves on the external wall face, ignoring any parapet."

US term for investment method.

The period during which the value of a site and buildings in any possible use is greater than the value of the site for any other feasible purposes including redevelopment Cf PHYSICAL LIFE.

See COST RENT.

Grant assistance of varying degrees available through the European Regional Development Fund for qualifying businesses. Loans currently (1988) of up to 50% of the fixed asset cost are also available through the European Coal and Steel Community for any manufacturing industry located in specified areas or where the coal or steel industry is running down. Further, the European Investment Bank may provide medium term loans (at a fixed rate of interest), at present not exceeding 50% of the cost of a project, to firms which further the development of the assisted areas in Great Britain and Northern Ireland.

In valuations for rating purposes using the contractor's basis, the capital amount, being the aggregate of the land value and depreciated replacement building cost. From this the appropriate annual value is determined by decapitalisation at a rate of simple interest.

See NET INTERNAL AREA.

The annual rate of interest equivalent to the terms applying to a specific financial arrangement, where interest is payable at intervals other than yearly, and there may be other special provisions, eg rolled up interest. In considering the alternatives available for the use of money it is essential to have a common denominator for the purposes of direct comparison and this is provided by the effective rate of interest.

One, or more, of the classes of development under Schedule 8 to the Town and Country Planning Act 1971. These do not constitute "new development". For most purposes when assessing statutory compensation, one can assume that planning permission for 8th Schedule development would be granted and any element of value attributed thereto is included in the compensation. Moreover, certain taxation legislation has allowed valuations to include the notional right to undertake 8th Schedule development, eg in assessing current use value for development land tax.

Of the same kind or nature. The term is used where a list of particular words is followed by general words, the latter being limited to the same kind as the particular words. For example, in the expression "cattle, sheep, goats, pigs and other animals" the words "other animals" would be construed as ejusdem generis with the preceding words ie as farm animals.

In land surveying, the measurement of distance by instruments which use electromagnetic waves, eg infra red, laser, light, polarised light, or radio. The time taken by these waves to travel between two points enables their distance apart to be calculated. See GEODIMETER TELLUROMETER.

For inheritance tax, tangible objects in respect of which there is available an exemption or a relief from the tax.

Annual crops cultivated by labour or the profits from such crops. Traditionally, in certain circumstances, these could be harvested by an outgoing tenant farmer after his tenancy had expired. Likewise, a tenant for life of settled land, if his interest ceases for some reason other than his own act, is entitled to emblements. If the estate is limited to the tenant's own life, his personal representative(s) can harvest the crops. Today the terms "holdover" is more often used instead of "emblements".

See UNOCCUPIED RATE.

The Act which authorises the use by local and public authorities and/or by government departments of powers of compulsory purchase to acquire land for purposes of a particular kind, eh the Highways Act 1980, which authorises the taking of land for highway construction or improvement.