Real-estate glossary · ParaguayInmo

A5

Agencia Financiera de Desarrollo (AFD, state development bank): Paraguay's public second-tier bank: it does not lend to the public directly, but funds banks, finance companies and cooperatives through long-term credit lines, among them first-home lines with more accessible rates and terms.
Agency commission: The agent's or broker's fee for brokering a transaction, expressed as a percentage of the sale price plus VAT. Who pays it is agreed in writing between the parties.
Amenities: Shared services and spaces in a building or neighbourhood that add value: pool, gym, security, function room, visitor parking. They influence both the price and the rental demand.
Anticrético: An arrangement in which the occupant lends the owner a sum of money and, in exchange, uses the property without paying monthly rent. When the contract ends, the owner returns the amount received.
Assessed value: The value the administration assigns to a property in order to calculate taxes. It is usually below market value and should not be used as a purchase-price reference.

Built m²: The constructed surface area of a property, measured in square metres. It is the usual basis for calculating the price per m² of an apartment or a house.

Cap rate: Capitalisation rate: the annual net operating income divided by the price of the property. It measures the yield as if the property were bought in cash, isolating the quality of the asset from the financing.
Capital appreciation: The increase in a property's value over time, driven by improvements in the surroundings, infrastructure works or the development of the area. One of the main sources of profit for a property investor.
Cash flow: The money left each month after paying every cost of a property, the mortgage instalment included. It can be positive or negative.
Catastro (land registry): The official record of the country's properties, kept by the Servicio Nacional de Catastro. It holds each property's surface area, location and assessed value, the basis for the property tax.
Certificado de Condiciones de Dominio: A document from the Dirección General de los Registros Públicos stating who legally holds title to a property and whether it carries mortgages, liens or other encumbrances. It is the key check before buying.
Comparables: Similar properties — same neighbourhood, type, condition and size — used as a reference to estimate a property's market price. The basis of a comparative market analysis (CMA).

Escribano público (notary): A legal professional authorised to attest public instruments. They verify the documentation, draft the deed and guarantee the legality of a property transfer.

Franja de seguridad fronteriza (border security strip): A 50 km band along the country's borders where the law restricts the acquisition of rural property by nationals of neighbouring countries. It does not reach urban property; checking it is a standard part of the notary's work.

Gated community: A private development with controlled access and shared services. It usually means higher service charges in exchange for security and infrastructure, plus conditions set by its own internal rules.
Gross yield: The annual rent divided by the purchase price, expressed as a percentage. It deducts no costs; it serves as a first filter for comparing deals.

Loteamiento (subdivision): The division of a larger plot into smaller lots for individual sale. Also called fraccionamiento; it requires municipal approval and correct entry in the registry.

Mortgage: A security interest over a property backing a debt, normally a loan taken out to buy it. If the borrower defaults, the lender can enforce against the property. It is entered in the Registros Públicos.
Mortgage loan: A loan for buying a property, secured by a mortgage over that same property. It is repaid in instalments over a long term, usually 10 to 25 years.

Net yield: The yield after deducting the cost of operating the property from the rent — taxes, service charges, maintenance, vacancy. It reflects the real return better than the gross figure.

Obra en pozo (off-plan purchase): Buying a unit before or during its construction, usually on a payment plan tied to building progress and at a price below that of a finished unit. In exchange, you take on the risk of the delivery timeline and of the developer delivering at all.

Plot m²: The surface area of the land, excluding what is built on it. It is the reference for valuing vacant plots and houses with a yard, and must not be confused with built m².
Property tax: An annual municipal tax on the ownership of a property, calculated on its assessed value. Check it is up to date before buying, so the debt does not transfer to you.
Public deed: The instrument executed before a notary that formalises the transfer of ownership. To take effect against third parties it must be registered with the Dirección General de los Registros Públicos.
Public registry: The Dirección General de los Registros Públicos records the ownership and the encumbrances of properties. A purchase only becomes firm against third parties once the deed is registered there.

ROI: Return on investment: the gain against the equity actually invested, not against the total price. With financing it usually exceeds the cap rate, through the effect of leverage.

Sale contract: The agreement setting the price, the payment terms, the deadlines and the conditions of a transaction. It precedes the public deed, which is what formalises the transfer of ownership.
Seña (deposit): The sum a buyer hands over to reserve a property and commit to the transaction. Also called a reserva; its terms and the consequences of withdrawing must be set out in writing.
Service charges: The recurring costs of a building or gated community for maintaining the shared spaces and services: cleaning, security, maintenance, administration. Paid by the occupant or the owner depending on the contract.

Title deed: The document evidencing who owns a property. Its legal force comes from the deed registered with the Registros Públicos.

Usufruct: The right to use and enjoy a property belonging to someone else — including collecting its rent — without owning it. The owner keeps the title (bare ownership) for as long as the usufruct lasts.

Vacancy: The time a rental property sits without a tenant and produces no income. It is expressed as a percentage of the year and must be deducted when projecting yield: assuming full occupancy inflates any calculation.
Valuation: A professional estimate of a property's market value, based on its characteristics, location and comparables. Banks require one before granting a mortgage loan.

Zoning: Municipal rules defining the permitted uses of the land — residential, commercial, industrial — and the building limits of each area. They condition what can be built and affect value.