Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Glossary

Quick definitions of key investing terms
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Dividend tax guide: How your income from fractional Real Estate deals are taxed in the UK

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How to Complete Your Real Estate Onboarding

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How to Review Fractional Real Estate Deals

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What Happens After You Invest

Ali Ahmed
Real Estate Acquisitions
Safdar Alam
Director of Wahed Ventures
Start watching
Webinar
7th August 2025
Introduction to Wahed Real Estate:

Real Estate without Debt

An overview of fractional real estate investing with Wahed, focusing on our 0 debt, equity-based model. The session walked through the full investment journey from onboarding to property selection, with a live example of how to review deals in the app, followed by a Q&A.

Glossary

Acquisition Costs

Glossary

Allotment of Shares

Glossary

Annual Appreciation

Glossary

Annualised Return

Glossary

Average Annual Return

Glossary

Anti-Money Laundering (AML)

Glossary

Appropriateness Assessment

Glossary

Articles of Association

Glossary

Asset-Backed (Equity-backed) Investment

Glossary

Assured Shorthold Tenancy (AST)

Glossary

Arrears

Glossary

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)

Glossary

Below-Market Value (BMV)

Glossary

Break Clause (tenancy)

Glossary

Board Resolution

Glossary

Beneficial Ownership

Glossary

Buildings Insurance

Glossary

Building Regulations

Glossary

Build-to-Rent (BTR)

Glossary

Buyer’s Premium (auctions)

Glossary

Capital Expenditure (Capex)

Glossary

Capital Appreciation

Glossary

Buy-to-Let (BTL)

Glossary

Cash Flow (Net Cash Flow)

Glossary

Comparable Evidence (“Comps”)

Glossary

Completion

Glossary

Cooling-Off Period (FCA)

Glossary

Completion Statement

Glossary

Conveyancing

Glossary

Contingency Fund (Reserve)

Glossary

Council Tax

Glossary

Crowdfunding

Glossary

Commodity Murabaha

Glossary

Debt

Glossary

Deposit

Glossary

Deferred Maintenance

Glossary

Deposit Protection Scheme (DPS)

Glossary

Dilapidations

Glossary

Discounted Cash Flow (DCF)

Glossary

Dividend

Glossary

Diversification

Glossary

Due Diligence

Glossary

Dividend Yield

Glossary

Energy Performance Certificate (EPC)

Glossary

Equity Multiple

Glossary

Equity-Based Model

Glossary

ERV (Estimated Rental Value)

Glossary

Exchange

Glossary

Exit

Glossary

Exit Proceeds

Glossary

Expense Ratio (Operating Expense Ratio)

Glossary

Environmental Search

Glossary

Enquiries

Glossary

FCA (Financial Conduct Authority)

Glossary

Fees and Costs

Glossary

Fractional Ownership

Glossary

Freehold

Glossary

Fully Funded

Glossary

Funding Target

Glossary

Fire Risk Assessment (FRA)

Glossary

Gross Rent

Glossary

Governance

Glossary

Gross Yield

Glossary

Ground Rent

Glossary

Guarantor

Glossary

Guide Price (Auctions)

Glossary

Gross-to-Net (Income)

Glossary

Halal Investing

Glossary

HMO (House in Multiple Occupation)

Glossary

Holding Period

Glossary

Holding Costs

Glossary

Holding Deposit

Glossary

HM Land Registry (HMLR)

Glossary

HMRC (tax authority)

Glossary

House Price Index (UK HPI)

Glossary

Housing Health and Safety Rating System (HHSRS)

Glossary

Inflation

Glossary

Illiquidity

Glossary

Independent Valuation

Glossary

Indemnity Insurance

Glossary

Inventory

Glossary

Inspection

Glossary

Investment Committee (IC)

Glossary

Investment Memorandum (IM)

Glossary

Investment Minimum

Glossary

Islamic Finance

Glossary

Ijarah (Lease)

Glossary

Joint Tenancy (Ownership)

Glossary

Joint Venture (JV)

Glossary

Jurisdiction

Glossary

KYC (Know Your Customer)

Glossary

Key Dates

Glossary

KPI (Key Performance Indicator)

Glossary

Kafalah (Shariah-Compliant Guarantee)

Glossary

Lease

Glossary

Landlord

Glossary

Landlord Insurance

Glossary

Leasehold

Glossary

Lease Term

Glossary

Legal Pack (Auctions)

Real Estate basics

Why Real Estate is a Stable Investment in Uncertain Markets

Real Estate basics

Is Real Estate a Good Investment During Times of Inflation?

Real Estate basics

How to Generate Passive Income with Real Estate?

Real Estate basics

3 Shariah-Compliant Ways to Invest in Real Estate

Real Estate basics

A Muslim’s Guide to Halal Real Estate Investing

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Glossary

Acquisition Costs

The total costs involved in buying a property, in addition to the purchase price. These usually include Stamp Duty Land Tax (SDLT), solicitor or conveyancing fees, survey costs and related charges. For fractional investors, acquisition costs are built into the overall funding target.

Glossary

Acquisition Costs

The total costs involved in buying a property, in addition to the purchase price. These usually include real estate transfer tax, title insurance, attorney or escrow fees, appraisal costs and related charges. For fractional investors, acquisition costs are built into the overall funding target.

Glossary

Annualised Return

Annualised return shows the steady percentage an investment grows per year, assuming compounding, even if it was held for several years. It allows fair comparison between investments of different lengths. For example, if £1,000 grows to £1,229 over three years, the annualised return is about 7.1% per year.

Glossary

Annualized Return

Annualized return shows the steady percentage an investment grows per year, assuming compounding, even if it was held for several years. It allows fair comparison between investments of different lengths. For example, if $1,000 grows to $1,229 over three years, the annualized return is about 7.1% per year.

Glossary

Capital Appreciation

The increase in a property’s value over time, realised when the property is sold. For example, if a property is bought at £400,000 and sold five years later at £500,000, the capital appreciation is £100,000 (25% overall), which equates to an annualised growth rate of about 4.6% per year.

Glossary

Capital Appreciation

The increase in a property’s value over time, realized when it is sold. For example, if a property is bought at $400,000 and sold five years later at $500,000, the capital appreciation is $100,000 (25% overall), which equates to an annualized growth rate of about 4.6% per year.

Glossary

Cash Flow

The net income generated from a property after deducting operating expenses such as taxes, insurance and maintenance. Positive cash flow means the property produces surplus income, which can be distributed to investors.

Glossary

Cash Flow (Net Cash Flow)

The money left from rent after subtracting all SPV/property expenses paid in that period. For example, if monthly rent is £1,600 and total expenses (service charge, management fee, insurance, maintenance) are £500, net cash flow is £1,100 for that month.

Glossary

Net Yield

The annual percentage return that the investment generates after all expenses are deducted. For example, The property is priced at £300,000. If gross rent is £24,000 a year and expenses are £6,000, net rent is £18,000. Net yield = 18,000 ÷ 300,000 = 6%.

Glossary

Net Yield

The annual percentage return a property generates after all expenses are deducted from rental income. Example: The property is priced at $300,000. If gross rent is $24,000 a year and expenses are $6,000, net rent is $18,000. Net yield = 18,000 ÷ 300,000 = 6%.

Glossary

Purchase Price

The agreed amount paid to acquire the property, not including any acquisition costs such as SDLT, legal fees, surveys and any buyer’s premium.

Glossary

Purchase Price

The agreed-upon amount paid to acquire a property, excluding additional costs such as taxes, title fees and closing expenses.

Glossary

Return on Investment (ROI)

How much you actually earn on your investment overall. It’s shown as a percentage: ROI = total profit ÷ amount invested (where profit is net rent received plus any net gain at sale). Example: if you invest £1,000 and get £1,300 back in total → profit £300 → ROI 30%.

Glossary

Return on Investment (ROI)

How much you actually earn on your investment overall. It’s shown as a percentage: ROI = total profit ÷ amount invested (where profit is net rent received plus any net gain at sale). Example: if you invest $1,000 and get $1,300 back in total → profit $300 → ROI 30%.

Glossary

Total Return

How much you earn overall on your investment over the whole holding period. It adds up every rental distribution paid to you during the hold (for example, quarterly over five years) plus your share of the net sale proceeds at exit. Expressed as a percentage: total return (%) = (total value − amount invested) ÷ amount invested.

Glossary

Total Return

How much you earn overall on your investment over the whole holding period. It adds up every rental distribution paid to you during the hold (for example, quarterly over five years) plus your share of the net gain at sale). Example: if you invest $1,000 and get $1,300 back in total → profit $300 → ROI 30%.

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Glossary
A

1031 Exchange

A tax-deferred exchange that allows an investor to sell one investment property and reinvest the proceeds into another like-kind property without immediately paying capital gains tax. The exchange must meet IRS timelines and requirements under Section 1031 of the Internal Revenue Code.

Glossary
A

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)

AAOIFI is an international body that sets standards for Islamic finance. Its guidance is often used by Shariah boards when reviewing investment structures to ensure compliance with Islamic principles.

Glossary
A

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions)

AAOIFI is an international body that sets standards for Islamic finance. Its guidance is often used by Shariah boards when reviewing investment structures to ensure compliance with Islamic principles.

Glossary
A

Accredited Investor

An investor who meets the SEC’s income or net worth thresholds and is therefore eligible to invest in certain private offerings. Individuals typically qualify with annual income over $200,000 ($300,000 jointly) or a net worth above $1 million, excluding their primary residence.

Glossary
A

Acquisition Costs

The total costs involved in buying a property, in addition to the purchase price. These usually include Stamp Duty Land Tax (SDLT), solicitor or conveyancing fees, survey costs and related charges. For fractional investors, acquisition costs are built into the overall funding target.

Glossary
A

Acquisition Costs

The total costs involved in buying a property, in addition to the purchase price. These usually include real estate transfer tax, title insurance, attorney or escrow fees, appraisal costs and related charges. For fractional investors, acquisition costs are built into the overall funding target.

Glossary
A

Allotment of Shares

The process by which a company (the SPV) issues new shares to investors in exchange for their investment. Once shares are allotted, the investor gains rights such as voting, dividends and a proportional claim on the SPV’s assets.

Glossary
A

Allotment of Shares

The process by which a company (the LLC) issues new units to investors in exchange for their investment. Once units are allotted, the investor gains rights such as voting, distributions and a proportional claim on the LLC’s assets.

Glossary
A

Annual Appreciation

The percentage increase in a property’s market value over one year. For example, if a flat priced at £200,000 rises to £210,000 after 12 months, it has appreciated by 5%. For investors, appreciation is one of the main drivers of potential returns, realised when the property is sold.

Glossary
A

Annual Appreciation

The percentage increase in a property’s market value over one year. For example, if a property priced at $200,000 rises to $210,000 after 12 months, it has appreciated by 5%. For investors, appreciation is one of the main drivers of potential returns, realized when the property is sold. Illustrative purposes only. Actual returns may differ and are not guaranteed.

Glossary
A

Annualised Return

Annualised return shows the steady percentage an investment grows per year, assuming compounding, even if it was held for several years. It allows fair comparison between investments of different lengths. For example, if £1,000 grows to £1,229 over three years, the annualised return is about 7.1% per year.

Glossary
A

Annualized Return

Annualized return shows the steady percentage an investment grows per year, assuming compounding, even if it was held for several years. It allows fair comparison between investments of different lengths. For example, if $1,000 grows to $1,229 over three years, the annualized return is about 7.1% per year.

Glossary
A

Anti-Money Laundering (AML)

Anti-Money Laundering refers to the laws and procedures that prevent criminals from making illegal money appear legitimate. It includes verifying investor identity, checking the source of funds, monitoring transactions and reporting suspicious activity. In real estate investing, AML ensures all money used to buy property shares comes from legal sources.

Glossary
A

Anti-Money Laundering (AML)

Anti-Money Laundering refers to the laws and procedures that prevent criminals from making illegal money appear legitimate. In the US, AML compliance follows FinCEN regulations and includes verifying investor identity, checking the source of funds, monitoring transactions, and reporting suspicious activity. In real estate investing, AML ensures all money used to buy property shares comes from legal sources.

Glossary
A

Appraisal

An independent valuation of a property’s market value prepared by a licensed appraiser. Appraisals use comparable sales, income and cost methods to determine fair market value and are required for most property purchases and financings.

Glossary
A

Appropriateness Assessment

A short test required by the FCA to check whether an investor understands the risks of higher risk products, such as fractional real estate. Passing the assessment is mandatory before being allowed to invest.

Glossary
A

Appropriateness Questionnaire

A short test to check whether an investor understands the risks of higher-risk products, such as fractional real estate. Under SEC regulations, this aligns with investor eligibility requirements and risk disclosures under Regulation A standards.

Glossary
A

Arrears

Arrears are unpaid rent that is overdue under a tenancy agreement. If tenants fall into arrears, it reduces rental income and can affect the dividends distributed to investors. Property managers are responsible for addressing arrears through reminders, legal notices or tenant replacement.

Glossary
A

Arrears

Unpaid rent that is overdue under a lease agreement. If tenants fall into arrears, it reduces rental income and can affect the distributions paid to investors. Property managers are responsible for addressing arrears through reminders, late notices, or replacement tenants.

Glossary
A

Articles of Association

The rulebook of a company that sets out how it is governed, including shareholder rights, voting powers, dividend rules and the responsibilities of directors. Each SPV created for a property deal has its own articles that govern how investor rights are protected.

Glossary
A

Articles of Organization

The founding document filed with a state’s Secretary of State to establish a Limited Liability Company (LLC). It outlines details such as the company name, address, purpose and management structure. Each property-specific LLC has its own Articles of Organization protecting investor rights.

Glossary
A

Asset-Backed (Equity-Backed) Investment

An investment supported by a real, physical asset. In fractional real estate, the property owned by the LLC is the asset. Unlike debt-based structures, investors hold membership units in the LLC, giving them ownership linked directly to the property’s value and rental income.

Glossary
A

Asset-Backed (Equity-backed) Investment

An investment supported by a real, physical asset. In fractional real estate, the property owned by the SPV is the asset. Unlike debt-based structures, investors hold shares in the SPV, giving them ownership linked directly to the property’s value and rental income.

Glossary
A

Assured Shorthold Tenancy (AST)

The most standard form of residential tenancy in England and Wales for most private lettings. It sets the tenant’s right to live in the property for an agreed period while paying rent and gives the landlord a legal framework to regain possession if required.

Glossary
A

Average Annual Return

Average annual return shows the simple mean of an investment’s yearly returns, without considering compounding. It is useful for a quick sense of performance but can overstate growth if returns vary. For example, if £1,000 grows +12% in the first year, +2% in the second year, and +8% in the third year, the average annual return is about 7.3% per year.

Glossary
A

Average Annual Return

Average annual return shows the simple mean of an investment’s yearly returns, without considering compounding. It is useful for a quick sense of performance but can overstate growth if returns vary. For example, if $1,000 grows +12% in the first year, +2% in the second year, and +8% in the third year, the average annual return is about 7.3% per year.

Glossary
B

Below-Market Value (BMV)

A property bought for less than its current market value, based on recent comparable sales or a professional valuation. Example: if a property is bought at £450,000 and the current market value is £500,000, it is £50,000 below market, i.e. 10% BMV.

Glossary
B

Below-Market Value (BMV)

A property bought for less than its current market value, based on recent comparable sales or a professional appraisal. Example: if a property is purchased for $450,000 and its appraised value is $500,000, it is 10% below market value.

Glossary
B

Beneficial Ownership

The person who ultimately owns or controls an asset, even if it’s held through a nominee or another entity. In UK company records this links to the “person with significant control” (PSC) regime.

Glossary
B

Beneficial Ownership

The person who ultimately owns or controls an asset, even if it is held through another entity. In the US, ownership disclosure is required under the Corporate Transparency Act and monitored by FinCEN to prevent money-laundering and concealment of true ownership.

Glossary
B

Board Resolution

A formal decision of a company’s directors recorded in minutes or passed in writing. In an SPV, resolutions authorise actions such as acquisitions, contracts or dividend declarations.

Glossary
B

Board Resolution

A formal written decision made by the managers or directors of an LLC, recorded in meeting minutes or passed in writing. Resolutions typically authorize actions such as acquisitions, contracts or investor distributions.

Glossary
B

Break Clause (Lease)

A clause that allows either landlord or tenant to end a lease early by giving notice as set out in the agreement. Breaks can affect projected cash flow and should be considered when assessing income stability.

Glossary
B

Break Clause (tenancy)

A clause that allows the landlord or tenant to end a tenancy early by giving notice under the terms of the agreement. Breaks can affect cash flow forecasts and should be factored into yield assumptions.

Glossary
B

Build-to-Rent (BTR)

Homes built specifically to be rented long-term and professionally managed, rather than sold. Returns are driven by occupancy, rents and operating costs.

Glossary
B

Build-to-Rent (BTR)

Homes developed specifically for long-term rental rather than sale. These properties are professionally managed, and returns are driven by occupancy, rental rates and operating costs.

Glossary
B

Building Codes

Legal standards that regulate property design, construction, fire safety, accessibility and energy efficiency. Building codes are enforced at the city or state level in the US and must be met before occupancy or significant alterations.

Glossary
B

Building Insurance (Property Insurance)

Insurance that covers the structure and fixed elements of a property - such as walls, roof and built-in fixtures - against risks like fire, storm damage or vandalism. For multifamily or condo buildings, this is often arranged by the homeowners’ association (HOA).

Glossary
B

Building Regulations

Legal standards for design and construction covering safety, structure, energy efficiency and accessibility. They are separate from planning permission; some projects need both.

Glossary
B

Buildings Insurance

Insurance that covers the structure and fixed parts of a home (walls, roof, fitted kitchen/bathroom). In flats, the freeholder usually arranges the building’s policy and recovers the cost through the service charge.

Glossary
B

Buy-to-Let (BTL)

Buying a property with the intention of letting it out rather than living in it.

Glossary
B

Buy-to-Rent (Investment Property)

Buying a property with the intention of renting it out for income instead of occupying it personally. In the US, such properties are typically held in an LLC for liability protection and pass-through taxation.

Glossary
B

Buyer’s Premium (Auctions)

An additional fee paid by the winning bidder at a property auction, calculated as a percentage of the final sale price. When a property is sourced at auction, the premium should be included in total acquisition costs.

Glossary
B

Buyer’s Premium (auctions)

An additional fee payable by the winning bidder on top of the hammer price, set in the auction’s terms. Where a deal is sourced at auction, the premium should be included in the total acquisition costs.

Glossary
C

Cap Rate (Capitalization Rate)

A measure of a property’s potential return, calculated by dividing its net operating income (NOI) by its purchase price or current market value. For example, if a property earns $50,000 annually and costs $1,000,000, the cap rate is 5%.

Glossary
C

Capital Appreciation

The increase in a property’s value over time, realised when the property is sold. For example, if a property is bought at £400,000 and sold five years later at £500,000, the capital appreciation is £100,000 (25% overall), which equates to an annualised growth rate of about 4.6% per year.

Glossary
C

Capital Appreciation

The increase in a property’s value over time, realized when it is sold. For example, if a property is bought at $400,000 and sold five years later at $500,000, the capital appreciation is $100,000 (25% overall), which equates to an annualized growth rate of about 4.6% per year.

Glossary
C

Capital Expenditure (Capex)

Money spent to buy, improve or extend a property that provides benefits beyond the current year. Typical capex includes a new roof, extension or major refurbishment. It is different from routine repairs, which are incorporated in day-to-day costs.

Glossary
C

Capital Gain

The profit earned when a property is sold for more than its original purchase price, after deducting selling costs and allowable expenses. In the US, capital gains are subject to federal and sometimes state tax, with rates depending on how long the property was held.

Glossary
C

Cash Flow

The net income generated from a property after deducting operating expenses such as taxes, insurance and maintenance. Positive cash flow means the property produces surplus income, which can be distributed to investors.

Glossary
C

Cash Flow (Net Cash Flow)

The money left from rent after subtracting all SPV/property expenses paid in that period. For example, if monthly rent is £1,600 and total expenses (service charge, management fee, insurance, maintenance) are £500, net cash flow is £1,100 for that month.

Glossary
C

Closing

The final stage of a real estate transaction when ownership transfers from the seller to the buyer, funds are disbursed and the deed is recorded. In the US, this is handled through an escrow process managed by a title or escrow company.

Glossary
C

Closing Costs

The total expenses paid at closing, in addition to the property price. These may include escrow fees, title insurance, attorney fees, property transfer taxes and recording charges. For fractional real estate, closing costs are included within the project’s total funding target.

Glossary
C

Commodity Murabaha

Commodity Murabaha is a type of Islamic financing where a financial institution buys a real commodity on behalf of a customer and sells it to them at a pre-agreed, mark-up price, which the customer then pays back over time. It creates a receivable similar to debt finance and is not used in Wahed’s equity-only model.

Glossary
C

Comparable Evidence (“Comps”)

Recent sales of similar properties used by valuers to estimate market value. Good comps are recent and closely match location, size, condition and tenure. This is a core part of professional valuation practice.

Glossary
C

Comparable Sales (Comps)

Recent sales of similar properties in the same area, used by appraisers to determine a fair market value. Comps are a key input in property appraisals and valuations.

Glossary
C

Completion

The legal point when ownership transfers from seller to buyer and funds are paid. It happens after exchange of contracts; keys are usually released on completion day.

Glossary
C

Completion Statement

A financial breakdown from the conveyancer showing the purchase price, taxes, fees, apportionments and amounts already paid or still due on completion.

Glossary
C

Compliance Review

An internal review process ensuring that each property investment meets US securities and real estate regulations, as well as Shariah requirements for halal investing. This includes SEC disclosures, Reg A offering documents and Shariah certification before launch.

Glossary
C

Contingency Fund (Reserve)

A cash buffer set aside by the SPV for unexpected items, for example urgent repairs or short rental voids.

Glossary
C

Conveyancing

The legal process of transferring property ownership. A solicitor or licensed conveyancer handles contracts, searches and the movement of funds, then registers the new owner with HM Land Registry.

Glossary
C

Cooling-Off Period

A brief waiting period between investor registration and investment confirmation, allowing time to review disclosures and risk factors. Under Regulation A, this ensures that investors have adequate opportunity to consider all offering materials before committing funds.

Glossary
C

Cooling-Off Period (FCA)

For first-time investors in certain high-risk investments, firms must wait at least 24 hours before allowing investors to invest. The 24-hour period starts when you complete your appropriateness questionnaire and only after it ends you may proceed to invest.

Glossary
C

Council Tax

A local tax charged by councils on residential properties in England and Wales. Each home is placed in a valuation band and the council issues a bill for that dwelling. Liability usually sits with the people living in the property under a single tenancy, but the owner is liable when the home is vacant or when it is let as an HMO with separately rented rooms.

Glossary
C

Crowdfunding

Raising capital by pooling investments from a large number of investors online, who contribute a relatively small amount. In real estate crowdfunding, investors buy shares in an SPV that owns the property; each investor receives shares in proportion to their investment, giving them a stake in the property’s rental income and value appreciation.

Glossary
C

Crowdfunding

A method of raising capital by pooling funds from many investors online, who contribute a relatively small amount. In fractional real estate, investors purchase shares in an LLC that owns the property, giving them proportional ownership and entitlement to income and potential appreciation.

Glossary
C

Custodian (Regulated)

A licensed third-party institution that securely holds investor funds or assets until they are deployed into the investment. In the US, custodians are typically regulated financial institutions or trust companies that comply with SEC,FINRA, and state law regulations.

Glossary
D

Debt

Money borrowed that must be repaid with interest and usually secured against the asset.

Glossary
D

Debt

Money borrowed that must be repaid with interest and usually secured against the asset.

Glossary
D

Deed

A legal document that transfers ownership of real estate from one party to another. In the US, deeds must be signed, notarized and recorded at the county recorder’s office to make ownership official. Common types include warranty deeds and quitclaim deeds.

Glossary
D

Deferred Maintenance

Repairs or replacements that have been delayed, creating a backlog (for example, worn carpets or an ageing boiler). Deferred maintenance can affect capex planning and future cash flow.

Glossary
D

Deposit

Money held as security against tenant damage or unpaid rent. In England and Wales, deposits must be protected in an approved scheme and returned at the end of the tenancy minus any agreed deductions.

Glossary
D

Deposit Protection Scheme (DPS)

An approved scheme that safeguards tenancy deposits and helps resolve end-of-tenancy disputes. Using a scheme is required where deposits are taken.

Glossary
D

Depreciation

A tax deduction that allows property owners to recover the cost of an income-producing asset over time. Residential rental properties are typically depreciated over 27.5 years in the US. Depreciation reduces taxable income but may be recaptured when the property is sold.

Glossary
D

Developer

An individual or company responsible for acquiring land, constructing or renovating real estate for sale or rental. In fractional real estate, developers may partner with platforms to bring completed or near-completed projects to investors.

Glossary
D

Dilapidations

Tenant breaches relating to the condition of a property at the end of a lease, often involving repair, redecoration or reinstatement. Costs reduce net income if not recoverable from the tenant.

Glossary
D

Discounted Cash Flow (DCF)

A valuation method that estimates what a property or project is worth today by projecting future cash flows and discounting them back at a chosen rate. Useful for comparing deals with different timelines.

Glossary
D

Diversification

Spreading investments across multiple properties or locations to reduce the impact of any single asset’s performance on your overall returns.

Glossary
D

Diversification

A strategy that spreads investments across different properties, cities or sectors to reduce exposure to any single risk. Diversification helps stabilize portfolio performance over the long term.

Glossary
D

Dividend

A payment from the SPV’s profits to its shareholders, usually funded by net rental income after costs. The number of shares you hold determines your share of the dividend.

Glossary
D

Dividend (Rental Distribution)

A payment made to investors from the LLC’s rental income after expenses and management fees have been deducted. Dividends are usually distributed quarterly against the number of shares held by the investor.

Glossary
D

Dividend Yield

The annual dividends you receive, divided by the value of your investment, shown as a percentage. If you receive £60 in dividends on a £1,200 holding, the dividend yield is 5%.

Glossary
D

Dividend Yield

The annual dividends you receive, divided by the value of your investment, shown as a percentage. If you receive $60 in dividends on a $1,200 holding, the dividend yield is 5%.

Glossary
D

Down Payment

The portion of the property’s purchase price paid upfront by the buyer, typically expressed as a percentage of the total. While Wahed’s real estate model acquires properties debt-free in full cash, down payments apply in traditional mortgage-based transactions.

Glossary
D

Drawdown

The process of transferring committed investor funds from a custodial account into the project’s LLC once the offering is completed and the property is ready to be acquired.

Glossary
D

Dual Agency

A situation in which one real estate agent represents both the buyer and the seller in the same transaction. Dual agency is legal in some states but restricted in others due to potential conflicts of interest.

Glossary
D

Due Date (Rent)

The date when rent payment is due from a tenant under a lease agreement. Timely rent collection helps maintain consistent income for investors.

Glossary
D

Due Diligence

Detailed checks carried out by the investment team before a property is listed on the platform, to confirm the asset’s value, risks and key assumptions. This typically covers title and ownership, leases and tenants, building condition and surveys, insurance and service charges, valuation comparables and financial modelling, plus a Shariah compliance review.

Glossary
D

Due Diligence

The detailed review carried out before a property is listed for investment on the platform. It includes checks on title, valuation, legal documentation, rental income, maintenance history and Shariah compliance. This process ensures transparency and helps protect investors from potential risks.

Glossary
E

ERV (Estimated Rental Value)

The market rent a property could reasonably achieve at the valuation date, based on comparable evidence and typical terms. ERV is used to underwrite deals and to compare with the current passing rent.

Glossary
E

Earnest Money Deposit

A good-faith deposit made by a buyer to show commitment when entering into a property purchase agreement. The funds are held in escrow until closing and may be applied toward the purchase price or forfeited if the buyer withdraws without cause.

Glossary
E

Easement

A legal right that allows someone to use another person’s property for a specific purpose such as access, utilities or shared driveways. Easements are recorded in property deeds and remain in effect even if ownership changes.

Glossary
E

Economic Vacancy

The portion of potential rental income lost due to unoccupied units, tenant turnover or non-paying tenants. It’s used to calculate a property’s effective gross income and assess cash flow stability.

Glossary
E

Encumbrance

A claim, lien or restriction that affects ownership or use of a property. Common examples include mortgages, easements or unpaid property taxes. Title companies identify and clear encumbrances during due diligence before closing.

Glossary
E

Energy Efficiency (Property)

A measure of how efficiently a property uses energy for heating, cooling and lighting. In the US, efficiency standards are set by state and federal building codes and properties may be rated through certifications such as ENERGY STAR.

Glossary
E

Energy Performance Certificate (EPC)

A government-required rating of a property’s energy efficiency from A (most efficient) to G. An EPC is needed when a property is built, sold or let and can influence refurbishment plans and running costs.

Glossary
E

Enquiries

Questions raised by the buyer’s solicitor before exchange to clarify title, leases, consents, warranties, fixtures and ongoing costs. Clear responses reduce legal and operational risk for the SPV.

Glossary
E

Environmental Search

A conveyancing search that screens for risks such as contaminated land or flood risk at or near the property. Findings can affect insurance, refurbishment plans and valuation assumptions.

Glossary
E

Equity

The ownership interest in a property, representing the portion of value owned outright after liabilities (such as loans) are deducted. In fractional real estate, investors hold equity through shares in an LLC that owns the property.

Glossary
E

Equity Multiple

The equity multiple is the ratio between the total cash received from a property investment and the initial equity contribution. For example, if you invest £2,000, receive £400 in dividends over five years and £2,200 when the property is sold, your total cash back is £2,600. EM = £2,600 ÷ £2,000 = 1.3x. which means you got back 1.3 times your original investment (30% more).

What is Wahed Real Estate?
What exactly is Wahed Real Estate?
How will I potentially make the return on my investment?
Why choose Wahed for your Real Estate investments?
How is Wahed Real Estate Shariah-compliant?
What is Wahed Real Estate?
How do investors make the return on investment?
What is the minimum investment?
Why choose Wahed for your Real Estate investments?
What does “Fully Funded” mean?
What does “Gross Rental Yield” mean?
How does Wahed Real Estate work?
How does fractional real estate work with Wahed?
How does the property listing process work?
What documents do I receive as proof of my ownership?
What is the minimum investment amount?
Does Wahed charge any fees on real estate investments?
How do I refund/ sell my shares?
Are there limitations on the number of properties I can invest in through Wahed?
How does ownership work when investing through Wahed Real Estate?
What happens after I invest?
What type of properties are offered?
Shariah Compliance and Governance
Is Wahed Real Estate Shariah-compliant?
What is the Shariah governance process for Wahed Real Estate?
Is purification required on income generated from Wahed Real Estate investments?
How does Wahed Real Estate ensure ethical property management?
How is Wahed Real Estate Shariah-compliant?
Who reviews and oversees Shariah compliance?
What does the internal Shariah review cover?
What role does the Shariyah Review Bureau play?
Are properties monitored after approval?
Does Wahed Real Estate pay or receive interest?
Getting Started with Wahed Real Estate
How to create your Wahed Real Estate account?
What information do I need to give?
How to invest in your first property?
How do I create an account with Wahed Real Estate?
What information do I need to provide?
How to invest in your first property?
Who can invest?
Can non-U.S. residents invest?
How do I fund my investment?
What happens after I invest?
Earning Rental Income and Capital Appreciation
What are the differences between rental income and capital appreciation?
What is the holding period of each property?
Where does rental income come from?
When do I receive rental income?
What are the differences between 'gross' rent and 'net' rent?
What does rental yield mean?
What happens if a property cannot be rented out?
Legal and Regulatory
Who owns the property?
Could I be held responsible in case of any legal actions or incidents occurring at the property?
Who regulates Wahed?
Is my investment protected?
Who is Thompson Taraz?
Fees and Taxes
How are the properties managed?
What are the fees payable?
What taxes do I need to pay as an investor?
What fees apply when I invest?
Are there any ongoing platform fees?
Are there tax or reporting obligations for the Series LLC?
How are returns calculated after costs?
How do taxes work for investors?
What tax documents will I receive?
How are distributions taxed?
Other
Who can invest?
How old do I have to be to start investing?
What happens if a listed property does not sell out?
What documents will I receive as an investor?
Is it possible to crowdfund my own home?
What happens if I change my bank account?
Can I change my investor status from accredited to non-accredited (or vice versa)?
Where can I learn more about real estate investing?
What if I want to partner or collaborate with Wahed?
Rental Income & Returns
When will I start receiving rental income?
Where does rental income come from?
How are rental distributions paid?
What if a property becomes vacant?
How is capital appreciation realized?
What happens if the property is sold earlier or later than expected?
Are returns guaranteed?
What are the differences between rental income and capital appreciation?
What are the differences between 'gross' rent and 'net' rent?
Legal, Regulatory and Risk
How is Wahed Real Estate regulated?
What does “qualified by the SEC” mean?
How does the Series LLC structure protect investors?
Who holds title to the properties?
What rights do investors have?
What happens if Wahed Real Estate ceases operations?
How are investors kept informed about risks or changes?

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