Moratorium | Propertylogy

Moratorium

By on October 20, 2018

A moratorium is a time period where there is a temporary cessation of certain activities.

While this definition can cover a very wide area, moratoriums are usually associated with real estate when certain suspensions of certain activities in local areas are put in place.

For example, a lack of infrastructure to deliver enough water for more people might result in a temporary suspension of new building permit issuance until the current infrastructure is upgraded to serve a larger population.

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A government who feels that the supply of shoebox apartments are getting out of hand might also suspend the approval of building such dwellings until some time in the future.

Do note that moratoriums can technically be used in industries other than real estate.

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