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A B C D E F G H I J L M N O P Q R S T U V W Z
A
Abstract of Title - A summary of all of the recorded instruments and proceedings
which affect the title to property, arranged in the order in which they were
recorded.
Accretion - The addition of land through
processes of nature, as by water or wind.
Accrued Interest - Accrue; to grow; to be added to.
Accrued interest is interest that has been earned but not due and payable.
Acknowledgment - A formal declaration before a duly
authorized officer by a person who has executed an instrument that such execution
is the person's act and deed.
Acquisition - An act or process by which a person
procures property.
Acre - A measure of land equaling 43,560 square feet.
Action for Specific Performance - A court action to compel a
defaulting principal to comply with the provisions of a contract.
Active Income - Any salaries, tips, wages, and commissions the taxpayer earns from
actually performing a duty or service.
Actual Cash Value (ACV) - Cost to replace an item of personal property, minus the
depreciation. Actual cash value
represents the value that the item could currently be sold for, which is often
less than what it would cost to replace it.
Insurance companies sometimes use actual cash value to determine what to
pay a policyholder after loss or damage to
insured property.
Ad Valorem - Literally translated as “according to value”, this Latin term is used to
describe how some taxes are determined based on property value.
Adjacent - Lying near to but not necessarily in
actual contact with.
Adjoining - Contiguous; attaching, in actual
contact with.
Adjusted Basis - The property value for income tax purposes, which is figured by
taking the original basis (or cost) plus improvements minus depreciation.
Administrator - A person appointed by court to administer
the estate of a deceased person who left no will; i.e., who died intestate.
Adverse Possession - A means of acquiring title where an
occupant has been in actual, open, notorious, exclusive, and continuous
occupancy of property under a claim of right for the required statutory period.
Affidavit - A statement or declaration reduced
to writing, and sworn to or affirmed before some officer who is authorized to
administer an oath or affirmation.
Affirm - To confirm, to ratify, to verify.
After Tax Cash Flow
(AFTC) - This is commonly referred to as “profit”. It is the amount left after paying all
expenses and taxes.
Agency - That relationship between principal
and agent which arises out of a contract either expressed or implied, written
or oral, wherein an agent is employed by a person to do certain acts on the
person's behalf in dealing with a third party.
Agent - One who undertakes to transact some business or to manage some
affair for another by authority of the latter.
Agreement of Sale - A written agreement between seller
and purchaser in which the purchaser agrees to buy certain real estate and the
seller agrees to sell upon terms and conditions set forth therein.
Air Rights - Rights in real property to use the
space above the surface of the land.
Alienation - A transferring of property to
another; the transfer of property and possession of lands, or other things,
from one person to another
Alienation Clause - Allows lender to require the balance
of a loan to be paid in full if the collateral is sold (also known as a
"due on sale" clause).
Alteration Agreement - A document outlining the shareholder’s responsibilities to the
corporation when renovating his or her unit.
Amortization - A gradual paying off of a debt by
periodic installments.
Amortized Mortgage - The payments
during the life of the loan remain the same.
Each month the payment is applied to the interest earned and the
remainder reduces the principal amount.
Anchor Stores - A major store that is found in a shopping mall creating drawing
power to the location
Anticipation - A good amount of the value in real estate is in the anticipation
of occupancy, possible income and/or the sale of the property afterwards. It represents long-term considerations.
Apportion - To set funds
apart for a special purpose or distribute according to a plan.
Apportionment - Adjustment of the income, expenses
or carrying charges of real estate usually computed to the date of closing of
title so that the seller pays all expenses to that date. The buyer assumes all
expenses commencing the date the deed is conveyed to the buyer.
Appraisal - An estimate of a property's value by
an appraiser who is usually presumed to be expert in his work.
Appraisal by Cost Approach - Adding together all parts of a
property separately appraised to form a whole: e.g., value of the land
considered as vacant added to the cost of reproduction of the building, less
depreciation.
Appraisal by Income Capitalization
Approach - An estimate of
value by capitalization of productivity and income.
Appraisal by Sale Comparison Approach - Comparability with the sale prices
of other similar properties.
Appreciation - Any increase to a property’s value over time. This is the opposite
of depreciation.
Appropriation - Money set aside (typically by formal action) for a specific
purpose
Approved Assessing
Unit - An assessing unit in NY State, which has been certified by the NY
State Board as having completed a revaluation program implementing a system of
real property tax administration, which is eligible for state assistance.
Appurtenance - Something which is outside the
property itself but belongs to the land and adds to its greater enjoyment such
as a right-of-way or a barn or a dwelling.
Arms-Length Transaction - A sale between two unrelated parties, each acting in their own
best interest
Assessed Value - The value of a
property according to a public authority such as the Tax Assessor. Assessed
value is often based on a uniform percentage of market value, known as a level
of assessment.
Assessing Unit - A municipality such as a city, town, county or village with the
authority to assess real property
Assessment - A charge against real estate made by
a unit of government to cover a proportionate cost of an improvement such as a
street or sewer.
Assessment
Review Board - An independent board whose primary function is to hear tax appeals
(grievances) from taxpayers who believe that their properties are incorrectly
assessed. Sometimes known as Grievance
Boards.
Assessment Roll - A list of all taxable property in a municipality, which shows the
assessed value of each parcel, and is used to establish the tax base. An assessment
roll is also known as a "Tax Roll".
Assessor - An official who has the
responsibility of determining assessed values.
Assignee - The person to whom an agreement or
contract is assigned.
Assignment - The method or manner by which a
right or contract is transferred from one person to another.
Assignor - A party who assigns or transfers an
agreement or contract to another
Assumption of Mortgage - The taking of title to property by a
grantee, wherein the grantee assumes liability for payment of an existing note
or bond secured by a mortgage against a property and becomes personally liable
for the payment of such mortgage debt.
Avulsion - A sudden and perceptible loss or addition to land by the
action of water, or a sudden change in the bed or course of a stream.
Attornment - Agreement between property owner and
tenant that tenant will remain in the event ownership of the property changes.
B
Balloon Mortgage Payment - A large payment during the term of a mortgage, often at the
end.
Basis - The original cost of a property, including not only the purchase
price, but also commissions and other fees typically associated with a
transaction. This is the number used to figure other versions of the basis—like
the adjusted basis.
Before Tax Cash Flow (BTCF) - The cash flow before an adjustment for
income tax is made. This includes debt
service which is the amount paid to retire the mortgage.
Beneficiary - The person who receives or is to
receive the benefits resulting from certain acts.
Bequeath - To give or hand down by will; to
leave by will.
Bequest - That which is given by the terms of
a will.
Bill of Sale - A written instrument given to pass
title of personal property from vendor to vendee.
Binder - An agreement to cover the down
payment for the purchase of real estate as evidence of good faith on the part
of the purchaser.
Black book - the final acceptance of the offering
plan by the attorney general allowing shares in a co-op to be sold.
Blanket Mortgage - A mortgage covering more than one
property. A blanket mortgage is often used for subdivision financing.
Blockbusting - The practice of inducing homeowners
in a particular neighborhood to sell their homes quickly, often at below market
prices, by creating the fear that the entry of a minority group or groups into
the neighborhood will cause a precipitous decline in property values.
Board package - A collection of
financial, character, and disclosure documentation that a potential purchaser
compiles and submits to a co-op board for review.
Bona Fide - In good faith, without fraud.
Bond - The evidence of a personal debt, which is secured by a mortgage
or other lien on real estate.
Boot -The term used for any property, object, or money a person receives
in addition to the like/kind property in a 1031 exchange. While a straight
like/kind (or property-for-property) exchange is usually tax-deferred, if you
get more boot than you give in the transaction, that extra cash, property, or
object will be taxable.
Breakeven Point - The point at which
there is sufficient potential income to cover expenses.
Bridge Loans – Short time financing which allows the
borrower to close on a property being purchased before closing on the property
being sold
Building Codes - Regulations which protect the public by imposing structural, material,
design and other requirements on residential, commercial and industrial
buildings
Building Line - A line fixed at a certain distance
from the front and/or sides of a lot, beyond which no building can project.
Building Loan Agreement - An agreement whereby the lender
advances money to an owner primarily in the erection of buildings. Such funds
are commonly advanced in installments as the structure is completed.
Building Permit - Written governmental permission for
the construction, renovation or substantial repair of a building.
By Laws - The rules for a
co-op’s or condo’s governing structure, including the functions and power of
the board, election guidelines, amendment guidelines, etc.
C
Cancellation Clause - A provision in a lease or other contract which confers upon one
or more of all of the parties to the lease the right to terminate the party's
or parties' obligations thereunder upon the occurrence of the condition or
contingency set forth in the said clause
Capital Appreciation - The appreciation accruing to the
benefit of the capital improvement to real estate.
Capital Asset - Any asset of a permanent nature used
for the production of income.
Capital
Expenditure - One time major purchase that extends the economic life of the asset.
Capital Expense - Expenses required for the standard upkeep of a building as well as
for any changes or improvements to any of the building’s systems. Some examples of these are expenses for
heating and air-conditioning, water systems, parking lots, interior or exterior
paint and carpets.
Capital Gain - Income that results from the sale of
an asset not in the usual course of business.
Capital Improvement - Any structure erected as a permanent
improvement to real estate, usually extending the useful life and value of a
property. (The replacement of a roof would be considered a capital
improvement.)
Capital Loss - A loss from the sale of an asset not
in the usual course of business.
Capital Reserve Budget - A type of account contained on a company's balance sheet that is
reserved for long-term capital improvement projects or any other large and
anticipated expense(s) that will be made in the future. This type of reserve
fund is set aside to make sure that the company or municipality has enough
funding to at least partially finance the project.
Capital Reserves - Funds set aside
for capital expenditures.
Capitalization Rate - Net operating income divided by the sales price. The way an
investor would ascertain whether the investment is good for him.
Cash Flow - The actual cash an investor will receive
after paying operating expenses and debt service (mortgage payment) from the
gross income.
Cash Flow/Before/After Tax - The net income the property generates which is calculated both
before and after tax considerations.
Cash on Cash Return - Can be determined by using the annual before tax cash flow and the
amount of cash used to purchase the property.
Annual cash flow divided by total cash required for purchase.
Caveat Emptor - Let the buyer beware. The buyer must
examine the goods or property and buy at the buyer's own risk.
Cease and Desist List - Upon the establishment of a cease
and desist zone by the Secretary, a list of homeowners who have filed owner's
statements expressing their wish not to be solicited by real estate brokers or
salespersons. Soliciting of listed homeowners by licensees is prohibited.
Violators of such prohibition are subject to licensure suspension or
revocation.
Cease and Desist Zone - A rule adopted by the Secretary of
State which prohibits the direct solicitation of homeowners whose names and
addresses appear on a cease and desist list maintained by the Secretary. Such
rule may be adopted upon the Secretary's determination that some homeowners
within a defined geographic area have been subject to intense and repeated
solicitation by real estate brokers and salespersons.
Certificate
of Completion - An official document issued by the building department, which is proof
that a remodeling or renovation project was done in compliance with the law.
Certificate of Occupancy (CO) - A document issued by a governmental
authority that a building is ready and fit for occupancy.
Certiorari - A legal term
referring to a judicial review of a property's assessment.
Chain of Title - A history of conveyances and
incumbrances affecting a title from the time the original patent was granted,
or as far back as records are available.
Chattel - Personal property, such as household
goods.
Client - The one by whom a broker is
employed.
Closing Date - The date upon which the property is conveyed by the
seller to the buyer.
Cloud on the Title - An outstanding claim or incumbrance which, if
valid, would affect or impair the owner's title.
Closing Costs - Fees for the final property transfer not included in the price of
the property.
Cluster Zoning - A type of zoning
which permits residential uses to be clustered more closely together than
normally allowed. This leaves substantial land area to be devoted to open space
or recreational use.
Collateral - Additional security pledged for the payment of an obligation.
Color of Title - That which appears to be good title, but which is not title in
fact.
Commercial
Mortgage Financing – Different from residential in that not only the credit of the
borrower is looked at, but also the assets of the business can be taken into
consideration
Commercial Real Estate - Land or property intended to be used for business purposes.
Commingling - To mingle or mix, for example, a client's funds in the broker's
personal or general account.
Commission - A sum due a real estate broker for services in that capacity.
Commitment - A pledge or a promise or affirmation agreement.
Common Areas - Include
elevators, hallways, lobbies, parking, conference rooms, bathrooms, or any other
space that is available for all tenants.
Completion Bond - A bond used to guarantee that a proposed subdivision
development will be completed.
Condemnation - Taking private property for public use, with fair compensation
to the owner; exercising the right of eminent domain.
Conditional Sales Contract - A contract for the sale of property stating that delivery is to
be made to the buyer, title to remain vested in the seller until the conditions
of the contract have been fulfilled.
Condominium - A community of individual real property owners who share ownership
of the common elements or areas.
Condop - A situation in which one part of a building is a condo, while the
other is run by the co-op corporation. Typically, this happens in a property
that has both commercial space (condo) and a residential space (co-op).
Consideration - Anything given to induce another to enter into a contract such
as money or personal services.
Construction exchange - Also known as an “improvement exchange”,
this is a situation in which an investor (taxpayer) buys a property and wants
to build on it (or construct improvements) before taking it as a replacement
property.
Construction Loans - The borrower
would submit his building plans to the lender along with all specifications for
building. The lender then establishes a
value based on an appraisal of the impending construction. Once approved, the
loan will have specific times when funds can be disbursed. This is usually at stated stages of
development.
Constructive Notice - Information or knowledge of a fact imputed by law to a person
because the person could have discovered the fact by proper diligence and
inquiry (e.g. via public records).
Contingency - A provision in a contract that
requires the occurrence of a specific event before the contract can be
completed.
Contract - An agreement between competent parties to do or not to do
certain things which are legally enforceable, whereby each party acquires a
right.
Conversion - Change from one character or use to another.
Contribution – will
improvements offset their cost and increase profitability
Conveyance - The transfer of the title of land from one to another. The
means or medium by which title of real estate is transferred.
Cooperative - A community owned and operated by a corporation in which the
tenants are shareholders.
Corrective Maintenance - A type of maintenance that is done when a system, equipment, or a
machine is faulty. This type of
maintenance includes detecting and/or isolating the problem as well as taking
the necessary steps to fix the problem.
Corrective maintenance is different from preventative maintenance.
Cost – Amount paid for
property plus closing costs and improvements
County Clerk - A government
official who records and files items such as deeds, mortgages and other
official records.
Covenants - Agreements written into deeds and other instruments promising
performance or nonperformance of certain acts, or stipulating certain uses or nonuse’s
of the property.
Covenants, Conditions, & Restrictions (CCR’S) - A document that lays out the rights,
rules, and responsibilities that a condo unit owner must abide by to live in
the community.
CPS1 - The test-marketing phase of a condo project in which a sponsor
gauges public demand for a particular community. Before beginning this phase of
a project, the sponsor must submit an application and any proposed advertising
materials to the attorney general for approval.
Cul-De-Sac - A blind alley: a street with only one outlet.
Cure Period – Time during
which borrow can correct a default
Current Value - The value usually sought to be estimated in an appraisal.
D
Damages - The indemnity recoverable by a person who has sustained an
injury, either to his/her person, property, or relative rights, through the act
or default of another.
Debit - The amount charged as due or owing.
Debt Capital - Money borrowed for a particular
business purpose.
Debt Consolidation - Replacing several loans with one loan, usually with a lower
monthly payment and a longer repayment period.
Debt Service - Amount paid monthly for principal and interest payments
Decedent - One who is dead.
Declaration - An initial deed
document for a condo community that describes the property in detail, including
plans and proposed pricing.
Decree - Order issued by one in authority; an
edict or law; a judicial decision.
Dedication - A grant and appropriation of land by
its owner for some public use, accepted for such use, by an authorized public
official on behalf of the public.
Deductible - The amount an insured person must contribute towards a loss before
an insurance company will pay the balance due.
Deed - An instrument in writing duly executed and delivered, that
conveys title to real property.
Deed Restriction - An imposed restriction in a deed for
the purpose of limiting the use of the land such as
1. A restriction against the sale of liquor thereon.
2. A restriction as to the size, type, value or
placement of
Default - Failure to fulfill a duty or
promise, or to discharge an obligation; omission or failure to perform any
acts.
Defeasance Clause - The clause in a mortgage that
permits the mortgagor to redeem his or her property upon the payment of the
obligations to the mortgagee.
Deficiency Judgment - A judgment given when the security
for a loan does not entirely satisfy the debt upon its default. Delivery - The transfer
of the possession of a thing from one person to another.
Delayed Exchange - Also known as a “Starker Exchange”, an investor gives up his or
her investment property and then receives the replacement property at a later
date. This is the most common type of exchange.
Demand - The amount of opportunity to sell something in a given location at
a given price. The lower the demand, the
lower the price!
Demand Note - A note which is payable on demand of
the holder.
Demising Clause - A clause found in a lease whereby
the landlord (lessor) leases and the tenant (leasee) takes the property.
Demolition
- The
act of completely destroying a building.
Depreciation - Loss of value in real property
brought about by age, physical deterioration, or functional or economic
obsolescence.
Descent - When an owner of real estate dies
intestate, the owner's property descends, by operation of law, to the owner's
distributees.
Devise - A gift of real estate by will or
last testament.
Devisee - One who receives a bequest of real
estate made by will.
Devisor - One who bequeaths real estate by
will.
Dispossess Proceedings - Summary process by a landlord to
oust a tenant and regain possession of the premises for nonpayment of rent or
other breach of conditions of the lease or occupancy.
Documentary Evidence - Evidence in the form of written or
printed papers.
Dual Agency - Representing both principals (seller
and buyer) to a transaction.
Due Diligence - A potential buyer’s investigation of a co-op community, including
subjects such as the corporation’s financial well-being, the rules governing
the community, and other pertinent issues.
Duress - Unlawful constraint exercised upon a
person whereby the person is forced to do some act against the person's will.
E
Earnest Money - Down payment made by a purchaser of
real estate as evidence of good faith.
Easement - A right that may be exercised by the
public or individuals on, over or through the lands of others.
Economic Life - The period over which a property
will yield the investor a return on the investment.
Economic Obsolescence - Outside forces that play a negative role in the value of a
property. Planes flying overhead daily,
a cemetery across the street and flood areas would be examples of economic
obsolescence.
Effective gross income - The
actual amount of income collected.
Ejectment - A form of action to regain
possession of real property, with damages for the unlawful retention; used when
there is no relationship of landlord and tenant.
Eminent Domain - A right of the government to acquire
property for necessary public use by condemnation; the owner must be fairly
compensated.
Encroachment - A building, part of a building, or
obstruction which intrudes upon or invades a highway or sidewalk or trespasses
upon the property of another.
Encumbrance - Any right to or interest in the land
interfering with its use or transfer, or subjecting it to an obligation. (Also
Incumbrance)
Endorsement - An act of signing one's name on the
back of a check or note, with or without further qualifications.
Equalization Rate - A rate
calculated by the NY State Board of Equalization and Assessment to measure a
municipality's level of assessment.
Equity - The interest or value which the
owner has in real estate over and above the liens against it.
Equity Loan - Junior loan based on a percentage of
the equity.
Equity of Redemption - A right of the owner to reclaim
property before it is sold through foreclosure proceedings, by the payment of
the debt, interest and costs.
Erosion - The wearing away of land through
processes of nature, as by water and winds.
Escheat - The reversion to the State of
property in the event the owner abandons it or dies, without leaving a will and
has no distributees to whom the property may pass by lawful descent.
Escrow - A written agreement between two or
more parties providing that certain instruments or property be placed with a
third party to be delivered to a designated person upon the fulfillment or
performance of some act or condition.
Estate - The degree, quantity, nature and
extent of interest which a person has in real property.
Estate at Will - The occupation of lands and
tenements by a tenant for an indefinite period, terminable by one or both
parties at will.
Estate in Reversion - The residue of an estate left for
the grantor, to commence in possession after the termination of some particular
estate granted by the grantor.
Estoppel Certificate - An instrument executed by the
mortgagor setting forth the present status and the balance due on the mortgage
as of the date of the execution of the certificate.
Eviction - A legal proceeding by a lessor
landlord to recover possession of real property.
Eviction Actual - The process of removing a tenant from property. This is usually done through a legal process.
Eviction,
Constructive - Any disturbance of
the tenant's possession of the leased premises by the landlord whereby the
premises are rendered unfit or unsuitable for the purpose for which they were
leased.
Exclusive Agency - An agreement of employment of a
broker to the exclusion of all other brokers; if sale is made by any other
broker during term of employment, broker holding exclusive agency is entitled
to commissions in addition to the commissions payable to the broker who
effected the transaction.
Exclusive Right to
Sell - An agreement of
employment by a broker under which the exclusive right to sell for a specified
period is granted to the broker; if a sale during the term of the agreement is
made by the owner or by any other broker, the broker holding such exclusive
right to sell is nevertheless entitled to compensation
Executor - A male person or a corporate entity
or any other type of organization named or designed in a will to carry out its
provisions as to the disposition of the estate of a deceased person.
Executrix - A woman appointed to perform the
same duties as an executor. Exemption - A deduction on property taxes allowed to a taxpayer because of a certain
status, such as age, dependents or service in the armed forces.
Extension Agreement - An agreement that extends the life of a mortgage to a later
date.
F
Fair Market Value - The price a seller could reasonably expect to collect from a
typical property sale, as long as it is an arms length transaction. Each party acting in good faith trying to get
the best terms for themselves.
Fee; Fee Simple; Fee Absolute - Absolute ownership of real property;
a person has this type of estate where the person is entitled to the entire
property with unconditional power of disposition during the person's life and
descending to the person's heirs or distributees.
Fiduciary - A person who on behalf of or for the benefit of another
transacts business or handles money or property not the person's own; such
relationship implies great confidence and trust.
Fixtures - Personal property so attached to the
land or improvements as to become part of the real property.
Flip Tax - A fee that a co-op corporation charges a seller at the closing.
Flipping - An investor buys a property, and then sells it as quickly as
possible at a profit.
Foreclosure - A procedure whereby property pledged
as security for a debt is sold to pay the debt in the event of default in
payments or terms.
Freehold - An interest in real estate, not less than an estate for life.
(Use of this term discontinued Sept. 1, 1967.)
Foreclosure -If a borrower
fails to make mortgage payments as scheduled or fails to fulfill other
obligations outlined in a mortgage, the lender has the right to begin legal
proceedings to take back the pledged property.
Functional
Obsolescence – Loss of value due to the physical premises. Example: lack of air conditioning or
non-functioning elevators or inadequate electric wiring
G
General Agent - An Agent who has the authority to act for a principal's business
within certain limitations.
Goodwill - An asset created by good customer relations.
Grace Period - Additional time allowed to perform an act or make a payment
before a default occurs.
Graduated Lease - A lease which provides for a graduated change at stated
intervals in the amount of the rent to be paid; used largely in long-term
leases.
Grant - A technical term
used in deeds of conveyance of lands to indicate a transfer.
Grantee - The party to whom the title to real property is conveyed.
Grantor - The person who conveys real estate by deed; the seller.
Gross Income - Total income from property before any expenses are deducted.
Gross Lease - A lease of property whereby the lessor is to meet all property
charges regularly incurred through ownership.
Gross Potential
Income - Total scheduled rental income.
Ground Rent - Earnings of improved property credited to earning of the ground
itself after allowance made for earnings of improvements.
Group Boycott - An agreement between members of a trade to exclude other
members from fair participation in the trade.
H
Habendum Clause - The "to have and to hold" clause which defines or
limits the quantity of the estate granted in the premises of the deed.
Hard
Money Loans – Used by investors who may have a risky credit background. The basis for these loans is solely the
“quick sale” value of the property.
Hidden Fees - Fees put in the contract without being disclosed to the borrower.
High Interest Loans - A loan that is 8% above the yield on a comparable treasury on a
first mortgage according to Home Ownership and Equity Protection Act of 1994
(HOEPA) guidelines, or a loan that is 10% above the yield on a comparable
treasury on a second mortgage.
Highest and Best Use - Use that is legally permissible, physically possible, financially
feasible and maximally productive.
Historic District
- A
geographically definable area that possesses a significant concentration of
buildings that are united architecturally, historically or aesthetically.
Holdover Tenant - A tenant who remains in possession
of leased property after the expiration of the lease term.
Home Equity Loans - A loan backed by the value of a home (real estate). If the borrower defaults or does not pay the
loan, the lender has some rights to the property. The borrower can usually claim a home equity
loan as a tax deduction.
Homestead - The primary
residence of a property owner. Many states provide property tax exemptions for
the primary residence (homestead).
House Rules - A document that spells out all of the community and lifestyle rules
that co-op tenant shareholders must obey on a daily basis.
I
Immobility and Tangibility - That which sets real estate apart from other goods and
services. Real Estate cannot be moved
from place to place and is a physical item which can be touched.
In Rem - A proceeding against the realty
directly; as distinguished from a proceeding against a person. (Used in taking
land for nonpayment of taxes, etc.)
Income - The buyer will put great emphasis on the income potential and the
reality of what it actually produces. They will compare the current income with
the potential for future income.
Incompetent - A person who is unable to manage his/her own affairs by reason
of insanity, imbecility or feeblemindedness.
Independent Contractor - An individual who works for him- or herself and is paid in full
with no tax deductions. An independent contractor receives a 1099 form annually
which totals the taxable income for the year.
Industrial Real Estate - Land or property intended to be used for manufacture or warehouse
purposes.
Infrastructure - The basic features or structure needed for the functioning of a municipality
such as roads, bridges, buildings, etc.
Installments - Parts of the same debt, payable at
successive periods as agreed; payments made to reduce a mortgage.
Instrument - A written legal document; created to
affect the rights of the parties.
Interest Rate - The percentage of a sum of money
charged for its use.
Intestate - A person who dies having made no
will, or leaves one which is defective in form, in which case the person's
estate descends to the person's distributees in the manner prescribed by law.
Introductions
- Legislation
pending in the City Council
Investment Value - Value to an individual in meeting their personal investment
objectives, not those of the general market place.
Involuntary Lien - A lien imposed against property
without consent of the owner, e.g., taxes, special assessments.
Irrevocable - Incapable of being recalled or revoked; unchangeable;
unalterable.
J
Joint Tenancy - Ownership of realty by two or more persons, each of whom has an
undivided interest with the "right of survivorship."
Judgment - A formal decision issued by a court
concerning the respective rights and claims of the parties to an act or suit.
Junior Mortgage - A mortgage second in lien to a previous mortgage.
L
Laches - Delay or negligence in asserting one's legal rights.
Landlord - One who rents property to another.
Landmark
- An item or structure that is at least
30 years old and has notable physical features, historical or cultural
significance.
Lease - A contract whereby, for a consideration, usually termed rent,
one who is entitled to the possession of real property transfers such rights to
another for life, for a term of years, or at will.
Lease Escalation Clause - Increase in expenses for items such as utilities, tax escalations,
increases based on cost of living, or maintenance of the premises often are
included in the terms of the lease.
Leasehold - The interest or estate which a
lessee of real estate has therein by virtue of the lessee's lease.
Legislative
Body - Sets policies, approves budgets and passes ordinances regarding land
use, zoning, cluster zoning and other important items.
Lender Rebate - A payment made by the
lender to the mortgage broker.
Lessee - A person to whom property is rented
under a lease.
Lessee - A person (or entity), the tenant, who pays rent to a lessor, the
landlord, for the use and possession of a property.
Lessor - A person (or entity), the landlord, who owns equipment or property
and allows a lessee to use or possess that equipment or property in exchange
for funds (rent).
Letter of Intent - A written expression of a purchaser’s interest in a condo unit.
Usually, this nonbinding document covers subjects such as price and completion
and closing dates.
Level of Assessment - A rate determined by the assessing unit and applied to the market
value of properties, to determine assessed value. The level of assessment is
also known as "uniform percentage of value".
Leverage - Using other people’s money,
referred to as OPM. It is the
ability to obtain maximum financing for a project in order to use as little of
his own capital as possible.
Levy - A charge collected or
imposed.
Liability Insurance - A type of insurance that protects against an alleged claim that
the insured person was responsible for bodily injury or property damage of
another due to negligence or some inappropriate action.
Lien - A legal right or claim upon a specific property which attaches
to the property until a debt is satisfied.
Life Estate - The conveyance of title to property
for the duration of the life of the grantee.
Life Tenant - The holder of a life estate.
Like/kind Property - A property that
qualifies for a tax-deferred exchange. Any real estate property can have this
designation, as long as that property is either an investment or part of a
business.
Liquidity - An investment such as a savings account
or certificate of deposit which could be turned into cash immediately even
though there may be penalties for early withdrawal. Stocks would also be more
liquid than real estate because they can be sold almost instantaneously.
Lis Pendens - A legal document, filed in the
office of the county clerk giving notice that an auction or proceeding is
pending in the courts affecting the title to the property. (Not applicable in
commission disputes.)
Listing - An employment contract between
principal and agent, authorizing the agent to perform services for the
principal involving the latter's property.
Littoral Rights - The right of a property owner whose
land borders on a body of water, such as a lake, ocean or sea, to reasonable
use and enjoyment of the shore and water the property borders on.
M
Maintenance - A monthly fee that shareholders pay the co-op corporation. This
money is divided among a number of obligations, including upkeep of the common
areas and all budgeted recurring expenses, payments for the building’s
underlying mortgage, insurance, and a reserve fund for repairs and renovations.
Management Agreement - A contract between the owner of property and someone who agrees to
manage it.
Management Proposal - A proposal or plan detailing the commitments of a property manager
regarding a property, should they be hired. The proposal includes a description
of the property to be managed, a list of all maintenance required, maintenance
records and accounting procedures the manager will use, an operating budget and
a proposed management fee.
Mandatory - Requiring strict conformity or obedience.
Market Allocation - An agreement between members of a trade to refrain from
competition in specific market areas.
Market Price - The actual selling price of a property.
Market Value - The most probable price that a property should bring if exposed
for sale in the open market for a reasonable period of time, with both the
buyer and seller aware of current market conditions, neither being under duress
and assuming the price is not affected by undue stimulus.
Marketable Title - A title which a court of equity considers to be so free from
defect that it will enforce its acceptance by a purchaser.
Master Plan - A long term plan created by the
Planning Board to guide the physical development of the community.
Mechanic's Lien - A lien given by law upon a building or other improvement upon
land, and upon the land itself, to secure the price of labor done upon, and
materials furnished for, the improvement.
Meeting of the Minds - Whenever all parties to a contract agree to the substance and
terms thereof.
Metes and Bounds - A term used in describing the boundary lines of land, seeing
forth all the boundary lines together with their terminal points and angles.
Minor - A person under an
age specified by law; usually under 18 years of age.
Monument - A fixed object and point established by surveyors to establish
land locations.
Mortgage - An instrument in writing, duly executed and delivered, that
creates a lien upon real estate as security for the payment of a specified
debt, which is usually in the form of a bond.
Mortgage Banker- A Company that will lend either their own money or other banks
money for either long or short-term loans.
Mortgage bankers usually will sell their loans to insurance companies or
other areas in the secondary mortgage market.
Mortgage Broker Dual Agency Disclosure Form - Discloses to the borrower when a real
estate broker is also acting as a mortgage broker in the same transaction.
Mortgage Broker- A third party that provides a service by putting together
borrowers and lenders for the purpose of mortgage financing.
Mortgage Commitment - A formal indication by a lending institution that it will grant
a mortgage loan on property in a certain specified amount and on certain
specified terms.
Mortgage Reduction Certificate - An instrument executed by the mortgagee, setting forth the
present status and the balance due on the mortgage as of the date of the
execution of the instrument.
Mortgage - The two-part legal document (the mortgage and the note) pledging
the property as repayment of the loan under certain terms and conditions, thus
creating a lien on the property.
Mortgagee - The party who lends money and takes a mortgage to secure the
payment thereof.
Mortgagor - A person who borrows money and gives a mortgage on the person's
property as security for the payment of the debt.
Multiple- Asset Exchange - An exchange that includes both real property and personal
property. Farm, hotels, and motels are prime examples of properties that would
be involved in such an exchange, because there is a combination of buildings,
land, and necessary business equipment involved.
Multiple Listing - An arrangement among Real Estate Board of Exchange Members,
whereby each broker presents the broker's listings to the attention of the
other members so that if a sale results, the commission is divided between the
broker bringing the listing and the broker making the sale. (See Rule 175.24)
Municipality - A town, village, city or county with its
own local government.
N
Net Effective Income - Income figure
after totaling gross income, minus the vacancy/credit loss, plus miscellaneous
income.
Net Lease - Tenant pays the rent as well as all the expenses of occupancy such as
utilities, taxes, water, insurance and any other agreed upon responsibilities. The most variable financial obligation. Typically commercial leases.
Net Listing - A price below which an owner will
not sell the property, and at which price a broker will not receive a
commission; the broker receives the excess over and above the net listing as
the broker's commission. Illegal in NYS.
Non-Homestead - Any real property which is not the
primary residence of a property owner.
Non-Recourse – Borrower not
personally liable, however, lender will require some protection in the event of
a bankruptcy or other default of terms of the loan
Nonsolicitation Order - A rule adopted by the Secretary of
State which prohibits any or all types of solicitation directed towards
homeowners within a defined geographic area. Such rule may be adopted after a
public hearing and upon the Secretary's determination that homeowners within
the subject area have been subject to intense and repeated solicitations by
real estate brokers or salespersons and that such solicitations have caused
owners to reasonably believe that property values may decrease because persons
of different race, ethnic, religious or social backgrounds are moving or about
to move into such area.
Notary Public - A public officer who is authorized to take acknowledgments to
certain classes of documents, such as deeds, contracts, mortgages, and before
whom affidavits may be sworn.
O
Obligee - The person in whose favor an obligation is entered into.
Obligor - The person who binds himself/herself
to another; one who has engaged to perform some obligation; one who makes a
bond.
Obsolescence - Loss in value due to reduced
desirability and usefulness of a structure because its design and construction
become obsolete; loss because of becoming old fashioned, and not in keeping
with modern means, with consequent loss of income.
Offering Plan - A document submitted to the attorney general by the sponsor of a
co-op or condo that fully describes the plans, pricing, and rules for a
community. Potential buyers are given a copy of this report to read before
buying into the co-op or condo community.
Office of Real
Property Services (ORPS) - The agency that oversees assessing units in NY
State. Their mission is to support local governments in their pursuit of real
property tax equity.
Open Listing - A listing given to any number of
brokers without liability to compensate any except the one who first secures a
buyer ready, willing and able to meet the terms of the listing, or secures the
acceptance by the seller of a satisfactory offer; the sale of the property
automatically terminates the listing.
Operating Budget - A detailed projection of all estimated income and expenses during
a given period of time.
Option - A right given for a consideration to
purchase or lease a property upon specified terms within a specified time; if
the right is not exercised the option holder is not subject to liability for
damages; if exercised, the grantor of option must perform.
Ordinance - A statute, law or rule enacted by the government of a municipality.
P
Package Policy - An insurance policy that combines coverage from two or more types of
insurance (liability and property for example) into a single policy.
Partition - The division which is made of real
property between those who own it in undivided shares.
Party Wall - A wall built along the line
separating two properties, partly on each, which wall either owner, the owner's
heirs and assigns has the right to use; such right constituting an easement
over so much of the adjoining owner's land as is covered by the wall.
Passive activity Income - An activity that results in a profit, but the taxpayer does not
physically participate. These would
include rental property, limited partnerships or other types of investments.
Percentage Lease - A lease of property in which the
rental is based upon the percentage of the volume of sales made upon the leased
premises, usually provides for minimum rental.
Performance Bond - A bond used to guarantee the
specific completion of an endeavor in accordance with a contract.
Personal Property - Any property which is not real
property.
Planned Unit Development - Residential, commercial or industrial land development that allows
more planning flexibility than traditional zoning and lot layout. Usually greater density than normally
permitted. Preserves open land in community.
Plat Book - A public record containing maps of
land showing the division of such land into streets, blocks and lots and
indicating the measurements of the individual parcels.
Plat
- A
map which shows actual or planned features of an area, such as streets and building
lots.
Plottage - Increased value of a plot of land
created by assembling smaller ownerships into one ownership.
Points - Discount charges imposed by lenders
to raise the yields on their loans.
Police Power - The right of any political body to
enact laws and enforce them, for the order, safety, health, morals and general
welfare of the public.
Portfolio Income - Income derived from
assets such as stocks, bonds and mutual funds, including dividend income,
interest and royalties. Assets are owned by the taxpayer, but usually managed
by financial experts.
Power of Attorney - A written instrument duly signed and
executed by a person who authorizes an agent to act on his/her behalf to the
extent indicated in the instrument.
Prepayment Clause - A clause in a mortgage which gives a
mortgagor the privilege of paying the mortgage indebtedness before it becomes
due.
Prepayment
Terms – Loan may require a substantial payment in the event the loan is
retired before its’ term.
Preventative Maintenance - Regular care and servicing of equipment and facilities that help
maintain satisfactory operating condition. Preventative maintenance provides
for regular inspection, detection and correction of minor problems before they
actually happen or before they develop into major problems.
Price Fixing - Conspiring to establish fixed fees
or prices for services or products.
Price - The amount the property would sell for in an arm’s length
transaction. Both buyer and seller are
interested in getting the best terms for themselves. Both parties are knowledgeable about the
current marketplace.
Primary/Principal Residence -The place where a person lives most of the time, including a
house, a manufactured home, a co-op, a condominium and even a house boat.
Principal - The employer of an agent or broker;
the broker's or agent's client. The entity or person on whose behalf the agent
acts.
Pro Forma Statement - An analysis of the future
of the property and its’ potential as opposed to its’ current use.
Probate - To establish the will of a deceased
person.
Property Insurance - Protects the physical property and equipment of an insured from a
loss that was a result of fire, theft or other dangers.
Property Management Report - A periodic (typically monthly) report that details all income received
and disbursed.
Property Management - The task of utilizing a property for business purposes. Tasks
are done to ensure that the property creates income for the owner.
Property Manager - The person who is
hired and paid to handle the operation of an income producing property.
Proprietary Lease -The lease that a tenant shareholder in a co-op receives at closing
along with the stock certificate(s) for the unit. This document contains rights
and responsibilities for the corporation and the shareholder.
Proration - Allocation of closing costs and
credits to buyers and sellers
Purchase Money Mortgage - A mortgage given by a grantee in part payment of the purchase
price of real estate
Q
Qualified Intermediary (QI) - Also called an
accommodator or exchange facilitator, someone who oversees a tax-deferred
exchange to ensure that the transaction meets the standards of the Internal Revenue
Code. All qualified intermediaries must be independent in the transactions they
facilitate.
Quiet Enjoyment - The right of an owner or a person legally in possession to the
use of property without interference of possession.
Quiet Title Suit - A suit in court to remove a defect, cloud or suspicion
regarding legal rights of an owner to a certain parcel of real property.
Quit Claim Deed - A deed which conveys simply the grantor's rights or interest in
real estate, without any agreement or covenant as to the nature or extent of
that interest, or any other covenants; usually used to remove a cloud from the
title.
R
Racial Steering - The unlawful practice of influencing a person's housing choice
based on his/her race.
Rate of Return - Annual operating income divided by the amount of capital invested.
Real Estate Board - An organization whose members
consist primarily of real estate brokers and salespersons.
Real Estate Syndicate - A partnership formed for
participation in a real estate venture. Partners may be limited or unlimited in
their liability.
Real Estate - Identified parcel of land and any permanent structures attached to
it.
Real Property - Land, and generally whatever is
erected upon or affixed. Includes rights inherent in the ownership of real
estate, commonly known as "The Bundle of Rights"
Realization of Gain - The taking of the gain or profit
from the sale of property.
Realtor - A coined word which may only be used
by an active member of a local real estate board, affiliated with the National
Association of Real Estate Boards.
Recaptured Depreciation - An owner may deduct
depreciation on a property during its taxable lifetime, once the property is
sold the previously deducted depreciation is figured up and “recaptured”, or
included as taxable income.
Recognition Agreement - A document that describes the relationship between a lender and
the co-op corporation, including in what order each will be repaid in case of a
foreclosure.
Reconciliation - The final stage in the appraisal
process where the appraiser reviews the data and estimates the subject
property's value.
Recording - The act of writing or entering in a
book of public record instrument affecting the title to real property.
Recourse
-
Borrower is personally liable for repayment of the debt even if the note is in
the name of a corporation
Red Herring - Initial offering plan submitted to the attorney general which,
when approved, becomes the “black book”
Redemption - The right of a mortgagor to redeem
the property by paying a debt after the expiration date and before sale at
foreclosure; the right of an owner to reclaim the owner's property after the
sale for taxes.
Red-Lining - The refusal to lend money within a
specific area for various reasons. This practice is illegal.
Referee's Deed - Used to convey real property sold
pursuant to a judicial order, in an action for the foreclosure of a mortgage or
for partition.
Refinancing - Paying off one loan by obtaining another; refinancing is generally
done to secure better loan terms (like a lower interest rate).
Release - The act or writing by which some
claim or interest is surrendered to another.
Release Clause - A clause found in a blanket mortgage
which gives the owner of the property the privilege of paying off a portion of
the mortgage indebtedness, and thus freeing a portion of the property from the
mortgage.
Relinquished Property - The property given
up by an investor (taxpayer) in a 1031 exchange.
Rem - (See In Rem)
Remainder - An estate which takes effect after
the termination of a prior estate, such as a life estate.
Remainderman - The person who is to receive the
property after the termination of the prior estate.
Rent - The compensation paid for the use of real estate.
Replacement Cost - Amount which it would cost to repair or replace the property with
material of like kind and quality within a reasonable time after a loss. It is
usually higher than actual cash value.
In simple terms, it is the amount of money it will take to repair or
replace the item in the current market.
Replacement Property - The property
received by an investor (taxpayer) in a 1031 exchange.
Reproduction Cost - Normal cost of exact duplication of
a property as of a certain date.
Resident Manager - A person who lives in one of the units of an apartment complex
while supervising the care of that complex.
Residential
Assessment Ratio (RAR) - A
rate established annually by the NY State Office of Real Property Service
(ORPS) to measure the equity of the assessed values of residential real
property in a municipality.
Restraint of Trade - Business practices designed to
restrict competition, create a monopoly, control prices and otherwise obstruct
the free operation of business.
Restriction - A limitation placed upon the use of
property contained in the deed or other written instrument in the chain of
title.
Return on Investment (ROI) - Measure of profitability determined by ratio of money invested to net
income after taxes.
Reverse Exchange - When the investor (taxpayer) wants to receive the replacement
property and then sell the current investment property at a later date.
Reversionary Interest - The interest which a grantor has in
lands or other property upon the termination of the preceding estate.
Revocation - An act of recalling a power of
authority conferred, as the revocation of a power of attorney; a license, an
agency, etc.
Right of Survivorship - Right of the surviving joint owner
to succeed to the interests of the deceased joint owner, distinguishing feature
of a joint tenancy or tenancy by the entirety.
Right-of-Way - The right to pass over another's
land pursuant to an easement or license.
Riparian Owner - One who owns land bounding upon a
river or watercourse.
Riparian Rights - The right of a property owner whose
land borders natural water course, such as a river, to reasonable use and
enjoyment of the water that flows past the property. Riparian literally means
"riverbank."
Risk Management - The process of identifying, assessing, correcting and controlling
risks. .
Risk vs. Return - Is the risk worth the return? A very personal decision!
S
Sales Contract - A contract by which the buyer and seller agree to terms of
sale.
Satisfaction Piece - An instrument for recording and
acknowledging payment of an indebtedness secured by a mortgage.
Second Mortgage - A mortgage made by a home buyer in addition to an
existing first mortgage.
Screening Process – The process a potential co-op buyer will go
through to gain approval from the board of directors, including compiling and
submitting the board package for review and sitting down for an interview with
the board or a screening committee for the co-op.
Security Deposit - An
established amount
of money
advanced by
the
tenant, held by the
owner for
a specific period of time, to
be applied towards possible damages and assurance of compliance with lease
terms by tenant.
Seizing - The possession of land by one who
claims to own at least an estate for life therein.
Septic
System - A form of onsite sewage
treatment in areas with no connection to public sewers
Setback - The distance from the curb or other
established line, within which no buildings may be erected.
Share Loan: A loan used to finance the purchase of shares in a co-op
corporation.
Simultaneous Exchange - A straight 1031 exchange in which the property closings happen on
the exact same date, and the investors (taxpayers) relinquish and receive their
respective properties in, typically, back-to-back closing sessions.
Situs - The location of a property.
Small
Claims Assessment Review - A judicial proceeding for residential taxpayers
seeking a reduction in assessed value. SCAR
proceedings apply to owner occupied one, two and three family dwellings, or
vacant land which is not buildable. SCAR proceedings are not an option for
commercial taxpayers.
Special Assessment - An assessment made against a
property to pay for a public improvement by which the assessed property is supposed
to be especially benefited.
Special
Assessment District - A geographic area designated to pay for the cost
of specific public improvements which will benefit the properties in that
geographic area.
Special
Use Permit - A permit which allows a
specific exception to an existing zoning ordinance for a particular parcel of
land. It is also known as a conditional use permit
Specific Performance - A remedy in a court of equity
compelling a defendant to carry out the terms of an agreement or contract.
Sponsor - Creator and developer responsible to (among other duties) file all
of the initial paperwork, write bylaws, gather investors, and ultimately sell
the units (or shares) for a condo or co-op community.
Stabilized Budget - A forecast of income and expenses that can reasonably be expected
for a certain period of time (usually 5 years).
Starker Exchange – Also known as a 1031 Tax-Deferred Exchange (or tax-free property exchange). Allows a property owner to
defer paying federal and some state income taxes by trading one business type
property for another, as long as both are like/kind properties
Statute - A law established by an act of the
Legislature.
Statute of Frauds - State law which provides that
certain contracts must be in writing in order to be enforceable at law.
Statute of Limitations - A statute barring all right of
action after a certain period of time from the time when a cause of action
first arises.
Subagent - An agent of a person already acting as an agent of a
principal.
Straight- Line Depreciation - A method of calculating a property’s depreciation for
income taxes by assuming that the property value will decrease an equal amount
every year until it is fully depreciated. Widely considered to be the simplest
way to figure depreciation, this type of calculation can be used on a
residential income-producing property for a period of 27 ½ years, and
non-residential income-producing property for a period of 30 years.
Subdivision - A tract of land divided into lots or
plots.
Subletting - A leasing by a tenant to another,
who holds under the tenant.
Subordinate Mortgage - A second or
third mortgage that has a lower priority in the event of a default than the
first mortgage.
Subordination Clause - A clause which permits the placing
of a mortgage at a later date which takes priority over an existing mortgage.
Sub-Prime Loans - An industry term used to describe loans with less stringent
lending and underwriting terms and conditions. Due to the higher risk;
sub-prime loans charge higher interest rates and fees.
Subscribing Witness - One who writes his/her name as
witness to the execution of an instrument.
Supply - The number of items of a particular type
available in a given market at a given price.
Typically, the greater the supply, the lower the price.
Surety - One who guarantees the performance
of another; guarantor.
Surrender - The cancellation of a lease by
mutual consent of the lessor and the lessee.
Surrogate's Court (Probate Court) - A court having jurisdiction over the
proof of wills, the settling of estates and of citations.
Survey - The process by which a parcel of
land is measured and its area ascertained; also the blueprint showing the
measurements, boundaries and area.
T
Tax Assessor - Local government official, who is either appointed or elected
depending upon the municipality; whose primary function is to estimate the
value of all real property within the municipality in which they serve.
Tax Depreciation -
An accounting procedure that allows an owner to take a business deduction
for a property’s annual depreciation according to tax laws, instead of basing
the depreciation on the property’s actual gain or loss of value in the market.
This method also shelters income generated by a property from taxation.
Tax Grievance - complaint filed by a taxpayer to challenge their property's
assessment.
Tax Levy - Amount of money that a taxing authority needs to raise through
property taxes.
Tax Lien - An In Rem
proceeding, in which the taxing authority places a claim against a property due
to the non-payment of taxes. If the taxes are not paid, the taxing authority
has the right to take the property.
Tax Map - An official map
showing the dimensions of the properties in a municipality
Tax Rate - A ratio or percentage at which a
property is taxed which is often multiplied by a property’s assessed value to
determine the property tax.
Tax Roll - A list of all taxable property in a
municipality, which shows the assessed value of each parcel, and is used to
establish the tax base
Tax Sale - Sale of property after a period of
nonpayment of taxes.
Tenancy in Common - An ownership of realty by two or more persons, each
of whom has an undivided interest, without the "right of
survivorship."
Tax Shelter - An investment made
especially for the purpose of creating income tax deductions in order to reduce
taxes resulting from other taxable income sources.
Tax-Deferred Exchange (or tax-free property exchange
Also 1031 Or Starker) - Allows a property owner to defer paying
federal and some state income taxes by trading one business type property for
another, as long as both are like/kind properties.
Tenancy at Will - A license to use or occupy lands and
tenements at the will of the owner.
Tenancy by the Entirety - An estate which exists only between
husband and wife with equal right of possession and enjoyment during their
joint lives and with the "right of survivorship."
Tenancy for Years - The term used when a
property is leased for a specific amount of time. The time frame can be anything the parties
agree to such as: 60 days, 6 months, one
year, five years, etc.
Tenant - One who is given possession of real
estate for a fixed period or at will.
Tenant at Sufferance - One who comes into possession of
lands by lawful title and keeps it afterwards without any title at all.
Testate - Where a person dies leaving a valid
will.
Tie-in Arrangement - A contract where one transaction
depends upon another.
Time Value of Money - The passage of time has an impact on
money through its growth due to earning of interest or appreciation, or loss
due to inflation.
Title - Evidence that owner of land is in lawful possession thereof;
evidence of ownership.
Title Insurance - A policy of insurance which
indemnifies the holder for any loss sustained by reason of defects in the
title.
Title Search - An examination of the public records
to determine the ownership and incumbrances affecting real property.
Torrens Title - System of title records provided by
state law; it is a system for the registration of land titles whereby the state
of the title, showing ownership and incumbrances, can be readily ascertained
from an inspection of the "register of titles" without the necessity
of a search of the public records.
Tort - A wrongful act, wrong, injury; violation of a legal right.
Town
or City Charter - A legal document establishing a municipality, such as a city or town.
Transfer Tax - A tax paid by the seller of real property at closing.
Transferability - The ease with which possession and/or use will be conveyed from one
party to another.
U
Umbrella Policy - Coverage over and above what the policyholder would have in their
regular liability insurance.
Unimproved land - Land that is in a natural state and has not yet had the necessities
such as water, sewer, electric, and telephone lines brought to the
property. It has not yet been graded and
is not ready for building.
Unqualified Buyers - Buyers who do not meet underwriting guidelines due to insufficient
income, length of employment, lack of traditional credit lines, not enough
money down etc.
Urban Property - City property; closely settled
property.
Usury - On a loan, claiming a rate of interest greater than that
permitted by law.
Usable/Rentable Square Footage - Usable is the actual square footage that the tenant will occupy as
opposed to the rentable which is the square footage on which he is paying. Rentable includes a share of payment for the
common areas.
Usury- Charging rates
over those legally permitted
Utility - Ability of the property to fill a
need.
V
Valid - Having force, or
binding force; legally sufficient and authorized by law.
Valuation - Estimated worth or price. The act of
valuing by appraisal.
Value - The future benefit of
present worth. It
means different things to different people.
The end use of the property will dictate its’ value to the
purchaser.
Variable Expense - Property operating expenses that increase with occupancy.
Variance - The authorization to improve or
develop a particular property in a manner not authorized by zoning.
Vendee's Lien - A lien against property under
contract of sale to secure deposit paid by a purchaser.
Violations - Act, deed or conditions contrary to
law or permissible use of real property.
Void - To have no force or effect; that which is unenforceable.
Voidable - That which is capable of being adjudged void, but is not void
unless action is taken to make it so.
W
Waiver - The renunciation, abandonment, or
surrender of some claim, right or privilege.
Warranty Deed - A conveyance of land in which the
grantor warrants the title to the grantee.
Wastewater - Water that has
been used by people or in manufacturing that contains waste.
Water Rights - The right of a property owner to use
water on, under or adjacent to the land for such purposes as irrigation, power
or private consumption.
Will - The disposition of one's property to
take effect after death.
Wraparound Loan - A new loan encompassing any existing
loans.
Z
Zone - An area set off by
the proper authorities for specific use; subject to certain restrictions or
restraints.
Zoning Ordinance - Act of city or county or other authorities specifying type and
use to which property may be put in specific areas.
Zoning - The act of dividing an area into sections reserved for different
purposes, such as residential, commercial or industrial uses.