GAAP (Generally Accepted Accounting Principles) constitutes a common set of accounting standards, principles, and procedures that companies and other entities use to compile their financial statements.
A gable roof is a type of roof characterized by its triangular shape, with the ridge forming an angle at the top and each eave forming an angle at the bottom.
A Gain in real estate refers to an increase in the value or selling price of a property compared to its purchase price. This can result in a financial profit for the property owner.
A gambrel roof is a type of roofing architecture featuring two slopes on either side where the lower slope is notably steeper than the upper, flatter sections, commonly found in barn houses, colonial buildings, and Dutch-influenced homes.
A gap loan, also known as a bridge or swing loan, fills the difference between a floor loan and the full amount of a permanent loan, providing temporary financing until the borrower meets certain conditions necessary for permanent loan funding.
A garage sale, also known as a yard sale, tag sale, or moving sale, is a casual event where individuals sell used goods from their home, usually from their garage, yard, or driveway.
Garden apartments are a housing complex where tenants have access to a lawn area, typically designed to incorporate outdoor and green space access.
A gated community is a type of residential area with restricted access. These communities often feature fences, walls, or other barriers, as well as security personnel, to control access and provide additional security for residents.
A gazebo is a small, open-sided structure commonly found in gardens, parks, and public areas, offering shade, rest, and an attractive view.
Gazumping is a term used in real estate to describe the practice of reneging on an oral commitment to buy or sell a property when a better offer or opportunity arises before a legal sales contract is finalized.
The General Accredited Appraiser (GAA) designation is awarded to appraisers by the National Association of Realtors (NAR), signifying a high level of expertise in non-residential property appraisal.
The General Accredited Appraiser (GAA) designation is offered by the NATIONAL ASSOCIATION OF REALTORS® to appraisers who are state-certified general appraisers and meet additional requirements.
General and Administrative Expenses (G&A) refer to the expenditures an organization incurs for the daily operations and management of its business, distinct from costs involved in production or sales. They encompass a range of operational overheads such as management salaries, office rent, utilities, and accounting fees.
A general contractor is a professional responsible for overseeing the construction of buildings or other improvements for owners or developers, often coordinating the work of various subcontractors.
A general lien is a legal claim on all the property owned by a debtor, rather than a specific piece of property, for the fulfillment of a debt. This type of lien impacts every asset that the debtor owns.
A General Partner is a member of a partnership whose liability is not limited. In any standard partnership, all partners are general partners by default, whereas a limited partnership must have at least one general partner.
A General Partnership is a business structure where all partners have unlimited liability and can bind the entire partnership to contracts and decisions. This entity is typically not taxable, with income and losses passed through to the individual partners.
The General Services Administration (GSA) strategically manages and disposes of federal properties, ensuring other government agencies have the resources they need for efficient operations.
A General Warranty Deed is a legally binding document in which the grantor fully warrants that they hold clear title to a property and guarantee to defend the title against any claims made by anyone. This deed provides the highest level of protection to the grantee (buyer).
Generally Accepted Accounting Principles (GAAP) are a set of rules and guidelines prepared by the Financial Accounting Standards Board (FASB) and adhered to by Certified Public Accountants (CPAs) to ensure consistency, reliability, and transparency in financial reporting.
Generation X refers to the population cohort born between the early 1960s and early 1980s. This group followed the Baby Boomers generation and has distinct demographic and socio-economic characteristics.
Generation Y, or Millennials, refer to the cohort of individuals born from the early 1980s to the early 2000s. This group is known for its technological savviness, entrepreneurial spirit, and a distinct set of values from previous generations.
Gentrification is the process wherein a neighborhood experiences displacement of lower-income residents by higher-income residents, often due to revitalization or rehabilitation of older homes and community spaces.
Geographic Information Systems (GIS) integrate hardware, software, and data for capturing, managing, analyzing, and displaying all forms of geographically referenced information. GIS allows users to visualize, question, analyze, interpret, and understand data to reveal relationships, patterns, and trends.
A Geographic Information System (GIS) is a framework for gathering, managing, and analyzing spatial and geographic data. GIS integrates numerous types of data to analyze locations and provide visualizations and insights into spatial relationships and patterns, which can be crucial for decision-making in various fields, including real estate.
A Georgian property refers to a style of large, English-style, formal house typically characterized by its classic lines and ornamentation. These homes commonly stand two or three stories tall, with balanced facades and decorative elements.
GI Loan, often referred to as VA Loan, is a U.S. Department of Veterans Affairs program that provides home loan benefits to eligible veterans, service members, and their families, helping them buy, build, repair, retain, or adapt a home for personal occupancy.
A legal document transferring real estate from one party to another as a gift, with no monetary consideration involved.
A federal tax levied on the transfer of any property or assets from one individual to another without receiving anything (or less than the market value) in return. The tax primarily affects larger gifts and can intersect with estate tax considerations.
Ginnie Mae, or the Government National Mortgage Association, provides guarantees for mortgage-backed securities, ensuring a steady flow of capital into the housing market.
A Ginnie Mae Pass Through is a pass-through certificate secured by a pool of mortgage loans insured by the Government National Mortgage Association (Ginnie Mae), an arm of the federal government. These securities often provide high yields with security to investors, though returns may be affected by the pattern of loan repayments on the mortgages in the pool.
GIPS, or Global Investment Performance Standards, are a set of ethical principles created to guide investment firms on how to handle and report investment performance, enhancing standardization, transparency, and comparability of investment performance worldwide.
Gross Leasable Area (GLA) is a key metric in commercial real estate that represents the total floor area designed for tenant occupancy and exclusive use, usually measured from the centerline of shared walls and to the outer surface of exterior walls.
Global Investment Performance Standards (GIPS) refer to a set of standardized rules for reporting investment performance adopted by money managers worldwide. These standards are designed to ensure fair representation and full disclosure of investment performance, facilitating comparison across firms and promoting investor confidence.
The Global Positioning System (GPS) is a network of satellites enabling portable devices to determine precise locations on Earth, often used for navigation, mapping, and geographical information purposes.
The Global Positioning System (GPS) is a satellite-based navigation system that provides location and time information anywhere on Earth.
Ginnie Mae, officially the Government National Mortgage Association, is a government agency within the U.S. Department of Housing and Urban Development (HUD) that guarantees the timely payment of principal and interest on securities backed by residential mortgages.
The term 'Go Dark' refers to the situation where a retail tenant ceases its operations in a leased space, while potentially continuing to pay rent. This can impact the viability and appeal of a shopping center as the absence of an anchor tenant may lead to a decrease in customer foot traffic and potentially cause other tenants to relocate or terminate their leases.
Going Concern Value represents the entire value of a business, including not just its tangible assets if liquidated, but also the additional premium it commands for being an ongoing, unified organization with operational business components like customers, existing workforce, market share, and established credit lines.
The Going-In Cap Rate, also known as the entry cap rate, is the ratio of the initial year's Net Operating Income (NOI) to the acquisition price of an investment property. This key metric helps investors assess the initial yield they can expect from a real estate investment.
A good and marketable title refers to a title free from significant defects, claims, or liens, ensuring the property can be freely transferred without legal complications.
A good and marketable title assures the buyer that the seller has the legal right to transfer ownership and that there are no defects, liens, or other encumbrances on the property.
Good consideration involves a moral or ethical obligation, often seen in cases where the motivation for entering a contract is derived from values like love, affection, or honorable commitment rather than monetary or tangible exchange.
Good faith in real estate refers to the intent to act honestly and sincerely without any intention to defraud or deceive others. This concept is pivotal in establishing trust between parties involved in property transactions.
A Good Faith Estimate (GFE) is a vital document provided to mortgage applicants detailing the estimated costs associated with closing a loan. This disclosure is mandated under the Real Estate Settlement Procedures Act (RESPA) and must be given within three days of the loan application submission.
Good faith money, also known as earnest money, is a deposit made by a buyer to demonstrate serious interest and intent in purchasing a property. This deposit helps assure the seller of the buyer's commitment while the transaction details are finalized.
In real estate, a 'Good Title' refers to the legal concept that a property owner holds legitimate, documented ownership free from any disputes or encumbrances that could invalidate or challenge their property ownership. This assurance ensures a smooth transfer of title during sales or transfers.
Goodwill is an intangible business asset representing the value derived from customer and supplier relationships, brand recognition, and other non-physical factors that add to the company's value. It is differentiated from tangible assets and is not subject to ad valorem taxes in most jurisdictions.
Google Earth is a virtual globe, map, and geographic information program that offers users a detailed visualization of the Earth's surface using satellite imagery, allowing one to explore the world from their computer. It supports a wide range of functionalities such as viewing specific locations, topographic features, and even historical imagery.
The Government National Mortgage Association (Ginnie Mae or GNMA) is a U.S. government corporation within the Department of Housing and Urban Development (HUD) that guarantees timely payments of principal and interest on mortgage-backed securities (MBS) to investors.
A rectangular system of land survey that divides land into specific structures for easier identification and management, using meridians, baselines, townships, and sections.
A quasi-governmental organization that is privately owned but was created by the government and retains certain privileges not afforded to entirely private entities.
Government-Sponsored Enterprises (GSEs) are financial services corporations created by the United States Congress to enhance the flow of credit to specific sectors of the economy, particularly the housing sector.
A grace period is a set duration of time after a deadline during which a borrower or debtor can perform an obligation without facing any penalties or being considered in default.
In the realm of real estate and construction, grading refers to ground level adjustments and the preparation of a smooth surface on a site, generally for the purpose of laying a foundation.
A graded lease, also known as a graduated lease, is a rental agreement that stipulates periodic increases in rent amounts over the lease term. This type of lease is often employed in commercial real estate to account for rising property values and inflation-related adjustments.
In real estate, a gradient, also known as a slope, refers to the rate of increase or decrease in the elevation of a specific surface or land area. It is often expressed as a percentage and is crucial in the planning and construction phases of property development.
The Graduate, REALTORS® Institute (GRI) is an educational program sponsored by the National Association of REALTORS® or state REALTOR® boards, aimed at enhancing the professional skills and market knowledge of real estate professionals.
A graduated lease is a type of lease agreement that allows for periodic changes in rent at pre-determined intervals, providing a systematic way to adjust rent in accordance with certain agreed-upon conditions.
A graduated-payment mortgage is a home loan characterized by low initial monthly payments that gradually increase over time according to a predetermined schedule.
A Graduated-Payment Mortgage (GPM) is a type of fixed-rate mortgage where the initial payment starts low and then increases at regular intervals over a set period, after which it stabilizes for the remaining loan term.
A Grandfather Clause is a provision that allows individuals or companies to continue operating under a prior regulation or policy, despite the implementation of new rules which may no longer permit that activity under the new laws.
A Granny Flat is a self-contained living area located on the same property as a larger, primary residence. Often named for its common use as a living space for elderly family members, such as grandparents, it is also known as an Accessory Apartment or Mother-in-Law Suite.
The term 'Grant' in the context of real estate refers to the act of transferring ownership or a property interest from one party to another. This technical term is commonly used in deeds of conveyance.
The party to whom the title to real property is conveyed; essentially, the buyer in the transaction.
A grantor is an individual or entity that conveys ownership of an asset, typically through the execution of a deed. This figure plays a key role in real estate transactions by transferring the title of property to a grantee.
A Grantor/Grantee Index is a crucial public record that cross-indexes grantors and grantees and the properties they relate to. This index aids in tracing the history of property ownership.
Graywater refers to household wastewater that is reused for purposes not requiring high sanitation, such as irrigation of household plants and other vegetation. It includes waste from bathtubs, washbasins, and laundry appliances but excludes kitchen sink or dishwasher drainage.
The Great Recession was a period of significant economic decline lasting from approximately December 2007 through June 2009, marked by a severe financial crisis and elevated unemployment rates.
Green building refers to the practice of creating structures and employing processes that are environmentally responsible and resource-efficient throughout a building's life cycle—from siting to design, construction, operation, maintenance, renovation, and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort.
A greenbelt is an area of open land retained in its natural state around a residential area, intended to provide open space, recreation opportunities, and a buffer against urban sprawl.
Gross Amount refers to the total amount before any deductions or subtractions are made. It is often compared to the net amount, which results after all deductions.
Gross Building Area (GBA) is the total floor area of a building, typically measured from the external walls and including all areas within the building. It encompasses the entire footprint of the building.
Gross income represents the total income generated from property or other sources before any expenses or deductions are applied. It includes rental income, alimony, retirement benefits, and various other income streams.
The Gross Income Multiplier (GIM) is a valuation metric used in real estate to evaluate the value of a property by comparing its gross income to its purchase price. It is a useful tool in determining the profitability and potential return on investment of income-producing properties.
The Gross Income Multiplier is a tool used in real estate valuation to compare properties by evaluating the price of a property relative to its gross rental income.
Gross Leasable Area (GLA) refers to the total floor area of a building that can be used by tenants, including all areas that are used by tenants and the communal spaces shared by tenants. It is measured from the center of joint partitions to the exterior surfaces of outside walls.
A gross lease is a type of lease agreement wherein the landlord is responsible for paying all property expenses, including taxes, insurance, utilities, and repairs. The tenant pays a fixed rental fee.
Gross Possible Rent (GPR), also known as Potential Gross Income (PGI), represents the maximum rental income a property could generate if it were entirely occupied year-round with zero vacancies.
In an installment sale, the Gross Profit Ratio represents the relationship between the gross profit (gain) and the contract price. It is used to determine the taxable gain from each periodic receipt from the buyer.
The Gross Rent Multiplier (GRM) is a simplified ratio used by real estate investors to evaluate the potential profitability of an income-generating property. It is calculated by dividing the property's purchase price by its gross annual rental income.
Gross Rent Multiplier (GRM) is a real estate metric used to evaluate and compare rental income properties. It is calculated by dividing the property’s sales price by its gross annual rental income.
Gross Square Foot (GSF) refers to the total area of a building measured from the outside of the exterior walls, including all spaces such as hallways, closets, and structural components.
A safety device integrated into electrical outlets or circuits designed to immediately interrupt electrical power in case of a ground fault to prevent shock or fire hazards.
A ground lease is an agreement in which a tenant leases land for a long period, usually spanning several decades. The tenant can develop and use the land during the lease term, but at the end of the lease, ownership and any improvements revert to the landowner.
Ground rent is the regular payment made by a lessee to the lessor for the lease of land, usually on a long-term lease agreement, allowing the lessee to utilize the land for specified purposes while retaining ownership rights with the lessor.
Ground Zero is a term used to describe the point on the Earth's surface closest to a detonation or other disasters, including earthquakes, epidemics, and other catastrophic events. It marks the point of the most severe damage or destruction.
A group home is a residence designed to serve a particular group of individuals with specialized needs, often not considered a traditional household. These homes primarily cater to individuals with physical or mental disabilities, as well as those recovering from certain conditions, dependencies, or afflictions.
Group quarters refer to types of housing where unrelated groups of people live together for specific purposes such as education, military service, or healthcare.
A Growing Equity Mortgage (GEM) is a type of fixed-rate mortgage where monthly payments increase over time according to a set schedule, leading to faster repayment and reduced interest cost over the life of the loan.
A Growing-Equity Mortgage (GEM) is a type of mortgage loan where the payment increases by a specific amount each year, with the extra payment amount applied toward reducing the principal balance, thereby shortening the loan's maturity period compared to a traditional fixed-payment mortgage.
The General Services Administration (GSA) is a U.S. government agency that manages and supports the basic functioning of federal agencies. Established to streamline the administrative work of the federal government, it oversees real estate transactions, property management, and procurement of goods and services.
A Guaranteed Sale is a promise by a brokerage firm to buy a listed property if it fails to sell within the agreed-upon listing period. This offering can attract more sellers by providing them a safety net and peace of mind.
A guarantor is a third party to a lease, mortgage, or other legal instrument who guarantees performance under the contract. Guarantors play a critical role in helping individuals or businesses secure financing or lease agreements by providing an additional layer of security for the lender or landlord.
In real estate, a guaranty involves an assurance provided by one party to compel another party's performance under a contract, often involving a co-signer to ensure obligations are met.
A guardian is an individual appointed by a court to administer the personal affairs or property of an individual who is incapable of managing such duties by themselves, often due to age or incapacity.
A Guesthouse, also known as an accessory apartment, is a secondary housing unit on a single-family residential lot. These units provide additional living space and can serve a variety of purposes, including housing for guests, rental income, or living space for extended family.
