In multifamily residential properties, a 'unit' refers to a self-contained suite of rooms designed to be occupied by one tenant or family. Each unit typically features a private entrance and may be personalized to maintain a level of individuality separate from other units in the same building or complex.
The U.S. Government Survey System, also known as the Government Rectangular Survey System, is a method used historically in the United States to divide and describe land.
The U.S. Green Building Council (USGBC) is a nonprofit organization that offers LEED certification for green buildings, along with educational resources and a network of chapters and affiliates to support environmentally sensitive construction.
The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States. It is not a federal law, but a uniform act that different states have adopted to harmonize the law of sales and other commercial transactions across the U.S.
An Underground Storage Tank (UST) is a tank and its underground piping with at least 10% of its combined volume buried underground, primarily used to store liquids such as fuel products, industrial chemicals, or waste.
An Underground Storage Tank (UST) is a tank and its connected piping system that has at least 10% of its combined volume underground, commonly used for storing petroleum products or other hazardous substances.
The underimprovement occurs when a property or development exists at a lower investment or utility level than the optimal usage potential of the site.
An underlying mortgage refers to the first mortgage secured by a property when there's also a wraparound mortgage. It forms the basis of the total debt, while the wraparound mortgage includes additional financing layered on top of it.
A real estate term used to describe a situation where the market value of a property is less than the outstanding balance on the mortgage. This condition can complicate selling the property or refinancing the mortgage.
An underwriter inspects and evaluates the level of risk associated with insuring loans, securities, and other types of investments, making decisions that can significantly influence lending practices, policy formulation, investment strategies, and risk management.
Undeveloped land, also referred to as raw land, represents parcels of property that have not been built upon, subdivided, or improved. This type of real estate offers a range of investment opportunities but also comes with various risks and considerations.
An undisclosed agency relationship occurs when a client is unaware that their agent has a duty to represent the other party in a transaction. This often leads to implied agency where the client believes the agent is working solely for their benefit.
Undivided interest refers to a form of property co-ownership where each owner has a share of the whole property without having exclusive rights to any specific part of it.
Unearned Increment refers to an increase in the value of real estate that occurs independent of any actions or improvements made by the property owner. This typically results from external economic or societal factors such as population growth or infrastructure development.
In the context of real estate and eminent domain, an uneconomic remainder refers to the portion of a property left after a partial taking by condemnation, which has little or no value in the marketplace. This typically occurs because the taking leaves the remainder with limited access, or an irregular shape or size that renders it unusable.
An unencumbered property is a real estate asset with a free and clear title, meaning there are no claims, liens, or restrictions by any third party. It signifies full ownership by the titleholder without any existing obligations such as mortgages, vendor liens, mechanic’s liens, or tax liens.
The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing and harmonizing the laws of sales and other commercial dealings across the states. Certain provisions of the UCC have particular relevance to real estate.
The Uniform Residential Appraisal Report (URAR) is a standardized form used by appraisers to provide a comprehensive valuation of residential properties. It is required by major secondary mortgage purchasers.
The Uniform Residential Appraisal Report (URAR) is a standardized report form used by appraisers when estimating the market value of a residential property, often in conjunction with mortgage underwriting.
The Uniform Settlement Statement, otherwise known as the HUD-1 Form, is mandated by the Real Estate Settlement Procedures Act (RESPA) for federally related mortgages. This document contains crucial details about the closing, outlining all charges and funds involved in a real estate transaction.
Uniform Standards of Professional Appraisal Practice (USPAP) is a set of requirements covering ethics, record keeping, research, and reporting promulgated by the Appraisal Foundation, and adhered to by its members.
A set of standards that guide professional appraisal practice in the United States and help ensure that appraisals are conducted consistently and ethically.
USALI is a standardized accounting system used within the hotel industry to ensure consistency in financial reporting, improve financial analysis, and aid management in decision-making processes.
A unilateral contract involves a promise made by one party that is contingent upon the performance of a specific act by another party, without obligating the second party to perform the act.
Unimproved property refers to land that remains in its natural state, with no existing developments, construction, or site preparation. It is often also referred to as raw land.
An unincorporated association is a type of organization formed by a group of individuals who come together for a common purpose but have not gone through the legal process of incorporating. This means the association does not have a separate legal identity from its members.
A unit of comparison is a critical tool used in real estate appraisal to compare properties of varying sizes and characteristics. These units ensure consistent evaluation and assist in determining a property's fair market value.
Unit value refers to the valuation of an entire business entity, such as a public utility or railroad. This valuation is crucial for purposes such as assessing property taxes.
A method used by appraisers to estimate the reproduction cost (new) of a structure by evaluating the cost of its individual components. The unit-in-place method involves estimating the cost to produce and install components like the foundation, exterior walls, and plumbing.
Four characteristics required to create a Joint Tenancy: unity of interest, unity of possession, unity of time, and unity of title, ensuring equal shared ownership among joint tenants.
A universal agent is authorized to act on behalf of another in all matters that one could personally exercise or control, often through a general power of attorney.
A University Real Estate Research Center is a group of university real estate faculty or staff devoted to research, including collecting and disseminating data on real estate matters. These centers may be privately or state-funded through fees paid by licensed brokers and salespersons.
An unrealized gain refers to the increase in the market value of an asset that remains unsold, reflecting a rise in value relative to its purchase cost. It remains 'unrealized' until the asset is sold.
An unrecorded deed is an instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of the change in ownership. Recording is essential to protect one’s interest in real estate.
An unsecured loan is a debt not protected by any collateral or security, meaning the lender relies solely on the borrower's creditworthiness and promise to repay.
An unsubordinated land lease is a type of lease agreement where the land remains unencumbered by any mortgage attributable to the property improvements.
Upfront charges refer to various fees and costs that a homeowner must pay at the closing of a real estate transaction. These include points, recording fees, mortgage title policy, appraisal fees, and credit report fees.
Upgraders are homeowners who seek to purchase what they believe is a better home, often referred to as 'move-up' buyers. This usually involves acquiring a larger, more conveniently located home, or one with additional amenities. Typically, the new home costs more than the proceeds from the sale of the old home.
Uplands refer to land within a mitigation parcel adjacent to surrounding wetlands, which often have exotic plant species similar to those found in wetlands. They play a crucial role in ecological and environmental planning.
An UPREIT (Umbrella Partnership Real Estate Investment Trust) is a specialized form of REIT (Real Estate Investment Trust) created by combining properties from existing limited partnerships. Original partners exchange properties for an interest in a new, transitional operating partnership, which might later be converted to shares in the REIT.
An upset price, also known as a reserve price, is the minimum price that a seller is willing to accept for an asset, typically set before an auction. It ensures that the seller does not have to sell the asset at an uncomfortably low price.
An upside-down mortgage occurs when the balance of a mortgage loan is greater than the value of the property securing the loan. Homeowners with such mortgages have negative equity and cannot sell or refinance the property without incurring losses.
A demographic and geographic area characterized by higher population density and vast human features in comparison to the areas surrounding it, typically defined by the U.S. Bureau of the Census as a community with a population of 2,500 or more.
The Urban Land Institute (ULI) is a global research and education organization that aims to provide leadership in responsible land use and the creation of sustainable communities.
The Urban Land Institute (ULI) is a nonprofit organization that provides leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.
Urban property real estate involves properties situated in urban regions known for high-density development and easy access to city amenities and services.
Urban renewal is the process of redeveloping deteriorated sections of a city through demolition and new construction, often involving government programs to modernize and revitalize areas.
Urban sprawl is a term used to describe the uncontrolled expansion of urban areas. This low-density development often happens on the outskirts of cities and can lead to various socio-economic and environmental issues such as increased dependence on automobiles, extended public infrastructure requirements, and insufficient in-fill development.
Urea Formaldehyde Foam Insulation is an insulating material that can be injected into a wall through a small opening, expanding within the cavity to fill it. However, it may release formaldehyde gas, which might be hazardous.
Usable area refers to the occupiable part of an office or building floor, generally measured from paint to paint inside the permanent walls and to the middle of partitions separating one tenant’s space from that of other tenants on the same floor. Interior beams and columns are not deducted in this measurement.
The stated application intended for the information included in the appraisal. Appraisals can serve various purposes such as condemnation, liquidation, or mortgage collateral.
Usufructuary rights refer to the legal right to use and enjoy the benefits of someone else's property without owning it. These rights are often pertinent to natural resources like water or land.
Usury refers to the practice of charging a rate of interest on loans that is higher than what is allowed by state law, designed to protect borrowers from excessively high interest rates.
Utilities refer to essential services like water, sewer, gas, electricity, and telecommunications that are needed for the operation of a building. Understanding utilities is crucial for managing operational costs in both residential and commercial properties.
A utility easement is a legal right granted to a utility company or public service entity to use or access specific portions of a property for the purpose of laying and maintaining infrastructure such as electric, gas, water, and sewer lines.
A Utility Stop is a clause in a lease agreement that limits the landlord’s liability for the costs of utilities, such as electricity, water, and gas, by specifying a maximum amount that the landlord will cover. Any utility expenses exceeding this amount are passed on to the tenants.
