In real estate, 'abut' refers to properties that directly touch or share a common boundary line. Unlike adjacent properties, which are close but may not share a boundary, abutting properties are directly connected.
Adjacent refers to properties or pieces of land that are nearby or close to each other but not directly touching. This term is commonly used in real estate transactions and planning to describe properties that are in close proximity.
The term 'adjoining contiguous' in real estate refers to properties that are attaching or sharing a common border, indicating they are adjacent to each other and touch or meet along a boundary.
In real estate appraisal, the adjusted sales price refers to the indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.
An alley serves as a narrow lane, pathway, or passageway often situated between buildings or behind a building. It is commonly utilized for deliveries, garbage collection, or as a secondary access route.
An assignor is a party who assigns or transfers an agreement or contract to another. This transfer effectively assigns rights or responsibilities from one party to another, creating a new contractual relationship.
The term Beginning of the Year (BOY) refers to events that occur at the start of a financial year. In the context of real estate, BOY often includes the due dates for rent payments, financial projections, budget implementations, or financial assessments.
A BID is the amount someone is willing to pay for a property. It is a proposal by a potential buyer in response to a seller's ASKING PRICE. It sets the stage for negotiating the purchase agreement.
A description for the condition in which property should be left by the seller or previous tenant before it is handed over to the new buyer or tenant. It usually implies that the floors are to be cleared of trash and swept, leaving the premises tidy, but not necessarily scrubbed or thoroughly cleaned.
A Burned-Out Tax Shelter refers to a real estate investment that was once advantageous for providing large income tax deductions but has lost its tax-sheltering benefits over time due to the reduction and eventual nil in depreciation deductions and the decrease in interest deductions as mortgage payments increasingly cover the principal.
A Buy-Back Agreement is a contractual provision where the seller commits to repurchasing the property at a predetermined price upon the occurrence of a stipulated event within a specific timeframe.
A contract is a legally binding agreement between two or more competent parties to undertake or refrain from specific actions in exchange for consideration. In real estate, a valid contract typically includes essential elements such as an offer, acceptance, competent parties, consideration, lawful purpose, and documentation.
A cul-de-sac is a street with an intersection at one end and a rounded, closed turning area at the other, often valued in residential subdivisions for the privacy and limited traffic it provides.
De Minimis Planned Unit Development (PUD) refers to a type of PUD where the common area characteristics have a minimal effect on the overall property value. These developments contain limited shared spaces and amenities.
Deferred payments refer to the payments that are postponed and scheduled to be made at a future date. Commonly utilized in various financial contexts, it allows borrowers to delay payments of the principal or interest.
The term 'Demised Premises' refers to the property or portion of property that is leased or rented to a tenant under the terms outlined in a lease agreement.
In real estate slang, 'DOG' refers to an unwanted property that is typically hard to sell due to various issues such as poor appearance, poor construction, lack of market demand, or negative environmental conditions.
A due-on-sale clause is a provision in a mortgage agreement that requires the full repayment of the loan when the property is sold.
An estate in reversion is a future interest that a grantor retains for themselves, which begins after the termination of some particular estate that has been granted.
An exception in real estate refers to specific conditions or items that are not covered by an insurance policy. Understanding exceptions is crucial for property buyers and owners as it affects the extent of protection provided by their insurance policies.
An exculpatory clause is a provision in a mortgage allowing the borrower to surrender the property to the lender without personal liability for the loan. This means the borrower can walk away from the property if unable to meet the mortgage obligations, without other personal assets being pursued for the debt.
Functional vacancy refers to the phenomenon in real estate where space remains intentionally vacant due to it being uneconomical to market or part of a broader investment strategy.
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.
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.
In real estate, historic cost refers to the original financial expenditures incurred during the construction or acquisition of a property. This term contrasts with the original cost, which represents the purchase price paid by the current owner.
An index lease is a rental agreement that adjusts the rent based on a published record of cost changes like the Consumer Price Index (CPI). This helps maintain the rent's real value over time despite inflation.
A Lease Proposal is an offering made to a prospective tenant that outlines the key terms and conditions of a potential lease agreement, facilitating the leasing process.
A less than freehold estate refers to an estate in land that has a predetermined time span, most commonly associated with leases and leasehold properties.
The principal amount owed on a mortgage at the time of its origination or closing.
In contract law, performance refers to the completion of duties and obligations specified in the contract. Proper performance by all parties ensures that contractual objectives are met and can prevent disputes.
Potential Gross Income (PGI) represents the total rental income a property could generate if it were fully occupied at market rental rates and without any deduction for vacancies, rental concessions, or collection losses.
The term 'Purchase Price' refers to the dollar amount agreed upon by the buyer and the seller for the sale of a property. This figure is specifically outlined in the sales contract and does not take into account any adjustments for financing, concessions, or seller-paid closing costs.
A real estate contract defines the terms agreed upon by a buyer and seller regarding a real estate transaction. This legal document ensures all parties understand their obligations and rights.
A Release of Lien is a document that indicates that a lien holder officially relinquishes their claim on a property after the debt the lien secures is fully paid off.
Explaining the term 'severally' in the context of real estate transactions, which refers to individual or separate ownership or responsibility.
Trade fixtures are objects placed in rented commercial properties by tenants to facilitate their business operations. These fixtures can typically be removed by the tenant before the lease's expiration. However, if they are not removed in a timely manner after the lease ends, they may become the property of the landlord.
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.
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.
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.
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.
In real estate, to 'vacate' means for a tenant to terminate occupancy and leave the premises, usually at the end of a lease term or after giving proper notice. It involves removing all personal possessions and handing back the property to the landlord.
VARA is a traditional unit of length used in Spanish-speaking countries. Though largely obsolete, it is still encountered in legal land descriptions and historical documents.
A villa traditionally refers to a Roman country house for the wealthy, but its modern interpretations include farmhouses, urban estates, and vacation homes situated in warm-weather destinations.
A walk-through inspection is a detailed examination that a buyer or tenant conducts before finalizing the purchase or lease of a property. Its primary purpose is to ensure that the property is in the agreed-upon condition and that any necessary repairs have been completed.
