Emblements refer to growing crops which are considered to be personal property. This concept primarily applies to tenant farming wherein a tenant has the right to harvest crops even after the lease on the land has expired.
Empty nesters are a significant segment of the housing market, typically comprising couples whose children have moved out to establish their own households. This often leads to a demand for smaller and more manageable housing units.
Encapsulation in real estate refers to the process of covering or enclosing hazardous materials to prevent the release of dangerous substances into the environment or to minimize exposure hazards. It is commonly used for materials like asbestos and lead paint in older buildings, offering a safer and often more cost-effective alternative to removal.
In real estate, 'encumber' refers to the act of burdening a property with a liability, debt, or legal claim, which can limit the owner's ability to transfer title or decrease the property's market value.
An encumbrance is a claim, lien, charge, or liability attached to and binding real property, which may affect its transferability or decrease its value.
End Loan, often referred to as a Permanent Mortgage, is a financing process that replaces a construction loan or interim loan when a property is completed. This loan facilitates long-term financing once the project transitions from the construction phase.
An end user in real estate refers to the individual or entity that ultimately uses or occupies a property, though they may not necessarily be the one who purchases, produces, or pays for it.
An entity is the legal form under which property is owned, impacting the benefits and risks associated with owning real estate. It can vary widely and includes structures like corporations, individual ownership, joint ventures, limited liability companies (LLCs), limited partnerships, partnerships, and real estate investment trusts (REITs).
An Environmental Report provides crucial information about the environmental conditions of a property. It assesses potential environmental liabilities and compliance with environmental regulations before any property transaction.
The Environmental Protection Agency (EPA) is a federal organization tasked with researching, monitoring, regulating, and enforcing laws related to environmental protection, to maintain and improve the health of the natural environment.
Equal and Uniform Taxation is a principle asserting that all individuals and property within the same class must be treated equally, with the same rate and value applied to property being taxed.
Equalization ensures that property taxes are assessed fairly across properties with similar market values, helping maintain tax consistency within a given area or class of properties.
Equity of Redemption refers to the right of a property owner to reclaim their property even after defaulting on a mortgage, by paying off the due amounts before the foreclosure is finalized.
Equity skimming is a type of real estate fraud where an investor takes out a loan exceeding the property's value, often via fraudulent means, and then collects rent on the property without making mortgage payments, increasing negative equity.
An escalator clause is a provision in a lease that requires the tenant to pay additional rent based on an increase in specified costs such as real estate taxes, operating expenses, or other financial metrics.
An escrow account is a financial arrangement where a third party holds funds temporarily until they're needed for specific obligations, such as property taxes, homeowner's insurance, and mortgage insurance in real estate transactions.
An escrow payment is part of a borrower's monthly mortgage payment that is set aside in an account to cover property taxes and insurance when they become due.
An Estate at Sufferance refers to a situation where a tenant continues to occupy a property after the expiration of their lease, without the landlord's permission.
An estate tax is a levy on the estate of a deceased person, based on the value of the property left by the deceased. The tax is typically calculated based on the market value of the estate either at the date of death or six months afterward, taken at the lower value if applicable.
An estoppel certificate is a legal document where the borrower acknowledges the amount of debt secured by a mortgage. It also can be a lease clause where a tenant confirms the lease's enforceability, absence of landlord default, and current rent status.
Evidence of title refers to the legal documents that demonstrate ownership rights to a property. These documents are essential in confirming and asserting a person's or entity's legal property ownership.
An Examination of Title involves a review of the title to a piece of real estate. It is typically less thorough than a full Title Search and often focuses on more recent historical records to ensure the property is free from significant encumbrances or defects.
Excess land refers to the portion of a property that sits beyond the amount needed to support its current highest and best use, and which has the potential for separate development.
An exclusive (agency) listing is a written employment contract giving a single brokerage firm the right to sell a property within a specified time frame while also allowing the property owner to sell the property independently without paying a commission.
An Executrix is a woman appointed by a will or a legal document to execute the last wishes and directives of the deceased, handling the distribution of the estate and ensuring all legal and financial responsibilities are met.
An exemption in real estate refers to certain portions of a property's value or income that are legally excluded from taxation, lowering the overall tax burden.
Exhibits are attachments to leases, mortgages, and other legal documents, providing detailed, supplementary information pertinent to the main document.
Expenses in real estate represent the costs associated with acquiring, maintaining, and operating a property. These expenses can significantly impact the profitability of real estate investments and the overall management of properties.
Exposure (Physical) refers to the direction in which a property or building faces, impacting light, heat, and overall energy efficiency.
Express Agency refers to a clearly articulated and formally recognized relationship between an agent and a principal, delineated through a written contract or oral agreement. This is in contrast to Implied Agency, which might arise from actions or circumstances rather than explicit communication.
A façade easement is a legal agreement that ensures the preservation of the exterior façade of a historic building, while allowing the owner to modify other exterior walls and the interior.
Face value refers to the nominal or dollar value stated on financial instruments, such as bonds, stocks, or mortgages. It is a fixed amount, unaffected by fluctuating market prices.
A general category of housing produced largely in a factory. This umbrella term encompasses MANUFACTURED HOMES, MODULAR HOMES, and PREFABRICATED HOMES, offering significant cost savings and efficient construction techniques compared to traditional site-built homes.
Fair market value (FMV) is a critical concept in real estate, representing the estimated price at which a property would sell in the open market under normal circumstances. It is commonly used in property tax assessments, sales valuations, and condemnation proceedings.
False advertising in real estate involves representing a property in a misleading or deceitful manner, resulting in potential buyers or renters making decisions based on inaccurate information.
Familial status is a characteristic derived from a person's household type, including factors such as marriage and the presence of existing or prospective children. It is crucial in the realm of housing rights as outlined by the Federal Fair Housing Law and the Fair Credit Reporting Act. These laws prohibit discrimination against individuals under the age of 18 who reside with a parent or legal guardian, and they provide specific coverage for pregnant women.
A Family Limited Partnership (FLP) is a limited partnership whose interests are owned by members of the same family. This structure can help reduce gift and estate taxes but comes with restrictions on ownership and transferability, unlike other ownership forms.
A Federal-style house is an early American architecture type characterized by its box-shaped design and a flat roof, often incorporating classic design elements such as symmetrical fenestration and decorative moldings.
The FHA 236 program provides an interest-rate subsidy for apartment owners, who are required to pass the interest savings on to tenants through reduced rents.
An FHA Mortgage Loan is a mortgage loan insured by the Federal Housing Administration (FHA), designed to help lower and moderate-income individuals qualify for homeownership. This type of loan allows borrowers to make a lower down payment and can be more lenient on credit scores compared to conventional loans.
A fiduciary is a person or organization that acts, in a legal role, in the best interests of another party such as a broker, banker, attorney, or trustee.
A fifteen-year mortgage is a fixed-rate, level-payment mortgage loan with a maturity of 15 years, often chosen for its interest savings and quicker equity buildup compared to longer-term loans.
Filtering Down is the process whereby over time, a housing unit or neighborhood is occupied by progressively lower-income residents.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) was enacted in response to the Savings and Loan (S&L) crisis, aiming to restructure the regulatory framework and revitalize the financial industry.
Financial risk refers to the increased potential for volatility in investment performance created by the use of borrowed money. This concept is closely tied to leverage and equity investment, impacting the overall financial stability of an investment.
Financing is the process of borrowing money to purchase property. Various methods exist to acquire the necessary funds, which can involve different types of loans and arrangements.
A finder's fee refers to money paid to an individual who identifies or connects a buyer and seller or lender and borrower, facilitating a transaction. While finder's fees are permissible in certain jurisdictions under specific conditions, they cannot be substantial and get mistaken for a broker's commission.
A provision in a lease for an office or retail space that provides a certain sum or amount per square foot to the tenant to customize the space.
A first mortgage, also known as a senior mortgage, is a mortgage that has priority as a lien over all other mortgages and is satisfied first in cases of foreclosure.
Fixed expenses in real estate management refer to costs that remain constant regardless of occupancy levels, which contrast with variable expenses that fluctuate based on usage or occupancy.
A fixed-rate mortgage, or FRM, is a loan secured by real property featuring an interest rate that remains constant for the term of the loan. It contrasts with an adjustable-rate mortgage (ARM) in that the interest rate does not fluctuate based on market conditions or an index.
Fixtures Improvements refer to personal property that has been attached to the land in such a manner that it becomes part of the real estate. Decisions regarding whether an item is a fixture often involve assessments of intent, method of annexation, the relation of the parties, and the adaptation of the article.
A Flat Lease is a rental agreement that stipulates a constant rental payment over the lease period, without any variations or escalations.
A Flexible Payment Mortgage (FPM) allows borrowers to choose among several monthly payment options including lower interest-only and minimum payments, providing greater flexibility and control over mortgage expenses.
A floodplain is a level land area subject to periodic flooding from a contiguous body of water. Floodplains often play a crucial role in environmental balance and can influence real estate development and insurance costs.
A floor plan is a scaled diagram of a room or building viewed from above. The floor plan may depict an entire building, a single floor of a building, or a single room. It may also include measurements, furniture, appliances, or anything necessary for the purpose of the plan.
For Sale By Owner (FSBO) refers to a property sale conducted directly by the owner without the use of a real estate agent. This approach allows sellers to avoid paying commission fees but requires them to handle all aspects of the sale process.
A forced sale, also known as a distress sale, occurs when the owner of a property is compelled to sell, often at a price lower than the market value, typically due to urgent circumstances such as financial distress, legal judgments, or repossession.
Foreclosure is the legal process through which a lender attempts to recover the remaining balance on a loan from a borrower who has stopped making payments, typically by selling the asset used as collateral.
A foreclosure sale is the public auction of a mortgaged property following the foreclosure of the loan secured by that property. This process is designed to recoup the unpaid loan balance through the sale of the collateral property.
Forfeiture refers to the loss of money or anything else of value because of failure to perform under a contract. It often occurs in legal and real estate contexts, where breaching a contract can result in the forfeiting party losing their rights to certain property or assets.
A free and clear title, also known as a clear title, refers to a property that is free of any encumbrances, such as mortgage debt or liens, that could affect the ownership rights of the buyer.
French Provincial is a French-style formal housing architecture featuring 1½- to 2½-story structures with balanced designs, high steep hip roofs, and curve-headed upper windows that break through the cornice.
Functional Depreciation, also known as Functional Obsolescence, refers to the loss of property value due to its outdated or inefficient design, which adversely affects its utility, desirability, or functionality.
Funds From Operations (FFO) is a key financial performance metric used by real estate investment trusts (REITs) to show the cash generated from their operations, which is then available for distributions to shareholders.
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.
Garden apartments are a housing complex where tenants have access to a lawn area, typically designed to incorporate outdoor and green space access.
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.
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.
The General Services Administration (GSA) strategically manages and disposes of federal properties, ensuring other government agencies have the resources they need for efficient operations.
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.
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.
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.
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.
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.
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.
A rectangular system of land survey that divides land into specific structures for easier identification and management, using meridians, baselines, townships, and sections.
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.
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 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.
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.
Group quarters refer to types of housing where unrelated groups of people live together for specific purposes such as education, military service, or healthcare.
The term 'habitable' refers to the condition of a property being suitable for human habitation, meaning it is safe, sanitary, and appropriate for occupancy.
A half bath, also known as a guest or powder bath, is a room in a residence that contains a toilet and a washbasin (sink) but lacks bathing facilities such as a bathtub or shower stall.
A handyman’s special is a term used in real estate classified advertising, which generally refers to a house needing extensive repairs and remodeling, sold at a relatively low price. It offers potential for profit if the buyer can perform the necessary upgrades.
The Heat Island Effect is the phenomenon where urban areas experience higher ambient temperatures compared to their rural surroundings, primarily due to human activities and alterations to land surfaces.
A hectare is a metric unit of area measurement used in the real estate industry, equivalent to 10,000 square meters or approximately 2.471 acres. It is commonly used for larger plots of land in agricultural, forestry, and urban planning contexts.
Hereditaments encompass any property, whether real or personal, tangible or intangible, that may be inherited.
A hip roof, also known as hipped roof, is a type of roof where all sides slope downwards to the walls, typically with a fairly gentle slope.
A designated area where the buildings are considered to have significant historic character, which makes the area eligible for certain federal assistance programs and protects it from clearance in conjunction with federally sponsored projects.
Holdback refers to money that is not paid until certain conditions or events have occurred, such as a floor loan of a loan commitment or retainage on a construction contract.
Holding costs, also known as carrying costs, are the expenses incurred by owning and maintaining a property over a period of time until it is sold or put to productive use.
