A holdover tenant is a tenant who remains in possession of leased property after the expiration of the lease term. Depending on the circumstances, the landlord may either evict the tenant or allow them to stay on a month-to-month basis.
A home improvement loan, usually secured by a mortgage on the home, is used to pay for major remodeling, reconstruction, or additions to a residential property. It provides homeowners with the necessary funds to enhance and upgrade their living space.
A home inspector is a professional who evaluates the structural, mechanical, and various other conditions of a home prior to its sale, ensuring both the buyer and seller are aware of the home's condition.
A deduction that allows taxpayers who use part of their home for business purposes to deduct certain expenses from their taxable income.
A Homeowners' Association (HOA) is an organization created by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. Most HOA structures include a volunteer board of directors elected by the members.
Homeowners' fees, also known as maintenance fees, are regular payments required by homeowner associations (HOAs) to cover the upkeep of common areas and amenities in a housing development.
The Homeowners' Warranty Program (HOW) is a type of warranty designed to offer protection to buyers of newly built homes and provide coverage against deficiencies in construction quality, craftsmanship, and significant defects. This warranty aims to protect homeowners from unforeseen repair costs and ensure that builders adhere to high standards of construction.
Homeownership is the state of living in a structure that one owns. It is contrasted with being a renter or tenant in one’s home. Homeownership provides numerous benefits such as security, pride, and investment advantages but also introduces responsibilities.
A Homestead Declaration is a legal statement signed by a property owner declaring the property as their principal residence. It can provide benefits such as tax advantages and protection against certain claims.
A homestead exemption is a legal provision that helps reduce the amount of property taxes on domiciles owned by qualifying individuals. These exemptions can vary by jurisdiction and may provide additional benefits for certain groups such as seniors or disabled individuals.
In real estate, a house refers to a residential structure containing a single dwelling unit. It often stands alone but can occasionally be part of a series of adjacent units called townhouses.
Housing refers to structures intended for residential use. It encompasses various types of dwellings from single-family detached houses to multi-unit apartments.
The Housing Affordability Index is a statistical indicator that measures the ability of households in a specific area to purchase housing at prevailing prices using currently available financing. It typically compares the median household income to the required monthly payment for a median-priced home in the same area.
Housing stock refers to the total number of dwelling units available in a specific area, including both occupied and vacant units, but excluding specific types such as group quarters and congregate housing.
HUD-Code Home is another term for a manufactured home, implying compliance with standards set forth by the U.S. Department of Housing and Urban Development (HUD), ensuring quality and safety of construction through rigorous inspections.
A hunting lease is an agreement between a landowner and a hunter that grants the hunter access to specific property for hunting purposes. This can range from a day to an entire season and might include limitations on the type of game that can be hunted.
HVAC stands for Heating, Ventilation, and Air Conditioning, which are the three essential functions that provide thermal comfort and acceptable indoor air quality within buildings.
IDRC (Industrial Development Research Council) was an organization focused on industrial real estate development and research, which has now merged with CoreNet Global.
An illiquid asset is an asset that cannot be quickly converted into cash without a substantial loss in value. This is a critical consideration in real estate investing, as properties can take considerable time to sell and often incur significant transaction costs.
Implied agency is an agency relationship established through the conduct, behavior, or circumstances of the involved parties, rather than through explicit agreement or written contract.
An implied contract is an agreement created by actions of the parties involved, but it is not necessarily spoken or written. Such contracts are legally binding, provided they demonstrate mutual intent and agreement.
An implied easement, also known as an easement by implication, is a legal right to use someone else's property for a specific purpose without formal documentation. It is typically established through long-term use and necessity.
Improved land refers to property that has been enhanced with certain modifications and development activities to make it more useful and potentially more valuable compared to raw land.
Improvements refer to alterations made to raw land, such as the addition of buildings, streets, and sewage systems, which tend to increase the value of the property.
In perpetuity refers to an indefinite duration, often used legally to describe rights that are permanent or last indefinitely.
In situ, a Latin term meaning 'in place' or 'onsite,' refers to processes or treatments that are carried out directly at the location of interest. In real estate, this often pertains to remediation efforts carried out at the contaminated site, without the need to transport pollutants offsite.
Income Property refers to real estate that is specifically utilized to generate rental income. It encompasses a variety of property types that can provide steady income streams to the owner.
Incorporating refers to the process of forming a corporation under state regulations or providing a geographic area with the legal status of a political subdivision. Incorporation can protect personal assets by limiting liability to the assets owned by the corporation.
An incumbrance (or encumbrance) is a claim, lien, charge, or liability attached to and binding real property. These claims often affect the property's use, transferability, or value.
Incurable depreciation or obsolescence refers to a defect in a property that cannot be rectified or is not financially feasible to rectify, often due to fundamental structural issues.
Indemnify refers to the act of protecting another party against loss or damage, typically through compensation. This term is commonly used in insurance and real estate transactions to ensure that financial loss is mitigated.
An indenture is a formal legal agreement made between two or more parties, especially regarding obligations in the world of real estate, finance, and bond issuance.
An Independent Contractor is a self-employed individual who provides services to a client under terms specified in a contract. Independent contractors are responsible for their own taxes, benefits, and often have more flexibility in their work schedules.
Industrial property refers to real estate used for industrial purposes, such as housing manufacturing plants, warehouses, and research facilities. These properties are specifically designed to support industrial operations and can vary widely in terms of their structure and usage.
An inflation hedge is an investment that is expected to maintain or increase its value over time, even as the purchasing power of money declines due to inflation.
Inflation in real estate refers to the rise in property prices due to the diminished purchasing power of money over time. This effect can make real estate a popular choice as a hedge against inflation.
The Initial Rate Period is the timeframe in an Adjustable-Rate Mortgage (ARM) during which the initial interest rate is fixed. This period lasts until the first scheduled adjustment, after which the interest rate is recalibrated according to the underlying index.
In real estate, an inside lot refers to a plot of land within a subdivision that is enclosed by other lots on its sides, rather than a corner lot which has road frontage on at least two sides.
An installment sale is a sales method in which the seller receives payments over time and reports a portion of the capital gain to tax authorities as payments are received, thus spreading tax liabilities.
The insurable value is the cost of total replacement of destructible improvements to a property, which insurers consider when issuing coverage.
Insurance provides protection against loss resulting from hazards such as fire and wind over a specified period. The property owner's risk is assumed by the insurer in return for the payment of a policy premium. It is a crucial element in real estate transactions and property management.
An insured mortgage is a type of home loan that is backed by either private mortgage insurance or government mortgage insurance programs to protect lenders against borrower default.
Intangible property refers to nonphysical assets that hold value and can be legally transferred or owned. Unlike tangible property such as buildings or land, intangible property includes items that do not have a physical presence but represent financial value or legal rights.
Intangible value refers to the worth of an asset that cannot be physically seen or touched, such as brand reputation, intellectual property, and goodwill.
Inter vivos is a legal term referring to a transfer or gift made during a person's lifetime, as opposed to one made as part of a will or posthumously. This type of transaction is typically irrevocable.
An interest-only loan is a type of financing where the borrower only pays the interest on the principal balance at regular intervals until the loan reaches its maturity date, at which time the full principal amount becomes due. This type of loan does not require amortization during the length of the loan term.
Interim Financing is a short-term loan used when a property owner is unable or unwilling to arrange permanent financing. It often includes a CONSTRUCTION LOAN and is typically arranged for less than three years, allowing time for financial or market conditions to improve.
Internal Rate of Return (IRR) is a crucial financial metric used to evaluate the attractiveness of an investment by calculating the annualized rate of return earned over the investment's lifespan, taking into account the effect of compound interest.
The International Association of Assessing Officers (IAAO) is a professional organization dedicated to promoting excellence in property appraisal, assessment administration, and property tax policy.
The International Council of Shopping Centers (ICSC) is a prominent nonprofit association that supports the shopping center industry through a variety of resources, publications, and events focusing on financial, leasing, and legal matters.
An investment involves the allocation of resources, usually money, into assets or ventures with the expectation of generating income or profit. It aims at wealth preservation and enhancement.
An involuntary lien is a legal claim against property imposed without the owner's consent, often due to unpaid obligations like taxes or special assessments.
The International Right of Way Association (IR/WA) is a professional member organization compromised of global infrastructure real estate practitioners. IR/WA provides education, best practices, and forums for discussion to facilitate real estate and infrastructure professionals in acquiring land rights.
An Italian Villa is a Latin-style, substantial 2- or 3-story house often constructed from masonry with prominent overhanging eaves.
Joint Tenancy refers to the ownership of property by two or more individuals who collectively hold an undivided interest in the real estate, alongside the right of survivorship. This arrangement ensures that when one joint tenant passes away, their interest in the property automatically transfers to the surviving joint tenant(s).
A Joint Venture (JV) is an agreement between two or more parties to pool their resources for the purpose of accomplishing a specific task. This task can be a business activity or a property investment. Each party in the joint venture retains their individual profits, losses, and assets, while jointly sharing control over the project.
A judgment lien is a court-ordered claim upon a debtor's property, established to satisfy a debt ruled upon in a court of law. This lien ensures the creditor's right to a debtor's asset in case of non-payment.
A junior lien, also known as a junior mortgage, is a type of lien or security interest that is registered on a property after a primary, or senior, lien. These liens are subordinate to the senior lien in terms of priority and repayment during foreclosure.
Junk fees are charges levied by a lender at closing in the hope that the borrower will neither question them nor abort the transaction. These fees often are of a questionable nature but are relatively small compared to other legitimate closing costs.
Land encompasses any part of the Earth's surface that is not covered by water. It is a fundamental real estate term that includes the ground itself, soil, and any other sub-surface materials.
Land economics is a branch of economics that studies the allocation, use, and value of land. This field aims to understand how land resources are utilized, valued, and managed, with a special focus on agriculture and urban development. It integrates knowledge from geography, environmental studies, and economic theory to analyze land-related issues.
A land lease, also known as a ground lease, is a contractual agreement where the tenant leases the land on which they intend to construct a building or other improvements, while the land itself remains the property of the landlord.
A land lease community is a type of housing development where homeowners lease the land under their homes from a landowner who often provides community infrastructure and amenities. These communities are commonly associated with manufactured or mobile homes.
A land sale-leaseback is a financial transaction where the owner of a piece of land sells it to an investor and simultaneously enters into a lease agreement to continue using the land for a specified period.
In early English law, the phrase 'land, tenements, and hereditaments' was used to encompass all sorts of real property, including the rights and interests inherent in real estate ownership.
Landlocked refers to a condition where a property has no direct access to a public road, requiring access through an adjacent property.
A landmark can serve as a boundary marker for land, or it could be a historically significant or well-known structure that attracts attention and tourist interest.
Latent defects are hidden flaws in a property that are not apparent at the time of purchase or during an initial inspection but may reveal themselves later, often causing significant issues.
Leaking Underground Storage Tanks (LUSTs) are a major environmental concern, as they can release hazardous substances into the ground, posing risks to both the environment and human health.
A lease is a legal contract in which the entity entitled to the possession of real property (lessor) transfers those rights to another entity (lessee) for a specified period in exchange for payment called rent.
A Lease with Option to Purchase is a leasing arrangement where the lessee (tenant) has the right to purchase the leased property at a predetermined price within a specified timeframe, subject to certain conditions.
A leasehold estate refers to a tenant’s right to occupy and use real estate for a defined period as stipulated in a lease agreement. Leasehold estates provide tenants with significant rights over the property during the lease term.
Leasehold improvements refer to any changes or additions made to a rental space by a tenant that are intended to enhance or adapt the space for their particular use. These modifications are typically attached to the property, involve investment in fixtures or installations, and must comply with the terms of the lease agreement.
A leasehold mortgage is a lien placed on a tenant’s interest in real estate, usually a long-term lease, to provide security for the repayment of a loan.
A legal description is a formally recognized and unique identifier used to describe the precise boundaries of a parcel of real estate. It is essential for legal transactions including deeds, mortgages, and other property-related documents.
A legal entity is an individual, company, or organization that has legal rights and obligations, including the ability to enter into contracts, sue and be sued, own assets, and borrow money.
Lender’s Title Insurance, also known as Mortgagee’s Title Insurance, provides protection to mortgage lenders against any issues that may arise with a property's title, such as disputes or defects.
A lessor is a person or entity that rents out property to another party, known as the lessee, under the terms outlined in a lease agreement. Often referred to as the landlord, the lessor retains ownership of the property while allowing the lessee to use it for a specified period.
In real estate, a 'LET' refers to the act of renting out a property to a tenant. It commonly applies to residential or commercial properties that are being leased for an agreed-upon rent amount over a specified period.
A legal document indicating that a tenant recognizes a new owner of the property as their landlord, effectively transferring tenancy.
A Letter of Commitment serves as official notification to a borrower from a lender, indicating the latter's intent to grant a loan. This letter typically specifies the terms of the loan, including interest rate, loan term, and sets a date for closing.
In real estate, liability refers to any legal debts or financial obligations incurred during the course of business. It stands in contrast to assets, which represent ownership of resources or properties.
License laws govern the activities of real estate salespersons to ensure that transactions are conducted fairly, ethically, and legally, thereby protecting consumers and maintaining integrity in the marketplace.
A lien is a legal claim or right against a property that is used as security for the payment of a debt, judgment, mortgage, or taxes. It serves as an encumbrance and imposes restrictions on transferring the property until the debt is satisfied.
A lienholder is an individual or entity that holds a lien on a property, thus having a legal right or claim against the property as a security for a debt or obligation.
A plan offered by some real estate brokers that allows buyers or sellers to contract for less than the full array of brokerage services at reduced commission rates.
A LINK is a unit of distance commonly used by surveyors, where 100 links form a surveyor’s chain. One link is equivalent to 7.92 inches or 0.66 foot.
The term 'linkage' in real estate refers to the physical or economic connection, often pertaining to the time and distance between a land use and support facilities, or between people and their activities. Successful linkage leads to enhanced property value and better quality of life for residents.
Liquidity refers to the ease with which an asset can be quickly converted into cash without significantly affecting its market price. This concept is crucial in financial and real estate contexts, as it influences the ability to sell assets promptly and efficiently.
A listing agreement, also known as a listing contract, is a legally binding contract between a property owner and a real estate broker or agent that details the terms and conditions under which the broker will market, promote, and sell the property.
The term 'Littoral' pertains to properties situated adjacent to a large body of water, such as an ocean, sea, or lake. This term is differentiated from 'Riparian,' which refers to properties adjoining a river, stream, or other flowing body of water.
A loan application fee is a non-refundable charge required by a loan originator to cover the credit report, property appraisal, and other incidental expenses associated with underwriting a loan.
Loan closing, often simply referred to as closing, is the final step in the mortgage process where the borrower and lender finalize various agreements and settle necessary payments to transfer ownership of a property.
A Loan Discount is a type of fee that some lenders charge at the origination of a loan to lower the interest rate charged during subsequent payments. It’s commonly known as discount points.
Loan fraud involves intentionally providing false information on a loan application to qualify for a loan or secure better terms. This illegal act can lead to civil liability and criminal penalties.
A loan lock, or locked-in interest rate, is an agreement between a mortgage lender and a borrower that secures a specified interest rate on a mortgage for a predetermined period, usually ranging from 30 to 60 days.
A loan officer assists borrowers throughout the loan application process, coordinating between the borrower and financial institutions to ensure the information provided supports the approval of the loan application.
Loan servicing encompasses the administrative aspects of a loan from the moment the proceeds are disbursed to the borrower until the loan is paid in full. This includes the collection of principal, interest, and escrow payments, as well as handling defaults and foreclosures, if necessary.
The phrase 'Location, Location, Location' emphasizes that the location of a property is one of the primary factors influencing its value. The statement underscores that the geographical location outweighs almost all other variables in determining real estate prices.
A lockbox is a secure device placed near the door of a house for sale; it can be opened with a key or combination code given only to members of a Multiple Listing Service (MLS). The lockbox contains a key to the house, providing MLS members access to show the property to clients.
