Rurban areas are located on the fringe of urban development, transitioning from rural characteristics to being developed for urban uses. These areas often showcase a mix of rural and urban features.
The Sales Comparison Approach is one of the three primary appraisal approaches used to estimate the market value of a property by comparing it to similar properties that have recently sold in the same area.
The sales price is the amount of money required to be paid for real estate according to a contract, or previously paid. It can include cash payments and assumptions of existing mortgages.
A sandwich lease is a real estate arrangement in which a lessee becomes a lessor by subletting the property. This intermediate leaseholder holds a secondary lease between the property owner and the end user, typically without owning or primarily using the property.
A Savings and Loan Association (S&L) or thrift is a financial institution that focuses on accepting deposits from members and providing home mortgage loans.
A scenic easement is an encumbrance on the title to a property intended to preserve its natural or undeveloped state, often to protect the aesthetic or environmental values of the area.
A Section (of Land) is a unit of area measurement in the U.S. Public Land Survey System (PLSS) often used in real estate and land development. It is defined as one square mile and is part of a larger 6-mile by 6-mile Township.
Section 121 of the Internal Revenue Code pertains to the exclusion of gain from the sale of a principal residence. It provides guidelines on the criteria and limitations for income exclusion, ensuring taxpayers benefit from tax relief on qualifying property sales.
Section 1221 of the Internal Revenue Code specifies what does not constitute a capital asset, crucial for determining tax treatment of different assets.
Section 1250 is a part of the Internal Revenue Code that deals with gains from real estate where accelerated depreciation has been claimed. Although its significance has been reduced after 1986, it remains relevant for dealing with gains involved in real estate transactions.
Section 167 is the part of the Internal Revenue Code (IRC) that deals with depreciation for property, including real estate. This section provides guidelines for the allowance of depreciation deductions for tax purposes.
A Secured Loan is a loan that is backed by an asset or collateral, reducing the risk for the lender and often resulting in lower interest rates for the borrower. Examples include mortgages and auto loans.
A security instrument is an interest in real estate that allows the property to be sold upon a default on the obligation for which the security interest was created.
Security interest refers to a legal claim on collateral that has been pledged, usually to obtain a loan or other obligation.
A see-through building refers to a vacant or largely unoccupied building, typically characterized by its clear visibility from one side to the other due to the absence of tenants or furnishings.
A Seller’s Market refers to economic conditions where demand exceeds supply, allowing sellers to have more negotiating power and often leading to increasing prices and market activity.
In community property states, separate property refers to property acquired by either spouse prior to marriage or by gift or devise after marriage, as distinct from community property.
Settling refers to the movement, generally a sinking or shifting, of a building due to its weight and/or soil shrinkage. It's normal and expected to some degree, varying based on construction and soil characteristics.
Severance damages compensate for the reduction in value suffered by a property owner when part of their property is taken through condemnation, often ensuring that they are fairly compensated for the resultant loss and inconvenience.
Shakes are rough shingles split from a piece of log, usually cedar, used for roofing and siding.
A shared equity mortgage is a home loan where the lender is granted a share of the equity, allowing the lender to participate in the proceeds from the resale of the property. After satisfying the unpaid balance of the loan, the borrower splits the remainder of the proceeds with the lender.
A short sale is a financial arrangement where a mortgagor settles their outstanding mortgage debt with a payment that is less than the principal balance owed. This process helps avoid foreclosure and can be used as an alternative solution for struggling homeowners.
Single-family housing is a type of residential structure designed to include one dwelling unit. These homes may stand alone or share walls with adjacent units, but they maintain separate access to the outside and do not share essential systems like plumbing and heating.
A plot of land prepared for or underlying a structure or development. This term refers to the specific location of a property, including its geographic, environmental, and infrastructural features.
A Site Assessment (Environmental) is a crucial evaluation process used to identify any potential environmental contaminants or liabilities present on a specified piece of real estate.
Site improvements refer to modifications and enhancements made to a parcel of land to increase its usability, safety, and appearance, facilitating better utility of any structures built on it.
A site-built home is a type of residential structure that is constructed primarily on its assigned site using stock materials. Although some components may be prefabricated off-site, the home is erected, framed, and finished by workers on location.
Situs refers to the economic attributes of location, encompassing the relationship between a property and surrounding properties, distant points of interest, and the linkages to those points. This aspect of location contributes significantly to the market value of real estate.
Slab foundation, or simply 'Slab', refers to a flat, poured concrete building base, lacking basements, commonly used in residential construction, especially in areas prone to soil movement or those with high water tables.
A soft market in real estate refers to a market condition where there is an oversupply of properties, leading to decreased demand and lower prices, often creating favorable conditions for buyers.
Southern Colonial is a large, early-American-style, 2- or 3-story frame house with a characteristic colonnade extending across the front. The roof extends over the colonnade.
A special assessment is a unique tax levied on property owners to fund public improvements that directly benefit their property, such as new curbs, gutters, sidewalks, or street lighting.
A Special Warranty Deed is a type of deed in real estate where the grantor warrants only against title defects or claims that arose during their ownership of the property, not for previous owners.
A special-purpose property is a building with unique features and limited uses, making its marketability niche-driven. Examples include churches, theaters, schools, or public utilities.
Specific performance is a legal remedy where a court orders a party to fulfill the terms of a contract if they have refused to do so, particularly common in real estate due to the unique nature of property.
Specific performance is a legal remedy in real estate contracts where the court orders the breaching party to perform their contractual obligations, typically involving the transfer of property.
A speculator is an investor who engages in risky financial transactions with the hope of substantial gains by forecasting future market events.
A split-level home, also known as a tri-level, is a residential property style where the floor levels are staggered. These homes typically have at least two sets of stairs, leading to different story levels.
Squatter’s rights refer to the legal allowance to use the property of another in the absence of an attempt by the owner to force eviction. Over time, this right may eventually be converted to title to the property through adverse possession, if recognized by state law. It does not apply to publicly owned property.
A stakeholder in real estate is an individual or group that has an interest or can be affected by decisions regarding land or property usage. This term is often used to justify government regulations that affect private property rights.
A method for determining just compensation for condemnation prevalent in many states, providing a detailed procedural framework for property valuation unlike the more general Before-and-After Rule.
A structure refers to any constructed improvement to a site. This term encompasses a wide range of edifices such as buildings, fencing and enclosures, garages, gazebos, greenhouses, kiosks, sheds, and utility buildings.
Subdividing involves dividing a tract of land into smaller individual lots, which can then be sold separately or developed. The process of subdividing land typically involves planning, land surveying, zoning considerations, and obtaining the necessary permits.
Subdivision refers to the process of dividing a tract of land into smaller lots, typically for the purpose of homebuilding or development. This process often requires recording a subdivision plat in accordance with state and local regulations.
Acquiring property with an existing mortgage, but the buyer does not become personally liable for the debt. Contrasted with assumption of mortgage.
A subordinated ground lease is a lease agreement wherein the mortgage on the property holds priority over the ground lease. This structure can affect the leaseholder's rights, particularly in cases of foreclosure.
A sunspace, also known as a sunroom or solarium, is a room with extensive glass walls and often a glass roof that is designed to capture solar energy. This additional space can naturally heat a home, provide light, and offer a luxurious area for relaxation.
Surrender refers to the cancellation of a lease by mutual consent of the lessor and the lessee, where both parties agree to terminate the lease agreement before its stipulated end date.
A survey in real estate refers to the process by which a parcel of land is measured and its area ascertained. It involves detailed measurements, boundaries, areas, and contours and can also refer to canvassing attitudes or market characteristics in the real estate market.
A surveyor is a professional who specializes in determining the terrestrial or three-dimensional positions of points and the distances and angles between them. They typically work on land surveys to establish property boundaries, create topographic maps, and facilitate construction projects. In real estate, surveyors play a crucial role in validating property lines, legal descriptions, and ensuring compliance with zoning and building codes.
Sum-of-Years’-Digits (SYD) is an accelerated depreciation method that segments the depreciation of an asset by applying larger deductions at the beginning of the asset's useful life and smaller deductions towards the end.
Tangible property refers to physical assets that can be seen and touched. This includes real estate, personal property, and other valuables.
A Tax Appeal or Tax Protest is an effort to reduce ad valorem property taxes, typically based on the argument that the assessed value is greater than the market value or that the assessment does not ensure equal and uniform taxation.
Tax assessment is the valuation of real estate property by a government entity to determine the property's tax liability. The assessed value is used to calculate the property taxes owed by the property owner.
The tax base refers to the collective value of property, income, or other taxable assets and activities that are subject to taxation. It is crucial in determining tax revenues as it forms the basis upon which tax rates are applied.
Tax Basis, also known as Basis (Tax), refers to the original value of a property or asset for tax purposes, with potential adjustments over time reflecting improvements, depreciation, or other factors.
A tax credit is a direct reduction in the amount of tax that a taxpayer owes to the government. Unlike tax deductions, which reduce the amount of taxable income, tax credits reduce the actual tax due, providing dollar-for-dollar savings.
A tax deed is a legal document transferring ownership of a property to a purchaser following a public auction for unpaid property taxes.
Tax foreclosure is the process of enforcing a lien against property for nonpayment of delinquent property taxes. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes.
A tax lien is a legal claim by a government entity against a property when the owner fails to pay taxes owed, effectively securing the amount of delinquent tax against the property.
The tax rate is the ratio of a tax assessment to the amount being taxed and is a crucial factor in determining the tax liability of property owners. This rate can vary widely based on location and the type of tax being applied.
A tax roll is the comprehensive list of real estate properties within a specific jurisdiction that are subject to property taxes. It includes details about the properties' assessed values, which are used to determine the property tax liabilities.
A tax sale is the sale of property after a period of nonpayment of taxes, where the purchaser receives a tax deed. The defaulting owner typically has a redemption period to reclaim the property by paying owed amounts.
Tax-exempt property, often pivotal in supporting non-profit organizations and government entities, refers to real estate that is not subject, in whole or in part, to ad valorem property taxes.
Tenancy at will is an arrangement where a tenant occupies a property with the specific permission of the landlord but without a lease, lasting as long as both parties agree.
A tenancy for years is defined by a lease agreement for a specified period, such as months or years, typically fixed from the outset.
Tenancy In Common (TIC) is a form of real estate ownership by two or more parties, where each holds an undivided interest in the property without rights of survivorship.
A tenant is an individual or organization that holds the right to use and occupy real estate property owned by another entity, typically under a lease agreement for a fixed or indefinite period.
Tenant fixtures are installations or improvements made by a lessee that can be removed upon the expiration of the lease.
Tenements refer to certain types of property, particularly older apartment units, and generally describe structures that are permanent and attached to land. They form part of the broader category of real property.
A termite inspection is an examination of a structure by qualified personnel to determine the presence of termite infestation. This is often a requirement stipulated in a real estate sales contract to protect the buyer from purchasing a property with termite-related damages.
Termites are insects that bore into wood and destroy it, often leading to significant structural damage in properties.
A testator is a person who has made a will or given a legacy. In general law, a testator is the individual who explicitly provides their desires regarding the distribution of their estate upon their death through the legal document known as a will.
A third party is an individual or entity that is not directly involved in a transaction or contract but may still be involved or affected by it. Third parties serve different roles in real estate transactions, such as tenants, escrow agents, or other relevant stakeholders.
The phrase 'Time Is of the Essence' in a contract requires that all time-related provisions must be strictly adhered to, emphasizing that any delays could be a breach of contract.
Timeshares allow multiple parties to own a share of a property, granting them the right to use it during specific time periods each year. This form of property ownership is often utilized for vacation destinations and resort properties.
A Title Abstract, or Abstract of Title, is a comprehensive summary of the history of a piece of real estate. It includes a chronological record of all historical transactions, liens, easements, encumbrances, and other activities affecting ownership rights.
A Title Binder is a temporary form of title insurance that signifies the intent to issue a title insurance policy at a later date. Typically used in real estate transactions, it offers interim coverage from the time the property sale contract is signed until the closing, when a full title insurance policy is issued.
A title company plays a crucial role in the real estate transaction process by examining titles, holding earnest money, and issuing title insurance. Their services ensure that the title to a property is free from any liens or disputes before the transaction is finalized.
A Title Opinion is a professional judgment provided by an attorney or a title company attorney concerning the validity of an owner’s rights to a property, following a comprehensive title search.
A Title Plant is an organized database containing comprehensive information on land parcels and improved real estate properties, maintained by title insurance companies to facilitate the process of title searches and ensure accurate title documentation.
A document that indicates the current state of the title, detailing easements, covenants, liens, and any defects, but not describing the chain of title. It assures the buyer of clear title to a property.
Topography refers to the arrangement of the natural and artificial physical features of an area. It encompasses the terrain, elevation, and landforms, and significantly influences real estate value, construction feasibility, and property management.
The Torrens System is a land registration system that provides conclusive evidence of land ownership and simplifies the process of verifying property title status, eliminating the need for comprehensive title searches.
A township is a 6-mile square tract delineated by a government rectangular survey system used primarily in the United States to specify land ownership and real estate bounds.
A large area of land, usually subdivided into smaller parcels for the purposes of development or sale.
A trade area, also known as a market area, refers to the geographical region from which a business, especially a retail or service enterprise, draws its customers. This concept is crucial in real estate and retail industries for strategic planning, marketing, and site selection.
Trading Up refers to the process of buying a larger or more expensive property, often done to accommodate growing families, enhance lifestyle, or secure better investment opportunities.
Transaction costs are the expenses incurred during the process of buying and selling real estate, ranging from legal fees to broker commissions, and various other charges ensuring the successful transfer of property.
Transferable Development Rights (TDR) are a zoning tool that allows property owners to transfer the right to develop one parcel of land to another parcel, facilitating controlled urban development and the preservation of resources.
A transition room, commonly known as a mudroom, is an entryway space in a house designed to serve as a barrier between the outdoors and the home interior. It typically includes storage for outerwear and footwear, providing a place to remove and store dirty or wet garments before entering the main living areas.
A legal arrangement where property is transferred to a trustee, who manages it for the benefit of the beneficiary.
A trust deed is a conveyance of real estate to a third party to be held for the benefit of another. Commonly used in certain states in place of mortgages, it conditionally conveys title to a lender.
A trustee is an individual or organization that holds or manages property or assets for the benefit of another party. Trustees are often seen in trust deeds, and they have a fundamental role in ensuring the terms of the trust are adhered to, typically within a fiduciary or neutral capacity.
A trustee's sale is a type of foreclosure sale conducted by a trustee under the stipulations of a deed of trust, where the property is auctioned off to recover the owed debt.
Turnover rate refers to the percentage of tenants, employees, or salespeople that leave a property, company, or organization within a specific time frame, typically within a year.
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.
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.
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.
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.
