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Assignee - Individual to whom a
contract is assigned. |
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Assignor - An individual who
transfers a contract to another individual. |
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Base Year Lease Represents
base year expenses. In these leases tenants pay a prorate
share of increase in expenses over base year. Landlords
expenses stay at base year lease rates. |
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Cap Rate - Net Income/Purchase
Price * 100 |
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Capital Improvement - Any major
physical development or redevelopment to a property that
extends the life of the property. |
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Char Service Janitorial
service expenses. |
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Chattel - Household goods,
including personal property such as lamps, desks, and
chairs. |
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Common Area Maintenance (CAM) -
This is the amount of additional rent charged to the tenant,
in addition to the base rent, to maintain the common areas
of the property shared by the tenants and from which all
tenants benefit. Examples include: snow removal, outdoor
lighting, parking lot sweeping, insurance, property taxes,
doorman, concierges, security, alarm, utilities associated
with common areas, etc. Most often, this does not include
any capital improvements that are made to the property. |
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Covenants - Wording found in
deeds that limit or restrict the use to which a property may
be put. |
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Deed Restriction - An imposed
restriction in a deed that limits the use of the property.
For example, a restriction could prohibit the sale of
alcoholic beverages. |
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Ejectment - Action to regain
possession or real property. This is a last-ditch effort
that is used when there is no relationship between landlord
and tenant. |
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Eminent Domain - The
government's right to condemn and acquire property for
public use. The government must provide the owner fair
compensation. |
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Escrow - A written agreement
among parties, requiring that certain property/funds be
placed with a third party. The object in escrow is released
to a designated entity upon completion of some specific
occurrence. |
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Estoppel Certificate - A legal
instrument executed by the one taking out the mortgage
(i.e., mortgagor). The owner of a property may require an
individual leasing a property to sign an estoppel
certificate, which verifies the major points (i.e., base
rent, lease commencement and expiration) existing lease
between the landlord and tenant. |
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Eviction (Actual) - Physical
removal of a tenant either by law or force. |
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Eviction (Constructive) - The
landlord or his agents disturb the tenant, rendering the
leased space unfit for the tenant's previous use. |
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Exclusive Agency - An agreement
in which one broker has exclusive rights to represent the
owner or tenant. If another broker is used, both the
original and actual broker are entitled to leasing
commissions. |
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Fiduciary - A person who
represents another on financial/property matters. |
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Fixtures -Personal property so
attached the land or building (i.e., improvements) it is
considered part of the real property. |
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Flex Space Building is
flexible and can be office, warehouse, and other industrial
uses. |
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Gross Lease - A lease of
property whereby the landlord (i.e., lessor) pays for all
property charges usually included in ownership. These
charges can include utilities, taxes, and maintenance, among
others. |
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Joint Tenancy - Ownership of
real property by two or more individuals, each of whom has
an undivided interest with the right of survivorship. |
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Lease - A contract whereby the
landlord grants the tenant the right to occupy defined space
for a set period at a specific price (i.e., rent). |
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Leasehold - The estate or
interest a tenant has as stated in the tenant's lease. |
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Lessee - An individual (i.e.,
tenant) to whom property is rented under a lease. |
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Lessor - An individual (i.e.
landlord) who rents property to a tenant via a lease. |
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Letter of Intent - An informal,
usually non-binding, agreement among parties indicating
their serious desire to move forward with negotiations. |
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Listing - An employment
contract between principal and agent that authorizes the
agent (such as a broker) to perform services for the
principal and his property. |
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Loss Factor - What percentage
of the gross area of a space is lost due to walls, elevator,
etc. Rule of thumb in Manhattan is approximately 15%. |
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Market Price - The actual
selling or leasing price of a property. |
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Market Value - The expected
price that a property should bring if exposed for lease in
the open market for a reasonable period of time and with
market savvy landlords and tenants. |
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Multiple Listing - An
arrangement among Real Estate Board of Exchange Members,
whereby each broker presents the broker's listings to the
attention of the other members so that if a lease results,
the commission is divided between the broker bringing the
listing and the broker making the lease. |
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Negative Absorption - the sum
of both space vacated and empty new square footage coming on
line. |
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Net Lease - Also called triple
net lease. The lessee pays not only a fixed rental charge
but also expenses on the rented property, including
maintenance. |
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Non-Disturbance Agreement - The
tenant signs this to prevent himself from being evicted if
the property owner does not pay its mortgage to the bank. |
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Notary Public - A public
officer who is authorized to witness and verify certain
documents (i.e., contracts, deeds, mortgages). Also, an
affidavit may be sworn before this public officer. |
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Obligee - The person who will
receive the outcome of an obligation. |
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Obligor - An individual who has
engaged to perform an obligation to another person (i.e.,
obligee). |
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Open Listing - A listing given
to any broker without liability to compensate any broker
except the one who first secures a buyer who is ready,
willing, and able to meet the terms of the listing, or
secures the acceptance by the landlord of a satisfactory
offer; the lease of the property automatically terminates
the listing. |
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Option - A right given to
purchase or lease a property upon specified terms within a
specified time. If the right is not exercised, the option
holder is not subject to liability for damages. If the
holder of the option exercises it, the grantor of option
must perform the option's requirements. |
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Percentage Lease - A lease of
property in which the rent is based upon the percentage of
the sales volume made on the specific premises. There is
usually a clause for a minimum rent as well. |
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Personal Property - Any
property which is not real property. Examples include
furniture, clothing, and artwork. |
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Power of Attorney - A written
instrument duly signed and executed by an individual which
authorizes an agent to act on his behalf to the extent
indicated in the document. |
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Principal - The employer (i.e.,
landlord) of an agent or broker. This is the agent's or
broker's client. |
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Quiet Enjoyment - The right of
an landlord or tenant to use the property without
disturbances. |
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Real Estate Syndicate - When
partners (either with or without unlimited liability) form a
partnership to participate in a real estate venture. |
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Real Property - Land and any
capital improvements (i.e., buildings) erected on the
property. |
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Reserves for Replacement Are
funds put aside by the landlord from proceeds from the
tenant for replacement (typically for roof and redoing
parking lot). |
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Residential Hotels with Residential
Designation - Residential meaning can be rented by
the week or month but not nightly. During tourist season
May thru Oct 25% of rooms can be rented nightly. |
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Restriction - A restriction,
often specified in the deed, on the use of property. |
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Situs - The location of a
property. |
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Specific Performance - When a
court requires a defendant to carry out the terms of an
agreement or contract. |
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Square Feet - The usual method
by which rental space is defined. It is the area of that
space, calculated by taking length times width. For example,
a room 30 feet by 60 feet has an area of 1,800 square feet. |
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Subagent - An agent of an
individual already acting as an agent of a principal. |
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Subletting - The leasing of
space from one tenant to another tenant. |
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Surrender - The cancellation of
a lease by mutual consent of the tenant and the landlord. |
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Tenancy at Will - A license to
occupy or use lands and buildings at the will of the
landlord. |
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Tenancy by the Entirety - An
estate which exists only between husband and wife. Each has
equal right of enjoyment and possession during their joint
lives, and each has the right of survivorship. |
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Tenant Improvements - Work done
on the interior of a space, can be paid for by landlord,
tenant, or some combination of both, depending on the terms
of the lease. |
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Tenant Improvement Allowance (TI)
- Landlord agrees to provide property to Tenant in a certain
condition and a Tenant Improvement Allowance for the tenant
to develop the property. |
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Tenancy in Common - Ownership
of property by two or more individuals, each of whom has an
undivided interest, without the right of survivorship. |
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Tenants at Sufferance - An
individual who comes to possess land via lawful title and
keeps it in perpetuity without any title. |
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Tie-in Arrangement - A contract
where one transaction depends upon another transaction. |
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Triple Net Lease - A lease
requiring tenants to pay all utilities, insurance, taxes,
and maintenance costs. |
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Valuation - Estimated price,
value, or worth. Also, the act of identifying a property's
worth via an appraisal. |
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Variance - Government
authorization to use or develop a property in a manner which
is not permitted by the applicable zoning regulations. |
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Violation - Act, condition, or
deed that violates the permissible use of property. |
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Void - Something that is
unenforceable. |
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Voidable - A situation which is
capable of being unenforceable but is not so unless direct
action is taken. |
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Waiver - The intentional
relinquishment or abandonment of a specific claim,
privilege, or right. |
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Work Letter - An amount of
money that a landlord agrees to spend on the construction of
the interior of a space per the lease, usually negotiated. |
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Zone - An area, delineated by a
governmental authority, which is authorized for and limited
to specific uses. |
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Zoning Ordinance - A law by a
local governmental authority (i.e., city or county) that
sets the parameters for which the property may be put to
use. |