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A legal notice issued to the owner or occupier of a property, warning them to cease a nuisance or face legal action. It can relate to issues such as noise, pollution, or parking violations.
A title to property free from any encumbrances or disputes. This provides the owner with complete ownership that cannot be legally contested.
A unit of area measuring 43,560 square feet or approximately 4,047 square meters, commonly used to measure land parcels.
A method of depreciating property faster in the initial years of ownership to account for wear and tear or obsolescence at a quicker pace.
A clause in a loan agreement that allows the lender to demand immediate repayment of the full loan amount if specific conditions are not met, such as default or unauthorized transfer of property.
The ratio of usable square feet to rentable square feet in a commercial lease, typically accounting for shared spaces like lobbies and hallways. It helps tenants compare leasing offers.
A payment made upfront in a real estate transaction, often securing the buyer’s commitment. In sales, this is called earnest money, and in rentals, it usually covers the first month’s rent.
A property transaction where the buyer pays the full price in cash without any financing or loans involved.
A legal document provided by the seller, affirming ownership of the property and disclosing any potential legal issues, such as liens or claims against the property.
A legal agreement between buyer and seller that sets the terms of the sale. It typically precedes the execution of the final sale deed.
The value of a property based on a potential use that differs from its current one, often factored into valuations for redevelopment purposes.
A letter issued by a developer or authority assigning a specific property (under development) to a buyer. It typically outlines payment schedules and other terms.
Features or facilities that enhance a property’s value, such as parks, swimming pools, gyms, or community centers.
The process of paying off a loan over time, with payments divided between interest and principal. Over time, the interest portion decreases while the principal portion increases.
A large or well-known store (such as a supermarket or department store) that attracts shoppers to a mall or commercial center, helping smaller businesses in the same location.
A professional evaluation of a property’s value, typically conducted by a certified real estate appraiser for transactions like purchases, sales, or refinancing.
An increase in property value due to factors like demand, improvements, or market conditions.
A method of resolving disputes outside of court, where a neutral third party makes a decision that both sides agree to abide by.
A term often used in foreclosures or auctions, meaning the buyer accepts the property in its current condition, including any physical or legal issues.
The price at which a property is listed for sale, which may not necessarily be the final selling price after negotiations.
The value assigned to a property by a tax authority, used to determine the property taxes owed.
An item with economic value, such as real estate, which can generate future benefits, like rental income or resale value.
The process of determining the value of an asset, often used when buying, selling, or insuring a property.
A person who receives the rights or interests in a property, usually through an assignment of lease or title.
The transfer of a property or lease from one party to another.
The person or entity transferring rights or interests in a property to another party.
A public sale of property, typically sold to the highest bidder.
The person or entity that receives the benefits from a trust, insurance policy, or other financial instrument, often named in a property trust or mortgage agreement.
An offer made by a prospective buyer to purchase a property at a specific price, often submitted during an auction or negotiation process.
A legal document that transfers ownership of personal property from one party to another. In real estate, it may be used for transferring movable items (like appliances) during the sale of a house.
A violation of the terms or conditions set forth in a legally binding agreement, such as failing to make a mortgage payment or deliver possession of a property on time.
A short-term loan used to finance the purchase of a new property while the borrower is still in the process of selling their existing property. It “bridges” the financial gap between transactions.
A licensed individual or firm that arranges transactions between buyers and sellers in real estate. Brokers typically earn a commission for their services.
A business that facilitates real estate transactions, connecting buyers and sellers or landlords and tenants.
A property or land area that is contaminated or potentially contaminated with hazardous materials, usually as a result of previous industrial or commercial activity. Remediation may be required before development.
A set of local or national regulations that specify standards for construction and building safety. These codes ensure buildings meet safety, health, and structural requirements.
An official authorization issued by local government that allows construction or renovation to proceed. It ensures compliance with building codes and safety standards.
The total area of a property including all internal spaces, walls, and balconies, but excluding open spaces such as courtyards or gardens.
A market condition in which the supply of homes exceeds demand, giving buyers more negotiating power and generally leading to lower property prices.
A set of rules governing the operation of a homeowner association (HOA) or housing society, outlining responsibilities, procedures, and rights of residents and property owners within a community.
A sale of multiple properties or real estate assets in one transaction, often at a discounted price compared to individual sales.
The profit earned from the sale of a property or investment, calculated as the difference between the selling price and the purchase price. Capital gains are subject to taxation in most jurisdictions.
The actual usable area within the walls of a property where a carpet can be laid, excluding areas like walls, balconies, and common areas. This is the space available for occupants’ use.
A legal document issued by a local government agency certifying that a building is compliant with all building codes and regulations and is suitable for occupancy.
A title to a property that is free from any encumbrances, disputes, or legal claims, allowing the owner to sell or transfer the property without issues.
The expenses incurred by buyers and sellers during the completion of a real estate transaction. These can include legal fees, registration charges, taxes, and lender fees.
Property or assets offered by a borrower to secure a loan. In real estate, the property itself often serves as collateral for the mortgage.
Charges levied on tenants in a commercial property for the maintenance of shared spaces, such as hallways, parking areas, and elevators. These charges are usually part of the overall rent.
A document issued by a local authority confirming that a building has been constructed in accordance with approved plans and regulations, and is ready for occupancy.
Interest calculated on both the initial principal and the accumulated interest from previous periods. In real estate, compound interest may apply to loans or investments.
A type of residential property where individual units are owned separately, but common areas are owned jointly by all unit owners, who also share maintenance costs.
A short-term loan used to finance the construction of a property. These loans are usually converted into a long-term mortgage upon completion of the construction.
An agreement in which the seller retains the title to a property until the buyer has paid in full. The buyer gains possession of the property immediately but does not receive the title until all payments are made.
A legal document that officially transfers ownership of a property from the seller to the buyer. It is typically executed after the final payment has been made in a real estate transaction.
A method of real estate valuation that estimates the price of a property by calculating the cost of constructing a similar building at current prices, minus depreciation, plus the value of the land.
A legally binding condition written into property deeds or contracts that dictates what can or cannot be done with the property. For example, a covenant may restrict property use or require specific maintenance standards.
A numerical rating that reflects a person’s creditworthiness based on their credit history. Lenders often use credit scores to determine loan eligibility and interest rates for real estate financing.
A lending practice where more than one property is used as collateral for a single loan, typically used by real estate investors to secure larger amounts of financing.
The volume of a building or a room calculated by multiplying its length, width, and height. This is used in property valuation and space planning.
The estimated price that a property would fetch in the open market at any given time, considering factors such as demand, supply, and economic conditions.
A legal document that transfers ownership of real estate from one party to another. It contains a description of the property and identifies the buyer (grantee) and seller (grantor).
A legal document in which the borrower transfers the legal title of a property to a trustee as security for a loan. The trustee holds the title until the loan is fully repaid.
A clause in a mortgage contract that voids the mortgage when the borrower repays the loan in full. It ensures that the lender has no further claim on the property once the debt is paid.
The failure to meet the terms of a loan or mortgage agreement, typically by not making scheduled payments. Default can lead to foreclosure or other legal actions by the lender.
Maintenance that has been postponed, which could potentially decrease the value of the property over time if not addressed. It is a common issue with aging properties.
A decrease in the value of a property over time due to wear and tear, age, or obsolescence. In real estate, depreciation is also used as a tax deduction for investment properties.
A sale of a property where the seller is under financial pressure to sell quickly, often at a lower price than the market value. This may occur in cases of foreclosure or financial hardship.
The initial payment made by a buyer towards the purchase of a property. It is usually a percentage of the total purchase price, with the remainder being financed through a loan or mortgage.
A residential building divided into two separate units, each with its own entrance. The units can be side by side or stacked on top of each other.
The comprehensive appraisal or investigation of a property before the buyer completes the transaction. It includes verifying legal ownership, property conditions, and any encumbrances.
The practice of selling properties at a significantly lower price than the market value, typically to attract buyers in a slow market or to clear out unsold inventory.
A legal agreement between a developer and a local government outlining the terms and conditions for the development of a property. This can include zoning changes, infrastructure improvements, and timelines for construction.
A situation where a single real estate agent or brokerage represents both the buyer and the seller in a transaction. In such cases, the agent must act in a fair and neutral manner to both parties.
A clause in a mortgage agreement that requires the borrower to repay the full loan balance when the property is sold or transferred to another party.
A provision in a deed that limits how the property can be used. For example, it may restrict the type of buildings that can be constructed or prohibit certain activities on the property.
A real estate closing where all documents are signed, but the funds are not disbursed until certain conditions are met, such as finalizing loan approval or clearing title issues.
The total amount of money required to cover the repayment of interest and principal on a loan or mortgage within a given period, typically monthly or annually.
The release of funds from a loan or escrow account to pay for various costs associated with a real estate transaction, such as construction costs or closing fees.
A schedule that outlines when a lender will disburse funds to a borrower during the construction of a property, based on the completion of certain milestones.
A clause in a lease agreement that gives the landlord the right to terminate the lease if the building is slated for demolition or redevelopment.
A legal right to use someone else’s land for a specific purpose, such as access to a road, utility lines, or drainage. Easements are commonly granted to utility companies or neighboring properties.
A deposit made by a buyer to show their serious intent to purchase a property. The money is held in escrow and applied to the purchase price at closing. If the buyer backs out without a valid reason, the seller may keep the earnest money.
When a structure or feature from one property extends onto another property without permission. This can lead to disputes between property owners and may need to be resolved legally.
Any claim, lien, charge, or liability attached to a property that may affect its transfer or limit its use. Common encumbrances include mortgages, easements, and property tax liens.
The difference between the market value of a property and the outstanding balance of any liens, such as mortgages. Equity represents the portion of the property that the owner truly “owns.”
A clause in a contract that allows for an increase in the agreed-upon price or rent in response to certain triggers, such as inflation, increased costs, or competing offers in a bidding war.
A neutral third-party account where funds and documents are held until all conditions of a real estate transaction are met. The escrow company manages the closing process and ensures all parties fulfill their obligations.
An agreement in which a property owner grants one real estate agent or brokerage the exclusive right to sell the property within a specified period. If the property sells during the listing period, the agent earns a commission.
The process by which a government or public authority takes private property for public use, with compensation to the owner. It is similar to eminent domain in some jurisdictions.
The individual named in a will or appointed by a court to carry out the wishes of the deceased, including managing and distributing property according to the terms of the will.
The government’s legal right to expropriate private property for public use, with just compensation to the property owner. It is used for public projects like highways, parks, or utilities.
The gradual loss of land due to natural forces, such as water or wind. In real estate, erosion can affect property boundaries and decrease land value, especially for waterfront properties.
A legal interest in a property giving the holder the right to obtain full ownership in the future. It is typically held by the buyer during the period between signing a purchase agreement and closing.
A loan secured by the equity in a property, allowing homeowners to borrow against the value they have built up. The loan is repaid in installments, and failure to pay can lead to foreclosure.
An account held by a third party, often used to pay property taxes and insurance on behalf of the property owner. Lenders commonly require escrow accounts for mortgage borrowers.
A type of listing agreement in which the owner retains the right to sell the property on their own, without paying a commission to the real estate agent, unless the agent was involved in the sale.
The legal process by which a landlord removes a tenant from a property for violating the terms of the lease, such as non-payment of rent or engaging in illegal activities.
A permanent mortgage loan that a borrower takes out after the completion of construction or development. It is often used to pay off the short-term financing used during the construction phase.
The total income a property generates from rent and other sources, minus any vacancy and collection losses. EGI helps property owners and investors determine the true earning potential of a rental property.
The estimated price that a property would sell for on the open market, based on current market conditions, comparable property sales, and the property’s condition.
An analysis conducted to determine if a real estate project is viable, taking into consideration factors such as cost, market demand, zoning regulations, and potential return on investment.
The most complete form of ownership in real estate, where the owner has absolute control over the property, including the right to sell, lease, or bequeath it. Also known as “freehold ownership.”
A type of mortgage in which the interest rate remains the same throughout the entire term of the loan, resulting in consistent monthly payments for the borrower.
An item of personal property that is permanently attached to or installed in a property, such as lighting, plumbing, or cabinetry. Fixtures are considered part of the property and are typically included in the sale.
The legal process by which a lender takes possession of a property when the borrower defaults on the mortgage. The property is then sold to recover the lender’s losses.
The loss of property or rights due to a breach of legal obligation or contract, such as failure to make mortgage payments or violations of a lease agreement.
A type of ownership in which multiple individuals share ownership rights to a property. Each owner has a percentage share in the property, which can be sold, transferred, or inherited.
A type of property ownership in which the owner has full legal rights to the land and the building(s) on it indefinitely. It contrasts with leasehold ownership, where the owner only has rights for a set period.
The length of a property along a street, road, river, or other boundary. Frontage is often important for properties with commercial or retail value.
A loan that is completely paid off by the end of the term through regular, equal payments. Each payment covers both principal and interest.
A reduction in property value due to outdated design, layout, or features that are no longer considered useful or desirable by buyers. Examples include outdated electrical systems or inefficient floor plans.
An agreement between a property owner and a tenant or buyer specifying which items of furniture or fittings will remain with the property.
The primary loan used to finance the purchase of a property, which takes priority over all other liens or claims on the property. If the borrower defaults, the first mortgage lender has the first claim to the proceeds from a sale.
A type of lease agreement in which the rent remains constant for the entire term of the lease, regardless of changes in market conditions or inflation.
The practice of buying a property with the intention of quickly reselling it for a profit, often after making improvements or renovations to increase its value.
An auction where a property that has been foreclosed upon is sold to the highest bidder. The proceeds are used to pay off the outstanding loan balance owed to the lender.
A residential area with controlled access where entry is restricted to residents, guests, and authorized personnel. Gated communities often feature enhanced security, private amenities, and a sense of exclusivity.
A professional responsible for overseeing the entire construction or renovation of a property. The general contractor coordinates all aspects of the project, including hiring subcontractors, obtaining permits, and ensuring the project meets building codes.
A lien on all of a person’s property, both real and personal, as opposed to a specific lien, which only affects a particular property. General liens may arise from unpaid taxes or judgments.
A legal document used to transfer ownership of real property from one party to another. The grantor guarantees that they have clear title to the property and that there are no undisclosed encumbrances.
The total income generated from a property before expenses such as taxes, insurance, and maintenance costs are deducted. This includes rental income and any other income streams related to the property.
A type of lease where the tenant pays a fixed rent amount, and the landlord covers all property-related expenses, such as taxes, insurance, and maintenance. This is typically used in residential and some commercial leases.
A metric used by investors to assess the value of income-generating property. It is calculated by dividing the property’s price by its gross rental income. GRM helps determine how many years it will take to pay off the property based on rental income alone.
A long-term lease where the tenant leases land but is allowed to build or develop the property. At the end of the lease term, the land and any improvements on it typically revert to the property owner.
An individual or entity that agrees to take responsibility for another party’s loan or lease obligations if they default. Guarantors are often required in real estate transactions where the borrower or tenant has a lower credit score or limited financial history.
A mortgage that is guaranteed by a third party, usually a government agency, to protect the lender from losses if the borrower defaults. Examples include loans backed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA) in the U.S.
The value of property determined by the government for the purpose of calculating stamp duty and registration fees. In India, guideline value serves as a benchmark for property transactions and may differ from market value.
A building designed, constructed, and operated to reduce environmental impact and promote sustainability. Green buildings often incorporate energy-efficient systems, eco-friendly materials, and renewable energy sources.
The total area of a building, including all floors and any shared or service areas, such as corridors, stairwells, and elevators, but excluding open spaces like balconies or terraces. It is used for planning and zoning purposes.
A short-term loan used to cover the “gap” between the construction loan and the long-term permanent financing in a real estate project. Gap financing is often used to bridge the time between completing construction and obtaining long-term loans.
A formal system set up by developers, regulatory bodies, or government agencies to address complaints and resolve disputes related to real estate transactions, such as delays in possession, defective construction, or pricing issues.
The condition of a property that is safe, functional, and fit for living. A habitable condition includes access to basic utilities, structurally sound premises, and no health or safety hazards.
A type of short-term, high-interest loan typically used by real estate investors. Hard money loans are secured by real estate and are based on the property’s value rather than the borrower’s creditworthiness. These loans are often used for fix-and-flip projects.
The process of transferring possession of a completed property from the developer or builder to the buyer. The handover typically involves the buyer inspecting the property, ensuring that all agreed-upon features are in place, and signing off on the delivery of the unit.
Property passed down through generations without a will or formal probate, often resulting in joint ownership among family members. This can create legal challenges when trying to sell, transfer, or develop the property.
A building with multiple stories, typically more than 10 floors, often used for residential apartments, office spaces, or hotels. High-rise buildings are common in urban areas where land availability is limited.
The amount of time a real estate investor or homeowner holds onto a property before selling it. The holding period can impact the property’s appreciation, tax treatment, and profitability.
The portion of a property’s value that the owner truly owns, calculated by subtracting any outstanding mortgage balance from the property’s market value. As mortgage payments are made, the homeowner builds equity.
A loan provided by banks or financial institutions to individuals or entities to purchase a residential property. The loan is secured by the property, and the borrower is required to make regular payments of interest and principal over a specified period.
An insurance policy that covers the outstanding balance of a home loan in case of the borrower’s death or disability. It protects the family of the borrower from the burden of repaying the loan in such unfortunate situations.
A component of an employee’s salary, paid by the employer, to cover rental expenses. In India, HRA is partially exempt from income tax, provided certain conditions are met.
A legal entity, typically a corporation, that owns real estate properties, such as apartments. Members of the cooperative have the right to live in one of the units and are required to pay maintenance fees and follow cooperative rules.
A U.S. government department responsible for national policies and programs that address housing needs, improve and develop urban communities, and enforce fair housing laws.
A situation in the real estate market where property prices rise rapidly due to high demand, speculation, and low supply, followed by a sharp decline when the bubble bursts, leading to a drop in property values.
The criteria used by banks or financial institutions to determine if an individual qualifies for a home loan. Factors include the applicant’s income, credit score, employment history, and the property’s value.
A registered entity in India where multiple property owners come together to manage and maintain common areas and facilities, such as parks, clubhouses, and security services, in a residential complex.
A real estate investment strategy in which an investor buys a property, typically at a lower price, renovates it, and then sells it for a profit. House flipping is common in both residential and commercial real estate markets.
A type of mortgage that combines features of both fixed-rate and adjustable-rate loans. For example, the interest rate may be fixed for the first few years and then become adjustable for the remaining loan term.
A term used in Indian law referring to property that cannot be moved from one place to another, such as land, buildings, or other structures permanently attached to the earth.
A legal obligation that is not explicitly stated in a contract but is assumed by law to exist, especially in real estate agreements, such as the covenant to maintain the property in good condition.
Additions or alterations made to a property that increase its value, utility, or lifespan. Examples include constructing a new building, upgrading the plumbing, or installing a new roof.
Real estate that is purchased or developed with the intention of earning income through renting or leasing. Income properties can be residential, commercial, or industrial.
A formal legal agreement or contract between two or more parties, particularly concerning real estate transactions like leases or bonds.
A type of lease where the rent is adjusted periodically based on a pre-determined index, such as the Consumer Price Index (CPI), to account for inflation or other economic factors.
A court order that prevents or compels a party from performing a specific act. In real estate, an injunction can stop someone from violating a property agreement, like building on disputed land.
An official review or examination of the condition of a property, usually conducted before a sale, lease, or loan approval. Inspections check for structural integrity, safety issues, and code compliance.
The percentage of a loan amount charged by the lender as the cost of borrowing money. In real estate, interest rates apply to mortgages, home loans, and other forms of property financing.
A short-term loan used to finance a project or purchase until more permanent financing is obtained. Interim loans are often used in real estate development projects.
Real estate purchased with the primary goal of generating returns, either through rental income, future resale, or both. This can include residential, commercial, or industrial properties.
The legal rights that allow a property owner to divert water from a natural source, like a river or canal, for agricultural or other purposes. These rights can significantly impact a property’s value, especially in rural areas.
A trust in which the grantor has relinquished all rights to change or revoke the trust after it has been established. Real estate is often placed in irrevocable trusts for estate planning purposes.
A dispute or uncertainty about the legal ownership of a property. Issues of title can arise due to unclear boundaries, liens, or fraudulent transactions, and must be resolved before a sale can proceed.
A form of ownership where two or more parties hold title to a property together, with equal rights to use and enjoy the property. In India, joint ownership is common among family members, spouses, or business partners.
A type of property ownership where two or more people own equal shares of the property. If one owner dies, their share is automatically transferred to the surviving owner(s), rather than being passed on to heirs. This is known as the “right of survivorship.”
A legal process in which a lender sues the borrower in court for the right to foreclose on a property. In India, judicial foreclosure is less common but may be pursued in cases of loan default.
A legal decision made by a court, often requiring one party to pay damages or settle a debt. In real estate, a judgment might result in a lien being placed on a property to secure payment.
A lien on a property that is imposed as a result of a court judgment, typically due to unpaid debts or legal disputes. This lien must be settled before the property can be sold or transferred.
An agreement between a landowner and a developer where the landowner provides the land, and the developer provides the construction expertise. Profits from the sale or leasing of the developed property are shared according to the terms of the agreement.
The legal authority or area within which a court or government body has the right to enforce laws and regulations. In real estate, jurisdiction affects property taxes, zoning laws, and the legality of transactions.
The fair market value paid to a property owner when the government expropriates private property for public use, such as for roads or infrastructure projects. Just compensation ensures that the owner is fairly compensated for the property loss.
A sum of money paid by a tenant to a landlord or property owner as a form of security deposit or advance payment to secure a rental property. Key money is often non-refundable and may be required in addition to the standard security deposit.
A small, standalone structure used for selling goods or providing services, often located in high-traffic areas like shopping malls, parks, or street corners. Kiosks can be rented or leased as part of commercial real estate.
A type of prefabricated home that is sold as a set of materials and components that can be assembled on-site. Kit homes are often more affordable and can be customized according to the buyer’s preferences.
A real estate strategy where an existing property is demolished to make way for a new construction. This approach is often used in established neighborhoods where homeowners wish to build modern homes on prime land.
Legislation specific to the state of Karnataka in India aimed at regulating land tenure, ownership, and use. The act addresses issues such as land ceiling, tenancy rights, and agricultural land ownership to promote equitable land distribution.
A unit of energy consumption equivalent to using one kilowatt of power for one hour. In real estate, this term is often used in the context of utility billing, especially for properties that rely on electric heating or cooling systems.
Specific conditions and clauses outlined in a lease agreement that are critical for both the tenant and landlord. Key lease terms may include duration, rent amount, renewal options, maintenance responsibilities, and termination clauses.
A term used in real estate financing referring to the interest rate at which a borrower’s loan agreement becomes enforceable. The knock-in rate is typically related to a specific performance metric or financial condition that must be met.
The process of regulating the use of land to ensure sustainable development and effective land management. This planning involves determining how land can be developed or preserved to meet community needs and environmental standards.
A type of property ownership where an individual or entity (the lessee) holds the right to use a property for a specified period under a lease agreement, while the ownership of the land remains with another party (the lessor). Leasehold properties often have terms ranging from a few years to several decades.
A financial arrangement in which the owner of a property sells it to an investor and simultaneously leases it back from the buyer. This allows the seller to continue using the property while gaining capital from the sale.
A preliminary agreement between parties outlining the terms and conditions of a potential transaction, such as leasing or purchasing real estate. While not legally binding, an LOI serves as a framework for further negotiations.
A legal claim against a property by a creditor as security for a debt. If the debt is not paid, the creditor has the right to take possession of the property through foreclosure. Common types of liens include mortgage liens and tax liens.
A contract between a property owner and a real estate agent that authorizes the agent to market and sell the property. This agreement outlines the terms of the listing, including the listing price, commission structure, and duration of the agreement.
A financial term used by lenders to assess the risk of a mortgage loan. It is calculated by dividing the loan amount by the appraised value of the property. A higher LTV ratio may indicate higher risk for the lender.
A measure used in real estate to assess the relative concentration of a specific economic activity in a geographic area compared to a larger region. A higher LQ indicates a stronger presence of that activity, which can influence property values and investment decisions.
The use of borrowed capital (debt) to increase the potential return on investment in real estate. While leverage can amplify profits, it also increases risk, as losses can also be magnified if property values decline.
An individual or entity that owns and leases out property to tenants. Landlords are responsible for maintaining the property and ensuring it is habitable while also collecting rent from tenants.
The estimated price that a property would sell for in a competitive and open market. It reflects the highest price a buyer is willing to pay and the lowest price a seller will accept, considering factors such as location, condition, and recent sales of comparable properties.
A loan specifically used to purchase real estate, where the property serves as collateral for the loan. Borrowers agree to repay the loan amount, plus interest, over a specified period, typically ranging from 15 to 30 years.
Residential buildings designed to accommodate multiple families or households, such as apartments, townhouses, and condominiums. Multifamily housing provides a range of options for renters and can be a significant investment opportunity for real estate developers.
A recurring charge paid by property owners or tenants to cover the costs of maintenance and repairs in shared living environments, such as condominiums or planned communities. These fees typically cover services like landscaping, cleaning, and amenities upkeep.
A type of real estate development that combines residential, commercial, and sometimes industrial spaces within a single project or building. Mixed-use developments aim to create vibrant communities by integrating various uses and promoting walkability.
The process of assessing and analyzing the current market conditions for real estate, including trends, property values, and demand. Market analysis helps investors, buyers, and sellers make informed decisions based on comprehensive data.
A licensed professional who acts as an intermediary between borrowers and lenders to facilitate mortgage loans. Mortgage brokers help clients find suitable loan products, assist with paperwork, and negotiate terms on their behalf.
The date on which a loan or mortgage becomes due for full repayment. At maturity, the borrower must pay the remaining balance, or the lender may initiate foreclosure proceedings if the loan is not repaid.
A legal claim against a property by a contractor or subcontractor who has not been paid for work performed or materials supplied during construction or renovation. A mechanic’s lien can affect the property’s title and must be resolved before selling the property.
The ease with which a property can be sold in the current real estate market. Factors influencing marketability include location, condition, price, and market demand. Properties with high marketability tend to sell quickly and at favorable prices.
The total income generated from a property after deducting all operating expenses, such as maintenance, property management fees, and taxes. Net income is a key indicator of a property’s profitability and is often used in calculations like net operating income (NOI).
A measure used to evaluate the profitability of an income-generating property. It is calculated by subtracting operating expenses (excluding mortgage payments) from gross rental income. NOI is crucial for assessing the cash flow and value of investment properties.
The process of discussing and reaching an agreement on the terms of a real estate transaction, including price, financing, and contingencies. Effective negotiation can lead to favorable outcomes for both buyers and sellers.
A formal notification sent to a borrower indicating that they have defaulted on their mortgage payments and are at risk of foreclosure. The notice serves as a warning and typically outlines the steps needed to remedy the default.
A geographically defined area within a city or town, characterized by specific residential, commercial, and community features. Neighborhoods often have distinct demographics, property values, and amenities, influencing real estate trends and desirability.
A legally binding contract that prevents parties from disclosing certain confidential information shared during a transaction. In real estate, NDAs can protect sensitive information related to property sales, negotiations, or proprietary business data.
A legal document filed to inform the borrower and other interested parties that a property will be sold at a foreclosure auction due to the borrower’s failure to make mortgage payments. This notice is part of the foreclosure process.
A situation where the payments made on a loan are insufficient to cover the interest due, resulting in an increase in the outstanding balance. Negative amortization can occur with certain types of adjustable-rate mortgages (ARMs) and can lead to financial strain for borrowers.
A specialized segment of the real estate market that targets a specific demographic or type of property. Examples include luxury homes, eco-friendly buildings, or properties designed for seniors. Focusing on a niche market can provide unique investment opportunities.
Real estate that is not used for residential purposes, including commercial, industrial, agricultural, or institutional properties. Non-residential properties often serve businesses, manufacturing, or public services.
A legal document issued by local authorities certifying that a building is fit for occupation. It confirms that the construction complies with building codes and regulations. An occupancy certificate is essential for homebuyers to ensure that the property is safe to live in.
The percentage of available rental units that are currently occupied. It is a key performance indicator for real estate investments, reflecting the demand for rental properties in a particular market. A higher occupancy rate typically indicates a healthy rental market.
An event where a property is made available for potential buyers or renters to view without needing a prior appointment. Open houses are commonly held by real estate agents to attract interested parties and showcase the property’s features.
Costs associated with the management and maintenance of a property, excluding mortgage payments. Operating expenses include property taxes, insurance, utilities, repairs, and management fees. These expenses are subtracted from gross income to calculate net operating income (NOI).
A contractual agreement that gives a buyer the exclusive right, but not the obligation, to purchase a property at a predetermined price within a specified timeframe. This option can be beneficial for buyers who wish to secure a property while deciding or arranging financing.
A formal proposal made by a potential buyer to purchase a property at a specified price and terms. The offer typically includes contingencies, such as inspections or financing, and is a crucial step in the home buying process.
A rental agreement between a landlord and a business entity for the use of office space. Office leases can vary in length and terms, covering aspects such as rent, maintenance responsibilities, and duration of occupancy.
The ongoing business expenses that are not directly attributed to the production of goods or services. In real estate, overhead costs may include administrative expenses, utilities, and salaries of staff involved in property management.
A financing option in which the property seller provides a loan to the buyer to purchase the property. This arrangement can make it easier for buyers to acquire properties, especially when traditional mortgage financing is not available.
A document that provides detailed information about a property for sale, including financial performance, market analysis, and property specifics. Offering memorandums are often used in commercial real estate transactions to attract potential buyers or investors.
A specific piece of land, often referred to in the context of real estate transactions. Parcels can vary in size and shape and are often identified by a legal description or parcel number.
A legal document that conveys ownership of a property from one party to another. The deed outlines the rights and interests being transferred and is usually recorded with local authorities to provide public notice of ownership.
The original amount of money borrowed in a loan or the amount still owed on a loan, excluding interest. In real estate, the principal is the main sum that needs to be repaid to the lender.
The operation, control, and oversight of real estate properties on behalf of the owner. Property management includes tasks such as tenant relations, rent collection, maintenance, and ensuring compliance with local laws and regulations.
A legally binding contract between a buyer and seller detailing the terms of a real estate transaction. This document outlines the sale price, financing terms, and contingencies, as well as the responsibilities of both parties.
A lender’s conditional commitment to provide a mortgage loan to a borrower based on an initial review of their financial information. Pre-approval is an important step for buyers, as it indicates how much they can borrow and strengthens their position in negotiations.
A status indicating that a property has received an offer and is in the process of being sold, but the sale has not yet been finalized. This status is typically used in real estate listings to show that the property is no longer actively available.
A tax levied by local governments based on the assessed value of real estate properties. Property taxes are a significant source of revenue for municipalities and are typically used to fund public services such as schools, roads, and emergency services.
An increase in the market value of a property over time, often due to factors such as improved local amenities, economic growth, or increased demand for housing. Price appreciation is a key consideration for real estate investors looking for long-term gains.
A real estate property that is advertised on the open market, typically through a real estate agent or online listing service. Public listings are accessible to potential buyers and can include details such as price, location, and property features.
A buyer who has been pre-approved for a mortgage loan and meets the lender’s criteria for creditworthiness. Qualified buyers typically have a strong credit history, sufficient income, and a low debt-to-income ratio, making them more attractive to sellers.
A legal proceeding to settle disputes over the ownership of a property or to remove any claims or liens against it. A quiet title action aims to “quiet” any challenges to the title, establishing the plaintiff’s rightful ownership and ensuring the property is free from conflicting claims.
An entity or body with the power to make decisions and enforce laws, similar to a court but operating in a more limited capacity. In real estate, this could refer to zoning boards or planning commissions that make decisions on property use, permits, or variances.
The interest rate that lenders are willing to offer to borrowers at any given time, often referenced in relation to mortgage loans. This rate can fluctuate based on market conditions and is crucial for buyers to consider when determining their borrowing costs.
The percentage of profit or loss generated on an investment relative to the amount invested. In real estate, it often refers to the annual income earned from a property compared to its purchase price or total investment costs.
A company that owns, operates, or finances income-producing real estate across various property sectors. REITs allow individuals to invest in large-scale, income-generating real estate without having to buy properties directly. They typically pay out a significant portion of their income as dividends to shareholders.
Land and anything permanently attached to it, including buildings, trees, and fixtures. Real property encompasses both residential and commercial properties and is distinct from personal property, which refers to movable items.
A licensed professional who facilitates the buying and selling of real estate. Brokers can work independently or employ real estate agents to assist with transactions. They typically have more training and experience than agents and can operate their own businesses.
A licensed individual who represents buyers or sellers in real estate transactions. Agents work under the supervision of a broker and are responsible for helping clients navigate the buying or selling process, including pricing, marketing, and negotiating.
Government regulations that limit the amount landlords can charge for rent and the frequency of rent increases. Rent control laws aim to protect tenants from excessive rent hikes and ensure affordable housing options in high-demand areas.
Real estate that is leased or rented to tenants for income generation. Rental properties can include residential units (apartments, houses) or commercial spaces (offices, retail locations). Landlords often manage these properties to maximize their investment returns.
A financial product available to homeowners, typically seniors, that allows them to convert a portion of their home equity into cash while still living in the property. The loan is repaid when the homeowner moves out, sells the home, or passes away.
A contractual agreement giving a party the opportunity to purchase a property before the owner can sell it to someone else. This right is commonly found in lease agreements, partnerships, or other business arrangements, providing the holder with a potential advantage in acquiring the property.
A legal document that conveys the ownership of a property from the seller to the buyer. It contains details about the property, the purchase price, and any conditions of the sale. A sale deed is a crucial document for transferring property rights.
A contract between a buyer and a seller that outlines the terms and conditions of the sale of a property. It includes details such as the sale price, closing date, and any contingencies that must be met before the sale is finalized.
A sum of money paid by a tenant to a landlord as a safeguard against potential damages or unpaid rent. The security deposit is usually refundable at the end of the lease term, provided the property is returned in good condition.
The minimum distance a building must be from the property lines as specified by local zoning regulations. Setbacks ensure that buildings are positioned at safe distances from roads, neighboring properties, and public spaces, contributing to privacy and aesthetics.
The measurement of a property’s area in square feet, often used to determine its size and value. Square footage is a key factor in real estate pricing and is commonly referenced in listings for homes and commercial spaces.
The process of preparing a property for sale by decorating and furnishing it to enhance its appeal to potential buyers. Staging can help showcase the property’s best features and create a welcoming atmosphere, often leading to faster sales and higher offers.
An arrangement in which a tenant leases out their rented space to another party (the subtenant) while still retaining their lease with the landlord. Subleasing requires permission from the landlord and can involve specific terms regarding the subtenant’s rights and responsibilities.
A type of real estate transaction where the buyer takes over the seller’s existing mortgage payments without formally assuming the loan. The original borrower remains liable for the loan, but the property title transfers to the buyer. This arrangement can be beneficial for buyers looking for financing options.
A process that involves measuring and mapping a property’s boundaries and dimensions. A land survey helps determine the exact location of property lines, easements, and any encroachments, ensuring clarity in ownership and usage rights.
A legal document that proves ownership of a property. The title contains information about the property’s history, including any liens, encumbrances, or other claims against it. A clear title is essential for a smooth real estate transaction.
A process conducted to examine public records related to a property to verify the seller’s ownership and identify any claims, liens, or encumbrances that may affect the title. A title search is crucial for buyers to ensure they are acquiring a property free of legal issues.
The process of conveying the legal rights of a property from one party to another, typically documented through a sale deed or transfer deed. This legal procedure ensures that the new owner is recognized as the legitimate proprietor of the property.
An individual or entity that occupies a property owned by another party (the landlord) under a lease agreement. Tenants have specific rights and responsibilities regarding the use and maintenance of the property.
The arrangement between a landlord and a tenant regarding the rental of a property. Tenancy terms outline the duration, rent amount, and responsibilities of both parties. Common types of tenancy include fixed-term, month-to-month, and leasehold.
The duration for which a lease agreement is valid. It specifies the start and end dates of the lease, outlining the period the tenant has the right to occupy the property.
A policy purchased to protect against losses arising from defects in the title of a property. Title insurance provides coverage for issues such as undisclosed liens, claims, or errors in public records, offering peace of mind to buyers and lenders.
A legal document that creates a trust, where one party holds the title to property for the benefit of another. In real estate, trust deeds are often used in financing arrangements, allowing a lender to take possession of the property if the borrower defaults on the loan.
An individual or entity appointed to manage a trust. In real estate transactions, a trustee holds the title of a property on behalf of beneficiaries and is responsible for carrying out the terms of the trust agreement.
A property that is fully renovated and ready for immediate occupancy or use. Turnkey properties are often marketed to investors or buyers looking for a hassle-free move-in experience, as they require little to no additional work.
The process by which a lender evaluates the risk of lending money to a borrower. This involves assessing the borrower’s creditworthiness, income, employment history, and the property’s value. The underwriting process determines whether a loan will be approved and under what terms.
Essential services required for a property to function properly, including electricity, water, gas, sewage, and telecommunications. The availability and condition of utilities can significantly affect a property’s value and livability.
The area within a building that can be used for its intended purpose, excluding common areas such as hallways, stairwells, and restrooms. This measurement is important for determining rental rates and space efficiency in commercial properties.
Expenses incurred before the purchase or lease of a property, including down payments, closing costs, inspections, and legal fees. Buyers should be prepared for these costs, which can significantly impact their overall financial planning.
A standardized form used by lenders to gather information from borrowers applying for a mortgage loan. The URLA collects details about the borrower’s financial status, employment history, and the property being financed, helping lenders assess the risk associated with the loan.
A governmental agency responsible for planning and overseeing urban development projects within a specific region. This authority ensures that development aligns with zoning laws, land use policies, and community needs, helping to create sustainable and organized urban environments.
An exception to zoning regulations that allows a property owner to use their land in a way that is not typically permitted under the current zoning classification. Obtaining a use variance often requires a formal application process and public hearings, where the property owner must demonstrate a legitimate need for the variance.
The process of determining the current worth of a property, typically conducted by a professional appraiser. Valuation considers various factors, including location, condition, market trends, and comparable sales, to establish a fair market value for the property.
A type of mortgage where the interest rate can change over time based on fluctuations in a specified benchmark rate, such as the prime rate or LIBOR. This means that monthly payments may vary, offering the potential for lower initial payments but also carrying the risk of higher payments if interest rates rise.
In real estate, a vendor refers to the seller of a property. This can include individuals, companies, or organizations that are selling real estate. The vendor is responsible for providing accurate information about the property and ensuring that all necessary documents are in order for the sale.
A contract that is valid and enforceable but may be canceled by one party under certain circumstances. For example, if one party was misled about essential terms or if there was a lack of capacity (e.g., due to age or mental state), that party can choose to void the contract.
A digital simulation of a property that allows potential buyers or renters to explore it online. Virtual tours often include 360-degree images, videos, or interactive elements, providing an immersive experience that helps individuals visualize the space without physically visiting it.
The percentage of rental properties that are unoccupied at a given time. It is a key indicator of a real estate market’s health, as a high vacancy rate may signal oversupply, declining demand, or issues with property management. Conversely, a low vacancy rate indicates a strong demand for rental units.
A legal right granted to a property owner that allows them to maintain a view from their property. This easement can prevent neighboring properties from constructing structures or landscaping that would obstruct the view, helping to preserve the aesthetic appeal and value of the property.
A legal document that provides a guarantee from the seller to the buyer that the title to the property is free from any liens or claims, except those specifically stated in the deed. This type of deed offers the highest level of protection for the buyer, as it ensures that the seller will defend the title against any future claims.
A comprehensive approach to managing a rental property, which includes tasks such as marketing the property, screening tenants, handling maintenance requests, collecting rent, and ensuring compliance with local regulations. Whole property management aims to maximize the property’s income and maintain its value over time.
A type of financing where a new mortgage wraps around an existing mortgage. In this arrangement, the borrower makes payments to the new lender, who in turn makes payments on the original mortgage. This can be beneficial for buyers who may not qualify for traditional financing or who want to take advantage of favorable terms on the existing mortgage.
A land area that is saturated with water, either permanently or seasonally, which can affect the type of development that can occur on it. Wetlands are important ecosystems that can influence local real estate values, as properties near wetlands may be subject to special regulations regarding construction and land use.
Housing that is affordable for individuals and families employed in essential jobs within a community, such as teachers, healthcare workers, and first responders. Workforce housing initiatives aim to ensure that these essential workers can live close to their places of employment, contributing to community stability and economic growth.
The unique quality or attribute of a property that makes it particularly desirable compared to similar properties. This could include features like a prime location, stunning views, historical significance, or exceptional architectural design that adds value to the property.
A landscaping method that emphasizes water conservation and sustainability. Xeriscaping involves using drought-resistant plants, efficient irrigation systems, and soil management techniques to create a beautiful outdoor space while minimizing water usage, making it particularly relevant in arid regions.
A term sometimes used to refer to the estimated value of a property derived from advanced valuation methods, such as predictive analytics or artificial intelligence models. X-Value can help investors make informed decisions by predicting future property values based on market trends and data.
A non-destructive testing method used to examine the structural integrity of a building without causing damage. This technique can reveal issues such as hidden defects in walls, pipes, or electrical systems, aiding in property assessments before purchase or renovation.
The income generated from an investment property, typically expressed as a percentage of the property’s value. In real estate, yield can be calculated using rental income or net operating income (NOI) relative to the property’s purchase price or market value.
A prepayment penalty that requires a borrower to pay the remaining interest due on a loan if they pay it off early. This is designed to protect lenders from losing anticipated interest income when a borrower refinances or sells the property before the loan’s maturity.
The year in which a property was constructed. This information is essential for understanding the property’s age, historical value, and potential maintenance or renovation needs.
An area of land around a building, often used for outdoor activities and landscaping. In real estate listings, yard size and features, such as gardens, patios, or fencing, can significantly affect property value and appeal.
A notification or tag placed on a property by local authorities indicating that it has been cited for code violations or is subject to a compliance inspection. This can affect the property’s marketability and may require the owner to make necessary repairs.
The process by which local governments regulate land use and development by designating specific areas for particular purposes, such as residential, commercial, industrial, or agricultural use. Zoning laws dictate what can be built on a property, how it can be used, and the density of development.
An exception granted by a local zoning authority allowing a property owner to deviate from the established zoning regulations. Variances may be granted for various reasons, such as unique property characteristics that make compliance with zoning laws impractical.
A law enacted by a local government that defines zoning regulations for land use, including building height, setbacks, and density requirements. Zoning ordinances help shape the development of communities and ensure land is used appropriately.
A property design where a building is constructed close to or directly on the property line, maximizing the use of available land. This concept is often used in urban settings to increase density while still providing outdoor space for residents.
A specific area or section of land designated for a particular use under zoning laws. Zones can vary based on the type of development allowed, such as residential, commercial, industrial, or mixed-use, influencing the property’s potential and value.
