Contracts, regulations, compliance, entity structures, zoning, permits, and landlord-tenant law.
Master legal & regulatory with our progressive approach
Foundation terms you need to know first (68 terms)
Base rent is the fixed, minimum rent amount paid by a tenant to a landlord for the use of a property, excluding additional charges like operating expenses, taxes, or utilities.
The Lease Commencement Date is the official date specified in a lease agreement when the tenant's rights and obligations, including rent payments and property responsibilities, legally begin.
An application fee is a non-refundable charge paid by a prospective tenant to a landlord or property manager to cover the costs associated with processing a rental application, including background and credit checks.
A lease clause is a specific provision within a lease agreement that outlines the rights, responsibilities, and obligations of both the landlord and the tenant, ensuring clear expectations and legal protection.
Risk transfer is a strategy in real estate investing where the potential financial burden of a risk is shifted from the investor to another party, often through insurance policies or contractual agreements, to protect assets and limit liability.
Complex strategies and professional concepts (39 terms)
A legally binding contract that alters the priority of liens on a property, allowing a senior lienholder to voluntarily place their claim in a junior position to another, typically to facilitate new financing or complex transactions.
Subject-To investing is an advanced real estate strategy where an investor acquires a property by taking over payments on the seller's existing mortgage, without formally assuming the loan or notifying the lender.
A junior lien is a claim on a property that is subordinate in priority to another existing claim, typically a first mortgage. In a foreclosure, junior lienholders are paid only after all senior lienholders have been fully satisfied, exposing them to higher risk.
A senior lien is a legal claim on a property that holds the highest priority for repayment in the event of a foreclosure or liquidation, ensuring its holder is paid before any other creditors.
Blockchain in real estate applies distributed ledger technology to enhance transparency, efficiency, and security in property transactions, ownership, and management through innovations like tokenization and smart contracts, fundamentally transforming the industry.
A 1031 Exchange allows real estate investors to defer capital gains and depreciation recapture taxes when selling an investment property by reinvesting the proceeds into a new "like-kind" investment property within strict IRS timelines.
An absentee owner is an individual or entity that owns real estate but does not reside in or personally manage the property, typically living in a different geographic location.
A comprehensive, chronological summary of all recorded documents and legal proceedings affecting the title to a specific parcel of real estate, tracing its ownership history.
Acceptance in real estate is the unconditional agreement by a buyer or seller to the exact terms of an offer, forming a legally binding contract for a property transaction.
An Accessory Dwelling Unit (ADU) is a secondary housing unit on a single-family residential lot, offering independent living facilities for one or more persons, often used by investors to generate additional rental income or increase property value.
An Accredited Investor is an individual or entity meeting specific SEC-defined financial thresholds or professional qualifications, enabling them to invest in private, unregistered securities and exclusive opportunities.
An acquisition fee is an upfront charge in real estate syndications or funds, compensating the sponsor for identifying, evaluating, negotiating, and closing a property deal. It's typically a percentage of the purchase price or equity raised, impacting initial capital and overall investment returns.
Adaptive reuse is a real estate strategy that converts an existing building from its original purpose into a new, often more profitable use, preserving the structure while meeting modern market demands.
Adverse possession is a legal doctrine allowing a non-owner to acquire title to real property by occupying it openly, continuously, exclusively, and hostilely for a statutory period, without the true owner's permission.
An application fee is a non-refundable charge paid by a prospective tenant to a landlord or property manager to cover the costs associated with processing a rental application, including background and credit checks.
An appraisal contingency is a clause in a real estate purchase agreement that allows the buyer to back out of the deal or renegotiate if the property's appraised value is less than the agreed-upon purchase price. It protects buyers from overpaying and ensures lenders do not finance more than a property is worth.
An appurtenance is a right, privilege, or improvement that belongs to and passes with the land, automatically transferring to the new owner upon sale.
Explore complementary areas that build on legal & regulatory concepts
Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.