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 (89 terms)
Development costs are all the expenses incurred during the process of acquiring land, designing, constructing, and preparing a real estate project for use or sale, from start to finish.
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.
An absolute auction is a type of real estate auction where the property is sold to the highest bidder, regardless of the price, with no minimum bid or reserve price set by the seller.
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.
Complex strategies and professional concepts (117 terms)
An Equity-for-Property Swap is an advanced real estate investment strategy where an investor exchanges equity in one or more properties or entities for direct ownership of another property, often to achieve tax deferral, portfolio restructuring, or strategic asset acquisition.
The accounting process of recognizing the estimated cost of an Asset Retirement Obligation (ARO) as a liability and capitalizing a corresponding asset, which is then depreciated over its useful life, reflecting the future costs associated with retiring a long-lived asset.
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.
Unrelated Business Income Tax (UBIT) is a tax levied on the net income of a tax-exempt organization, including certain real estate investment vehicles, derived from a trade or business regularly carried on and not substantially related to its exempt purpose.
Inverse condemnation is a legal action initiated by a private property owner against a government entity to recover "just compensation" for a taking of their property, where the government has not formally exercised its power of eminent domain but has effectively deprived the owner of beneficial use or value.
An Environmental Impact Study (EIS) is a detailed public document mandated by environmental laws (e.g., NEPA, CEQA) that rigorously assesses the potential significant environmental effects of a proposed major project, identifies alternatives, and proposes mitigation measures to inform decision-makers and the public.
Environmental insurance provides coverage for liabilities and costs associated with pollution incidents, contamination, and environmental damage, crucial for real estate investors managing properties with potential environmental risks.
Environmental liability refers to the legal responsibility of property owners or operators for the cleanup of hazardous substances and other environmental damage on or emanating from their real estate assets, often involving significant financial and legal risks.
Environmental remediation is the process of removing pollutants or contaminants from soil, groundwater, sediment, or surface water to protect human health and the environment, often crucial in real estate transactions and redevelopment.
An Environmental Site Assessment (ESA) is a report identifying potential or existing environmental contamination liabilities on a property, crucial for real estate due diligence and risk management.
An Equity Partnership is a real estate investment structure where multiple parties contribute capital for an ownership stake in a property or project, sharing in profits and risks through a defined distribution waterfall.
An Equity-for-Property Swap is an advanced real estate investment strategy where an investor exchanges equity in one or more properties or entities for direct ownership of another property, often to achieve tax deferral, portfolio restructuring, or strategic asset acquisition.
A legal arrangement where a neutral third party holds funds and documents until specific conditions of a contract are met, ensuring a secure and fair transaction, especially in real estate.
An escrow agreement is a legal document outlining the terms and conditions under which a neutral third party, known as an escrow agent, holds assets or funds on behalf of two or more parties until specific contractual obligations are met.
Escrow instructions are legally binding documents that outline the specific terms and conditions under which an escrow agent will hold and disburse funds and documents during a real estate transaction.
Estate planning is the process of arranging for the management and disposal of a person's assets, including real estate, during their life and after death, to minimize taxes and ensure wishes are met.
A legally binding document signed by a tenant that certifies the current status, terms, and conditions of their lease agreement, providing critical verification for real estate buyers and lenders.
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.