Contracts, regulations, compliance, entity structures, zoning, permits, and landlord-tenant law.
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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 evergreen clause is a provision in a contract that automatically renews the agreement at the end of its term for a specified period, unless one party provides timely notice of termination.
Eviction is the legal process by which a landlord removes a tenant from a rental property due to a breach of the lease agreement, such as non-payment of rent or other violations, strictly adhering to state and local laws.
An eviction history check is a tenant screening process that reviews public court records to identify any prior evictions against a prospective tenant, helping landlords assess risk and ensure lease compliance.
An eviction moratorium is a temporary ban on evictions, typically enacted by governmental authorities during emergencies, preventing landlords from removing tenants for specific reasons, often non-payment of rent.
An exclusive agency listing is a real estate agreement where a seller grants one broker the exclusive right to sell a property, but retains the right to sell it themselves without paying a commission.
An Exclusive Right-to-Sell Listing is a real estate contract granting a single broker the sole right to sell a property and earn a commission, regardless of who finds the buyer. It offers maximum protection and incentive for the listing broker.
A contractual provision that limits or extinguishes the liability of one party for damages or losses caused to another party, commonly found in real estate agreements to protect landlords, lenders, or sellers from certain claims.
An executor is the individual or institution named in a will to manage the deceased's estate, pay debts, and distribute assets, including real estate, to beneficiaries.
The exercise price, also known as the strike price, is the predetermined price at which an underlying asset, such as a property in a real estate option contract, can be bought or sold.
An FHA loan is a government-insured mortgage backed by the Federal Housing Administration, offering lower down payments and more flexible credit requirements to make homeownership more accessible.
The Fair Housing Act is a federal law prohibiting discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, and disability.
Fair Market Rent (FMR) is an estimate of what a rental property would lease for on the open market, including utilities, as determined annually by the U.S. Department of Housing and Urban Development (HUD) for various housing programs.
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