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.
Foundation issues refer to structural problems affecting a property's base, often caused by soil movement, water damage, or poor construction, leading to significant repair costs and impacting property value.
Fractional ownership allows multiple unrelated parties to share in the ownership of a high-value asset, typically real estate, dividing costs, usage, and appreciation proportionally.
Fraudulent conveyance is a legal term for transferring assets, often real estate, to a third party to avoid creditor claims, either with intent to defraud or under circumstances of insolvency and inadequate value.
A general contractor is a professional responsible for overseeing and managing all aspects of a construction or renovation project, ensuring it is completed on time, within budget, and to quality standards.
A General Partner (GP) is the active manager in a real estate limited partnership or syndication, responsible for all operational and strategic decisions, and traditionally bearing unlimited personal liability for the partnership's obligations.
Gift funds are money provided by an eligible donor, typically a family member, to a homebuyer to help cover a down payment or closing costs. These funds are not expected to be repaid.
Gifting property is the transfer of real estate ownership from one party to another without financial consideration, primarily used for estate planning or family support, with significant tax and legal implications.
Government intervention in real estate refers to actions taken by public authorities to influence property markets, including monetary and fiscal policies, as well as direct regulations like zoning and rent control, impacting investment viability and market dynamics.
A legal document used to transfer real property ownership, implicitly guaranteeing the grantor has not previously conveyed the property and that it is free from undisclosed encumbrances created by the grantor.
A grantee is the individual or entity who receives ownership of real property through a legal document called a deed, becoming the new legal owner.
A grantor is the legal owner of a property who transfers ownership to another party, known as the grantee, typically through a deed in a real estate transaction.
The total fair market value of all assets an individual owns or has certain interests in at the time of their death, before any deductions or liabilities are considered. It's crucial for estate planning and determining potential estate tax liabilities.
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