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.
A Property Condition Assessment (PCA) is a professional evaluation of a commercial property's physical condition, systems, and components, crucial for due diligence in real estate transactions.
A Property Condition Report (PCR) is a detailed document outlining the physical state of a property, identifying existing defects, potential issues, and necessary repairs. It helps buyers, sellers, and lenders understand the property's health before a transaction.
A Property Disclosure Statement is a legal document provided by a seller to a buyer, detailing known material defects and conditions of a property. It is a crucial component of real estate transactions, ensuring transparency and aiding buyer due diligence.
A Property Identification Number (PIN) is a unique numerical code assigned to each parcel of land by local government agencies, primarily for property tax assessment and record-keeping purposes.
A property inspection is a visual examination of a property's condition by a qualified professional to identify defects, safety hazards, and maintenance needs before purchase.
Property insurance provides financial protection against physical damage to real estate assets and liability for injuries on the property, crucial for safeguarding real estate investments.
Property management is the professional oversight and operation of real estate, typically rental properties, on behalf of an owner, handling tasks from tenant acquisition to maintenance and financial reporting.
A Property Management Agreement is a legally binding contract between a property owner and a property manager, detailing the scope of services, responsibilities, fee structures, and terms for managing a real estate asset.
Property management fees are charges paid to a professional company for managing the daily operations of a rental property, covering services like tenant screening, rent collection, and maintenance, directly impacting an investor's profitability.
A property manager is an individual or company hired by a real estate investor to handle the daily operations, maintenance, and tenant relations for a rental property, aiming to preserve asset value and maximize rental income.
Property recording is the official process of filing legal documents related to real estate transactions with a government office, creating a public record of ownership, liens, and other interests to establish legal priority and provide public notice.
Property rights are the legal entitlements defining how individuals or entities can own, use, transfer, and dispose of real estate, forming the bedrock of all property transactions and investments.
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