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 legal professional specializing in laws related to real property, providing counsel, drafting contracts, and representing clients in real estate transactions and disputes.
A public sale of real property where buyers bid competitively, often resulting in a quick, transparent transaction with specific terms and conditions.
Real estate barter is the direct exchange of one property for another without the use of cash or with minimal cash (known as 'boot') to equalize values, often employed to defer capital gains taxes.
A real estate brokerage is a firm where licensed real estate brokers and agents work together to help clients buy, sell, or lease properties. They act as intermediaries, facilitating transactions and ensuring legal compliance.
A Real Estate Business Plan is a detailed document outlining an investor's goals, strategies, and financial projections for acquiring, managing, and exiting real estate assets.
Real estate closing is the final step in a property transaction where ownership is legally transferred from seller to buyer, all documents are signed, and funds are exchanged.
Real estate contracts are legally binding agreements between parties involved in the buying, selling, leasing, or transferring of real property, outlining the terms and conditions of the transaction.
Real estate debt protection refers to various mechanisms and strategies employed by investors and lenders to mitigate the financial risks associated with real estate loans, safeguarding against potential defaults or losses.
Real estate fraud involves intentional deception or misrepresentation in a real estate transaction for personal or financial gain, often leading to significant losses for victims.
Real estate insurance provides financial protection for property owners and investors against losses from damage, theft, and liability, serving as a critical risk management tool and a common requirement for property financing.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate, allowing individuals to invest in large-scale property portfolios through publicly traded shares.
Real Estate Law is the body of legal principles governing the ownership, use, and transfer of land and attached structures, crucial for investors to navigate property rights, transactions, zoning, and landlord-tenant relations.
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