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.
A real estate listing is a public advertisement of a property for sale or rent, typically created by a real estate agent on behalf of the owner to attract potential buyers or tenants. It provides essential details about the property, its features, and its price.
A real estate offer is a formal, written proposal from a potential buyer to a seller, outlining the terms and conditions for purchasing a property.
Real Estate Owned (REO) refers to properties that have been repossessed by a lender, typically a bank, after an unsuccessful foreclosure auction. These properties are then managed and sold by the lender to recover the outstanding loan balance.
Real Estate Owned (REO) refers to property acquired by a lender, typically a bank, after an unsuccessful foreclosure auction. These properties are non-performing assets that lenders aim to sell quickly to minimize losses.
A Real Estate Partnership is a formal agreement between two or more parties to combine resources, expertise, and capital for real estate investment ventures, sharing profits, losses, and responsibilities according to a predefined structure.
Real estate permits are official government authorizations required for construction, renovation, or alteration of property, ensuring compliance with building codes, zoning laws, and safety standards.
Real Estate Professional (REP) status is an IRS designation allowing eligible taxpayers to deduct passive real estate losses against non-passive income, significantly reducing their taxable income.
Real Estate Professional Status (REPS) is an IRS designation allowing qualifying taxpayers to treat rental real estate activities as non-passive, enabling them to deduct passive losses against non-passive income and potentially reduce their taxable income significantly.
The specific hourly thresholds real estate investors must meet to qualify for Real Estate Professional Status (REPS) with the IRS, allowing them to deduct passive real estate losses against active income.
Real estate syndication is a private equity strategy where multiple investors pool capital to acquire and manage large-scale real estate assets, typically led by a sponsor (General Partner) for passive Limited Partners.
Real estate tax credits are direct dollar-for-dollar reductions in federal or state income tax liability, designed to incentivize specific real estate activities such as affordable housing development, historic preservation, or renewable energy installations.
Real estate tax deductions are IRS-approved expenses that investors can subtract from their gross rental income, reducing taxable income and overall tax liability.
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.