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 short-term lease is a rental agreement typically lasting less than six months, commonly used for vacation rentals, corporate housing, or temporary stays, offering flexibility but often requiring more intensive management.
A Short-Term Rental (STR) Ordinance is a local law or set of regulations enacted by municipal or county governments to govern properties rented out for short periods, typically less than 30 days. These ordinances address community concerns, public safety, and taxation related to short-term rental operations.
Short-term rental permitting involves obtaining necessary licenses and adhering to local regulations for operating properties as vacation rentals, ensuring legal compliance and avoiding penalties.
Short-Term Rental (STR) zoning laws are local ordinances that regulate the use of residential properties for transient lodging, typically for stays under 30 days. These laws dictate where STRs can operate, what permits are required, and how they must be managed, significantly impacting real estate investors.
Site acquisition is the process of identifying, evaluating, negotiating, and purchasing land or existing property for a specific real estate development or investment purpose. It's the crucial first step in any real estate project, laying the groundwork for future success.
A detailed drawing or map illustrating the existing and proposed conditions of a parcel of land, including structures, landscaping, utilities, and access points, essential for real estate development and regulatory approval.
A smart contract is a self-executing digital agreement with terms directly coded onto a blockchain, enabling automated, immutable, and transparent transactions without intermediaries.
Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a blockchain. They automate, verify, and enforce the negotiation or performance of a contract, eliminating the need for intermediaries.
Soft costs are indirect expenses in real estate projects that are not directly related to physical construction, including architectural fees, legal costs, permits, financing fees, and project management.
A sole proprietorship is the simplest business structure where an individual owns and runs an unincorporated business, making no legal distinction between the owner and the business itself.
A Special Purpose Vehicle (SPV) is a legally separate entity, often a subsidiary, created by a parent company to isolate financial risk, facilitate specific transactions, or manage assets and liabilities for a particular project, commonly used in real estate for securitization or complex financing.
A legal document transferring property ownership with a limited warranty, where the grantor guarantees the title only against defects that arose during their period of ownership.
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