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.
Tenant rights are the legal protections and entitlements afforded to individuals who rent property, ensuring fair treatment, safe living conditions, and protection against discrimination and unlawful eviction.
Tenant screening is the process landlords use to evaluate potential renters, assessing their reliability, financial stability, and past rental behavior to minimize risks and ensure a good fit for the property.
Tenant screening criteria are the specific standards and qualifications landlords use to evaluate prospective renters, ensuring they select reliable tenants who can meet their lease obligations and maintain the property.
Title in real estate refers to the legal right of ownership to a property, representing a bundle of rights that an owner possesses over their land and any structures on it.
A title commitment is a document issued by a title company that outlines the conditions under which it is willing to issue a title insurance policy for a property, detailing ownership, liens, and encumbrances.
A title company is an impartial third party that ensures clear legal ownership of a property, conducts title searches, issues title insurance, and facilitates the closing of real estate transactions.
Title insurance protects real estate owners and lenders against financial loss from defects in a property's title, ensuring clear ownership and safeguarding against past claims.
A title search is a comprehensive examination of public records to confirm a property's legal ownership and identify any claims, liens, or encumbrances against it, ensuring a clear title for real estate transactions.
Topography refers to the natural and artificial physical features of a land area, including its elevation, slopes, and the presence of natural elements like rivers or hills. It significantly impacts property development, usability, and value.
Tracing rules are legal and equitable principles used to identify and recover misappropriated assets, particularly in cases of commingled funds, fraud, or breach of fiduciary duty within complex investment structures like real estate syndications or partnerships.
Transaction structure refers to the legal and financial framework through which a real estate deal is organized, defining how assets are acquired, financed, and owned.
A legal instrument allowing a property owner to transfer real estate to a designated beneficiary upon their death, bypassing probate while retaining full ownership and control during their lifetime.
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