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.
Wetlands delineation is the scientific process of identifying and mapping the boundaries of wetlands on a property, crucial for real estate investors to understand regulatory restrictions and development potential.
A Will is a legally binding document that specifies how an individual's assets, including real estate, should be distributed after their death, and designates an executor to manage the estate.
Wire fraud in real estate involves deceptive schemes to trick individuals into electronically transferring funds to fraudulent accounts, often by impersonating legitimate parties in a transaction.
A wire transfer is an electronic payment service for transferring funds by wire, typically between banks or financial institutions. It is a fast, secure, and irreversible method often used for large real estate transactions.
A work order is a formal document used in real estate to authorize and track maintenance, repairs, or other services needed for a property. It ensures clear communication and accountability.
A wrap-around mortgage is a form of seller financing where a new, junior loan from the seller to the buyer includes the balance of an existing, underlying mortgage, with the seller remaining responsible for payments on the original loan.
A Wyoming Holding Company is a legal entity, typically a Limited Liability Company (LLC), formed in Wyoming to hold assets, often real estate, for enhanced asset protection, privacy, and potential tax advantages due to Wyoming's favorable corporate laws.
Zoning is a set of local government laws that regulate how land can be used, dictating building types, sizes, density, and permitted activities to promote orderly development and protect community welfare.
Zoning laws are local government regulations that divide land into districts and specify the types of uses and development permitted within each district, impacting property value and investment potential.
Zoning regulations are local government laws that dictate how land within a municipality can be used, controlling property development, density, and the types of structures permitted.
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