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.
Closing costs are the various fees and expenses incurred by buyers and sellers at the end of a real estate transaction, covering services like loan origination, title insurance, appraisal, and legal fees.
The Closing Date is the scheduled day when a real estate transaction is finalized, ownership officially transfers from seller to buyer, and all financial and legal requirements are met.
Closing Day is the official date when a real estate transaction is finalized, ownership is transferred, and all necessary documents are signed and funds exchanged between the buyer and seller.
The Closing Disclosure (CD) is a five-page document outlining the final terms of a mortgage loan, including the loan amount, interest rate, monthly payments, and all closing costs, provided to the borrower at least three business days before closing.
A closing statement is a comprehensive financial document detailing all debits and credits for both the buyer and seller in a real estate transaction, providing a final accounting of funds at closing.
A Co-ownership Agreement is a legally binding contract outlining the rights, responsibilities, and obligations of multiple parties who jointly own a single real estate property.
Collateral is an asset or property pledged by a borrower to a lender to secure a loan, providing a guarantee for repayment and reducing the lender's risk.
A collateral assignment is a legal agreement where an asset, such as a promissory note, contract, or insurance policy, is pledged as security for a loan or obligation without transferring full ownership. The assignee (lender) gains a security interest in the asset, which can be exercised if the assignor (borrower) defaults.
Commercial General Liability (CGL) insurance protects real estate investors from financial losses due to third-party claims of bodily injury, property damage, and personal or advertising injury occurring on their commercial properties. It covers legal defense costs and damages up to policy limits.
Commercial lease review is the meticulous examination of a commercial lease agreement by an investor or their legal counsel to understand all terms, conditions, financial obligations, and potential risks before acquisition or execution.
A commission in real estate is a fee paid to a real estate agent or broker for facilitating a property transaction, typically calculated as a percentage of the sale price.
Common Area Maintenance (CAM) refers to the costs associated with operating and maintaining shared areas in a commercial property, which are typically passed through to tenants as part of their lease agreements.
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.