ARM yourself with real estate's abbreviations.

You just signed a contract to a buy a property. The deal has a TOE and the ARM came in under the LTV you expected.

The seller refused to hold a PM and a UB was just filed by the city. Rather than end up in REO you apply for a new CofO and then settle with DHCR. You find out that there is additional FAR which makes the GRM less important, especially since this is an IMD building. You use an MLS to sell your new NOI and a REIT saves the day.

If your kept up with the story, congratulations? If not, read on? (This is not meant to replace any legal definitions. It is simply a useful tool to maneuver your way through the maze of innuendoes and jargon).

ARM is an adjustable rate mortgage

C of O is short for Certificate of Occupancy, which is a certificate issued by the building department to a builder or owner indicating that the building is in proper condition for occupancy.

DBA means Doing Business As. Business names or aliases filed with the county

DHCR refers to the Department of Housing and Community Renewal which is the agency that administers over rent regulated apartments in New York City.

DOB The Department of Buildings

FAR or Floor Area Ratio is the ratio of the floor area of a building to the area of the lot.

FDIC is an Acronym for The Federal Deposit Insurance Corporation, whose mission is to maintain the stability of and public confidence in the nation's financial system.

FHA, Federal Housing Administration, (a wholly owned government corporation), was established under the National Housing Act of 1934 to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgages; and to stabilize the mortgage market.

FNMA is Fannie Mac which was created by Congress in 1938 to bolster the housing industry during the Depression; Fannie Mae was originally authorized to buy only FHA-insured loans to replenish lenders' supply of money. In 1968, Fannie Mae became a private company operating with private capital on a self-sustaining basis. Its role was expanded to buy mortgages beyond traditional government loan limits, reaching out to a broader cross-section of Americans.

GNMA, known as Ginnie Mae, is the Government National Mortgage Association. Ginnie Mae was created in 1968 as a wholly owned corporation within the Department of Housing and Urban Development (HUD). Ginnie Mae does not loan money for mortgages. Instead, it operate in the secondary mortgage market, buying loans and selling mortgage-backed securities investors, which in turn, increases the availability of mortgage credit.

GRM is the Gross Rent Multiplier which is the figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value.

HPD, The New York City Department of Housing Preservation and Development, is the largest municipal developer of affordable housing in the nation. HPD protects the existing housing stock and expands housing options for New Yorkers as it strives to improve the availability, affordability, and quality of housing in New York City.

HVAC stands for heating, ventilating and air conditioning.

HUD is the Department of Housing and Urban Development which is a United States government agency established to implement certain federal housing and community development programs.

IMD is an Interim Multiple Dwelling, Not anticipating that there could ever be an upturn in the commercial market, landlords welcomed either small commercial tenants or illegal residential tenants into their buildings at whatever rent they could get. These tenants eventually became legal occupants with long-term, rent-stabilized leases.

LIBOR--London Interbank Offering Rate

LTV, loan-to-value ratio, is the ratio of the amount being loaned in respect to the appraised value of the property, usually expressed as a percentage.

MAI designates a person who is a Member of the American Institute of real estate appraisers.

MLS is the multiple listing service where brokers cooperate in the listing and sale of each others listings.

NNN is short for a triple net lease.

NOI is short for net operating income which is the difference between the gross income of a property after operating expenses are deducted.

PITI stands for Principal, Interest, Taxes and Insurance

PM is a note signed by the borrower promising repayment of the loan showing the amount of monthly payments, interest rate, and other details. It is secured by a mortgage given by a buyer as borrower to a seller as lender as part of the purchase price of the real estate.

POA is Power of Attorney, an instrument appointing someone the authority to transact certain acts on behalf of someone else.

REIT stands for Real Estate Investment Trust which is a form of ownership by a group who purchase shares of ownership in the trust which invests the money in real property and distributes the profits back to the investors free of corporate income tax.

REO, real estate owned, typically, by an institution, acquired through a foreclosure or deed in lieu of foreclosure

RESPA--Real Estate Settlement Procedures Act is a federal law which deals with the procedures to be followed in a real estate closing, and is intended to make borrowers more knowledgeable about possible costs and charges.

TOE is short for Time is of the Essence which is a phrase used in a contract that requires the performance of a certain act within a stated period of time.

UB is an unsafe building when DOB issues a Declaration of Emergency ordering the owner to demolish a structurally unsafe building.

UCC is the Uniform Commercial Code, a financing statement that attaches the real estate connected with the personal property lien.

ADELAIDE POLSINELLI, BESEN & ASSOCIATES, INC.