Talking the talk in today's real estate industry.Words can take on many different meanings especially in the world of real estate. Deals can be lost because a word or phrase was misinterpreted. The following are some words, and phrases that have specific meaning to real estate transactions. This is not meant to replace the legal definitions, or Webster's distinctions, but simply a working tool to better understand the mechanics of doing business in NYC's often complex world of real estate. First, here are some important players: Vendee Buyer or purchaser; an individual to whom anything is transferred by a sale. The term vendee is ordinarily used in reference to a buyer of real property. vendee n. a buyer, particularly of real property. VENDEE, contr. Purchaser Vendor Seller Mortgage The lender in a mortgage loan transaction. Mortgagor mortgagor n. the person who has borrowed money and pledged his/her real property as security for the (mortgagee). (See: mortgage, mortgagee) MORTGAGOR, estate's, contracts. He who makes a mortgage. 2. The borrower in a mortgage loan transaction. Lessee Person leasing the premises Lessor Person who owns the premises Trustee Person who holds title in trust for another party Trustor Person who is borrowing money secured by a trust deed A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. Air Rights are also known as development rights. Air rights are property rights that extend directly above a property. Their use is governed by local zoning codes. Assignment is the transfer of property or the rights obtained in a contract to control a property. Cap is a limit on how much the interest rate can change on a loan. Cap Rate is the rate of return used to produce the capital value of an income stream. Co-op is a form of real estate, usually a dwelling in which residents own shares, but do not directly own the space they inhabit. Rather, owning a share of the building entitles the shareholder with the right to inhabit a certain space within the dwelling, such as an apartment. Condo is the term used when referring to a condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. which is the ownership of a unit only, rather than the entire building. Cond-op refers to a property that is actually a condominium building where one condo unit is owned by a cooperative corporation, divided into residential apartments and the rest of the building is one or more commercial condo units. Confi is short for "confidentiality agreement". This is an agreement designed to protect information from being misused by those who have access to it. Deed in Lieu in lieu prep. instead. "In lieu taxes" are use taxes paid instead of sales tax. A "deed in lieu of foreclosure" occurs when a debtor just deeds the property securing the loan to the lender rather than go through the foreclosure process. usually refers to a deed given by a mortgagor to a mortgagee mortgagee n. the person or business making a loan that is secured by the real property of the person (mortgagor) who owes him/her/it money. (See: mortgage, mortgagor) MORTGAGEE, estates, contracts. He to whom a mortgage is made. when the mortgage is in default under the terms of that mortgage. Defeaseance usually refers to a financing tool by which outstanding loans may be retired without redemption. Defeasance allows an insurer to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. outstanding debt with a portfolio of government securities. Due on sale refers to a provision in a mortgage that states that the entire balance of the note is immediately due and payable if the mortgagor transfers the property. Flipping refers to the assignment of a property or the rights to a property Going Hard is when a contract deposit is officially at risk Good Guy Clause is a limited personal guarantee used in a lease or mortgage which holds the renter liable for any rent not paid until possession of the space is returned to the landlord. Ground Lease usually involves separate ownership of land and building. Hard money refers to a short term bridge loan used to acquire real estate with interest rates that are usually higher than conventional financing. Holdover hold·o·ver n. One that is held over from an earlier time: a political advisor who was a holdover from the Reagan era; a family tradition that is a holdover from my grandparents' childhood. Noun 1. Tenant is a tenancy whereby a lessee retains possession of a leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant's occupancy. Key Money is a payment made to a landlord as an inducement Inducement Electra incited brother, Orestes, to kill their mother and her lover. [Gk. Myth.: Zimmerman, 92; Gk. Lit.: Electra, Orestes] Hezekiah exhorts Judah to stand fast against Assyrians. [O.T. to assure a rental. Lis Pendens [Latin, Pending lawsuit.] A reference to the jurisdiction (or control) that courts obtain over property in a suit awaiting action. A notice filed in the office of public records that the ownership of real property is the subject of a legal controversy and that , Latin for "case pending", a recorded legal document, filed in court, giving notice that there is an action or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. affecting the title or ownership of a property. Points are a fee charged as a service which equal one percent per point. Principal refers to a. the main party to a transaction or the person who employs the agent. b. It also refers to the original amount (as in a loan) of the total due and payable at a certain date. c. The sum loaned as separate from income or profits Procuring Cause refers to the direct effort that brought about the desired result, or sale. Ready, willing and able usually refers to one who is prepared to buy property on the seller's terms and is capable and ready to consummate the transaction. Right of First Refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. is the agreement by a property owner to another person giving the right to purchase the property before it goes to the open market. Specific Performance is a legal action that requires a party to carry out the terms of a contract. Title is the document that is evidence of ownership. Variance is a special suspension of zoning laws to allow the use of property in a manner not in accord with existing laws. ADELAIDE POLSINELLI, SENIOR EXECUTIVE BROKER, BESEN & ASSOCIATES INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . |
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