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  Purchaser

Vendor Seller

Mortgage The lender in a mortgage loan transaction.

Mortgagor  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 

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 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 usually refers to a deed given by a mortgagor to a mortgagee 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 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 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 to assure a rental.

Lis Pendens, Latin for "case pending", a recorded legal document, filed in court, giving notice that there is an action or 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 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.