Real Estate Phrases: Terms, Terminology, Phrases & Meanings (Business & Investing Book 2)
LAND - The surface of the earth extending down to the center and upward to the sky, including all natural things thereon such as trees, crops, or water; plus the minerals below the surface and the air rights above.
LAND CONTRACT - Another name for an installment purchase contract, by which the buyer obtains equitable title the right to use the property while the seller retains legal title recorded title as security for payment of the balance of the purchase price. LAND LEASEBACK - A creative financing device often used with raw land which a developer wants to improve, in which the developer sells the land to an investor who leases the land back to the developer under a long-term net lease and subordinates his fee ownership to the lender providing development financing.
LAND TRUST - An association organized by common owners of real property, which holds title to the real property in the name of one or more trustees for the benefit of the owners, whose beneficial interests may be represented by trust certificates. The landlord retains a reversion interest in the property so that when the lease ends the property will revert to the landlord.
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LANDMARK - A stake, stream, cliff, monument or other object or feature which is used to fix or define land boundaries; also a prominent feature of a landscape or property that is the symbol for the place. Subjacent support is that support which the surface of the earth receives from its underlying strata. LEASE - A lease is both a contract between lessor landlord and lessee tenant and a conveyance or demise of the premises by the lessor to the lessee.
A lease is a contract in that item bodies the agreement between the parties.
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Constructive notice under the recording laws is also referred to as legal notice. In residential leasing, the lessor is often referred to as a landlord. This classification includes an estate for years, periodic tenancy, estate at will, and estate at sufferance. LETTER OF CREDIT - An agreement or commitment by a bank "issuer" made at the request of a customer "account party" that the bank will honor drafts or other demands of payment from third parties "beneficiaries" upon compliance with the conditions specified in the letter of credit.
LEVERAGE - The use of borrowed funds to purchase investment property with the anticipation that the property acquired will increase in return so that the investor will realize a profit not only on his own investment, but also on the borrowed funds; the employment of a smaller investment to generate a larger rate of return through borrowing.
A real estate licensee can be a salesperson or a broker, active or inactive, an individual, a corporation, or a partnership. LIEN - A charge or claim which one person lienor has upon the property of another lienee as security for a debt or obligation. Liens can be created by agreement of the parties mortgage or by operation of law tax liens.
LISTING - A written employment agreement between a property owner and a broker authorizing the broker to find a buyer or a tenant for a certain real property. If maintenance is deferred, the building will suffer a loss in value. Marketable title need not, however, be perfect title. MARKET VALUE - The highest price, estimated in terms of money, which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which the property is adapted and for which it is capable of being used.
Normally, when real property is conveyed, the grantee receives all right and title to the land including everything above and below the surface, unless excepted by the grantor. MONEY - The cash deposit including initial and additional deposits paid by the prospective buyer of real property as evidence of his good faith intention to complete the transaction; called hand money or a binder in some states.
In the absence of rental agreement oral or written , a tenancy is deemed to be month-to-month, or in the case of boarders, week-to-week. In effect, the mortgage states that the lender can look to the property in the event the borrower defaults in payment of the note. MORTGAGEE - The one who receives and holds a mortgage as security for a debt; the lender; a lender or creditor who holds a mortgage as security for payment of an obligation.
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MORTGAGOR - The one who gives a mortgage as security for a debt; the borrower; usually the landowner; the borrower or debtor who hypothecates or puts up his property as security for an obligation. NET INCOME - The sum arrived at after deducting from gross income the expenses of a business or investment, including taxes and insurance, and allowances for vacancy and bad debts; what the property will earn in a given year's operation.
NET LEASE - A lease, usually commercial, whereby the lessee pays not only the rent for occupancy, but also pays maintenance and operating expenses such as tax, insurance, utilities and repairs. Thus the rent paid is "net" to the lessor. A deed often recites a nominal consideration, such as "ten dollars and other valuable consideration. NOTE - A document signed by the borrower of a loan, stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay.
The note is the evidence of the debt. When secured by a mortgage, it is called a mortgage note. NOTICE - 1 Legal notice is notice which is required to be made by law, or notice which is imparted by operation of law as a result of the possession of property or the recording of documents. NOTICE TO QUIT - A written notice given by a landlord to his tenant, stating that the landlord intends to regain possession of the leased premises and that the tenant is required to quit and remove himself from the premises either at the end of the lease term or immediately if there is a breach of lease or if the tenancy is at will or by sufferance; sometimes refers to the notice given by the tenant to the landlord that he intends to give up possession on a stated day.
NOVATION - The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one. NUISANCE - Conduct or activity which results in an actual physical interference with another person's reasonable use or enjoyment of his property for any lawful purpose. OFFER - A promise by one party to act or perform in a specified manner provided the other party will act or perform in the manner requested.
The first broker who secures a buyer ready, willing and able to purchase at the terms of the listing is the one who earns the commission. OPEN SPACE - Certain portion of the landscape which has not been built upon and which is sought either to be reserved in its natural state or used for agricultural or recreational purposes such as parks, squares, and the like.
PARTY WALL - A wall which is located on or at a boundary line between two adjoining parcels and is used or is intended to be used by the owners of both properties in the construction or maintenance of improvements on their respective lots. All conditions and terms of the tenancy are carried over from period to period, and continue for an uncertain time until proper notice of termination is given.
PLAT - A map or a town, section, or subdivision indicating the location and boundaries of individual properties. PLOTTAGE - The merging or consolidating of adjacent lots into one larger lot, with the consequent result of improved usability and increased value; also called assemblage. POINTS - A generic term for a percentage of the principal loan amount which the lender charges for making the loan; each point is equal to one percent of the loan amount.
The prepayment penalty is charged by the lender to recoup a portion of interest that he had planned to earn when he made the loan. PRE-SALE - A pre-construction sale program by a condominium developer who is required to sell a certain percentage of units before a lender will commit to finance construction of the project. The present worth of a payment to be received at some time in the future is the amount of the payment less the loss of interest. NOT spelled principle. The will is presented to the probate court, and creditors and interested parties are notified to present their claims or to show cause why the provisions of the will should not be enforced by the court.
These rights include the right to possess, to use, to encumber, to transfer and to exclude, commonly called the "bundle of rights. The prospect does not become a client until the parties establish a fiduciary relationship, such as upon signing a listing contract or upon executing a DROA. PUFFING - Exaggerated or superlative comments or opinions not made as representations of fact and thus not a grounds for misrepresentation. A statement such as "the apartment has a fantastic view," is puffing because the prospective buyer can clearly assess the view in each case. PUNCH LIST - A discrepancy list showing defects in construction which need some corrective work to bring the building up to standards set by the plans and specifications.
Dictionary of Banking Terms and Phrases
RANGE - A measurement, used in the government survey system, consisting of a strip of land six miles wide, running in a north-south direction. RAW LAND - Unimproved land; land in its unused natural state prior to the construction of improvements such as streets, lighting, sewers, and the like. REALTOR - A registered word which may only be used by an active real estate broker who is a member of the state and local real estate board affiliated with the National Association of Realtors.
RECEIVER - An independent party appointed by a court to impartially receive, preserve and manage property which is involved in litigation, pending final disposition of the matter before the court. Capital Trust A form of financial trust that differs from other trusts in that it looks more like a fixed income instrument than an equity issue. Capital trusts are generally issued by banks or other financial intermediaries.
The business objective of capital trusts is to acquire and hold assets that will generate net income for distribution to unit holders. The trust's assets may consist of residential mortgages, mortgage co-ownership interests, mortgage-backed securities, other eligible investments, and other qualified debt obligations. Capitalization Change Any change in the issued and outstanding listed securities of an issuer.
This change may involve the issuance, repurchase, or cancellation of listed securities or listed securities that are issuable upon conversion or exchange of other securities of an issuer. Capitalization Effective Date The date that the capitalization change is reflected in the issuer's share register, regardless of when it is reported to the Exchange.
Capitalization or Capital Structure Total dollar amount of all money invested in a company, such as debt, preferred and common stock, contributed surplus and retained earnings of a company. Capped Indices Indices for which there is a maximum relative weight by market capitalization for any one constituent.
geyniggdingsire.ml Any individual constituent of the index can represent no more than a specified percent of the index. Cash A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash. Cash Settlement Settlement of an option contract not by delivery of the underlying shares, but by a cash payment of the difference between the strike or exercise price and the underlying settlement price.
Certificate The physical document that shows ownership of a bond, stock or other security. Changes in Stock List Any modification to the list of tradable issues of an exchange. These modifications include: new listings, supplemental security listings, substitutional listings, deletions, name changes, and stock symbol changes. Clearing Day Any business day on which the clearing corporation is open to effect trade clearing and settlement.
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Client Order An order from a retail customer of a Participating Organization. Close Price The price of the last board lot trade executed at the close of trading. See also: Board Lot. Closed-End Investment Fund An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Like other publicly traded securities, the market price of closed-end fund securities fluctuates and is determined by supply and demand in the marketplace.
Closing Transaction An order to close out an existing open futures or options contract.