Where cozy means tiny and charming means needs work.
A fancy legal term for 'stuff that comes with the property,' particularly easements that transfer with the land rather than staying with the owner. It's the real estate equivalent of 'batteries included,' except it's more like 'right-of-way for your neighbor to cross your lawn included.' Lawyers love using this word to make simple concepts sound sufficiently billable.
Ownership of the right to use and occupy property for a specific time period under a lease, but not ownership of the land itself. You own the building but rent the ground—common in Hawaii and making zero sense everywhere else.
Property rights of landowners whose property borders large navigable lakes or oceans, governing use of water and shore access. Like riparian rights' fancy coastal cousin who summered in the Hamptons.
A property description system using distances (metes) and directions (bounds) to define boundaries, starting from a point of beginning and returning there. The most complicated way possible to say 'here's where your fence goes.'
The minimum fixed rent amount in a commercial lease before any additional charges like utilities, insurance, or common area maintenance are tacked on. It's the starting point before your landlord creatively explains why you owe much more.
A property valuation method based on the income stream it generates, using capitalization rates to convert annual income into present value. It's how commercial properties are valued, where buildings are essentially money-printing machines worth whatever those dollars command.
A property's annual revenue minus operating expenses but before debt service and taxes, the key metric for commercial real estate valuation. Abbreviated NOI, it's the number that makes or breaks whether your investment property is actually profitable.
Additional rent paid by retail tenants based on a percentage of their gross sales above a threshold, common in shopping centers. It's the landlord's way of ensuring they profit from your business success while you bear all the risk.
The home where you live most of the year, receiving favorable tax treatment including capital gains exclusions and mortgage interest deductions. The IRS cares deeply about distinguishing this from your 'vacation home' to prevent creative accounting.
When a property seller provides financing to the buyer, essentially acting as the bank and holding a note secured by the property. It's the real estate version of 'I'll spot you until payday'—except with six-figure stakes and actual paperwork.
The physical structure and materials of a property, as opposed to the land or location. It's what contractors care about and what investors try to look past while focusing on cash flow.
Someone who purchases property on behalf of another party who can't or won't reveal their identity, ranging from perfectly legal privacy plays to outright mortgage fraud. The real estate equivalent of a burner phone.
The escape hatch in every smart buyer's offer—a contingency allowing them to back out or renegotiate if the inspection reveals the house is held together by hope and termites. It's the 'just kidding' clause of real estate.
A financial forecast showing what a property could theoretically earn under perfect conditions with perfect tenants in a perfect world. The real estate equivalent of a dating profile.
See earnest money, but longer and more official-sounding. Because real estate professionals get paid by the syllable.
A deep dive into public records to verify legal ownership and uncover liens, judgments, or claims. Property background check revealing whether you're buying real estate or a lawsuit.
An averaged interest rate combining multiple loans or tranches of debt, making your actual cost of borrowing sound better than it is. Financial smoothie blending various percentages into one palatable number.
A legal instrument transferring whatever ownership interest the grantor has, if any, without warranties or guarantees. It's the real estate version of 'here, take it, not my problem anymore,' offering zero protection to the recipient.
A reduction or elimination of property taxes for a specified period, typically offered as an incentive for development or renovation in targeted areas. It's the government's way of bribing you to improve neighborhoods they've neglected.
The process of evaluating recently sold similar properties to determine market value, essentially treating home pricing like comparison shopping for toasters. It's the foundation of appraisals and every pricing strategy that claims to be data-driven.
The master legal document that transforms a building from a single property into individual units that can be separately owned. It's the legal spell that lets you own apartment 3B without owning the whole building.
A retail lease provision letting tenants break the lease or pay reduced rent if an anchor store closes or occupancy drops below a threshold. It's the commercial tenant's escape hatch from a dying mall.
The closing day arithmetic splitting property expenses and income between buyer and seller based on ownership periods. It's the financial equivalent of splitting a restaurant check by who ordered what.
A house built by a developer on speculation without a specific buyer lined up. Building it and hoping they will come—the real estate field of dreams.