A safety clause may be contained in a listing. It provides that a broker is still entitled to a commission for a set period of time after the listing has expired if the property is sold to a prospect of the broker introduced to the property during the period of the listing.
A transaction in which an owner sells his or her improved property and, as part of the same transaction, signs a long term lease to remain in possession of the premises.
sales comparison approach
The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
sales comparison value
A value indication derived by comparing the property being appraised to similar properties that have been sold recently, applying appropriate units of comparison, and making adjustments to the sales prices of the comparable based on the elements of comparison. [Appraisal Institute]
A real estate sales contract contains the complete agreement between a buyer of a parcel of real estate and the seller. Depending on the area, this agreement may be known as an offer to purchase, a contract of purchase and sale, a purchase agreement, an earnest money agreement or a deposit receipt.
sales per square foot (entire retail facility)
The total sales for all tenants leasing owned space, except sales from department stores that are leased from the center, divided by the total leasable area these tenants occupy. [Adapted from ULI]
The amount of money required to be paid for real estate, according to a "contract," or previously paid. Example: The "sales price" consisted of $30,000 cash plus the buyer's "assumption" of a $70,000 "mortgage," for a $100,000 total.
Any person who, for a compensation or valuable consideration, is employed either directly or indirectly by a licensed real estate broker to perform certain acts to sell, offer to sell, buy, offer to buy; negotiate the purchase, sale or exchange of real estate; lease, rent or offer to rent any real estate, or to negotiate leases thereof or improvements thereon.
A leasehold estate in which the sandwich party leases the property from the fee owner or another lessee and then sublets to the tenant in possession, thereby maintaining a middle, or "sandwich," position. The sandwich party is the lessee of one party and the lessor of another; thus he or she is neither the fee owner nor the end user of the property. It is a lease occupying a position within three or more leasehold interests in a property.
satisfaction of mortgage
When all mortgage loan payments have been made and the note has been paid in full, a satisfaction of mortgage (also known as a release of mortgage or mortgage discharge) returns to the mortgagor all interest in the real estate conveyed to the mortgagee by the original recorded mortgage document.
savings and loan association (S&L)
A financial institution whose principal function is to promote thrift and home ownership. Depositors earn interest on their deposits, often at a higher rate than is offered at commercial banks. The S&L invests some of these deposits in residential mortgage loans, enabling more people to purchase and/or repair their homes. Savings and loan associations are active participants in the home loan mortgage market. (See thrift)
A mortgage (or trust deed) that is junior or subordinate to a first mortgage; typically, an additional loan imposed on top of the first mortgage, taken out when the borrower needs more money. Because the risk involved to the lender is greater with the second mortgage, the lender's conditions are usually more stringent, the term is shorter and the interest rate is higher than for the first mortgage. (See mortgage)
A loan taken out in addition to a first loan; usually obtained from an individual lender.
secondary mortgage market
A market for the purchase and sale of existing mortgages designed to provide greater liquidity for selling mortgages; also called secondary money market, not to be confused with secondary financing. (See primary mortgage market)
Refers to a broker making an undisclosed profit at the seller's expense; for example, when the broker has an undisclosed relative buy the listed property and then resell it to a buyer whose earlier offer was never presented to the seller.
As used in the government survey method, a land area of one square mile, or 640 acres. A section is 1/36 of a township, or each township contains 36 sections. Sections are numbered 1 through 36. Section 1 is always in the northeast or upper right-hand, corner. The numbering proceeds right to left to the upper left-hand corner. From there, the numbers drop down to the next tier and continue from left to right, then back from right to left. (See government survey system)
The pooling of real estate mortgages and trust deeds to act as collateral for the sale of securities to public and private investors. (See secondary mortgage market)
Evidence of obligations to pay money or of rights to participate in earnings and distribution of corporate, trust or other property. A security is usually found where an investor subjects his or her money to the risks of an enterprise over which he or she exercises no managerial control.
Security interests in chattels (personal property) are created by an instrument known as a security agreement. To give notice of a security interest, a financing statement must be recorded. (See personal property, Uniform Commercial Code)
Money deposited by or for the tenant with the landlord, to be held by the landlord for the following purposes; 1. To remedy tenant defaults for damage to the premises (be it accidental or intentional), for failure to pay rent due or for failure to return keys at the end of the tenancy; 2. To clean the dwelling so as to place it in as fit a condition as when the tenant commenced possession, considering normal wear and tear; and 3. To compensate for damages caused by a tenant who wrongfully quits the dwelling unit. (See landlord, tenant)
A vacant building. Example: The term originated with over-built glass office buildings in Houston during the late 1980s. Without "tenants" or furniture, looking from the outside you could see right through the glass facades of these buildings.
seller carryback financing
A sale of real property where the seller receives a portion of the sales price in the form of a promissory note secured by the real property purchased. An extension of credit by the seller.
An agent who represents the seller of real property. (See buyer's agent)
A real estate loan in the first priority position. (See junior mortgage)
Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance after the marriage or purchased with separate funds after the marriage. (See community property)
Single story (or mezzanine) with 10 to 16 foot ceilings with frontage treatment on one side and dock-height loading or grade level roll-up doors on the other. Less than 15% office.
Land on which an easement exists in favor of an adjacent property (called a dominant tenement or estate); also called a servient estate. If property A has a right-of-way across property B, property B is the servient tenement. The servient owner may not use the property in such a way as to interfere with the reasonable use of the dominant owner. (See dominant tenement, easement)
Also known as a "Annual Property Cash Flow Statement." Includes cash flow information about a listed rental property that is passed out to other real estate companies and/or given to prospective buyers.
The amount of space local zoning regulations require between a lot line and a building line.
Sole ownership of real property.
Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
The deed given after a sheriff's sale. (See deed)
A group of retail and other commercial establishments that is planned, developed, owned and managed as a single property. On-site parking is provided. The center's size and orientation are generally determined by the market characteristics of the trade area served by the center. The two main configurations of shopping centers are malls and open-air strip centers.
- Having signed or joined in signing a document.
- A signer or one of the signers of a document.
A method of calculating the future value of a sum, assuming that interest paid is not compounded, i.e., that interest is paid only on the "principal." Contrast with "compound interest." Example: An account is established paying "simple interest" of 10% on a principal of $1,000. Each year, it accrues $100 in interest, resulting in a balance of $1,500 after 5 years.
The practice of representing either the buyer or the seller but never both in the same transaction. The single-agency broker may be compensated indirectly through an authorized commission split or directly by the principal who employed the agent to represent him or her. (See dual agency)
single-family, owner-occupied dwellings
A dwelling which will be owned and occupied by a signatory to the mortgage or deed of trust secured by such dwelling within 90 days of the execution of the mortgage or deed of trust.
site assessment (environmental)
An evaluation of a site, prior to acquisition of title to the property, for the existence of hazardous waste. Under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) (U.S.), as amended by the Superfund.
A document which describes how a parcel of land is to be improved. It includes the outlines of all structures and site improvements, such as driveways, parking lots, landscaping, and utility connections. Example: The "site plan" indicates that the office tower will be set back 100 feet from the street and be surrounded by surface parking for 2,000 cars.
The personal preference of people for one area over another, not necessarily based on objective facts and knowledge.
A category of hotel customer: Social, Military, Educational, Religious, and Fraternal group.
Soldiers and Sailors Civil Relief Act
A law prohibiting foreclosures while a person is serving in the military and within three months thereafter except by court order.
A method of owning a business in which one person owns the entire business and reports all profits and losses directly on his or her personal income tax return, as contrasted with corporate, joint or partnership ownership. A sole or individual proprietorship is easy to organize and flexible to operate. It is frequently used in real estate brokerage. An individual proprietor may run a brokerage company if he or she has a valid broker's license. The proprietor may use his or her own name or a fictitious name previously registered as required by state law. There is a growing tendency for sole proprietors to incorporate and thus take advantage of certain tax and fringe benefits, such as those provided by pension and profit-sharing plans.
See tenancy in severalty.
One authorized by a principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent. The real estate broker is ordinarily a special agent appointed by the seller to find a ready, willing and able buyer for a particular property. An attorney-in-fact under a limited power of attorney is a special agent. (See agency, agent, general agent)
A tax or levy customarily imposed against only those specific parcels of realty that will benefit from a proposed public improvement, as opposed to a general tax on the entire community. Because the proposed improvement will enhance the value of the affected homes, only those affected owners must pay this special lien. Common examples of special assessments are water, sidewalk and sewer assessments, or other special improvements such as parks and recreational facilities.
A fee simple estate may also be qualified by a special limitation. The estate ends automatically upon the current owner's failure to comply with the limitation. The former owner retains a possibility of reverter. If the limitation is violated, the former owner (or his or her heirs or successors) reacquires full ownership, with no need to reenter the land or go to court. A fee simple with a special limitation is also called a fee simple determinable because it may end automatically. The language used to distinguish a special limitation-the words "so long as" or "while" or "during"-is the key to creating this estate.
special warranty deed
A deed in which the grantor warrants or guarantees the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time. Such a deed is usually identified by the language "by, through, or under the grantor, but not otherwise." A special warranty deed is often used when a fiduciary such as an executor or trustee conveys the property of his or her principal, because the fiduciary usually has no authority to warrant against acts of his or her predecessors in title.
A lien affecting or attaching only to a certain, specific parcel of land or piece of property. (See lien)
An action brought in a court of equity in special cases to compel a party to carry out the terms of a contract. The basis for an equity court's jurisdiction in breach of a real estate contract is the fact that land is unique and mere legal damages would not adequately compensate the buyer for the seller's breach.
Detailed instructions provided in conjunction with plans and blueprints for construction. Specifications may stipulate the type of materials to be used, special construction techniques, dimensions, and colors. Examples: The building "specifications" state that: number 3 lumber shall be used for all framing, studs are to be on 16-inch centers, and all exterior surfaces shall be painted white.
Land development or construction with no formal commitment from the "end users" of the finished product. Contrast with "custom building," where the builder is under contract to produce a specific structure. The speculative builder anticipates that a demand exists or will form for the product when it is put on the market. Example: a developer subdivides a tract and markets the lots; a builder produces houses and puts them up for sale; a developer converts a building into condominiums and looks for buyers; a builder constructs a shopping center and leases space.
A form of joint venture participation where the lender purchases the fee land under the proposed development project and leases it to the developer. The lender also finances the improvements to be constructed on this leasehold. (See joint venture)
Zoning of parcels not in conformance with the general zoning of an area. (See zoning)
The area, measured in square feet, of a piece of "real estate." Generally measured from outside the exterior walls, in the case of structures. Example: The outside dimension of a rectangular building is 200 x 450 feet. Its "square footage" is 90,000.
A method of estimating a building's construction, reproduction or replacement costs whereby the structure's square-foot floor area is multiplied by an appropriate construction cost per square foot.
The legal allowance to use the property of another in the absence of an attempt by the owner to force "eviction;" this right may eventually be converted to "title" to the property over time by "adverse possession," if recognized by state law. Example: Various poor families take up residence in a vacant building, acquiring "squatter's rights." Since ownership of the property is uncertain, no one attempts to evict the families.
stabilized net operating income (appraisal)
Projected income less expenses that are both subject to change, but that have been adjusted to reflect equivalent, stable property operations.
The optimum range of long-term occupancy which an income producing real estate project is expected to achieve under competent management after exposure for leasing in the open market for a reasonable period of time at terms and conditions comparable to competitive offerings. [Appraisal Institute]
standard coverage policy
A standard coverage policy normally insures the title as it is known form the public records. In addition, the standard policy insures against such hidden defects as forged documents, conveyances by incompetent grantors, incorrect marital statements and improperly delivered deeds. (See extended coverage policy, title insurance)
A "commitment" by a lender to make available a sum of money at specified terms for a specified period. A "standby fee" is charged for this commitment. the borrower retains the "option" of closing the loan or allowing the commitment to lapse. (see "standby fee.")
standby takeout commitment
An agreement by an interim lender to advance funds to take out a construction lender. (See interim financing)
The reliance of courts on previous decisions when judging disputes. (See common law)
stated interest rate
The full return or yield rate on the outstanding principal balance, expressed as a percentage per year. Also known as "face rate" or "coupon rate." A loan may have one or more stated interest rates.
statement of reasons
The Federal Equal Credit Opportunity Act (ECOA) (Title VII of the Consumer Protection Act) requires that a lender/creditor who denies an application for credit must provide the applicant with a statement of reasons, or written notification of the applicant's right to obtain a statement of reasons, within thirty days after receipt of a completed application for credit. (See Equal Credit Opportunity Act)
(U.S.) A law established by an act of legislature. Example: When a bill is passed by the legislature and signed by the governor (U.S.), it becomes a state "statute." Similarly, when a bill is passed by Congress and signed by the president, it becomes a federal "statute."
statute of frauds
State law that requires certain contracts to be in writing and signed by the party to be charged (or held) to the agreement in order to be legally enforceable.
statute of limitations
That law pertaining to the period of time within which certain actions must be brought to court. The law is intended to protect the vigilant against stale claims by requiring the prompt assertion of claims; thus an action must be brought (i.e., the complaint filed) within a specified time of the occurrence of the cause of action. After the time period expires, the claim is said to be "outlawed" and may not be enforced in court. The theory behind the statute of limitations is that there must be some end to the possibility of litigation. It is said that stale witnesses and stale records produce little truth and result in accidental justice, if any.
A foreclosure proceeding not conducted under court supervision. Contrast with "judicial foreclosure." Example: In many states (U.S.), deeds of trust are used as mortgage instruments. In these cases, foreclosure sales are handled through a trustee acting according to the law and the stipulations of the mortgage contract. This process is a type of "statutory foreclosure."
A lien imposed on property by statute-a tax lien, for example-in contrast to an equitable lien, which arises out of common law. (See lien)
The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges. (See equitable redemption)
The illegal practice of channeling home seekers interested in equivalent properties to particular areas, either to maintain the homogeneity of an area or to change the character of an area to create a speculative situation. This practice makes certain homes unavailable to home seekers on the basis of race or national origin, and on these grounds it is prohibited by the provisions of the federal fair housing act. Steering is often difficult to detect, however, because the steering tactics can be so subtle that the home seeker is unaware that his or her choice has been limited. Steering could be a licensee's use of a word, phrase or act that is intended to influence the choice of a prospective property buyer on a discriminatory basis.
An income tax term used to describe a change in the "adjusted tax basis" of property, allowed for certain transactions. The old basis is increased to "market value" upon inheritance, as opposed to a "carry-over basis" in the event of a "tax-free exchange." Example: Dooley dies, leaving land worth $100,000. The land was purchased for $20,000, but the heirs receive a "stepped-up basis" to the "fair market value" at death. The $80,000 "unrealized gain" to Dooley escapes "capital gains" tax.
A property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness or personal tragedy. Because of the potential liability to a licensee for inadequately researching and disclosing material facts concerning a property's condition, licensees should seek competent counsel when dealing with a stigmatized property. Some states restrict the disclosure of information about stigmatized properties. In other states, the licensee's responsibility may be difficult to define because the issue is not a physical defect, but merely a perception that a property is undesirable.
Ownership of real property by a corporation where each stockholder is entitled to occupancy of a unit under a lease. (See cooperative)
In a "lease," "stipulates" an amount of "operating expense" above which the tenant must bear. Often the base amount is the amount of expense for the first full year of operation under the lease. Example: The "stop clause" requires the tenant to pay all "utilities" in excess of $2,500 per year. If utilities are less than that amount, the landlord pays them.
Date on a term loan when the balloon payment is due. (See balloon payment)
A notice given to a lender that a subcontractor has not been paid. Unless bond is posted, the lender must withhold moneys due a prime contractor.
straight (term) loan
A loan in which only interest is paid during the term of the loan, with the entire principal amount due with the final interest payment.
A promissory note evidencing a loan in which payments of interest only are made periodically during the term of the note, with the principal payment due in one lump sum upon maturity. A straight note is usually a nonamortized note made for a short term, such as three to five years, and is renewable at the end of the term. (See promissory note)
A method of depreciation, also called the age-life method that is computed by dividing the adjusted basis of a property by the number of years of estimated remaining useful life. The cost of the property is thus deducted in equal annual installments. For example, if the depreciable basis is $ 100,000 and the estimated useful life is 25 years, the annual depreciation deduction is $4,000 for each year during the useful life of the asset. Prior to 1986, taxpayers sometimes used a form of accelerated depreciation such as 175 percent of straight line. The IRS had rules to recapture the amount of depreciation that was in excess of the straight-line rate. (See depreciation)
straight-line principal reduction loan
A mortgage which is paid off with periodic payments that always include the same amount of principal and an amount of interest based on the balance still owed.
straight-line recapture rate
The part of a "capitalization rate" that accounts for the annual erosion of a "wasting asset" by assuming an equal amount of loss in value each year of the "useful life" of the asset. Example: A retail building's "useful life" is estimated at 50 years. The "straight-line recapture rate" is 2% per year, which will recover the asset cost over its estimated useful life. The 2% should be added to the "discount rate" to derive the "capitalization rate."
The real estate market is a marketplace that is stratified based on price.
In a strict foreclosure procedure, after a delinquent borrower has been notified and the proper papers have been filed, the court designates a specific period during which the balance of the default must be paid in full. If the payment is not made, the borrower's equitable and statutory redemption rights are waived and the court awards full legal title to the lender. There is no deficiency judgment in strict foreclosure cases. (See foreclosure, judicial foreclosure, nonjudicial foreclosure)
An owner of a property is responsible to an injured party without excuse. (See liability)
strip development (strip shopping center) (strip mall)
A strip center is an attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape.
Any constructed improvement to a site.
The relationship under which a sales agent tries to sell a property listed with another agent. This situation is common under a "multiple listing service (MLS)." A listing contract is taken by a listing broker and entered into the MLS, from which any member broker may sell the property. The listing broker and the selling broker split the commission.
An agent of a person who is already acting as an agent for a principal. The original agent can delegate authority to a subagent where such delegation is either expressly authorized or customary in the trade. For example, it is customary for listing brokers to delegate certain functions of a ministerial nature to subagents, such as to show property and solicit buyers.
One who buys undeveloped land, divides it into smaller, usable lots and sells the lots to potential users.
A person or identity to which the rights of use and occupancy under a lease have been conveyed, while the original lessee retains primary responsibility for the obligations of the lease.
A defined term in the Mortgage Brokers Act. Basically, an individual employed by a mortgage broker who satisfies any one of the following requirements: a) Carries on a business of lending money secured in whole or in part by mortgages, whether the money is his own or that of another person; b)Holds himself out as, or by an advertisement, notice or sign indicates that he is, a mortgage broker; c)Carries on a business of buying and selling mortgages or agreements for sale; d)In any one year, receives an amount of $1,000 or more in fees or other consideration, excluding legal fees for arranging mortgages for other persons; or e)During any one year, lends money on the security of 10 or more mortgages.
subdivided land law
Any land that is divided or is proposed to be divided for the purpose of disposition into two or more lots, parcels, units or interests. Subdivision refers to any land, whether contiguous or not, if two or more lots, parcels, units or interests are offered as part of a common promotional plan of advertising and sale.
subdivision and development ordinances
Municipal ordinances that establish requirements for subdivisions and development.
Subdivision Map Act
An act providing for local control of subdivisions. Cities and counties are required to adopt an ordinance to regulate subdivisions. (See subdivision)
The right of land to be supported by land which lies beneath it. (See lateral support)
In "appraisal," the property being appraised.
A lease given by a lessee for a portion of the leasehold interest, while the lessee retains some reversionary interest. The sublease may be for all or part of the premises, for the whole term or part of it, as long as the lessor retains some interest in the property. Leases normally contain a clause prohibiting subletting without prior consent of the lessor. The lessee remains directly liable to the lessor for the rent, which is usually paid by the sub- lessee to the lessee and then from the lessee to the lessor. The sub-lessee does not have a contractual obligation to pay rent to the original lessor.
subordinated ground lease
A "lease" where the "mortgage" has priority over the "ground lease." Example: Pruable holds a $3-million "mortgage lien" on a "shopping center." The "property" owner, Dealmaker, sells the land to Subaru for $1 million and agrees to "lease" it back for $100,000 annual "rent" over 30 years. When Dealmaker fails to pay Pruable the interest due, Pruable "forecloses" on the entire property. Because of the "subordinated ground lease," Pruable gains "title" to the land and building.
Moving to a lower "priority," as a "lien" would if it changes from a "first mortgage" to a "second mortgage." Example: the land seller who held a first mortgage allowed "subordination" so the "development loan" could be arranged. In return the seller is promised mortgage "retirement" in 2 years.
A written agreement between lien holders to change the priority of mortgage, judgment and other liens. Under a subordination agreement, the holder of a superior or prior lien agrees to permit a junior lien holder's interest to move ahead of his or her lien. (See junior mortgage, lien)
A clause in which the holder of a mortgage permits a subsequent mortgage to take priority. Subordination is the act of yielding priority. This clause provides that if a prior mortgage is paid off or renewed, the junior mortgage will continue in its subordinate position and will not automatically become a higher or first mortgage. A subordination clause is usually standard in a junior mortgage, because the junior mortgagee gets a higher interest rate and is ofter not concerned about the inferior mortgage position. (See junior mortgage)
Lenders who specialize in B, C, or D category paper. (See B, C, or D paper)
The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.
- To give, pay, or pledge (a sum of money) as a contribution, investment, etc.
- To append one's signature or mark to (a document), as in approval or attestation of its contents.
The part of law which creates, defines, and regulates legal rights and obligations.
An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution. (See appraisal)
substitution of entitlement
Replaces one eligible veteran with another on an existing Veterans Administration loan. The entitlement is restored to the original veteran. (See Veterans Administration loan)
Ownership rights in a parcel of real estate to the water, minerals, gas, oil and so forth that lie beneath the surface of the property. (See surface rights)
A clever trick or strategy used to evade a rule, escape a consequence, hide something, etc.
Those who succeed to or to whom the corporation's rights in the property are transferred. (See heirs)
suit for possession
A court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease's expiration.
suit for specific performance
If a seller breaches a real estate contract, the buyer may sue for specific performance. The buyer asks the court to force the seller to go through with the sale and convey the property as previously agreed. The buyer may choose to sue for damages, in which case the buyer asks that the seller pay for costs and hardships suffered as a result of the seller's breach.
suit to quiet title
A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.
Same as "actual eviction"
A reservoir that collects and holds water or some other liquid, which is subsequently disposed of using a pump.
super regional center
Similar to regional centers, but because of its larger size, a super regional center has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with regional centers, the typical configuration is as an enclosed mall, frequently with multilevels.
Popular name of the hazardous waste cleanup fund established by the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) as amended by the Superfund Amendment and Reauthorization Act of 1986 (SARA). Superfund focuses on the cleanup of releases of hazardous substances on property. It creates significant legal exposure based on strict liability for owners, landlords and, sometimes, lenders.
The amount of goods available in the market to be sold at a given price. The term is often coupled with demand, supply and demand. The appraisal principle that follows the interrelationship of the supply of and demand for real estate. As appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the marketplace just as is any other commodity. (See appraisal, demand)
The term for the right to have one's ground supported so that it will not cave in when an adjoining owner makes an excavation. Support is of two kinds, lateral and vertical.
One who guarantees the performance of another.
An agreement by an insurance or bonding company to be responsible for certain possible defaults, debts or obligations contracted for by an insured party; in essence, a policy insuring one's personal and/or financial integrity. In the real estate business a surety bond is generally used to ensure that a particular project will be completed at a certain date or that a contract will be per formed as stated.
Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).
Giving up leasehold rights by a tenant in exchange for a release from future obligations under a lease.
The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions and position of a house on a lot, including the determination of any existing encroachments or easements.
The right of surviving joint tenants to the ownership interest of another joint tenant upon the latter's death. (See joint tenancy)
The value added to a property due to "improvements" as a result of work performed personally by the owner. Example: The Watsons purchase an old house for $20,000. Working in their spare time, the Watsons repair and repaint the structure to the point that the property is valued at $30,000. The $10,000 increment is "sweat equity."
A combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources. In a real estate investment syndicate the parties own and/or develop property, with the main profit generally arising from the sale of the property.
A person in business who sells an investment in shares or units.