waiver

To give up a right voluntarily. (See workout)

walk-through

A final inspection of a property just before closing. This assures the buyer that the property has been vacated, that no damage has occurred and that the seller has not taken or substituted any property contrary to the terms of the sales agreement. If damage has occurred, the buyer might ask that funds be withheld at the closing to pay for the repairs.

warehouse

50,000 square feet or more with up to 15 percent office space, the balance being 18 to 30 foot ceiling height. All loading is dock-height.

warehousing

Warehousing is the assembly of mortgage loans into "pools." Securities that represent shares in these pools are then sold to investors. Examples of warehousing "agencies" include Fannie Mae/Federal National Mortgage Association and Ginnie Mae/Government National Mortgage Association.

warranty

A promise that certain stated facts are true. A guaranty by the seller, covering the title as well as the physical condition of the property. A warranty is different from a representation in that a representation is a statement made in the course of negotiations leading up to the sale, but not incorporated into the contract. A warranty, on the other hand, is a statement in the contract asserting the truth of certain things about the property.

warranty deed

A deed in which the grantor fully warrants good clear title to the premises; also called a general warranty deed. The usual covenants of title are covenant of seisin (possession), covenant of quiet enjoyment, covenant against encumbrances, covenant of warranty forever and covenant of further assurance. A warranty deed warrants the title, not the quality of construction of the real property. A warranty deed is used in most real estate deed transfers and offers the greatest protection of any deed.

warranty of authority

An agent's promise or guarantee to third parties that his actions fall within the scope of authority given to him by his principal. An agent acting outside of his scope of authority breaches his warranty of authority.

warranty of habitability

An implied assurance given by a "landlord" that an apartment offered for rent is free from safety and health hazards. Example: Todd signed a one-year "lease" to rent an apartment from Landon. Todd later discovered that the apartment's heating system was not function. Todd sought to break the lease, claiming the apartment was deficient under Landon's implied "warranty of habitability."

waste

An improper use or an abuse of a property by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor or vendee. Such waste ordinarily impairs the value of the land or the interest of the person holding the title or the reversionary rights.

water table

The natural level at which water is located in a particular area, be it above or below the surface of the earth.

weekly activity report

A weekly written report given to an owner by a listing broker reviewing the sales activities conducted by the broker to sell the listed property.

wetlands

Areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support vegetation typically adapted for life in saturated soils. Also referred to as bogs, marshes, sloughs and swamps.

will

A written document, properly witnessed, providing for the transfer of title to property owned by the deceased, called the testator.

will-buy buyers

Will-buy buyers are bargain-hunters looking for motivated "must-sell" sellers. (See must-sell sellers)

will-sell sellers

Unmotivated sellers who put their property on the market at an above-market price. Sellers who do not need to sell but will if the price is right.

window

An opening in the wall of the building to let in light and air. Most are made of transparent material and have the ability to be opened and closed.

window mullions

Those divisions on, or in, exterior glass which subdivides windows and facilitates tenant partitioning to create offices.

without recourse

Words used in endorsing a "note" or bill to denote that the holder is not to look to the debtor personally in the event of nonpayment; the creditor has "recourse" only to the property. A form of exculpation. Same as "nonrecourse." See "endorsement," "exculpatory clause." Example: Abel insisted that the "mortgage" to the seller be "without recourse." In the event that the value of the property declines, Abel may lose the property but he loses nothing else.

workers' compensation acts

Laws that require an employer to obtain insurance coverage to protect his or her employees who are injured in the course of their employment.

working capital

The difference between current assets and current liabilities.

working drawings

The set of plans for a project (e.g., tenant improvements) that, in combination with a set of specifications, comprises the contract documents indicating the exact manner in which tenant improvements will be built.

workletter

An exhibit to a lease for commercial space that defines the tenant improvements for which the landlord will take responsibility. The workletter may carry a dollar value but is contrasted with a fixed-dollar tenant improvement allowance that can be used at the tenant's discretion but does not define the improvements to be made.

workout

The various ways to offset a foreclosure. (See moratorium, waiver)

wraparound mortgage

A method of financing in which the new mortgage is placed in a secondary or subordinate position; the new mortgage includes both the unpaid principal balance of the first mortgage and whatever additional sums are advanced by the lender. Sometimes called an all-inclusive loan, an overriding loan or an overlapping loan. In essence, it is an additional mortgage in which another lender refinances a borrower by lending an amount over the existing first mortgage amount, without cashing out or disturbing the existence of the first mortgage. The entire loan combines two or more debts and is treated as a single obligation, and the wrap, or secondary, mortgagee pays the obligations of the first mortgage from the total payments received. While the wraparound lender makes the debt service payments on the first mortgage, the lender does not assume liability for this first lien. A default on the wraparound mortgage would usually result in a default on the underlying mortgage.

writ of execution

A court order authorizing and directing an officer of the court (sheriff, police officer) to levy and sell property of the defendant to satisfy a judgment.

write-down

To diminish in amount on the records, generally to reflect a "market value" loss. Example: Bank auditors, upon discovering that a certain "mortgage" was worthless, insisted on a "write-down." The bank recorded the value decline as a bad-debt expense.