Real Estate Glossary A [Part 5]

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Continued from…

:point_right: Real Estate Glossary A [Part 4]

Air Park

This is a piece of land that is near or part of an airport and has been made into commercial, industrial, and office space.

Air Rights

A type of real estate development right that refers to the empty space above a property.

The right to use, occupy, or govern the area above a specific piece of land. These rights can be transferred to another party by selling, leasing, or donating them.

Rights to construct on or occupy the vertical space above the specified location.

Having rights to use land that isn’t owned by you. Ownership of land gives you the right to all the air above your land. Before the invention of the aeroplane, this right was unrestricted. Courts now allow reasonable interference with one’s air rights, as long as the owner’s right to use and occupy the land isn’t harmed. Thus, low-flying planes might be trespassing, and their owners would be responsible for any damage they caused. Governments and airport authorities often buy air rights next to an airport, called an avigation easement, to make it easier for planes to glide over the ground.

If you talk about airspace in three dimensions with a specific piece of land in mind, such as in a condominium unit, it is real property. The air itself is not real property.

People who own land and people who own air rights in Maryland can be taxed separately. As with the Pan Am Building above Grand Central Station in New York City, air rights can be sold or leased and buildings built on them.

People can also give up air rights by giving up easements, like those used to build high-rise highways, get scenic rights, or get easements of light and air. Because there isn’t a lot of land, many developers are looking into the possibility of building properties in the airspace above prime properties owned by schools, churches, rail lines, and cemeteries.

Rights granted by a grant of an estate in real property to build on, occupy, or use all or any portion of space above ground, or any other state elevation within vertical planes, in the manner and degree permitted.

Air space

The space between insulation on the inside and wall coverings on the outside.

  1. It’s a good idea to put insulating glass in between two panes of glass.

  2. When someone owns a unit in a condominium, they own a lot more than they think they do (in addition to tenancy in common for the common areas). Wall-to-wall and floor-to-floor are the most common ways to do this.

Airport Zoning

Regulations that try to keep planes safe from things like electronic interference by controlling land use, building height, and natural growth in the areas around an airport.

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All-Inclusive Deed Of Trust

As the name implies: A purchase-money deed of trust that is in addition to, but not in lieu of, any existing debts or encumbrances. The only difference is that instead of a mortgage, a deed of trust is used instead.

Aleatory Contract

When a contract has to do with a contingency or unknown event, like when someone buys fire insurance or buys a lottery ticket.

Algorithm

An algorithm is a statement of the steps to be taken in the solution of a problem; it can take the form of a word description, an explanatory note, or a labeled diagram or flowchart.

Alien

A person born outside the United States who has not been naturalized by the Constitution and U.S. laws and is not a citizen of the United States is called a “immigrant.” In most states, aliens can buy and own land, but some states limit the ability of businesses and non-resident aliens to buy and own land. Restrictions can come in the form of limits on how many holdings you can have, restrictions on how you can use the land for agricultural or industrial purposes, and identification rules.

FIRPTA says that the buyer of real estate from a non-resident alien must withhold up to 1% of the sale price and give that money to the U.S. Treasury so that the alien can pay less tax.

Alienation

When one person gives another a piece of land that they own, title to, or an interest or estate in. Property is usually sold or given away by choice, like with a deed or an assignment of a lease. An example of involuntary alienation would be when someone is foreclosed on their home or a tax lien is sold. People can get rid of rules that are too strict.

Alienation Clause

Promissory note: A provision in a promissory note or mortgage that says that when the debtor sells or gives away the property, he or she owes the mortgagee the rest of the debt. As a general rule, “alienation” means any transfer of ownership, title, or an interest in real property, including a sale through the use of a contract for deed. Also known as a due-on-sale clause.

Aliquot

Ownership of a fraction of a piece of land in U.S. public land states. The aliquot tells you which parcel is in the section, township, and range. There are a lot of aliquot descriptions in Alaska.

All Taxpayers are Liable

After calculating tax liabilities in the traditional manner, taxpayers must do the alternative calculation. They must pay the higher of the normal or alternative minimum tax.

All-A Loan

A house loan for borrowers who do not meet the requirements for a normal (prime) home loan. The phrase is used in a variety of contexts. Roughly. It refers to loans that are better than subprime but fall short of prime in terms of borrower eligibility and loan terms. The absence of detailed verification of the borrower’s income assets distinguishes most Alt-A loans from prime loans.

All-Risks Policy

A term that used to be used to describe a homeowner’s insurance policy has changed. The policy didn’t cover all of the risks, so the industry now refers to it as a “Special Form.” In the H0-3 homeowners’ insurance policy, the dwelling and the contents are covered by a special type of insurance. This type of insurance is called “special form.”

Allodial System

In the US, real estate law is based on the idea that people can have full and free ownership of land, and that this is how the law works. In contrast, under the feudal system, the king or sovereign owned the land and gave it to his noblemen, chiefs, and other people. These allotments could be changed and only gave the person who got them the right to use the land.

Allonge

Promissory note: A piece of paper attached to a promissory note for writing endorsements. It is sometimes used when a promissory note is given to an investor.

Allotment

A tiny building plot, often known as a block

Subdivided land is land that has been subdivided into smaller pieces.

The money that will be used to buy mortgages in a certain amount of time by a permanent investor with whom a mortgage loan originator has a relationship but not a specific contract in the form of a promise. The allotment may say what the investor wants when it comes to processing, loan terms, and/or underwriting rules.

A small plot of land suitable for building a house. A building block, lot, or block of land is another name for an allotment.

Allowance

The money set aside for things that aren’t in the original construction contract.

Alluvion

The material that adds to the soil on a shore or riverbank as it grows. Also called alluvial deposits, it is the fine material that water moves and deposits on land. Sand and mud are two examples of alluvial material. Alluvion and accretion are sometimes used to refer to the same thing.

Alluvium

Any material deposited by rushing water; floodplain and alluvial fan soil.

Alpha

When a manager uses skill to outperform the market competition at a given risk level, this is the return.

Alteration

A word that is used to talk about a part of a building project or remodeling work.

Alternate Bid

Amount that may be added to or deducted from the advertised price based on the selection of alternative methods and materials.

Alternative Minimum Tax

Individual taxpayers with specific income levels pay a flat rate tax.

A provision that defines the minimum amount of federal income tax that can be deducted.

Alternative Minimum Taxable Income

The income on which the alternative minimum tax liability is determined.

Alternative Mortgage Instrument

Interest, repayment terms, or the number of payments each month are all different from a standard fixed mortgage. This is a type of mortgage. The variable-rate mortgage, graduated-payment mortgage, renegotiable-rate mortgage, adjustable-rate loan, pledged account mortgage, reverse annuity mortgage, and shared appreciation mortgage are some of the examples.

Altitude

Elevation above or below a reference datum, which often means sea level.

Ambient Air

Any area of the atmosphere that isn’t inside of a building or structure. Federal clean air laws set standards for the air around us.

Amenities

Tenant-provided improvements to a residential building.

Attractive aspects of a piece of property that can be improved.

There are many things that make real estate more valuable or desirable, both tangible and intangible. In a condominium community, for example, there is a swimming pool, a clubhouse, and a good view.

Those parts of a house that have benefits that can be measured in terms of how happy they make you rather than how much money they make you (e.g. convenient shopping and transport facilities).

Amenity

Non-monetary tangible or intangible benefits that come from real estate, such as recreational facilities, concierge services, or planned events.

Americans With Disabilities Act (ADA)

The Americans with Disabilities Act was passed by the federal government in 1999. It was meant to stop people with disabilities from being discriminated against by making sure they had equal access to jobs, public places, government services, public transportation, and telecommunications.

The Americans with Disabilities Act doesn’t allow people with disabilities to be discriminated against when they use goods and services at places like hotels, shopping centres, and professional offices. It also applies to private businesses that own, lease, or run almost all commercial facilities. Private clubs and religious groups aren’t affected by this rule.

The Americans with Disabilities Act says that employers can’t discriminate against qualified people who have disabilities (such as a physical or mental impairment that significantly limits one or more major life activities). This also includes people who are thought to have a disability, such as a disfigurement from an accident, in this group. Employers who have a certain number of employees must make changes to the job or work environment so that a qualified person with a disability can do the job. Examples include changes to the schedule, special equipment, reserved parking spaces for people with disabilities, and access to restrooms.

Specific rules say that existing privately owned places of public accommodation must be made as accessible as possible, if it is “easy” to do so.

Private civil action can be used to get people to do the right thing, like provide auxiliary aids or make changes to a facility. ADA wants people to use different ways to solve problems, like settlement, mediation, and arbitration. An entity that does not follow the act could be fined by the courts. Second time around, fines are not more than $11,000,000. For the first time, the fine can’t be more than $55,000.

ADA might be able to help real estate brokers, salespeople, and appraisers do their jobs better. People who work with commercial real estate and investors should tell them about the ADA, the need to have leases reviewed by knowledgeable lawyers, and the importance of having offices checked out by a knowledgeable architect to see if they are ADA-compliant. Because real estate appraisers could be held liable under the ADA, they may need to put a limit on how much they can charge in their appraisal reports.

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Amicus Curiae

“Friend of the court.” Those who aren’t involved in a lawsuit but want to know what happens may be able to file legal briefs (called amicus curiae briefs) with the court. These briefs are called amicus curiae briefs.

Amortization | Amortisation

To recover your capital investment, recurring repayments are made over a set period of time.

A loan is usually paid back in installments over a period of time.

An amortization schedule shows how the payment is split up into multiple cash flow installments.

It is self-destructive (literally, “killing-off”). The process of paying off or paying off a debt over time by making regular payments of principal and interest over a set amount of time. At the end of the time, there is no debt left. Over the life of the loan, the principal is thus reduced or amortised, which means that the amount of the loan is reduced (hence the term direct reduction loan).

During the Great Depression, many people lost their homes because they couldn’t pay their mortgages. Before then, most mortgages were straight loans that only paid interest for five years, with the whole amount due when the loan was over. Savings and loan groups were the first to offer amortised loans for homes. People also took into account standards set by the Federal Housing Administration when they switched to a long-term amortised loan.

In most pre-1980 mortgages, interest and principal are paid in equal monthly installments. Most of these mortgages are self-liquidating, which means they are paid off in full. set point in time.

The systematic payment of the principle over a set length of time to gradually repay debt. When the loan balance is zero, the debt is fully amortized. In other words, to repay a loan’s principal and interest over a set length of time, usually in installments.

The process of recovering a capital investment over a specified time period through scheduled, systematic repayments at regular intervals. Contributions to a sinking fund on a regular basis in order to discharge a debt or make a replacement at a later date.

Amortization Schedule

The periodic principal and interest payments on a mortgage loan are shown in this table. As the loan is paid off, this timetable will also reflect the outstanding sum owed on the loan.

A table that shows how much money is owed in principal and interest each month, as well as how much money is left in the loan after each payment is made. An amortization table for a second mortgage with a 9% rate is shown here.

Amortization Table

A set of equal monthly payments required to repay a one-dollar loan with interest over a defined number of payment periods.

Amortize

To claim an expense spent at the start of the period as an annual expense or income tax deduction over a number of years.

Anaconda Mortgage

In a mortgage, there is a clause called a “Dragnet Clause” or “Mother Hubbard Clause.” This clause says that the mortgage will protect the mortgagee from all of the debts of the borrower that are at any time due and owed to the mortgagee. Because the mortgagee could buy all of the debts of the person who owes them at a big discount and then use the threat of foreclosure to get them, courts don’t like clauses like this one. The name anaconda comes from the fact that the debtor is “wrapped in the folds of indebtedness.”

A lot of courts want to see that there is some connection between the two debts and that the second loan agreement specifically refers to the first anaconda clause. Also, if the second debt is backed by its own collateral, the anaconda clause usually won’t apply to the second debt, either.

Analog

A type of data presentation in which values are represented graphically, such as curves.

Ancestor

An ancestor is a person from whom one is descended (like a father or grandmother) and from whom land can legally be legally taken. Under some state discrimination laws, it is against the law to discriminate against someone because of their ancestry. Under the federal fair housing law, it is against the law to discriminate against people because of their national origin.

Anchor Bolt

It is a bolt that holds the sill of a house to the foundation.

A fastener for affixing objects or structures to concrete

Anchor Tenant

A well-known tenant in a shopping centre, such as a major supermarket or department store, that draws in other tenants and customers.

The significant and well-known stores who attract the majority of customers to a shopping area.

The high-profile tenant of a shopping centre, typically a major supermarket or department store that attracts other tenants and consumers

The large chain(s) or department store(s) in a shopping complex, strategically placed to generate traffic for the facility’s smaller retailers.

A major department store or chain store is placed in a shopping centre so that smaller, satellite stores get the most attention. An anchor tenant is a store that draws people in. In a typical strip shopping centre, two big stores, like a supermarket and a big drugstore, are at opposite ends of a mall. There are smaller stores in between them. This helps to make the whole shopping centre as profitable as possible. They need this strategy because most commercial lease rents are based on the amount of money the business makes each month in gross sales.

Recently, the Federal Trade Commission has tried to limit the power of the anchor tenant to choose the satellite tenants and the goods they sell.

Tenants who are supposed to bring clients to a shopping centre and thereby generate sales for the facility’s other retailers.

The main tenant, usually the largest, who draws other tenants and customers to a shopping centre.

Ancient Lights Doctrine

Early English common law said that an adjoining owner couldn’t build anything that would keep light from coming into a neighbor’s window. In modern U.S. courts, this ancient lights principle has not been accepted. However, the courts are starting to refer to it as they write new laws about solar easements.

Angle

It is a way to show how one line is connected to another. Many people measure angles clockwise and in degrees. This means that 360 degrees is a full circle or a full rotation back to the start. In each degree, each minute is broken down into 60 seconds, and each second is broken down into 60 seconds. North 42° 20’ 15" easterly could be written as the direction of a line. Using north as the line of reference, this line would be located. It would then be measured from north to east at an angle of 40 degrees, 20 minutes, and 1 5 seconds.

Reference lines can be north or south, and they can be long or short. People can make angles that are either east or west of the line that serves as the centre.

Annexation

A way to add to your property by joining or putting two things together, like attaching personal property to real property and making a fixture. There are many things that make a room look good, like a sink that is attached to the plumbing.

Annual Compounding

Accumulated interest, which earns interest in all consecutive periods.

Annual Debt Service

The entire amount of monthly debt service payments that a lender requires.

It’s the amount of money that must be paid each year to pay off all of the debts that are attached to a piece of real estate, such as mortgages, deeds of trust, and contracts for deeds.

Not all real estate lenders care as much about the loan-to-value ratio as they do about the ratio of net operating income and annual debt service. This is why it’s important to keep in mind.

Annual Exclusion For Gift Tax

An amount of gift income that the donor can keep from being taxed.

In 2012, each person can get a $13,000 gift tax exemption for each donee they give each year. Thus, a mother could give six $13,000 gifts to six different children in one year (a total of $78,000), none of which would be taxed. She could do this every year. Her husband could give her an extra $13,000 per donee each year.

Annual Meeting

A meeting of shareholders of a company or members of an organisation every year to let them vote on the election of directors and other corporate or organisation business. Shareholders who aren’t there can vote for them by proxy.

Condominium associations and cooperative societies usually have an annual meeting, as well as other meetings that happen more often.

Annual Mortgage Constant

The yearly percentage of the loan’s original principle amount that must be paid in order to fully repay interest and principal during the loan’s duration.

Annual Mortgagor Statement

A report from the lender or servicer to the person who owes money on their home. It shows how much taxes and interest were paid and how much of the home’s value is still owed.

Annual Percentage Rate (APR)

In the absence of early payback, an approximation of the mortgage loan’s yearly effective borrowing cost. This metric takes into account the impact of upfront finance fees on the 1rue cost of borrowing.

On an annual basis, the actual cost of borrowing.

To make sure everyone understands how much they’re paying for, the federal Truth in Lending Act requires that this be written down. If you want to know the rate, you can use tables from any Federal Reserve bank to figure it out. The rate must be rounded up to the nearest one-eighth of a percent. Use of the APR makes it easier to compare different lenders. It allows for a standard way to say how much money you’ll pay for credit. The act lets you use the abbreviation APR.

The interest rate that applies to a loan, mortgage loan, credit card, etc. for a whole year.

Annual Report

A report on how a company did financially and how it did in the last fiscal year. It usually includes a balance sheet, operating statement, and auditor’s report. It is shown to the company’s stockholders before the company’s annual meeting. It must be filed with the Securities and Exchange Commission every year if a security has been registered with them.

Annuity

A sequence of regular payments received or made at regular periods.

An amount of money that the annuitant gets at set times as one of a series of payments. People sometimes trade real estate for a private annuity. There are some things that make an annuity deal unique. The annuitant only owns the payments, not the funds or sources from which they come. The buyer pays for the property by agreeing to pay the seller a set amount of money each month for the rest of the seller’s life. The standard annuity tables are used to figure out how much each payment will be. The right way to set up a private annuity transaction that gives real estate to a member of the annuitant’s family can save money on estate, income, and gift taxes.

Annuity tables, like the Inwood tables, can be used correctly to figure out how much money an investment is worth right now. They give a factor that can be multiplied by the amount of money you want each year to get an idea of how much money an investment is worth right now (what amount the investor should pay to acquire the property).

  1. a yearly salary

  2. the return on a capital investment in the form of a series of periodic payments that include both interest and a partial return of capital.

  3. The annual return can be in equal annual amounts, referred to as a level annuity, or in increasing or decreasing annual amounts, referred to as an increasing or decreasing annuity.

  4. Depending on whether the income payments are prepaid or postpaid, it can be expressed as an annuity in advance or annuity due.

Annuity Table

A table of factors used to determine the present value of a compound level annuity.

Antenuptial Agreement

A prenuptial agreement is a contract made by two people who are thinking about getting married in order to set out the property rights of both of them before they get married (“prenup”). It is best for each person to have his own lawyer when they are negotiating a contract like this. Antenuptial (or prenuptial) agreements may not be valid if they aren’t completely disclosed and if each party has a lawyer of their own.

Anticipatory Breach

A buyer or seller can say or do things before the deal closes that say they won’t do what they say or do. At that point, the other party isn’t in breach of the contract, so the other party can go to court and get the contract enforced without having to offer or give performance.

Antitrust Laws

State and federal laws are in place to keep and protect business competition.

Among the things that are antitrust violations are price-fixing and certain types of boycotts. Also, there are restrictions on competition in leases for shopping centres, and certain restrictions on franchise owners. Several “tie-in” arrangements are also under fire, like when a developer makes the buyer promise to list the property with him if he wants to resell, or when a property manager makes the buyer promise to list with him when he sells.

There has been a lot of attention paid to some real estate brokerage activities by the Federal Trade Commission and the Department of Justice. People in local boards or groups of brokers set general commission rates and bar brokers from joining local boards or multiple-listing arrangements because they don’t meet the rules for joining. A number of court cases have made it so that local real estate boards can no longer have an impact on fixed commission rates or commission splits between cooperating brokers. Furthermore, in some states, clients must be told that commission rates can be changed between the client and the broker.

CONTINUED-AT

Continued at…
:point_right: Real Estate Glossary A [Part 6]