Chapters 1-20 Real Estate Lease Property
This chapter covers real estate lease property contract.
urea-formaldehyde
First used in building materials and insulation in 1970. Gases leak from this foam as it hardens & become trapped in buildings. It is known to cause cancer in animals, but effect on humans in inconclusive. Can cause respiratory problems, asthma & eye & skin irritations.
wetlands
Ecosystems of several types in which vegetation is surrounded by stand water during part of the year
appraisal
evaluation or estimation of worth
assessed value
The value of an asset determined by tax authorities for the purpose of calculating taxes
comparative market analysis (cma)
The analysis of sales of similar recently sold properties in order to derive an indication of the probable sales price of a particular property by a licensed real estate broker
cost
the property of having material worth (often indicated by the amount of money something would bring if sold)
cost approach
an approach to appraisal which considers the price of resources necessary to build the same or a similar property. It is the only approach which places a separate value on the land.
depreciation
a decrease in price or value
direct cost
A cost that can be easily and conveniently traced to a specified cost object.
evaluation
an appraisal of the value of something
external obsolescence
Losses of property value caused by forces or conditions beyond the borders of the property. The losses are deducted from a building’s reproduction cost in the cost approach to estimating market value.
income approach
The process of estimated the value of an income producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life
indirect cost
A cost that cannot be easily and conveniently traced to a specified cost object.
insured value
Dollar amount used to determine insurance amount.
location/situs
place where something exists
mortgage value
Normally establishes the value by appraisal, it represents the value the lender is willing to commit.
plottage
Combining two or more parcels of land with a resulting increase in total value.
price
the amount a ready, willing, and able buyer agrees to pay for a property and a seller agrees to accept
residential market analysis
in depth study of a listing as it stands on its own, as well as in light of current market conditions
sales comparison approach
.The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
valuation
Estimated worth or price. Estimation. The act of valuing by appraisal.
acre
A measure of land equal to 43,560 square feet.
commission
a fee for services rendered based on a percentage of an amount received or collected or agreed to be paid (as distinguished from a salary)
cubic feet
the volume of a cube that is one foot on each side; ft³
frontage
the face or front of a building
hectare
A metric unit of square measure, equal to 100 ares (2.471 acres or 10,000 square meters).
a fixed charge for borrowing money; usually a percentage of the amount borrowed; “how much interest do you pay on your mortgage?”
net to seller
An estimate of the money a seller should receive from a real estate transaction, based on a certain selling price after all costs and expenses have been paid.
perimeter
the size of something as given by the distance around it
square feet
a unit measure for area. A square foot is the area of a square with 1 foot sides.
Americans with disabilities act (ada)
.Act that prohibits discrimination against a qualified individual with a disability because of the disability of such individual.
blockbusting
Illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area
cease and desist list
A list of of homeowners compiled by the DOS in a cease and decease zone who do not want to be solicited by Real Estate agents.
civil rights act of 1866
Passed by congress on 9th april 1866 over the veto of president andrew johnson. The act declared that all persons born in the united states were now citizens, without regard to race, color, or previous condition.
department of housing and urban development (hud)
A federal cabinet dept active in national housihng programs;offers programs su h as urban renewal, public housing, model cities, rehabilitation loans, FHA subsidies, fair housing enforcement
disability
physical or mental impairment that substantially limits one or more major life activities such as bathing, dressing, etc.
discrimination
unfair treatment of a person or group on the basis of prejudice
fair housing act of 1968
-Increased mortgage funding availability
-Protected Discrimination List:
-Race
-Color
-Religion
-National Origin
-Gender (Amended in 1974)
-Prohibits BLOCKBUSTING
familial status
In fair housing, at least one person over the age of 18 having legal custody of one person under 18, includes pregnant women and foster children
filtering down
The process by which housing units formerly occupied by middle- and upper-income families decline in quality and value and become available to lower-income occupants.
marital status
the condition of being married or unmarried
nys human rights law
Was created to prevent discrimination in residential and commercial real estate,a s well as employment, public accommodations, places of amusement, and educational institutions
non-solicitation order
prohibits the solicitation of residential property listings, and applies to all real estate brokers and agents; ruled unconstitutional by the US court of appeals
public accommodation
The Americans with Disabilities Act provides for access to public transportation, public accommodation and commercial facilities the same as an able-bodied person.
redlining
Illegal practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than economic qualifications of applicants
steering
Illegal practice of channeling home seekers to particular neighborhoods based on race, religion, national origin; an illegal limitation of a purchaser’s options
tester
an individual posing as a potential purchaser to determine whether discrimination exists in a real estate transaction.
as is
A phrase which disclaims any promises or warranties. A person purchasing real estate “as is” takes it in exactly the condition in which it is found. Seller cannot hide latent defects.
assignment
one party (assignor) transferring rights or interests under a contract to another person (assignee) IN ny all contracts are assignable unless the contract states otherwise
bilateral/unilateral
bilateral contracts arise when a promise is given in exchange for a returned promise (a promise for a promise) , unilateral contracts result when an offer can only be accepted by the offeree’s performance aka “a promise for an act”
consideration
Something of value that gets a person to enter into a contract; owner of property promises to convey marketable title and the buyer promises a certain amount of money
contingency
a possible happening; a chance event; something that depends on chance or uncertain conditions
contract
a binding agreement between two or more persons that is enforceable by law
earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.
executed/executory
executed: both ends of the contract complied with terms; executory: one party has not completed contract terms
express/implied contract
Express is oral or written contract in which parties express intention in words. An implied contract is a result of the actions of the parties
forbearance
a delay in enforcing rights or claims or privileges
land contract
The seller accepts a down payment on a parcel of land but the property does not pass until the last principal payment has been received. This is referred to as an installment sales contract or a contract for a deed.
liquidated damages
An amount, stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
meeting of the minds
Agreement between the parties on all terms of the contract,
novation
(law) the replacement of one obligation by another by mutual agreement of both parties
offer/counteroffer
when someone proposes a contract to another
option
a contract giving one party the right to do something within a designated period without obligation
power of attorney
.a legal instrument authorizing someone to act as the grantor’s agent
proprietary lease
Sometimes called an “owner’s” lease. It is held by a person who owns shares in a stock cooperative. They own personal property which entitles them to this type of lease.
rescission
The practice of one party canceling or terminated a contract, which has the effect of returning the parties to their original positions before the contract was made.
rider
an amendment to a contract
right of first refusal
a right given to a prospective purchaser to be able to meet the price and terms at which the owner is willing to sell the property to another party. Unlike an option, the seller is under no obligation to withdraw his property from the market.
sales contract
A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
specific performance
the performance of a legal contract as specified by its terms
statute of frauds
State law requires certain instruments, such as deeds, real estate sales contracts and certain leases, to be in writing to be legally enforceable
statute of limitations
a statute prescribing the time period during which legal action can be taken
time is of the essence
Phrase in contract that requires the performance of a certain act within a stated period of time
void/voidable
Void has no legal force because it is lacking an essential part of a contract; voidable is one in which either or both parties may reject or disaffirm (contingencies)
actual eviction
the physical ouster of a tenant from the leased premises
assignment
one party (assignor) transferring rights or interests under a contract to another person (assignee) IN ny all contracts are assignable unless the contract states otherwise…
constructive eviction
When the tenant is forced to vacate the property because the landlord failed to provide essential services; tenant is no longer obligated for any further rent
covenant
a signed written agreement between two or more parties (nations) to perform some action
estate at will
An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.
estate for years
Leasehold interest for specific period of time; definite beginning, definite ending; not terminated by death of either party, nor sale of property; no notice required
graduated lease
A lease where the rent will increase periodically in amounts specified in the lease, as contained in the escalation clause.
gross lease
Tenant pays rents, landlord pays all expenses of property; most common form of residential lease
ground lease
An agreement for the use of the land only, sometimes secured by improvements placed on the land by the user.
holdover tenant
Tenant who remains in possession of leased property after the expiration of the lease term.
index lease
method used to determine for long term leases
land lease
the landlord leases the land to the tenant, and the tenant builds improvements on the leased land.
lease
a contract granting use or occupation of property during a specified time for a specified payment
leasehold estate
An estate in realty held by a tenant under a lease. In every leasehold estate, the tenant has a qualified right to possess and/or use the land.
lessee/lessor
tenant/landlord
net lease/double net/triple net leases
lease for which a tenant pays all taxes, insurance, etc, plus utilities and rent/An agreement in which the tenant is responsible for both property taxes and premiums for insuring the building. Unlike a single net lease, which only requires the tenant to pay property taxes, a double net lease passes more expenses along in the form of insurance payments. The landlord is still held responsible for structural maintenance expenses. Each month, the landlord receives the base rent plus the additional payments. Double net leases are most commonly found in commercial real estate./a lease in which the tenant pays all the expenses associated with the property including rent
percentage lease
Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount
periodic estate
Estate with an original lease period of fixed length. Renewal is automatic. (such as month-to-month)
quiet enjoyment
The right of an owner or lessee legally in possession of property, to uninterrupted use of the property without interference from the former owner, lessor or any third party claiming superior title.
security deposit
a sum of money usually equal to one month’s rent, held by the landlord to cover any damage to the apartment caused by a tenant.
sublease
lease or rent all or part of (a leased or rented property) to another person
tenancy at sufferance
The lease has expired and the lessee is now possessing the property illegally, having been given proper notice to vacate. It is similar to trespassing except that the lessee, at one time, held a legal ease.
amortized loans
a loan in which the principal as well as the interest is payable monthly over the term of the loan
buydown
financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period, A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.