Real Estate Keywords

Asbestos

Now banned hazardous mineral once used for insulation

Building Codes

Standards of construction

Actual Eviction

Suit for possession. Legal removal of tenant

Assignment - Lease

Transfer of primary responsibility for a lease to another party

Constructive Eviction

Tenant is forced to move because rental unit is uninhabitable

Demise

A transfer of property by lease- possession

Estate for years

Lease for a definitive period of time

Gross Lease

Lease under which landlord pays taxes, insurance, and other expenses.

Ground Lease

Rental of Land on which tenants erect their own buildings (commercial)

Holdover tenancy

Situation when a tenant remains after lease period has expired aka tenancy at sufferance

Implied warranty of habitability

A landlord’s responsibility for decent conditions

Lease

A contract between landlord and tenant transferring right to use real property for a specific period of time for rent

Lessee

The tenant

Lessor

The landlord

Management agreement

Property managers employment agreement

Net lease

Lease in which tenant pays expenses like property taxes, insurance, etc - landlord only pays the mortgage (mostly commercial). On exam

Percentage lease

Lease in which landlord shares in gross receipts of tenants building. Commercial- store gives a % of profits of sales plus rent to the landlord

Periodic Estate

Lease with regular payments with no ending date. Automatically renews after each period I.e month to month, year to year, week to week.

Notice for Periodic Estate

Month to Month - 30 days notice

Year to Year - 90 days notice

Week to Week - 1 week notice

Property Manager

Perso

Building Permit

Permission for construction

CERCLA

Comprehensive Environmental Response, Compensation, and Liability Act 1980. Anyone who sells a property with hazardous waste is liable for cleaning it up prior to sale.

Certificate of Occupancy

Inspector’s approval for human habitation

Condemnation

Court action by which government takes property

Deed Restrictions

Limit on use of property by seller

Department of Environmental Protection

New Jersey agency overseeing natural resources

Eminent Domain

Governments power to take property for public use

Escheat

Reversion of property to the state when intestate owner dies without heirs.

Exclusionary Zoning

Discriminatory local regulation

Lead-Based Paint

Once widely used wall covering containing non banned metal.

Master Plan

Primary method by which local government recognize developmental goals

Nonconforming Use

Existing use that doesn’t meet current zoning standards

Police Power

Governments right to regulate for health and safety

Radon

A naturally occurring radioactive gas. The level for radon remediation that is recommended is 4 Picocurues PCI or more

Variance

A use that doesn’t meet current zoning requirements

Zoning Ordinance

Municipal restrictions on uses of real estate in various areas

Comparative market Analysis

CMA price comparison for sellers use when listing

Exclusive-agency listing

Listing that promises broker will be paid unless owners sell on their own

Exclusive-right-to-sell listing

Listing broker will be paid no matter who sells. This gives the best protection for agent and is most common listing.

Multiple Listing Service

MLS organization of brokers who work to sell each others listings

Net Listings

Illegal listing: broker keeps everything above a certain figure. Illegal because there is no negotiation of comp and this does not have negotiation which is required by NJ law. The broker is incentivized to deliberately undervalue listing price to increase their comp.

Open Listing

Listing given to any number of brokers: only selling broker is paid. Does not need a term date.

Bilateral contract

Contract with a promise by each party

Breach of contract

Violation of contract

Competent parties

Those legally qualified to enter into contracts

Consideration

something of value given in exchange

Counteroffer

Offer returned to offeror with changes by offeree

Contingency

certain happening on which a contract depends

Contract

Agreement between two parties to perform some legal act

Earnest Money

Buyers deposit with purchase. Broker has 5 days to deposit into a trust/escrow account. Also called a good faith deposit. It is not mandatory.

Equitable title

Interest an acquired by buyer with land contract. The payee has this until the terms of agreement are fulfilled.

Escape Clause

Protection for seller when buyer has another house to sell or other contingencies

Executed Contract

Contract that has been fulfilled or one that has been signed, depending on the contract.

Executory Contract

Contract that has not yet been performed.

Express Contract

Contract set down in so many words. It can be oral or written and states explicitly what will be done. Ex: mortgage or listing agreements

Implied contract

Contract not put into words but shown by actions. Like eating at restaurant.

Land contract

Agreement under which buyer pays in installments to seller and waits for deed.

Assignment

Transfer of interest in a contract to a third party

Liquidated Damages

Sum agreed on to serve as damages in case of future default

Novation

Substitution of a new contraction for an existing one.

Offer and acceptance

The process of reaching a meeting of the minds

Option

Contract binding one party. Other party free to act or not.

Parol Evidence Rule

Convention that a written contract overrides spoken promises

Rescission

Return to the status quo

Specific Performance

Court action usually asking that the seller be forced to sell as agreed in the contract.

Statue of Frauds

Law requiring certain contracts to be in writing

Statue of Limitations

Time within which one is allowed to assert a legal right

Time is of the essence

Contract clause requiring punctual performance

Unenforceable contract

Seemingly valid contract but neither party can sue to force performance

Unilateral contract

Another name for an option contract

Valid contract

Contract that meets all legal requirements

Void contract

Contract that does not meet all legal requirements

Voidable contract

Contract that is binding, but one party may disaffirm it