Real estate vocab I have to nail down this week

Trade fixture

Linked to a business they are personal property for ex, a hairdresser’s chair or a dentist chair. Although the chair is attached to the ground it is not real property- it is personal because when the hairdresser sells her property, the chair will be going with her as a part of her business. The chair is personal because it belongs with the person not the land.

Extended Policy of Title insurance

Insurance policy with increased coverage. Helps with dispute over property lines which are disclosed by a survey. Covers improvements on adjoining land.

Periodic Tenancy

Estate where tenancy is renewed periodically for example week to week month to month or year to year.

Tenant improvement Allowance

The amount a landlord is willing to spend so the tenant can retrofit or renovate a commercial space.

Reliction

Gradual recession of water, leaving land permanently uncovered.

Lease

A contract between a lessor and a lessee which gives possession but not ownership, to the lessee. Also known as a “ leasehold Estate”. The tenant doesn’t need to sign a lease to become a lessee acting as a lessee is enough. This is NOT real property a lease is considered personal property. Think of them as a piece of paper- a lease is a piece of paper, and you can move a piece of paper, so leases are personal property.

Net lease

Also known as a triple Net Lease, this is a lease in which the tenant pays for taxes, insurance and maintenance in addition to other fees like rent and utilities.

Less than Freehold Estate

An estate interest held for a defined period of time

Avulsion

Land is washed away by water- for example a dam breaks and the rushing water washes away a strip of land

Accretion

An increase in actual land due to natural causes- for example, from the gradual action of the ocean or river waters.

Bundle of rights

Legal rights of the real estate title holder. Includes the right of possession, the right of control, the right of exclusion, the right of enjoyment and the right of disposition

Percentage Lease

Lease where the amount of rent paid by the lessee is a percentage of the gross income of the lessee’s business- for example a commercial parking

Surrender

Giving up possession of property

Sandwich lease

A lease in which an existing tenant sub-lets( or leases again) the property to a third party. The lessee becomes the lessor.

Grant Deed

A deed that includes two implied warranties 1- The grantor has not already given the title to another person; and 2- The estate has no undisclosed encumbrances. It is not necessary to record the deed. Grant deeds and considered officially executed when signed by the grantor.

Estate in severalty

Property owned by just one individual (or corporation)

Special warranty Deed

A deed in which the grantor warrants only against defects that occurred during their ownership( the grantor of a special warranty deed does not provide a warranty or guarantee against any defects in clear title that existed before their ownership.

Fixture

Personal property that is not real property- for example, a pool covering or a painting that has been nailed to the wall. The acronym MARIA is a test for whether or not something is a fixture( Method Adaptability Relationship Intention Agreement )

Abstract of Title

A summary that provides details of the title deeds and documents that prove an owners rights to dispose of land together with and encumbrances that relate to the property.

Littoral rights

Land which abuts a body of static water- for ex lake, sea or ocean.

Easement in Gross

Easement which attaches to an individual( person or entity) There is no dominant tenement- for example, the power company’s right to access utility lines.

Subleases

When an existing tenant sub-lets( or leases again) the property to a third party. The lessee becomes the lessor).

Joint Tenancy

Concurrent ownership with unities of time, title interest and possession (TTIP). Has right of survivorship, meaning if one joint tenant dies, the surviving joint tenants take the remaining interest.

Personal property

Generally movable. Goes with the person. Personal property can be hypothecated , alienated and become real property ( a fixture)

Chattel Real

Often refers to tangible movable personal property