Abstract of Title - A historical summary of the recorded instruments and proceedings on the title of a
property.
Air Rights - The right to use or control the space above a property. Air Rights can also be sold, rented or
leased to another party.
Amenities - The benefits from home ownership, such as a feature that enhances value.
Appraisal - An estimate of the value of the property. One may have an appraisal to determine the offering
price during a sale.
Assignment - The process by which a right or contract is transferred from one party to another.
Assigned contracts include mortgages, leases and deeds of trust.
Broker - A state licensed sales agent who acts for property owners and prospective purchasers in Real
Estate transactions.
Brownstone - A 19th century house which shares a common wall with the neighboring property.
Building Amenities - The assets that buildings offer its owners or tenants. These can include a
doorman, health club, club, garage etc.
Building Restrictions - Requirements in building codes that affect the size and appearance of the
building.
Capital Expenditure - An improvement that will have a life of one year or more and will increase the
value of the property.
Certificate of Occupancy - In many localities, each building is required to have a Certificate of
Occupancy which permits the structure to be occupied by members of the public. This means that the
building is in compliance to health and building codes.
Closing - The transfer of ownership of a property from the seller to the buyer according to the sales
contract.
Co-Broke - This is the term used when a broker sends out their listing to other brokers and other firms.
The brokerage community then receives the listings and the commission will now be split evenly
between the seller's broker and the firm that provides the buyer of the property.
Combination - Refers to when an owner combines two adjoining apartments into one to enhance the
value and the space.
Common Area - The area on the property or in the building that is available for use to all owners and
tenants.
Comparables - Used in assessing or establishing the fair market value of a property, a property which
has been sold recently that is similar in size, condition, location and amenities.
Condominium - A building where individuals own individual units but share common areas with the
other unit owners of the building. A more liberal type of ownership than Coops, Condominiums also
have more lenient policies regarding subletting and pets.
Contract - A legally binding agreement between two parties. To have a valid contract for the sale of Real
Estate there must be:
•        an offer
•        an acceptance
•        competent parties
•        consideration
•        legal purpose
•        written documentation
•        description of the property
•        signatures of the principals
Conversion - Property changing to a different form of ownership, such as a condominium to a
cooperative or a commercial building to a residential building.
Convertible - A one or two bedroom apartment that has space to make another bedroom. The other
bedroom can be made with the construction of a wall; however, the new bedroom must have a window
in order for it to be legal.
Cooperative - A type of ownership of property. This is when the individual unit owners own shares in the
cooperative building and do not own the actual property. The amount of shares owned is determined by
the value and size of the apartment. The cooperative building owns all of the units and the purchaser is
buying stock in the building.
Deed - A written document by which title of property is expressed from one party to another.
Duplex Apartment - An apartment that has two levels.
Escrow - A state where consideration, benefits, legal rights, money, documents or other valuables are
transferred to another party in advance of that party's legal claim to them, on the basis that the legal
claim will arise at a given point in the future. It is a form of trust.
Estate - The word used to describe the collection of all assets of a deceased person. Also, the extent of
interest a person has in real property.
Estate for Life - The interest of real property that ends with the death of a person.
Exclusive Listing - A contract whereby the owner of a property grants a single broker the right to market
the property for sale.
Façade - The exterior front wall of a building.
Financing - Borrowing money to purchase a property.
Firm Price - An asking price for a property that is not open for negotiation.
Fixed-Rate Mortgage - A loan where the interest rate remains constant over the entire term of the loan.
Flip Tax - Tax imposed on the cooperative apartment by the cooperative, this tax can either be paid by
the seller or purchaser and is usually a percentage of the purchase price.
Floating Rate - A loan where the interest rate is not fixed over the term but is allowed to vary according to
the change in a specified index.
Floor Plan - A scale diagram of the arrangement of rooms and their sizes drawn by an architect.
Foreclosure - An enforcement process in which the lender under a defaulted mortgage takes title to the
property for the purposes of selling it to recoup moneys owed under the mortgage.
Full Bath - A bathroom with a bath or a shower.
Grandfather Clause - If a new law is passed or an old is changed those people whose activity was legal
under the previous law are allowed to continue because of this condition. This law is common with pets;
some buildings that do not allow pets now, did in past, therefore, those owners are allowed to keep
their pets.
Half Bath - A bathroom without a bath or a shower.
Interest Rates - The cost of borrowing money from a lender. Rates change over time and are set by the
Federal Reserve.
Lease - A written agreement to rent a property or part of a property from the owner.
Lien - A legal claim against property for money owed.
Listing - The agreement that allows a real estate professional to market a property. Available
apartments are also referred to as listings.
Loft - A loft refers to open living space that was converted from commercial space to residential space.
Lofts contain very high ceilings, large windows and open space.
Lot - A measured section of land.
Maintenance - Monthly charges paid by the owner or tenant of a cooperative building for that person's
share of costs of keeping the common-use portions of the building in good condition. This includes the
daily cost to operate the building and it is calculated based on each individual unit.
Managing Agent - An independent company that is hired to manage a property. In New York City, most
of the cooperative and condominium buildings are managed by a company which is responsible for the
building operations. Brown Harris Stevens manages over 160 buildings in Manhattan.
Market Value - An estimation of the price for a property in relation to the current real estate market.
Mortgage - Money borrowed from a lender in order to purchase a piece of property. Mortgages vary in
terms of length as well interest rates.
Negotiation - The process of discussing an issue between two parties who are working towards the
same goal. Successful negotiation usually leads to a contract and then a sale.
Notarize - To verify the authenticity of a signature by a certified Notary Public.
Offer - An expression of the desire to purchase a property at a specific price. Once an offer is made and
then accepted it leads to the purchase of the property.
Offer Accepted - The term refers to when the owner of the property agrees and accepts the offer and
terms of the purchaser.
Open House - A specified time when a property that is for sale is advertised by opening its doors to
prospective buyers. A broker advertises an open house to help the sale of the property.
Open Listing - A listing where the owner of the property hires more than one broker and only pays
commission to the one that provides the purchaser.
Ordinance - A law enacted by the local government.
Penthouse - A luxury apartment in a high rise building.
Post War - A post war building is one that was built after World War II.
Pre War - A pre war building is one that was built before World War II. Common characteristics of a pre
war apartment are fireplaces, moldings and hardwood floors.
Property Tax - The tax issued on the ownership of property.
Points - A charge levied by the lender on the borrower for the mortgage for prepaid interest. Each point
is equal to 1% of the principal of the mortgage.
Powder Room - Also known as a half bath. A powder room is a bathroom without a shower or a bath.
Quadraplex - An apartment that has four levels.
Rental Building - A building where the apartments are only rented and not sold.
Rent Control - Laws that regulate the amount of money that is charged to rent out space.
Reserve Fund - An account reserved to provide funds for future expenses in order to maintain the
cooperative or condominium building.
Sale Price - The amount of money paid by the purchaser to the seller. Also known as the purchase price.
Security Deposit - A payment required by a landlord to guarantee that the tenant meets his or her
obligations under the lease and to guard against any potential damages that may be incurred during the
term of the lease.
Shares - When one purchases an apartment in a cooperative building he or she is actually purchasing
the shares in the cooperative. They represent the proportion of the building owned by the unit owner
based on the size and value of the apartment.
Square Footage - The area measured in square feet of a certain property. Square footage can be
measured in different ways and is usually considered approximate. Condominium apartments have
specific laws that determine the way which the apartment is measured therefore condominium
measurements are more accurate.
Sublet - The term used when an owner of an apartment decides to rent the apartment to a tenant.
Tax Deductible - An expense that reduces taxable income. Each year, shareholders in cooperatives
apartments are able to deduct a certain amount from their personal taxes. The amount is determined by
the amount of shares that are owned.
Term - A specified period of time.
Term, Amortization - The term in which the interest and principal payments of a loan must be made.
Title - The legal term for the evidence that the owner is in lawful possession of the land and property.
Townhouse - A townhouse is a private residence where at least one wall is shared with another
residence.  
Triplex - An apartment that has three levels.
Unit - A single residence within a building.
Utilities - Services such as water, gas, electricity, telephone and television. Utilities in some buildings
throughout the city are included in the maintenance charges.
Vacate - To move out and leave the property.
Walk Up Building - A building that does not have an elevator. Most walk up buildings are four to six floors.
Walk Through Inspection - The inspection of a property immediately before the closing to ensure that
the property does not have any new damages.
Zone - An area set by local law for specific use with certain rules and regulations.
Telephone
Jon at:
414-431-8336
262-432-2335
Real Estate
Glossary of Terms
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