Glossary of Terms

Concentration of useful real estate terms in America

A

AIR (AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION - Association of Commercial Realtors and Salespeople

(ALTA (AMERICAN LAND TITLE ASSOCIATION - Association of Insurance Companies That Created Regulation

AAA TENANT - rents at the highest level

ABSENTEE OWNER - Owner of property that does not populate his area / house

ACQUISITION COSTS - Additional costs that are not in the purchase price: trust fees, insurance, commissions, etc.

ACRE - Estimated area equivalent per dunam, one acre is worth a little more than 4 dunams (4,046) dunams

AFFIDAVIT - A written or oral statement given under oath before an authorized officer.

ANNUAL - ANNUAL

APPRAISIAL - An estimate of the property given that gives a valuation by a professional

Appreciation -  Increase in value of an asset

APR (Annual Percentage Rate) - Annual percentage

ARV - Estimation of the value of an existing property after renovation and / or upgrade

AS IS CONDITION - A property that is usually sold at a discount because it includes the problems and defects it has.

ASSESSED VALUE - The value of the property for tax purposes which is determined by a tax appraiser

AUCTION - Auction of land or goods to the highest bidder.
 

B

BANKRUPT - Bankruptcy by court order whether he wishes or against his will

BOOK VALUE - The value of the asset as a capital asset - cost plus additions less depreciation

Broker - Warsaw by the state to continue the business of real estate dealers. A broker may receive a commission for his or her share of assembling buyer and seller, tenant landlord, or exchange parties.

BUILT-UP ROOF - A roof floor consisting of layers of roofing material (tiles and waterproof paper), covered with fine gravel.
 

C

CAPITAL - Money used to generate income, or as an investment in a business or income-producing asset

  CAPITALIZED VALUE -  The value of the asset after the use of the capitalization approach

CAPTURE RATE - Comparing the rate of sales and development of the real estate sector in a given market.

CASH FLOW - Cash flow: The actual cash investment real estate that the investor will receive after deducting operating expenses and debt service (loan payment) from his gross income.

CASH SALE - Selling a full payment in cash, as opposed to selling credit. Payment by check is considered cash

CASHIER'S CHECK - A check taken by a bank for itself and not at the expense of the depositor

CITY PLAN - Urban master plan

CLOSING COSTS - Ancillary expenses for the sale of real estate, such as loan fees, fees, valuation fees and the like.

COMPS - Comparisons to a desirable property by mapping similar properties and their price in the same area

CONDO - A housing unit in a residential building

CONFIRMATION DEED (RECORDING) - Submission of documents declaring the property as a public interest, giving notice to future buyers, creditors, or other stakeholders, such as registration in the Tabu

COUNTY RECORDS - Official documents notifying of changes in liens, liens and other matters affecting real estate.

CPM - Certified Asset Manager

CREDIT HISTORY - The history of the payment ethics of a potential borrower or tenant with credit companies. This history is taken seriously in the United States in every decision.

D

DEBIT - An accounting term used to describe a payment or liability, as opposed to credit that he receives or owes.

DEBT - debt

DEED - a document that transfers the fee for the sale of the property, corresponding to the taboo

DEED OF TRUST - The property is transferred to the trustee by the borrower (trustee), for the benefit of the lender (beneficiary) and returned with full payment.

DEPOSIT - Money given by the buyer with a purchase offer and showing good faith. Also called seriousness fee

DEVELOPMENT - A planned construction project.

DISCLOSURE - A form signed by the owner of a house that describes to a potential buyer all the defects in the property that the owner is aware of

DISINTERESTED APPRAISAL - Estimation of the value of the land by one who has no personal interest in the property.

DISTRESS SALE - Sale of the property when the seller is under extreme pressure to sell. Usually the property is sold for less than the market value.

E

EARNEST MONEY - seriousness fee

EFFICIENCY - Apartment consisting of one space, divided into areas such as kitchen, bedroom, etc.

ENTITY - A separate existence, usually refers to a corporation or other form of business, and not to an individual.

EQUITY - The market value of real estate less the amount of existing liens

ESCROW - Delivery of ownership documents by a grantor to a third party for the purpose of checking the adequacy of the transaction

EVICTION - Evacuation by legal order, in the context of real estate usually of a tenant from the house

F

FACE VALUE - initial initial value

FDIC - The Federal Deposit Insurance Corporation.

FINANCIAL STATEMENT - An accounting statement that presents the assets and liabilities of a person or company. Usually used for large loans or other cases, when the credit report (history of debt payment) alone is not enough.

FLASHING - Metal or similar materials, used at different points in the structure to prevent water infiltration, such as around pipes and ventilation, chimneys, etc.

FLAT COST - Direct cost of labor and materials used in project construction.

FLIP - A term that refers to the purchase of a renovation property and its sale at a higher price

FORECLOSURE - A procedure in court or outside it, which aims to revoke all the rights, ownership and interest, of the property owner in order to sell the property and enslave it.

FRAMING - Part  From the exterior structure of a building or part of a structure, such as the window frame, or the skeleton of a building.

FRESCO - a method of painting a wall on wet plaster. The paint becomes part of the wall and stays on much longer than if painted on dry drywall.

FSBO (For Sale by Owner) - Property offered for sale directly by its owner

G

GROSS PROFIT - Total profit before deductions. A general term that varies, depending on accounting procedures. Also gross

H

HARDWARE - in construction, metal accessories, such as door handles, hinges, locks, etc.

HARDWOOD - hard wood used for interior finishing, such as oak, maple, walnut.

HAZARD INSURANCE - Real estate insurance that protects against fire damage, natural causes, vandalism, etc.

HOME FINANCING - A banking term for construction or property loans

HUD - American Department of Housing and Urban Development

HUD1 STATEMENT -  A document detailing all closing costs; Must be given to the borrower on time  Closing or after.

HVAC - The main home climate control system, usually electric or gas INDEPENDENT CONTRACTOR - Independent contractor

I

INSPECTION - Inspection of property for various reasons, such as termite inspection, inspection to see if the required repairs were made before the release of funds, etc.

INSURANCE - Insurance

INVESTMENT - Investing money with the intention of earning or receiving interest.

IRS - US Tax Authority

J

JOINT VENTURE - A combination of two or more people of their property, skill, efforts, etc., for specific business purposes. Joint Venture

JOINT OWNERSHIP -  Property owned by more than one person or entity.

JUDICIAL FORECLOSURE - Foreclosure through court action and not by the selling power.

L

LANDLORD - The owner of the real estate.

LANDSCAPING - Landscape design

LEASE - Lease agreement  

LIEN - A lien on property for money, voluntarily or involuntarily.

LISTING AGENT - A real estate agent who is responsible for the listing, as opposed to the sales agent.

LLC - The equivalent of a limited liability company, a limited liability company  MAINTENANCE - MAINTENANCE

M

MLS - US real estate agent interface, the platform on which all transactions are offered in the market

MORTGAGE

MORTGAGE COMPANY - A qualified company to arrange real estate loans

MULTIFAMILY - A multi-apartment building

N

NAR - National Association of Realtors

NET INCOME - The difference between the standardized gross profit and operating expenses.

NET PROFIT - Net before taxes

O

OPEN HOUSE - An open house for the examination of potential buyers for a certain period of time

OWNER OCCUPIED - Entered populated by its owner

P

PARTNERSHIP - Partnership

PIPELINE - An extended connection of pipes for transporting liquids or gases, such as oil or natural gas.

PLUMBING - PIPING

PROPERTY MANAGEMENT - The property management company which is responsible for the management of the land

PROPERTY TAX - A tax imposed on personal property; The amount of tax depends on the value of the property.

PUBLIC RECORDS - The records are available to the public. All transactions for the sale of real estate must be registered.

PUD - Initiated unit development

PURCHASE AGREEMENT - An agreement between the buyer and the seller of the real estate, which determines the price and terms of sale.

POWER OF ATTORNEY - Power of Attorney

R

REO -  Owned real estate

REAL ESTATE - Real Estate

REAL ESTATE OWNED (REO) - refers to a property owned by the lender from a foreclosure mortgage which is often for sale

REALTOR - Real estate agent

REFINANCE - Refinancing, loan cycle

REHABILITATION - Property restoration, renovation

RENT ROLL - The income cycle as a result of renting the property

REPLACEMENT COST - The cost of replacing an existing structure with a newer one

RESIDENTIAL PROPERTY - Known land for residence

Routing Number, IBAN  - Account ID numbers in order to transfer funds from an account outside the US to one within it.

S

SECTION 8 HOUSING - Government housing subsidy program

SHORT SALE - The sale of a property that includes a debt waiver by the mortgage lender or promissory note.

SINGLE FAMILY HOUSE - Describes a private home for family residence, a very common type of property in the United States

SUBCONTRACTOR - Works as a secondary contractor, such as electrical contractor, cement contractor, etc.

T

TAX SALE - Auction of property in a tender by a government authority, after a period of non-payment of property tax.

TILE - A general term used to describe ceramic materials used in floors

TIME-SHARING - Shared properties usually as holiday units, for example: fifty-two different buyers buy one apartment; Everyone agrees to hold for one week a year

TITLE - The proof that land belongs to someone

TITLE COMPANY - A company responsible for title insurance

TITLE INSURANCE - Insurance against losses as a result of defects in the previous ownership of the real estate property. (Checks that there is no lien or ownership on the other side of the transaction)

TRUST ACCOUNT - A trust account in which the money is transferred until the closing of the transaction

TURN KEY - A property that is "ready" for rent and the key entry at the door

V

An empty space. The term is commonly used to describe a property available for rent. \

VALUATION - Estimation, evaluation

Y

YIELD - The ratio of income from investment to divided by the total cost of investment over a given period.