Terms Beginning With - E
Property Development & Investment Glossary, Terms & Definitions
Early finish (EF)
Based on network logic and any timetable limitations, the earliest potential time for a Project Management: Principles, Processes, and Practice activity (or the project) may be completed.
It means to let the buyer take possession of the property before the closing. Because of the risk of mechanics' liens, insufficient insurance coverage, and "buyer's remorse" that could lead to a lawsuit, this kind of thing should be carefully thought through. Also, a buyer who moves in is usually not subject to landlord-tenant rules. This means that if the buyer doesn't buy, the seller may have a hard time getting rid of the buyer. To cover these risks, the parties should sign a written agreement about moving in early.
The practice of permitting the buyer to take ownership of real estate prior to closing. Because of the hazards of mechanics' liens, inadequate insurance coverage, and "buyer's remorse" with the possibility of a lawsuit, such a method should be carefully considered. Furthermore, because the buyer who moves in is not normally subject to landlord-tenant restrictions, the seller may have a difficult time evicting the buyer if the buyer fails to buy. To mitigate these risks, the parties should enter into a written early-occupancy agreement.
Early payment mortgages
Loans in which the borrower makes extra payments to lower the outstanding principle faster than planned.
Making extra debt service payments before the due date is essential.
Early start (ES)
Based on network logic and any timetable limitations, the earliest potential time an activity (or project) can begin.
The deposit paid by the buyer when a purchase contract is signed, demonstrating the buyer's seriousness.
Money paid as proof of good faith or true intent to finish a deal, which is generally forfeited by purposeful failure to execute the agreement.
A monetary deposit made by a buyer at the time of the offer to establish the offer's legitimacy and to give recourse to the seller if the buyer defaults.
The monetary deposit (including initial and additional deposits) paid by a potential buyer of real estate as proof of good faith to complete the transaction; also known as bargain money, caution money, hand money, or a binder. Earnest money is negotiated between the parties, and its principal purpose is to act as a source of payment for damages if the buyer defaults.
Earnest money is not required to bind a purchase agreement if the buyer and seller exchange mutual promises of performance (that is, the buyer's promise to purchase and the seller's promise to sell at a given price and terms) serves as the contract's consideration. Consider putting the money in an interest-bearing account for the advantage of the buyer, which can be accomplished by the parties agreeing in writing to place it with a neutral third party such as an escrow business, according to state law. When the sales contract is signed, the deposit, or earnest money, may be retained by the listing broker, the purchasers' broker, or a neutral third party. Because such authorization is not assumed by law, the broker's authority to hold this money on behalf of the seller should be expressly stated in the listing. This money may never be mixed with the broker's own general funds.
It is unclear who owns the earnest money once it is deposited. The money is the buyer's until the offer is accepted. The seller does not have the right to it until the transaction is completed. The earnest money is applied to the down payment after the deal is completed.
When either party defaults, problems develop. However, after the seller accepts the offer, the funds may be disbursed only with both sides' knowledge and approval. Because of the unpredictable nature of earnest money deposits, such funds must be securely safeguarded before a final decision on how they will be released.
To show the buyer's level of commitment, the seller receives a payment from the buyer.
Earnest money deposit
A deposit made in good faith into an escrow account (or into a broker's trust account), usually accompanied with a purchase offer.
The down payment a buyer puts down to show that they are serious about buying a house.
Used to keep water heaters from falling when there is an earthquake.
A right, privilege, or interest that allows the holder to utilize something for a certain purpose.
Nonpossessory interest in someone else's land that allows for restricted use. Only conveys the right to utilize the land.
A right-of-way given but not dedicated to allow for the restricted use of private land for public or quasi-public purposes.
The emergence of situations in which the growth of deposits in banks and savings organizations turns negative as a result of alternative, more appealing direct investment options.
One person's contractual right to use a piece of another person's land, commonly as a drive for access or as a water run-off.
To have a restricted right of use or pleasure over another's land that does not give the holder of the interest possession of that other person's property, a nonpossessory (incorporeal) property interest (instead of an estate). When one property's requirements are met at the expense of another's, an easement is created. An express grant of an easement must be in writing, typically in the form of a separate deed or a reserve within a deed. As a result, an easement is a right to land rather than a contract. Landlocked situations, implication, or prescription can also lead to the creation of easements.
In order to understand the extent of the easement, it is important to know how it impacts both the holder and the servient property owner. The drafter should explicitly define the rights and responsibilities associated with the easement, as most easements originate from an express grant. For example, a right-of-way to traverse the land or a restriction on fence height are examples of an easement. In addition, it can be set up for a specific amount of time, such as months, years, or even life.
If an easement is attached to a property, it is called an appurtenant easement. If you have an easement appurtenant, you have a right to use another person's property (the servient estate) in exchange for the owner's benefit (dominant estate). Because it does not benefit or attach to a dominant estate, an easement is inherently personal and does not pass with the land.
As shown in the illustration, the owners of lots 5 and 6 may come to an agreement that the owner of lot 5 will not erect a structure that will obstruct his or her neighbor's view of the lake. It's referred to as a "negative easement." Navigation easement is a term used to describe the right of aeroplanes to operate below particular altitudes over or near property adjoining an airport (aerial navigation).
As a result of the "floating easement" problem, many easement disputes end up in court due to a lack of clarity about the scope of the easement and who is responsible for maintaining it. If utility lines are to be laid to the land in the future, an access easement may not be acceptable. An easement or right-of-way is deemed to be of a suitable and convenient width if it is located by a grant that does not specify its particular width.
The terms "easements" and "profits" should not be used interchangeably. The right to take soil, minerals, or other land products is known as a profit. A license isn't a right to use someone else's land; it's just permission to do so for a certain reason, and it can be withdrawn at any time.
- A merger occurs when the dominant estate's owner acquires control of the servient one.
- If a fence is erected across an easement right-of-way, the owners of the dominating estate are demonstrating their intent to abandon the easement.
- Release: When the dominant estate owners release their interest in the servient estate, usually through a quitclaim deed.
- When a reason for which an easement was created is no longer relevant.
- Easements can be seized by eminent domain or lost through adverse occupancy in cases of eminent domain.
- When the grantee uses the easement for an improper purpose, it is referred to as overburdening.
When a servient tenement owner can't develop his property without incurring additional costs, he can't cancel an easement. A private right to eminent domain would be infringed upon if the owner of the servient tenement tried to move the easement for personal reasons.
A formal agreement that lets one person use the property of another person for a certain reason.
A contract that says someone else can use a property for a certain reason.
An easement that runs alongside the property. Property 3 in the diagram includes a 30-foot highway easement over lot 1. This easement is attached to and passes with 3 regardless of whether the owner of 3 expressly transfers the easement when 3 is sold. It also binds the succeeding owner of 1 regardless of whether the title to 1 mentions the easement. The right to travel over another's land, party barriers, and shared roadways are all instances of easements apparent. In a condominium, easements appurtenant include the right to walk over the parking lot, have utility lines go through the walls, or have a sewer pipe run beneath the property surface. The owners of the lots in the cul-de-sac (dominant tenements) in the figure have access to the lake via lots 2 and 4. (servient tenements).
An easement formed on one parcel of property (the servient tenement) for the benefit of another parcel of land (the dominant tenement).
A continuing right of use including a connection between two pieces of land: a dominant parcel that benefits from a servient parcel.
Easement that stays in place even after the owner of an asset changes.
Easement by estoppel
The right of use is generated when a landowner grants another landowner permission to rely on her land.
Easement by expressed grant
A special agreement between the concerned parties creates an easement.
Easement by implication
An easement created as a result of a landowner selling property to which access requires crossing other land owned by the landowner. By implication, easements are formed when they are reasonably necessary, when the need is obvious at the time the land is ceded, and when the need appears to be permanent in nature.
Easement by necessity
An easement granted by a court of law when justice and necessity demand it, particularly in a classic landlocked scenario (see lot 3 in the preceding figure). This form of easement requires two basic components: There must have been a common grantor of the dominant and servient properties, and the reasoning for the easement must be reasonable necessity, not merely convenience. For example, if George Brown possessed lots 1-6 (as shown in the diagram) and then ceded lot 3 to Jane Lee without mentioning any easement of passage across lot 1, most courts would presume an easement by necessity. This easement is based on the parties' anticipated intentions. The statute of frauds does not apply because the easement is created by operation of law, and no written agreement is required. Also known as an implied gift easement.
Easement by prescription
An easement obtained via the open, continuous, and unfavourable use of real property over a predetermined time period.
The acquisition of an easement right via open, public, and continual assertion of the right, which is detrimental to the subordinate land owner's interest. The time it takes to get the right of easement by prescription varies by state.
An adverse user's right to use another's land. The use that results in an easement by prescription, like obtaining title by adverse possession, must be unfavorable, hostile, open, notorious, and continuous throughout the statutory duration. Generally, an easement by prescription cannot be obtained on public land or property registered under Torrens. An easement by prescription, unlike an express or implied grant, may be cancelled by nonuse during the prescribed period without evidence of actual abandonment.
Easement by prior use
An implied right of use that permits the owner of a landlocked piece to use an existing passage across another property for entry and egress.
Easement in gross
The restricted right of one person to use the land of another (servient estate) when such right is not formed for the benefit of any land owned by the owner of the easement. There is no dominant estate in this scenario since the easement attaches to the owner personally rather than to the property.
The vast easement is an encumbrance on the servient estate. Utility easements, power line easements, billboard-site easements, and other similar situations are common instances. When it is unclear whether an easement is appurtenant or in gross, most courts construe it as appurtenant.
An easement in gross is similar to a license, except it is irrevocable for the duration of the owner's life. For example, in the previous illustration, the owner of lot 3 may grant his buddy a non revocable right to cross over lot 3 and fish in the lake. This right, or gross easement, expires with the death of the friend or the transfer of lot 3 to a new owner, whichever comes first. The buddy may not transfer his right to another person. A personal easement in gross may not be assigned to a third party by the owner. However, commercial easements in gross, such as rights granted to utility firms to establish pipelines and electrical lines, are a more substantial property interest that can be assigned.
An easement that is apart from any linked land interest and comprises personal property.
The right to utilize property for a single, defined purpose that is unconnected to any adjacent lot.
Having the right to use land that belongs to someone else without having to own land next to it.
Easement of necessity
A established implied right of use that grants the owner of a landlocked parcel the right to utilize a way across mother property for entry and egress.
A sloped roof overhang that goes beyond the house's walls. Also known as roof projection.
Roof overhang that extends past the structure's perimeter.
The discharge of water from a structure's eaves onto the land of another. If such drainage continues for the required time, a prescriptive easement right may arise.
A channel, usually made of metal pipe, is installed at the eaves to transport rainwater to the downspout.
Earnings before interest, taxes, depreciation and amortization.
The study of economic data and problems using statistical approaches.
Economic and environmental impact statements
Studies of the impact that a new development will have on the region's economy or environment.
The industry that supports a community by providing job opportunities within a geographic market region.
A city's set of economic activities for the world beyond its borders.
Part of a local or regional economy's income that comes from exporting goods and services.
Economic base analysis
A research that splits economic activity into domestic and export sectors and aims to identify the extent to which domestic activity is dependent on export activity.
The study of the relationship between basic and non-basic employment patterns as a technique of predicting population, income, and other variables having an effect on real estate and land use is described by the appraisal phrase "external economic activity." The means through which members of a community earn a living are described by this word.
Studies that look at how changes in basic employment (such as export-oriented activities and the wage income they bring) affect the growth of the local or regional economy, the number of jobs, and the population.
Economic base multiplier
The ratio of total employment to basic employment is a measure that gives a rough estimate of how changes in basic employment will affect total employment in a given region, assuming that everything else stays the same.
Economic base theory
A theory of urban growth that holds that overall economic activity in a city is proportional to the degree of activity in its export industry.
The complete advantages of an investment, including equity growth, cash flow, and resale profits, excluding tax benefits.
Workforce characteristics, such as production and job activities.
The loss of a property's value as a result of external causes.
Physical wear and tear on an asset.
Industries that generate growth and create job opportunities in a region. Because their products or services are exported beyond the local region, they are sometimes referred to as export industries.
Economic feasibility study
An in-depth examination of the economic and financial aspects of a proposed real estate investment.
The amount of time that a structure may be employed to create a service or an asset.
the amount of years that a property could be profitable.
The expected period during which an improved property can be profitably used to provide a return greater than the economic rent related to the land itself; the period during which an improvement has value greater than its salvage value. Economic life refers to the remaining period during which improvements to real property (not land) are depreciated for tax reasons in the case of an older structure or improvement. Such advancements typically have shorter economic lives than they do physical lives. Also known as service life.
How long it takes for a property to start making money for its owner.
An external event, such as the relocation of a significant industry, that has a negative impact on the local economy and hence lowers the property's value.
Value loss as a result of an inconvenient placement.
The drop in a property's value caused by things like new laws or changes in how other nearby properties are used.
Economic recovery tax act of 1981
In 1981, Congress passed a substantial modification to the Internal Revenue Code.
Profit created by a good or service that is greater than the profit required to entice enterprises to manufacture the good or service. Pure profit is a term that is used sometimes.
What real estate can command in an open, competitive market at any given time (market rent), as opposed to the income actually obtained under a lease arrangement (contracted rent). Appraisers must take into account the fact that rents will rise as a result of supply and demand when a new facility is being built but no new housing is being constructed.
There are different parts of a local or regional economy where certain things happen.
Economies of scale
People who run a bigger business get more money because they have more money. People use this term when they talk about a market trend that happens when the cost per unit goes down as the operation gets bigger.
A community of organisms and their surroundings that is tied together by a flow of energy.
The zone of transition between two vegetation groupings or zones.
A sum left over after concessions, allowances, and costs have been taken into account and added to a base amount.
A building's apparent age (improvement) is based on observable condition rather than chronological age. The effective age of improvements to real property at the time of inspection differs from the actual age due to variables such as depreciation, maintenance quality, and so on.
Thus, remodeling can extend a structure's economic life by minimizing or neutralizing the influence of actual age, as well as enhance the structure's life expectancy.
The age of a property is determined by its wear and tear rather than its chronological age.
An appraiser's opinion of a building's physical condition.
Effective borrowing cost
The real borrowing cost, taking into account all upfront financing fees. It is comparable to the annual percentage rate, but it takes into account the effect of early pay-out.
Effective cost of borrowing
The real cost of taking out a loan.
Effective gross income
The projected income coming from a rental property's estimated potential gross income less a vacancy and bad debt allowance.
Vacancy rate minus planned gross revenue + any miscellaneous income.
Potential gross rental revenue, less vacancy and uncollectible account losses, plus income from associated sources.
The total yearly revenue generated by the rental property after deducting vacancy losses and adding miscellaneous income.
Effective gross income multiplier
The ratio of the revenue-producing property's sale prices to its yearly effective gross income.
Effective interest rate
A loan's true rate or yield, regardless of the amount listed on the debt instrument.
Actual interest rates charged for the utilization of borrowed cash. The effective rate is determined by the amount borrowed as well as the amount and date of the needed payback.
The amount of money paid in interest on a loan.
1. A property's average lease rate per square foot after negotiating discounts such as free rent, construction allowances over the cost of building standard goods, or the costs of the landlord assuming a tenant's current lease.
2. A payment amount on certain mortgage notes, typically buydown varieties, that allows lower payment amounts computed with an "effective rate" less than the face rate.
The genuine rate of return after all costs and discounts have been deducted.
in contrast to the nominal rate, the actual rate of return or repayment
Rental income less financial incentives such as no-rent periods during the lease term.
Effective tax rate (income taxes)
Income taxes diminish the going-in IRR on a property acquisition or development by a percentage amount.
Effective tax rate (property taxes)
The tax liability divided by the market due or selling price of the property.
An investment's return is calculated by taking into account the price paid, the length of time held, and the interest charged. This means that the effective yield on a discounted mortgage is more than the interest rate. Consider a one-year, IO percent simple interest loan for $ 1,000,000 with four discount points charged by a lender. However, the borrower is still required to pay back the original $10,000 plus interest, even though they only received $9,600. As a result, instead of receiving a 10% return, you'll receive a 14.6 percent return on your investment of $1,400 plus $9,600.
A measure of how well or efficiently a space can get the job done with the least amount of time, money, energy, and materials.
How much of a property you can use and how much you can rent out. See also add-on factor, load factor, and rentable-to-useable ratio. Formula: Efficiency% = Useable square feet/Rentable square feet
Efficiency unit or apartment
A studio apartment is a small, secluded housing unit. Living area, bedroom, and kitchenette are all in one space.
Markets in which all important information is reflected in market prices instantly and completely. Participants in efficient markets are unable to gain above-average market yields on a continual basis. The strong form of the efficiency hypothesis is the belief that a market is entirely efficient.
In times of flooding or high groundwater levels, feces deposited by a soil-absorption waste system may seep or run onto the ground or into a creek or river.
The number of resource units needed to execute an activity.
A method of leaving a property; the inverse of gaining entry.
Access from a building to a public road or exit.
A way out of a building or piece of land.
1. Legal action by a property owner to reclaim their property where there is no landlord-tenant relationship.
2. The removal of a trespasser (possible adverse possessor) or a tenant at sufferance whose lease has ended, or in an action by a mortgagee to obtain possession from a defaulting mortgagor, who is not legally in possession of real property. Expulsion is an example of this (see: eviction).
Elasticity (elastic id ad)
1. Short-term responsiveness of the real estate supply in response to rising prices.
2. Second, the ability to maintain supply or demand regardless of price changes in an economics phrase.
It's possible to reverse the direction of pipe or conduit with the help of an electrical or plumbing installation.
Housing for those who are at least 62 years old. The federal fair housing statute does not require senior housing to admit families with children. Owners of "near elderly" (i.e., 55-plus-year-olds) housing can, but are not required, to accept a family with children under the Housing for the Older Persons Act (HOPA). At least 80% of the inhabitants of this home must be 55 or older, but there are other standards that must be met as well.
Election of remedies
A line of action that can be taken in the event of a violation of contract. Liquidated damages, for example, can be retained by the seller if a buyer defaults on a purchase agreement, but the seller must choose whether to submit the deed and suit for specific performance or damages. Although the seller can choose to pursue all available remedies, he or she is unable to do so.
States that have abolished dower and curtesy have a minimum part of the deceased spouse's probate inheritance, such as one-third, which a deceased spouse's surviving spouse can claim instead of any sum specified in the deceased spouse's will. So, for example, even though she wasn't mentioned in her husband's will, the wife might be able to claim an inheritance.
A provision that allows a surviving spouse to inherit the majority of the decedent's possessions.
Where the service line for the electricity is.
Electric resistance coils
Metal wires that get hot when an electric current goes through them. They are mostly used in baseboard heaters, electric water heaters, and other appliances.
An engineer who specializes in the design and building of electro systems for power generation and distribution, as well as electrical circuits in general.
Electrical entrance package
The point at which electricity enters a system.
Most electrical work necessitates a separate permit.
The Electrical Contractor did some preparatory work before the insulation was applied.
Preparation for and passing municipal electrical final inspection by the electrical contractor.
The house telephone and power lines protrude through the floor at numerous intervals allowing convenient installation of the telephones and power equipment on the first floor of a business building.
Electromagnetic fields (EMFS)
A natural or artificial energy field can be found around power lines, electrical appliances in the home, and office equipment with an electric motor. EMFs, despite some evidence to the contrary, do not meet the criteria for being classified as health dangers.
Electromagnetic Radiation (EMR)
Energy spreads over space as a result of an increasing interplay of electric and magnetic fields. EMR is often referred to as "electromagnetic energy."
A digital format that confirms the signature of a particular individual on a piece of paper. An encrypted digital signature is also referred to as a "digital signature."
Elemental cost planning
A mechanism for keeping track of a project's costs as it is being designed.
Elements of comparison
In the sales comparison technique, the relevant attributes are utilized to compare and modify the selling prices of comparable properties.
Vertical distance between a datum point, such as mean sea level, and a point or item on the earth's surface; not to be confused with height, which refers to points or things above the earth's surface.
Any side of the house shown on a flat piece of paper.
Plans that show how a building's front and sides will look after it is finished.
The page of the blue prints that shows how the house or room would look if a vertical plane went through it.
Mortgaged income properties can be valued by calculating a capitalization rate based on the debt to equity ratio.
Fruit (called fructus industriales), like grapes or com, that is grown each year and harvested by hand or machine. Before harvest, emblements are considered personal property and can be taken by tenants even if harvest is not until after they've finished their tenancy. Forbidden: Landlord can't terminate lease without tenant having right to reenter land for harvesting crops raised by tenant. If the property is sold before the tenant has finished harvesting, the purchase agreement should clearly address these issues of reentering and harvesting.
A public authority's authority to condemn and confiscate property for public purpose in exchange for appropriate compensation.
Private property owners have the right to compensation from the government, public businesses (school districts, sanitation districts), public utilities, and public service corporations (railroads, electricity companies). Although the law generally does not enable compensation for lost earnings, annoyance, loss of goodwill and similar, severance damages may be given for a loss of value to the remaining property that is not formally condemned. It is possible for the government to acquire land through eminent domain for public purposes such as roads, parks, public buildings, and rights-of-way. The government's power extends to all private property.
Condemnation can be used by the government if the property owner and the government cannot reach an agreement on a voluntary acquisition. There are a number of reasons why a property owner can object to a condemnation procedure, including a lack of public benefit or an unfair assessment. Easements are preferred over taking in fee simple because the courts believe that only a portion of a property can be appropriated.
When determining if a take is for a public interest, the standard of review is broad. According to Keio v. City of New London, a 2005 Supreme Court ruling, governments have the power to condemn an urban degraded region for the purpose of selling it to a private developer for personal gain. States are free to prohibit the acquisition of property for such initiatives, however, according to the court's rulings.
Eminent domain refers to the process of acquiring private property by force of law, in exchange for a monetary reward. It is not an unrestrained regulation of property usage that is not compensated (as in the case of restrictive zoning). Mortgagees, for example, must now rely on the government's award of condemnation money to pay their debts as a result of the transfer of ownership to the government.
Recognition of gain earned from condemnation money can be deferred under IRS 1033 when an owner's property is seized by eminent domain. According to the type of property, a replacement property must be found and/or purchased within two to three years of a property's taxable gain realization. In most circumstances, the replacement property must be of a similar or related use to the original property in order to qualify ("like-kind" property).
When a major section of the leased property is occupied, a lessee is frequently offered the option to terminate the lease. Condemnation awards in long-term leases are normally split between the lessor and the lessee based on their respective estate values.
The government's or a public utility's right to buy property for public use.
Both the federal and state governments have authority to appropriate private land for public purposes without the owner's agreement.
The authority of the government to seize private property for a public purpose in exchange for reasonable recompense to the owner.
A government's right to take private property for public use as long as it pays the property's fair market value.
A person who works under the direction and control of another person. The broker employs the real estate salesperson for the purposes of state licensing requirements. The salesman may be considered an independent contractor for tax purposes. An independent contractor.
The number of office space users in a company or industry as a share of all employees.
An elderly family whose children have grown up and gone their separate ways.
If a federal housing programme gives you the capacity or authority to do something that has never been done before, such as create a new form of ownership called a condominium, you might say that the law gave you that power or authority.
The coating that goes over all parts of a building, inside and out.
Invasion of another's property by an improvement or other real property, which reduces the value and size of that property. This includes roofs that extend over the property boundary or fronts that extend over setback lines or onto a neighbor's land. Encroachments are common. More often than not, encroachments are the product of negligence or poor planning rather than malicious intent, such as a driveway or fence constructed without a survey to determine the property border.
Encroachments that aren't revealed in the listing could make a title unmarketable, therefore it's important to note them and make the sale contingent on their existence.
Overhanging tree branches are an example of an intrusion since they violate the neighbor's airspace and constitute a trespass. Eviction, quiet title, or an injunction and damages can be sought by the harmed party in a court of law. The encroachment can be removed by a court order. Even if an encroachment is substantial, a court may opt to award money damages instead of ordering it to be removed if the removal is too expensive and the encroachment was accidental.
Buyers should have their own surveys if they have any doubts about probable encroachments, because an accurate land survey will reveal most encroachments. Buyers are entitled to compel a seller to remove encroachments (or reduce the purchase price) uncovered by a survey, and to pay for the survey, if the encroachment was not previously revealed. Encroachment agreements are sometimes signed by neighbors, providing permission to continue building on a neighbor's property.
Because encroachments are not usually included in the chain of ownership, they aren't covered by title insurance. Most typical title insurance policies, on the other hand, do not cover issues that a proper survey would uncover. Encroachments are often covered by an extended-coverage title policy.
A structure or component of a structure that physically encroaches on another's property.
Studies of the impact of a new development on the region's economy or environment.
Stepping on someone else's land through a building or any other object is called trespassing.
It is a right or interest in a property held in the name of a person who is not the legal owner but who has a claim or lien attached to and enforceable on real property. It is also known as a burden or a burden.
For the purposes of this discussion, encumbrances can be broken down into two categories: those that affect the title and those that affect the physical condition of the property. The former category includes things like judgments, mortgages, mechanics' liens, and other charges on property used to secure a debt or obligation.
A covenant against encumbrances ensures that the property is free of any encumbrances other than those that have been explicitly stated. The buyer can proceed with the purchase on the presumption that there are no encumbrances if none are revealed in the contract of sale.
The description of the property should be followed by a list of encumbrances on the deed.
A debt or liability that affects a property's fee-simple title.
A lien, charge, or claim against real property that reduces its value but does not prevent title from transferring.
Property with a claim or liability connected to it.
A loan backed by a mortgage on a finished structure that completes a series of loans used to finance land acquisition and construction. A permanent loan is also known as a takeout loan.
To finance the acquisition of a new condominium unit or a lot in an already established complex, a takeout financing is commonly used. To "take out" a developer when a construction project is done and sold, the lender that arranges the development or interim loan may also provide permanent financing to individual unit buyers. Hence, terminology like takeout finance and end loan.
This is a long-term loan.
End loan commitment
A lender's promise to deliver an end loan subject to the fulfillment of all circumstances stated by the lender.
A species that is in immediate danger of extinction in all or a considerable portion of its range, as defined by the United States Endangered Species Act.
Endangered Species Act
It was originally designed to safeguard endangered species on federal territory, but it has subsequently expanded to govern land used for the protection of specific fish, animal, and plant species. Many protected species' habitats may not be damaged or modified by this legislation, which could have an impact on farm and development land listings. Environmental experts should always be consulted by licensees when selling or buying a property.
1. The act of writing the owner's name on the back of a negotiable instrument, such as a check or promissory note, in order to transfer title. A blank endorsement is a guarantee of payment to the next owner. Without recourse endorsements do not guarantee payment to future holders. To whomever the instrument is payable, a particular endorsement must be added.
2. The addition of a new notation to an instrument after it has been played in order to alter or explain the substance of the document.. Endorsing a policy might limit or widen the policy's coverage. When it comes to title insurance, for example, there are more than a thousand additional endorsements. FHA loans are covered by the National Housing Act through the placement of an FHA endorsement on the note. Indorsement is also known as endorsement.
Engineering breakdown method
Depreciation on important building components, such as the roof, elevators, and air conditioning, can be estimated using this method.
An act can either be prohibited or mandated. You can approach the court to order a neighbor to clean up your backyard once it has become an unhealthy nuisance, for example. Discrimination in real estate transactions can be prohibited through injunctions issued by the courts. Injunctive powers are generally available to both federal and state governments to sub-dividers who illegally sell land.
A federally-licensed tax expert who represents taxpayers in their dealings with the Internal Revenue Service. As an enrolled agent, you can represent your clients before all administrative levels of the Internal Revenue Service (IRS).
An area where enterprises can benefit from reduced taxes in exchange for establishing in economically distressed areas.
1. One's legal obligation to pay back an amount due.
2. The percentage of a VA-guaranteed loan that protects the lender if the veteran fails to repay their obligation. Veterans Affairs [VA] Loan Certificate of Eligibility the legal entity Anyone who may sue or be sued and has the legal power to enter into contractual arrangements, which may result in debts or other obligations, is considered a legal entity. Consider the tax and liability implications before making a final decision on the proper entity to hold the title for all buyers, including investors.
Promotor or developer: A person who takes the initiative to organize, start, and run a company or business, incurring a significant percentage of the risks and losses and profits; promoter or developer.
The collective factors that influence the presence or development of a site's inherent qualities.
A preliminary study or examination of a proposed activity (project) and its potential environmental impact; generally undertaken to identify the need for more extensive environmental impact analysis.
To ensure that all lands, facilities, and operations under the jurisdiction of the Interior Department are in conformity with all applicable federal, state, and local laws and regulations, systems, programmes, and policies.
Features or conditions of the physical environment, as well as the surroundings, factors, or forces that affect or change it.
Any natural or physical condition or event that could hurt people.
Environmental impact statement (EIS)
A piece of paper that is required by the State Environmental Quality Review Act and explains how a proposed action will affect the environment.
A report mandated by the National Environmental Policy Act (NEPA) of all federal agencies that propose projects that potentially significantly affect the environment locally and regionally. The EIS is a decision-making instrument detailing the project's positive and negative effects and providing feasible alternatives. Federal agencies file environmental impact statements with the Federal Council on Environmental Quality and get the council's approval for all proposed federal actions. Government activities have been constructed to comprise anything from approval of a federal license or permit to policy determinants, provisos, and planned legislation. The following details must be included in any impact statements:
- Planned actions are outlined in depth
- A discussion of the environmental impact of the activity, both direct and indirect.
- Environmental consequences that cannot be avoided are being sought out and identified.
- Possible alternatives to the planned action should be evaluated.
- Long-term and cumulative effects on the earth's surface are described here.
- Resources that may be permanently depleted by the action are to be identified prior to taking the action.
Environmental impact study
An expert's appraisal of a particular land-use scheme's long-term environmental effects
The effects of a particular activity or land use on the physical and social environment, such as pollution, waste disposal, water and power use, etc.
Environmental protection agency (EPA)
The Health and Environmental Protection Agency (HEPPA) was established by Congress in 1970. Air and water pollution, solid waste management, pesticides, radiation and noise are all concerns that the EPA deals with. Environmental laws are enforced by the EPA in these areas, which set standards, establish schedules for polluters to comply, and enforce environmental laws. The EPA conducts an extensive environmental research program; provides technical, financial, and managerial help to state, regional, and municipal pollution-control agencies; and allocates funds for sewage-treatment facilities. To further the EPA's original mandate, additional laws were passed between 1970 and 1972, including the Federal Water Pollution Control Act, Federal Environmental Pesticide Control Act, Noise Control Act, and Marine Protection Research and Sanctuaries Act. The Clean Air Amendments were enacted in 1970, and the Resource Recovery Act was enacted in 1972. In addition, in 1980 the Safe Drinking Water Act and the Comprehensive Environmental Response, Compensation and Liability Act were passed.
A government group in charge of how land is used.
Air, water, noise, and other environmental conditions are regulated, and dangerous chemicals are cleaned up, according to EPA and state health department standards.
Hazardous and non-hazardous environmental circumstances, such as wetland and endangered species. An environmental addendum is frequently included in appraisal reports by appraisers in order to make a note of any environmental issues that could have an impact on a property's value.
Environmental site assessment (ESA)
Environmental engineering or other well-qualified specialist examination to discover whether there are any environmental dangers or problems that affect the use of a property or impose future financial liabilities. The ESA helps both the seller and the buyer make informed decisions about the property. Before agreeing to a loan, lenders frequently require an ESA.
Environmental Site Characterization
The delineation or portrayal of the important elements or qualities existent in a place or site selected for a specific application, function, or study, including all of the conditions, influences, and circumstances.
Environmental Systems Research Institute (ESRI)
GIS and mapping software catalog, including ARC/INFO and ArcView; online bookstore; GIS news and conferences; GIS education and training possibilities
A stream that has no baseflow and only runs during or after rainstorms or snowmelt occurrences.
The European Public Real Estate Association.
Equal Credit Opportunity Act (ECOA)
Credit is granted on the basis of a person's ability to pay back the loan, regardless of a borrower's ethnicity, race, religion or national origin. It is also granted without regard to a borrower's marital status, age, gender, or whether the borrower is receiving public assistance (such as food stamps or Social Security). For example, income, expenses, debts, and credit history all come into play when determining whether or not a borrower is eligible for a loan.
Anyone who frequently extends or arranges for the extension of credit is covered by the legislation. Creditor status is granted to real estate licensees who frequently assist sellers in analyzing the creditworthiness of potential buyers in land contracts and purchase-money mortgages. Provisions of Regulation B, which administers the law, exempt some businesses, stocks, and public utility credit from certain procedural requirements. Many federal and state authorities are involved in ECOA enforcement, but the FTC is by far the most important.
Creditors are required by law to notify applicants of the following: "It is against the law for credit providers to discriminate against applicants for credit under the Federal Equal Credit Opportunity Act. This [insert suitable description-bank, business, etc.] is regulated by the [name and address of the appropriate federal agency]."
It is possible for applicants who feel they have been denied credit because of discrimination to sue. Actual damages, up to $10,000 in punitive damages, and the lesser of $500,000 or 10% of the creditor's total assets may be claimed from the creditor. Court expenses and attorney fees may also be awarded by the court.
This statute outlaws lending discrimination based on race, color, religion, national origin, sex, marital status, age, or because an applicant's income is derived entirely or partially from a public assistance programme.
Everyone is entitled to credit under a federal statute that prohibits lenders from discriminating against anyone.
Equal dignities rule
A rule of law designed to grant the buyer under an executory contract of sale title to the property before the closing date for specific circumstances. Because a court of equity "regards as done that which ought to be done," the doctrine of equitable conversion states that the seller keeps the legal title for the buyer, who has the benefit, equitable ownership immediately after the contract is signed.
As a result, the seller's interest (the legal title of the real estate) is changed into an interest in personal property (the money to be paid to purchase the property). The buyer's interest (buying money) becomes an interest in real estate, on the other hand, As a result, if the seller is still in possession of the property at the time of the contract's execution (as is usually the case), he has a legal obligation to protect the property for the benefit of the buyer and must ensure that the property does not suffer harm.
If the value of the seller's interest at death is in question, as well as if the premises themselves are in danger of being lost or destroyed, the doctrine is applicable. For instance, a seller agreed to sell her farm for $100,000 but passed away before the sale could be completed. In her will, she had left her personal goods to Mike Waters, and her real estate to Pat Parker. The seller's interest in the farm is recognized as personal property, and hence the sale earnings would flow to Waters through the equitable conversion concept.
One who has the authority to make corrections to unfair tax assessments in a given county or state. Equivalence is the adjustment of property values in a taxing district to bring them into line with those of other districts. Equalization factors are established by review authorities to ensure that all property owners in the state pay an equal and uniform share of the state tax. Inequities may develop if the state taxes are based on local assessments conducted by local assessors under local laws.. When a county's assessments appear to be 15% lower than the state average, this underestimation can be addressed by applying an 11.5 percent factor to each assessment in that county, for example.
A governmental body that assesses the fairness of any taxes imposed on a property.
A steady, balanced, or unchanging economic system. A situation in which there is no chance of anything changing.
The price at which the amount being sold is equal to the amount being asked for.
The price at which there will be enough of a commodity to fulfill the wants of all customers while leaving no excess on the market; the market clearing price.
Rule of law allowing the buyer of a property under an executory contract for sale to hold title to it for certain reasons prior to the date fixed for the closing. It is a common law theory that the seller holds the legal title for the purchase, while the buyer retains the beneficial, equitable ownership.
As a result, the seller's interest (legal title to the real estate) is changed into an interest in personal property (the money to be paid to purchase the property). In the other direction, the interest of the purchaser (the money they paid for the property) becomes a stake in it. It is common for sellers to be in possession of the property at the time of contract execution, therefore they are legally required to ensure that the property does not suffer any harm for buyers.
A seller's interest in real property can be valued based on the seller's death benefit, and the same rule applies if the property itself is at risk of being destroyed or lost. As an illustration, a seller agreed to sell her farm for $100,000 but passed away before the deal could be finalized. Personal property was left to Mike Waters, and real estate was left in trust for Pat Parker. The seller's interest in the farm is recognized as personal property, and hence the sale earnings would flow to Waters through the equitable conversion concept.
A lien resulting from a written agreement between two parties indicating that they intend to use a specific piece of property as collateral for a debt or obligation. In cases when the parties intended to create a lien, but the mortgage instrument was not properly executed, a court may rule that an equitable lien exists. Equitable liens include a vendee's lien, which the buyer retains against a property when a seller defaults in the performance of a sales contract, and a vendor's lien that serves as the security lien behind a purchase-money loan that isn't backed by a mortgage, respectively. Even though the loan is insecure, the borrower must agree not to transfer or encumber any of the borrower's real estate as a condition of receiving the loan.
Equitable right of redemption
The legal right of a borrower, or the borrower's heirs or assigns, to redeem mortgaged property after default for a certain period of time. Also known as redemption equity.
Restrictive covenants that do not run with the land can be enforced as if they were part of the land through an equitable easement of use. In order to enforce equitable servitudes, it must establish that the restrictive covenants are meant for the benefit of lot owners in a particular subdivision or tract, that there is a dominant or benefitted property, that there is a general scheme or plan of improvement or development for the entire tract, and that the covenants are intended as restrictions on the land conveyed and incident to its ownership, the purchaser accepting the lot subject to that burden. A homeowner could use the equitable servitude theory to block the construction of an apartment building on land intended for single-family residences.
The right to receive complete, legal title to real estate if the terms and circumstances of the instrument generating equitable title (often a contract for sale) are met.
The equitable right to attain absolute ownership of property when legal title is held in the name of another and is held by a vendee through a purchase contract, contract for deed, or installment purchase agreement. For example, a vendor's heirs and beneficiaries are entitled to this interest upon his or her death. Legal title is retained by the vendor, but the purchaser has the right to demand that it be transferred upon full payment. In other words, if the seller refuses to sell after a contract of sale is signed and the buyer submits performance, the buyer can sue in equity for particular performance. In certain circumstances, the courts say that the buyer becomes "the equity owner of the land." Sellers benefit from any increase in value that occurs between signing a contract and delivering the deed. Any unfavorable conditions, such as a rezoning, are also the responsibility of the vendor.
One state's trust deed gives trustees absolute ownership, while others provide trustors equitable ownership.
A party's interest in a property that they have committed to buy but have not yet completed the transaction.
The idea of fairness and justice was applied to the section of common law pertaining to individual rights and obligations. Also, the monetary worth of what is possessed, calculated by deducting all debts from the ownership value to arrive at a net ownership value number.
the proportion of an asset that is owned outright. This is the current estimated value minus any outstanding debt.
the proportion of a property that an owner owns after deducting outstanding loans from the market value
That percentage of an ownership interest in real estate or other securities that is not financed, that is, the component that is owned outright.
The difference between how much you owe and how much your home is worth today.
1. A property's remaining interest or value after all liens and other liabilities against it have been paid. Over and beyond the mortgage indebtedness, an owner's equity in a property is typically defined as the monetary interest that the owner retains. The value of a property encumbered by a long-term mortgage increases with each monthly primary mortgage payment and appreciation.
In the early years of a mortgage, equity is slowly built up because the majority of the monthly payment goes to interest rather than principal. The less risk a mortgagee who lends money based on the security of the property has, the more equity an owner has.
2. For circumstances in which monetary damages would be insufficient to appropriately compensate the offended party, a court of equity was established under English common law as an alternative forum to hear complaints. One of the only legal options available to a buyer whose property was declined by a seller is to sue for money damages. It is possible for a court of equity to force a contract to be fulfilled. There are still important differences between legal and equitable remedies for specific performance and actions that do not constitute injury, despite the fact that most jurisdictions have combined courts of equity and law. The federal bankruptcy courts continue to function as courts of equity in the United States federal system.
After all debts have been paid off, the ownership stake in a property is calculated.
How much "value" you have in your home.
The borrower's equity in the property, minus the amount owed on the mortgage.
The collection and expansion of the monetary worth of one's possessions. That is, a growth in a single property's net financial interest.
Amortization is the process of paying down a loan's principal over time, usually in periodic installments. Such payments increase the difference (equity) between the property's market worth and the amount of debt that remains.
The amount of net value gained as a result of paying off a mortgage.
Equity Dividend Rate
Before-tax cash flow calculated as a percentage of the original equity cash expenditure required.
The equity "capitalization rate." It is calculated by dividing pre-tax cash flow by the value of invested equity capital. The dividend rate/yield of the property, often known as the "cash-on-cash return."
A simple return is calculated by dividing the cash flow dividend before taxes by the equity.
A lender's share of the cash flow or resale revenues received in exchange for providing a loan.
A type of joint venture in which an owner signs a contract with a user who agrees to use a space and pay rent as a tenant, but also gets a share of the ownership benefits, such as periodic cash flows, interest and cost recovery deductions, and maybe even a share of the sales proceeds.
Borrowers can obtain a home equity line of credit. Any remaining mortgage balance is subtracted from the home's appraised value to arrive at the equity percentage. It is not based on the owner's creditworthiness, but rather on a second open-end mortgage on the house.
Equity of redemption
A period of time given by courts in every state that allows delinquent mortgage debtors to make outstanding payments and bring their mortgage current before foreclosure is completed.
Prior to a foreclosure auction, a mortgagor has the right to regain property that has been lost because of a mortgage default. If the borrower pays out the entire amount, including escalator clause interest and costs, the property can be reclaimed by the lender as collateral. Requiring the borrower to give up his or her redemption rights is against public interest and, as such, is unenforceable and void. Equity of redemption has been ruled to be a real estate interest and is thus subject to the usual rules and laws regarding conveyances, including the statute of frauds.
The right to redeem following a foreclosure sale must be established by law. Nonjudicial foreclosure statutes are used for the majority of foreclosures in states where a power of sale can be included in the mortgage contract. The right to redeem a property once a foreclosure sale is canceled.
A borrower's right to get back the title he or she gave up after defaulting and before a foreclosure sale by paying off the debt in full, plus interest and the lender's costs.
It is the agreement between the potential purchaser and the investment company in which an equity stake is traded to help with the acquisition financing. All or a portion of the down payment, closing costs, or monthly payment can be provided by the investor. Private investors, businesses, mortgage lenders, or even the seller can be investors. On the basis of a suitable allocation of deductions such as mortgage interest, depreciation, and property taxes, it is essential to seek out qualified tax guidance.
A sort of real estate investment trust that focuses its resources on real estate equity holdings.
A real estate investment trust (REIT) is a company that invests in the ownership of income-producing real estate.
Real estate investment trusts that buy and manage income-producing assets.
Equity sharing loan
With an investor-owner who contributes to the down payment, monthly payments, and tax write-offs, a loan in which a resident-owner splits his or her equity or rises in the value of the home with an investor-owner.
Equity yield rate
On recovered capital, interest is generated.
The return on the part of an investment that was paid for by the investor's own money.
Equivalent level rent
Fixed monthly payment with the same current value as real lease payments after concessions or expense reimbursement revenue over the same duration.
ERISA (Employee Retirement Income Security Act of 1974)
Legislation in the United States that establishes the level of risk that is reasonable and acceptable for private pension plan investments.
Erosion is the removal of rock debris by moving water, wind, or another agent; in general, erosion is the shaping or wearing down of the land by erosional processes.
Ascension is the reverse of accretion; the movement of currents, tides, and winds causes the gradual loss of soil.
Land that has been worn down by water, wind, or other natural forces.
Errors and omissions (E&O) insurance
A sort of insurance that compensates experts if they make a mistake in their profession or omit anything critical from their assessments.
A type of insurance that covers a real estate office or escrow company's responsibilities for errors, blunders, and negligence in the normal listing and selling activities. However, it excludes claims based on transactions for a real estate agent's personal account for fraud, punitive damages, or other damages. E&O insurance is essential for real estate licensees and appraisers because of the wide-ranging liability provisions of the law. Typically, insurance policies for errors and omissions are set up to pay out only when a claim is made (i.e., the insured is covered only if the claim is made during the period of the policy).
It's possible for a landlord to pass on increases in real estate taxes and operating costs to tenants, with each paying a proportional share. Also, there is a clause in a mortgage note that lets the lender raise the interest rate based on the terms of the note.
A provision in a contract that requires a price increase.
A part of the rental agreement that gives the owner of the house the right to raise the rent in the future.
Payments made in accordance with an escalation agreement.
Lease provision requiring tenants to pay all running expenditures in excess of the amounts indicated in the lease.
Contract language that allows for a third party to change payments up or down to account for unanticipated circumstances. During periods of inflation, an escalator clause raises the yield to safeguard the lessor's investment position against a decline in the rate of return. A clause in many long-term commercial leases, such as fixed-rental net leases, includes a provision that allows the parties to agree to an adjustment of rent based on predetermined increases in taxes, insurance, maintenance, and other costs. Rent can also be linked to an inflation index to account for increases in maintenance costs, and it can be raised at predetermined intervals as a result.
A promissory note escalator clause can also be used to raise the interest rate if a payment is late or the borrower defaults on the loan.
One should not confuse the escalator clause with an alienation or due-on sale clause. "Voluntarily" agreeing to an increase in the stated interest rate is common when a borrower is selling a mortgaged property and does not want to risk having the lender call in their loan under the due-on sale provision.
This clause may read: "At any time from the date hereof, and at any time thereafter, the legal holder of this note may decrease or increase the interest rate of this note that is in effect, provided that after receipt of any notice to increase the interest rate within such three months, the undersigned may within such three months' period prepay the balance remaining unpaid hereunder without payment of any prior prepaymentmen."
1. When a specified contingency does not materialize, a contract clause that relieves one party of responsibility for failure to perform is included. Because mutuality of obligation is missing in such a condition, a contract cannot be enforced if one party has the right to cancel it for any reason at all. As a result of unforeseen circumstances, we must be prepared for the unexpected.
2. A provision in a tenant-proprietary stockholder's lease allowing the tenant to return the stock and lease it back to the cooperative association, so ending the tenant's ongoing liability for lease payments.
A rock or piece of land with a long, steep face.
When an intestate owner (one who died without a will) dies with no heirs, property ownership reverts to the state.
When a person dies intestate with no heirs to inherit the property, or when the property is abandoned, state or county law provides for the property's reversion to the state or county. A bank account that has not been utilized for seven years is forfeited in some areas.
When a property owner dies without a will or heirs, the property reverts to the state.
The government has the right to seize the property of a decedent who left no testament.
A third party's possession of anything of value that is the subject of a contract between two other parties until the deal is executed.
The status of real estate transactions that are completed with the assistance and assistance of a third party known as an escrow agent. The deed is given to the escrow agent, who will provide it to the buyer if a condition is met (payment of the purchase price).
A third party holds property or other compensation in line with an agreement.
A third party (a stakeholder) keeps money and/or documents until the terms and conditions of the escrow instructions (as written by the parties to escrow) have been met, in various regions of the country. Once these conditions are met, the escrowed monies and documents will be delivered and transferred.
When a legally binding and enforceable contract of sale and a completely executed deed are deposited with the escrow holder, the escrow is established. Documents and assets are held in trust by the escrow holder until specific requirements are met. Escrow instructions are supplied by both parties, and the agent of the holder operates in accordance with them.
Documents deposited into an escrow account cannot be altered by the depositors, and hence the escrow is unaffected by one party's death or disability. According to the terms of the contract, the other party is entitled to escrow as a result of the decedent's performance.
It is usual practice to use the services of an escrow business or a licensed title company or lending institution rather than a real estate broker in various areas. Legal documents are not prepared or reviewed by an escrow agent; rather, escrow simply accepts instructions from the parties to the contract and acts on them in a confidential way. The escrow agent should not be relied upon by any party to detect any problems in the transaction. In the event that the transaction is not handled by an established escrow business, a lawyer should be engaged.
It is not uncommon for information that is known only to one party to be withheld from the other because of the escrow's restricted disclosure obligations and the secrecy of the transaction as a whole. The nature of the dual agency alters when the escrow transaction's conditions are met, and escrow then becomes the agent for the seller in regards to money and the buyer in regards to deed. As the "clearinghouse" for the transaction's data, escrow serves as an intermediary between parties. Only by mutual agreement may an agreement to amend, change, or revoke the agreement be made for an escrow.
Sales, mortgages, and exchanges; contract for deed; and lease of real estate are all examples of real estate transactions that can be closed using escrow. Licensees in the real estate industry are generally in charge of advising parties and drafting the purchase agreement. In most cases, escrow instructions for both the seller and buyer are based on the terms of the sales contract, which specifies who is responsible for different costs, the proration date, and the like. Due to the poor quality of the contract, escrow companies may have to delay or even halt the transaction altogether.
The escrow business can handle tasks such as paying liens, computing prorations, ordering title evidence, preparing new documents, drawing up closing statements, obtaining appropriate signatures, recording papers, and receiving and disbursing monies while closing a real estate transaction. As long as the buyer and seller have both paid their closing charges, they can rest comfortable that they will receive a clear title and the corresponding sum of money. Escrow fees are typically split 50/50 between the buyer and the seller.
In most cases, an escrow isn't opened until after the selling contract's principal contingencies have been met. New finance or the approval of a debt assumption, a building permit, zoning change, or the like are examples of important contingencies that could affect the outcome of the project. The appliance check, the termite inspection, and the signing of bylaws or home rules can all be taken care of once the escrow process begins. In the context of escrow, the term "back-to-back escrow" refers to the practice of escrows being held in tandem. instructions for escrow A document signed by both the buyer and the seller that outlines the steps necessary to complete the sale and gives instructions to the escrow agent on how to proceed. It's possible that the contract of sale itself serves as the escrow instructions for both buyer and seller. It's possible for the seller to successfully ask the escrow business to withhold payment of commissions to brokers who do not participate in the arrangement.
The use of a third party to handle money or paperwork on behalf of the buyer and seller.
When a person holds another person's legal rights, finances, benefits, or any other documents in trust for them in order to ensure that the agreement is carried out.
Brokers' segregated accounts for the deposit of earnest money (deposit) monies. A lender's trust account used to pay for property taxes, hazard insurance, or other goods on behalf of a borrower.
An escrow corporation holds a financial item until all conditions are met.
A neutral third party who serves as an agent for the parties to an escrow arrangement.
Escrow agents gather all necessary paperwork and monies for disbursement at the closing and execute the closing function for a fee.
A person who is in charge of an escrow payment.
A contract entered into between the parties to a transaction and a third party acting as an escrow agent. The agreement includes written escrow guidelines that regulate the agent's actions while performing escrow services.
A mortgage borrower is required to make monthly installments into an escrow account.
Property expenses can be paid using escrow funds.
In order to conceal the cut out hole in a pipe that extends through a wall, a decorative plate is used.
Air conditioning, fire services, elevators, and electrical equipment are examples of statutorily monitored services within a property that might result in large fines for you, the owner, if you fail to comply.
A place that is sound, stable, and healthy, with all of the land developed.
Real estate interests that involve possession.
1. A person's legal interest or rights in real property, rather than the actual quantity of land, is referred to as "ownership interest." In order to qualify as an estate, an interest must be one that is (or can be) owned by someone for a long period of time. A freehold estate (sometimes known as a fee simple or a life estate) is a land ownership interest with an unknown term. An estate for years or an estate at will are examples of estates that are less than freehold and encompass all other interests as well as leaseholds.
Estates aren't the only type of land ownership. However, a mortgage is not an estate since it is a lien or charge on the land, but it is not a lien or charge on the land. Furthermore, an easement is a property interest, but it is not a legal estate because it does not pass to the owner with the property. Legal estates, as opposed to conventional estates or estates created by the parties, are those produced by the operation of law (such as dower). The term "estate" is derived from the feudal system, where a person's "status" was essentially determined by the extent of their landholdings.
2. The property of a deceased person may be subject to probate administration, federal and state taxes, and claims from creditors.
The degree to which a person is interested in real estate.
The entire value of all of a person's possessions throughout the course of their life.
Estate at sufferance
When a renter occupied a property after his lease has ended without permission.
Keeping a property even after the legal right to do so has ended.
Estate at will
The tenancy of a property for an indeterminate amount of time. It can be ended at any time by either side.
Estate for life
A property interest that expires upon the death of a certain person.
Estate for years
A leasehold interest that is valid for a set amount of time after which it automatically expires.
An interest in land that permits for the temporary ownership of the property for a set length of time.
Estate in reversion
An estate left by a donor that continues after the grantor's estate has been terminated.
Estate of inheritance
A fee simple absolute, for example, is a freehold estate that can be handed on following the death of the owner via descent or will. A life estate differs from an intestate estate in that it cannot be passed down through the generations.
Estate subject to a condition precedent
An estate that is established (rather than terminated) when a particular condition occurs.
The tax levied on the value of a decedent's property.
Estate tax, federal
The federal government imposes an excise tax under the Internal Revenue Code on the transfer of property from the estate of a deceased to a beneficiary upon, or as a result of, the decedent's death. The federal estate tax may apply to all property in which the deceased had an interest, including jointly held property, life insurance proceeds, and property in which the decedent kept a life estate. The federal estate tax applies to less than 1% of all -estates. The 2012 act maintains the $5 million estate, gift, and generation-skipping transfer exemption levels (indexed for inflation), but raises the applicable tax rate from 35% to 40%.
A similar rate system governs both gift and estate taxes. Lifetime transfers in excess of the yearly gift exclusion and transfers effective at death are aggregated for estate tax purposes; however, any gift tax paid is deducted from any estate tax due. The value of inherited property at the time of the decedent's death or six months later (the alternate valuation date), whichever is lower, is the basis.
Tax extensions may be granted upon a petition demonstrating that the estate would have to sell an asset at a "sacrifice" price. Beneficiaries inheriting a family farm or business, for example, may be given a delay to pay the inheritance tax. Where this extension is granted, the United States
Because the Treasury maintains a lien on the property, lenders may be hesitant to lend money to owners of such property. The Treasury can now subordinate its lien to a bank's lien. The preliminary title report will raise the exception of unpaid estate taxes in the sale of real estate.
Competent legal counsel, prudent estate planning, the right choice of ownership form, and the use of inter vivos trusts can all help to reduce the estate tax burden and the cost of probate administration.
An effort to quantify the amount of time or money needed for an activity.
Adding the costs of labour, materials, and other things to a new project is a way to figure out how much it will cost.
The method used to figure out how much something will cost.
Estimated closing costs
A rough estimate of all the expenses that will be incurred at a real estate closing. Typically, the estimate is produced by a lender in line with the Real Estate Settlement Procedures Act.
A legal doctrine that prohibits a person from asserting rights or facts that contradict a previous stance or representation made by act, conduct, or silence. A mortgagor, for example, who certifies that he has no defense against the mortgagee is barred from later asserting any defenses against a person who purchased the mortgage in reliance on the mortgagor's certificate of no defense. A waiver is a voluntary surrender or relinquishment of a known right, whereas estoppel produces an inability to assert a defense or right.
If one party to an agreement engages in conduct that misleads another, and the first party relies on that conduct, an estoppel is generated to prohibit the first party from rejecting the effect of her conduct (called estoppel in pais). When a grantor transmits more interest in land than he actually has and then gains complete title, the grantor may be precluded from denying the grantee's full interest in the land by estoppel. When a real estate owner allows another person to act as the true owner, and an innocent purchaser purchases the land from that other person, the true owner is barred from asserting ownership.
A landowner is sometimes estopped in border litigation from asserting that the genuine boundary line differs from the line previously agreed upon by the owner and the adjoining property owner. This is especially true if the neighbor built a fence or road, planted crops, or performed improvements based on the landowner's assertions of the location of the line.
When the buyer has gone into possession, paid money, or made renovations, and the buyer can establish irreparable loss and hardship if the contract is not enforced, the seller is sometimes estopped from claiming the statute of frauds as a defense to the buyer's suit for specific performance.
A developer who obtains a building permit but later discovers that the government has down zoned or changed the property use may argue equitable estoppel.
A purchaser of rental property may have existing tenants sign estoppel declarations admitting their commitment to pay the right amount of rent in accordance with the conditions of their leases.
A legal theory barring a party from refuting facts that they previously admitted were accurate and that others had accepted in good faith.
Estoppel by deed
A legal notion that applies to a person who transfers property to another without having legal title to the property and then gains good title to the property. The grantor is then barred from denying any lack of title at the time of the original conveyance, instantly vesting the grantee with complete legal title. Also known as title by estoppel.
Tenants or the underlying lender sign a form declaring any and all claims they may have against the property owner. These certificates shield the buyer against any claims brought by any of these parties at a later period.
A document that a lending institution has signed.
A legal requirement, such as a tenant's right to utilize any wood on the property to meet his or her minimal fuel, repair, and tool needs.
And others, in Latin.
et alii is a Latin acronym for "and others."
The Latin acronym for et uxor, which means "and wife."
"Also my hubby," in Latin.
An organized set of moral principles, regulations, and guidelines for behavior. In real estate, ethics are more critical than in other transactions, where the clients may be more familiar with the services being provided. Fidelity, honesty, and competence are the three pillars of a sound ethical code.
Language, culture, and/or habits that distinguish a group of individuals as belonging to a single ethnic or cultural group.
The rise in biomass of a water body, resulting in basin infilling and the eventual removal of open water.
A component of your home's cooling system that removes heat from the air.
Water loss from the soil due to evaporation and transpiration.
1. Removal of a tenant from a property for non-compliance with a lease agreement by means of legal action.
A partial eviction results in the renter losing access to a portion of the property. Unless the agreement provides a survival clause declaring that the tenant's duty for rent survives eviction, the tenant is no longer accountable for paying rent upon eviction.
When a landlord decides to evict a tenant, common reasons include nonpayment of rent, unlawful use of the premises in violation of the lease's use provisions (such as running a business out of a rental unit that was solely leased for residential purposes), and noncompliance with health and safety codes.
2. Disruption of the leasehold rights of a tenant through the actions of the landlord or a third-party claim of a superior title.
A legal way to get a renter to leave a place.
When a renter fails to meet their rental responsibilities, they are issued a notice. Evidence of title is a document that proves who owns a piece of property.
The eviction of an individual from a property by force or by legal means.
When a lessor terminates a lease because the property is inappropriate for the reasons for which it was leased.
Evidence of title
Evidence that a good and marketable title is being transmitted as part of a real estate transaction. Abstract with attorney's opinion and title insurance commitment are the two major formats that are approved.
A property seller must provide the buyer with a marketable title to the property in order to complete the transaction. As long as the contract does not explicitly provide that a buyer must be provided with proof of good and marketable title, sellers are not obligated to do so. A lawyer's abstract of title or title insurance policy may be paid for by either party (or both parties) in some states. This is normally determined by the contract's terms and conditions, which are based on regional custom and practice.
Examination of title
From public records, make a report on a property's title.
To become a licensed real estate agent, you must pass a written exam in every state and show that you have a basic understanding of real estate principles, paperwork, and state licensing rules. Salespeople and brokers typically take different exams. The licensing officials in each state can provide details and qualifications for each state's exam, which differs from state to state. For state-certified or licensed appraisers, licensing examinations are required.
- As used in property transfers, the exclusion of some portion of a property from the transfer In accordance with the original title rights, the donor retains ownership of the withdrawn component. If Bob Lee was given a 10-acre piece by Grant Park with "a strip of property ten feet wide running along the northerly boundary," then it was a legal exemption. " If an easement or life estate in the conveyed property is reserved by the grantor, this is an exception rather than a reservation since an exception creates new rights arising out of what the grantor has already granted.
- Title insurance policies exclude coverage for lienors and encumbrances.
- "Subject to the following exceptions," the seller commits to deliver a clear and marketable title "subject to the following exceptions" in the contract of sale.
Exceptions and reservations clause
A provision in a deed that might include a wide range of restrictions on the property interest conveyed.
Excess accumulated earnings tax
A penalty tax paid on enterprises with earnings in excess of their necessities.
Excessive appropriation of land in order to fulfill the public aim of condemnation After the project is completed, the remaining materials are sometimes auctioned off to the public.
Excess cost recovery allowance
Actual cost recovery allowance claimed, less what would have been claimed if the taxpayer had followed the straight-line cost recovery approach from the start.
The amount by which allowed tax deductions (including depreciation) surpass the property's rental revenue.
A deal in which the transfer of "like kind" property serves as part or all of the compensation for the acquisition of real estate (i.e., real estate for real estate). Even though Section 1031 of the Internal Revenue Code defers taxes on a property exchange until the asset is sold in a taxable transaction, it is not a tax-free exchange because it only defers taxes on property kept for investment or income creation. Deferring capital gains taxes through the use of a 1031 exchange has grown increasingly popular. For an exchange, income tax should not be applied as long as an investment in the form of real estate remains in place. As a result, this tax-deferred status does not apply to the sale of a primary dwelling. To ensure that the dates and times of these exchanges are correct, consulting with an expert is highly suggested.
An improved or unimproved leasehold with 30 or more years remaining in the lease is regarded as "similar" to a fee title. In a tax-free exchange, the basis in the new property is lower than it would have been had the new property been purchased and the old property sold in separate transactions. As a result, smaller depreciation deductions are possible due to the lowered basis. The contract must clearly state that the taxpayer intends to exchange the property rather than sell it.
"Three-cornered" exchanges are the most common sort of exchange. The exchanging party (A) hands up his property 1 to the buyer (B) in return for new property 2, which the buyer obtained in accordance with the exchanging party's instructions prior to the exchange.
Another sort of exchange has the exchanging party (A) transfer his property 1 to the buyer (B) in return for new property 2 from a third-party seller (C).
When two properties of equal worth and equity can't be found, one party is usually required to pay some money or accept a bigger amount of underlying debt in order to balance the equities. Taxes will be levied on any money or additional debt that a person is freed of if it is received by the party requesting the tax-free exchange.
Example: Angelo Domni wishes to trade his $500,000 apartment building with a $400,000 mortgage lien for Howard Wong's $450,000 apartment building with a $400,000 mortgage lien, which is subject to a $400,000 lien. Both Domni's and Wong's equity is $ 100,000. Therefore, Wong would have to pay $50,000 in boot to equalize the equities. Even if the equity was identical, but Wong's property only had a $350,000 mortgage (thereby relieving Domni of $400,000 but assuming just $350,000), Domni would be seen to have gained $50,000 in boot in the form of debt relief once again.
Most of the time, locating the "up-leg" property takes some time. The taxpayer must name the replacement property(s) in writing to the qualified intermediary within 45 days under special delayed exchange requirements. If the replacement property is not purchased by the 80th day following the date of sale of the surrendered property, the taxpayer will be required to pay a late penalty. Taxpayers must close their business on the 45th or 180th day of a holiday. If the swapped property is US property, the replacement property must be situated in the United States. (Exchanging foreign property for foreign property is permitted.) Each exchanger should have their spouse sign a release of marital rights in order to avoid legal complications.
Section 1031 of the Internal Revenue Code allows for a tax-free exchange of like-kind properties.
The IRS allows tax-deferred exchanges of "like-kind" property used in a trade or business or held as an investment under Section 1031 of the code. It is possible to trade real estate for other similar assets in a Section 1031 exchange if certain conditions are met. A buyer of real estate can avoid paying any capital gains tax until the property is sold. Deferring capital gains taxes is based on the idea that an investor shouldn't have to pay tax on their profits as long as they keep their initial investment in (like-kind) real estate (like-kind refers to real property as such, rather than the quality or quantity of property).
Exchange of contracts
In this case, the buyer and seller sign a contract that makes them both promise to buy or sell the property.
Exchange-Traded Funds (ETFS)
Investors may extend their investments even farther by following the performance of a whole index, which can be traded like regular shares.
Non-assessment tax that is based only on a person's ability to deliver a service or receive an income. A few examples include the cost of obtaining a driver's license, the cost of purchasing goods, and the federal estate tax.
Zoning that excludes lower-income populations is forbidden.
The zoning of an area so that minorities and low-income people are not allowed to live there. Although this may seem counterintuitive, it is possible that a minimum lot or home size restriction could have an unintentional discriminatory effect, even if it is not explicitly stated.
When an owner reserves the right to sell their property without paying a commission to an agent, they enter into a listing agreement with that agent. If the property is sold by anybody other than the seller, the exclusive agent is entitled to a commission. The property is only listed with one broker, making it exclusive. Participating brokers must be able to send exclusive-agency listings to the multiple-listing service.
Exclusive agency listing
A contract between a property seller and a broker in which the seller agrees to pay a commission to the broker if anybody other than the owner finds a buyer during the term of the contract.
A contract between a seller and a broker giving the broker exclusive rights to sell a property for a set length of time. This arrangement also allows the seller to sell the property without paying a commission to the broker.
Seller agrees to use just one broker for the sale of the property for a defined amount of time in the written listing. Exclusive agency and exclusive right to sell are the two forms of exclusive listings. Exclusive listings, by definition, must include a specific end date and cannot contain a rollover provision. An indefinite listing is discouraged by the courts, is prohibited in many states, and is generally considered bad practice. This is to protect sellers who, because they neglected to give a cancellation notice, may not realize that the listing is still in place after the initial listing period has ended and so find themselves liable for the payment of two full commissions on the sale of the property.
Exclusive right of sale listing
A contract between a property seller and a broker in which the broker is guaranteed a commission if the broker or anybody else, including the owner, finds a buyer within the term of the contract.
Exclusive right to sell
A signed listing agreement designating a broker as the only agent for the sale of real estate for a predetermined length of time. If the owner, the broker, or anybody else manages to sell the property, the listing broker is entitled to a commission. In reality, the phrase "right to sell" refers to the right to locate a buyer; it does not imply that the agent has the authority to sell the property. Most courts consider it as a simple exclusive-agency listing unless the contract expressly indicates that it is an exclusive right or authorization to sell.
Exclusive right to sell listing
A contract between a seller and a broker that grants the broker exclusive rights to sell a property for a set length of time. The broker is entitled to a commission regardless of who sells the property.
Exclusive use zoning
Restrictive zoning means that only certain uses of land within a designated district are permitted.
Loan provision that absolves the borrower of duty for contract fulfillment.
- The right to sue for unpaid debt in a mortgage note that is sometimes included as an amendment.
- A clause in a lease that is intended to release the landlord from any and all liability for damage to or injury to the tenants' person or property. However, the landlord may not be protected against third-party injuries. Clauses in leases that require the tenant to forgo his or her right to sue in the event of a breach of contract are frowned upon by several states.
A clause in a mortgage that states that the borrower is not personally responsible in the event of failure.
Making a document legally binding, such as signing a contract or acknowledging and delivering a deed. In some circumstances, execution of a document refers merely to the act of signing; in others, it refers to the entire performance of the conditions of the contract.
To agree to a deal.
A contract that has been entirely completed.
A contract with terms that have been met.
A deal that has been fulfilled.
A judicial procedure in which the court authorizes an official to levy (seize) a judgment debtor's property in satisfaction of a judgment lien. Certain properties are frequently protected from execution under state law.
It is a person designated by the testator to carry out the instructions and requests contained in a will, along with the task of distributing any remaining property of the deceased in accordance with the will. The term "personal representative of the decedent" is commonly used in state probate legislation.
The executor has the right to take ownership and control of the testator's property until the heirs, claims, and division of the property have been determined, paid, and distributed. The executor must get court approval before selling the decedent's real property unless the ability to do so is explicitly stated in the will. To sell the property, the executor does not often need a real estate license, but the probate court must give them permission to do so. Executors may sell real estate without notifying the court if the will directs them to do so, either at public auction or privately (however, title does not pass until the sale has been confirmed by the court). Within a year of being appointed as executor, a final accounting is usually required.
A contract that has not yet been concluded because one of its parties has failed to accomplish some required performance.
For example, a contract for sale where one or both parties have not yet fulfilled their obligations. For a contract to be considered "executed," it must be completed by both parties, with nothing more to be done. Instead of a contract, the instrument serves as proof of a completed agreement. To make this distinction is crucial: Therefore, a person who transfers property in line with an oral sale contract cannot later invoke the statute of frauds in an attempt to void the contract and reclaim the property. For example, the statute of frauds does not normally apply to an oral agreement. In this case, however, the seller can't be compelled to deliver the deed under oral contract if the agreement is executory.
An agreement in which one or more parties have yet to fulfill their obligations.
If Alice Gorski marries Mike Cwik, then Harry Green and his heirs will inherit Harry Green's property. If she doesn't, then Alice Gorski and Mike Cwik's heirs will inherit the property ("to Harry Green and his heirs when and if Harry Green marries Carol Kaiser"). In the case of a fee simple with executory interest, it is an estate in which the fee simple is automatically transferred to a third party upon the occurrence of an event specified in the grant. According to Jim Winn's will, he gives his property to George Zito "so long as it is used throughout the following 20 years to grow wheat and if not so used, then to Ed Schultz and his descendants."
If a property is to revert to the grantor, an executory interest must become possessory within the time frame permitted by state law (see future interest, possibility of reverter, rule against perpetuities), and this distinction is critical.
A document or piece of a document supplied as part of the supporting data for the principal document. Contracts for the sale of property may include a legal description or an inventory of the property's furnishings as exhibits.
A phase of the real estate or business cycle that is marked by a sharp, short-term rise in the number of available units in a given market. This is a response to rising demand and/or pent-up demand, and it happens when the economy grows and more buildings are built.
Fibers are put inside and around a concrete slab so it can move along the foundation wall, which doesn't move.
Installed around an existing concrete slab with a layer of fibrous material.
Lease provision requiring the property owner to provide room for the tenant to increase the size of their rented space.
Lease language allows the renter to extend their lease for an extended length of time.
Soil that grows and shrinks based on how much water is in it.
Expected cash flow
The most probable cash flow in all potential global scenarios.
Expected value (EV)
The most likely result; the middle of a symmetric probability distribution.
The weighted average of a set of alternative outcomes weighted by their probability.
The sum of the weighted averages of all possible outcomes in a probability distribution. Probability distribution is a list of all of the possible outcomes of an event and how likely each one is to happen. The weights are based on how likely each possible outcome is to happen. The EV of the outcome is the sum of each possible value times how likely it is to happen. EVs can be calculated for any type of result the investor wants to look at, including net operating incomes, cash flows after taxes, and rates of return (IRRs).
The likelihood or tendency of people or households to spend their disposable income on a certain good or service compared to other goods and services (usually measured as a percentage of disposable income) in relation to their income level or range and/or other demographic or socio-economic factors.
The connection between total costs (not including debt payment) and gross revenue.
A condition in business leases that mandates landlords to cover property running expenditures up to a certain level and renters to pay expenses above that number. Typically, the expenditure stop is expressed as a per square foot number.
In commercial leases, a financial amount above which the lessee agrees to pay the running costs. Protects lessors in the event of unanticipated increases in operating expenditures, such as real property taxes and inflated heating and cooling prices.
A cash limitation or restriction on how much the landlord will pay for a certain spending category. This ceiling is calculated by multiplying the base year expenses by a percentage or a monetary amount.
Lease terms that restrict the amount of a landlord's spending liability on a property, with any expenses in excess of this level being covered by the tenant.
How much (or up to what level) the landlord will pay for certain operating costs. The renter is responsible for any amounts above the stop.
The expenses incurred in the operation, acquisition, or organisation of an investment entity.
Expenses of the syndicator
The syndicator's expenditures, which he wants to pay himself without reimbursement.
A person who is qualified to testify because of his or her specific training and/or experience. It is common for real estate brokers to speak about the ethics of their colleagues; appraisers may testify about a piece of property's value in a court case.
Explicit transfer costs
Dollar costs; particularly, the cost per mile of chosen transportation option plus the dollar worth of time spent en route.
Exposed aggregate finish
A way to finish concrete by washing the cement-and-sand mixture off the top layer of aggregate, which is usually gravel.
1. The location of a property with relation to compass direction or availability to air, light, or amenities. Commercial property owners favor the south and west sides of main thoroughfares because in hot weather, people prefer to walk on the shady side of the street. Merchandise exhibited in storefront windows on this side of the street is less susceptible to solar damage.
2. A property for sale that has been made available to the general public in terms of marketing. Display, exhibition, and/or access to the property by eligible purchasers are all factors in determining its exposure to the market. expropriation In a condemnation litigation, the government's right of eminent domain is used to seize private property for public use.
An agreement between a principal and an agent, either verbal or written.
One of the most commonly used terms in fire insurance policies to indicate that the policies cover damage caused by the likes of wind and hail as well as riot, smoke, and other risks.
Second, a title insurance policy which provides coverage for dangers that are normally not included in conventional plans. Only the public records are protected by the usual policy. An examination may uncover unrecorded issues that are not covered by this policy
Extended-coverage mortgage title insurance plans are often required by most lenders. Extension of coverage provides protection against non-publicly disclosed liabilities, such as mechanics' or tax lien, miscellaneous lien or easement, and other encumbrances or rights of third parties in possession or encroachment on the insured property.
1. Carryover clauses (also called "safety clauses" or "protection clauses") are a type of clause in a real estate listing that allows the broker to retain a commission even if the property is sold to a buyer who was previously introduced to the property by the broker. As an example, a clause like this might be written: "If the property is sold or exchanged within 90 days after expiration of the listing agreement, to any person who physically inspected this property with me or any cooperating broker during listing period, if broker gave me their name in writing five days after expiration date stated in listing agreement." Brokers looking to buy a property should be made aware of any expired postings by the property owner. Owners of expired listings who fail to disclose the existence of any extender provisions run the risk of being held responsible for commissions owing by both the original broker who introduced them to the property and the new broker. Owners who list their property with another broker may lose their right to an extension clause in various states.
2. Previously, a condition that the listing would continue for a predetermined amount of time and then be automatically renewed until the parties agreed to end it was removed. Such terms in listing contracts are now considered a violation of many state licensing regulations by the courts, and the use of them is discouraged.
A contract between two parties to prolong the contract's duration.
1. Agreement to extend the duration of performance beyond a set time frame. 2. For example, the seller's broker may be able to extend the closing date for an extra 30 days under the provisions of a sales contract.
Due to a lack of available funds, many buyers with maturing contracts for deed are willing to pay a premium to extend their contracts in order to avoid defaulting on them. Nevertheless, a mortgagee should exercise caution when extending a loan because, in the case of deed assumptions, an extension may have the effect of modifying the original contract and thereby relieving the guarantors and preceding grantees of duty.
2. A lease extension is an arrangement that extends the term of a lease beyond the original term; it is also known as a lease renewal.
Exterior insulating and finish system (EIFS)
A multi-layered external siding technology for business and residential structures, often known as synthetic stucco. As a result of its indestructibility, EIFS is often the source of mold growth and water damage to the foundation's wood or gypsum board components. EIFS manufacturers and the National Association of Home Builders both advise homeowners to get their homes inspected at least once a year to look for signs of water infiltration. Legal action has been taken primarily against EIFS installers and manufacturers, not real estate licensees. Any real estate licensee selling a home in which EIFS has been extensively used should encourage potential buyers to get an EIFS examination and not make any claims about its quality.
Costs borne by the public as a result of a private party's conduct or inaction.
External costs are those in which the decision maker benefits while others bear the price.
A positive by-product of production or consumption for which no compensation is received or made.
Companies or industries in a certain city can save money or cut costs thanks to the advantages of sharing production inputs, information, and infrastructure. This could also be related to a city's comparative advantage in supporting a certain activity.
Property value losses caused by factors or situations outside the property's bounds. In the cost technique of evaluating market value, the losses are removed from the reproduction cost of a structure.
A sort of depreciation induced by environmental, social, or economic circumstances over which the property owner has little or no influence; a loss of value that is often incurable. If a new industrial plant is developed adjacent to a dwelling, its zoning is likely to change, resulting in exterior obsolescence. The same is true for a well-maintained house in a declining neighborhood, as well as a motel if a new highway is constructed, making it harder to reach the motel. Other possible factors include changes in land use or population, as well as closeness to nuisances. Also known as environmental obsolescence or locational obsolescence.
A type or cause of depreciation factored into the cost method of valuing assets. Reasons for the decline in worth include competition and other external factors. For instance, a new shopping centre might increase traffic and congestion, lowering property prices in the surrounding area; a motel can no longer operate because a highway has been relocated; and so on.
The unaccounted-for impacts of land usage on neighboring property.
A positive or negative side consequence of production or consumption for which no compensation is received or made.
A contractor is required to perform additional work not originally planned by the client.
Manage by a community over an area bigger than the community or jurisdiction for planning and zoning reasons, granted by the state legislature, allowing local governments to plan and control urban growth outside their bounds until annexation is possible.
A property's favorable attributes, such as a beautiful view or a well-kept lawn.