Terms Beginning With - G
Property Development & Investment Glossary, Terms & Definitions
Generally Recognized Accounting Principles' is an abbreviation for 'generally accepted accounting principles.' Various sets of commonly recognized accounting principles exist across the world.
The triangle-shaped part of an end wall that rises from the top wall and goes under the inverted V of a sloping roof to help water drain. A gable can be made of weatherboard, tiles, or brick, and it can go above the rafters.
Underneath the roof, the triangular region at the end and top of a home.
A roof with two intersecting sloping planes that meet at a flat ridge.
General merchandise, garments, furniture, and other merchandise are examples of retail merchandise. Also known as shopper's stuff.
When an asset is sold, a profit is made.
An rise in the amount of money or the value of a piece of property.
A Dutch colonial style of roof with a steep slope at the bottom and a flatter slope at the top.
Gang nail plate, Fishplate
Steel plates are attached to both sides of each truss junction. Gussett is another name for this garment.
Each truss junction has a plate attached to both sides.
A graphical representation of tasks, their length, timeframes, and sequencing.
Assessment of the space gap between the demand for and supply of a specific commercial property type in a given market area, where the gap is expressed as the amount of square footage required minus the amount of square footage available during a specified time frame. Keep in mind that a positive gap indicates that demand is higher than supply. When the gap is positive, it suggests that commercial real estate deals could be fruitful. When supply exceeds demand (or when a negative gap occurs), however, buyers and sellers may choose to hold off on transactions because there is an abundance of market inventory.
The loan used to make up the difference between the base loan (floor loan) and the total amount needed. Gap financing is usually used to fill a temporary need until permanent financing is found. This is why it is sometimes called a bridge loan or swing loan.
Gap financing can also be used when it is hard or too expensive to get permanent financing. By getting gap financing and waiting, it may be possible to get better terms.
People with moderate incomes who need some kind of help or subsidy to qualify for a loan.
Gap in title
A break in the chain of title, like when the records don't show a transfer to a particular grantor. This could happen if the grantor didn't make sure the deed was recorded. garden apartment A type of building with more than one unit that has a lawn and/or garden area. Usually found in low-rise condominium projects.
A mortgage that bridges a gap in the mortgage market.
A reduced apartment building, typically in a suburban setting.
These developments have a low density of development and are located in suburban and nonurban locations where land is less expensive than in urban areas.
Low-density two- or three-story multifamily housing with ample open space around buildings and on-site parking.
A legal process that gives creditors a way to protect their rights to a debtor's property that is in the hands of a third party (garnishee). Some types of property that can be garnished are goods or effects of the debtor that are hidden in the hands of third parties, debts owed to the debtor by the garnishee, wages payable by the garnishee as allowed by law, and security interests of the debtor in the hands of the garnishee. Usually, a writ of garnishment must be served on the garnishee, who must then seize all of the creditor's property in order to pay the creditor-plaintiff the amount of the judgment that the plaintiff has recovered (post judgment) or may recover (prejudgment). The debtor can get his or her property back if he or she files a bond with the court for the amount needed to pay the creditor's claim, plus costs and interest, and if the court rules in favor of the creditor.
If garnishment happens after the court has made a decision, the property is given to the creditor. If the debt is being fought over, the person who has the property should give it to the court. Most of the time, the complaint and writ of garnishment are issued because the creditor asked for them or because the creditor later asked the court to tell the officer serving the garnishment papers to leave a copy with the garnishee and to call the garnishee in to answer some questions. Because of decisions by the U.S. Supreme Court that require notice and a hearing before wages or property can be garnished, a garnishment process that doesn't follow this rule could be challenged on constitutional grounds.
Getting the gas service to a home by digging a trench in the ground.
The ability to stop the flow of water through a pipe using a valve.
A garden structure that is mostly made of light metal or wood and can be used to enjoy the view.
A word used in accounting to describe a company's debt-to-equity ratio.
One who is authorized to represent a principle, usually a corporate firm, in its business dealings. Within the limitations of the commercial or employment relationship, a general agent can contract and bind the principal.
One who has been given permission by a boss to do anything needed to keep a job or business running. The most important thing about a general agency is that the service stays the same, like when a property manager takes care of a large condo complex. Most real estate brokers are treated as special agents when a listing agreement gives them limited permission to act but not to make decisions.
Person or organisation that has full control of a property, such as a property manager.
A contractor who, by a legal agreement with the owner or developer, assumes complete responsibility for the building of a project and engages others as subcontractors to do specified tasks.
Typically, a construction business is in charge of ensuring that all components of construction are finished on schedule and within budget.
A construction expert who signs a formal contract with a developer to build a building or project on real estate. This person is also called the "prime contractor," and they often negotiate separate contracts with subcontractors who specialize in different parts of the building process, like plumbing, electricity, air conditioning, drywall, and so on. If the general contractor doesn't pay the subcontractors, the subcontractors can put a mechanics' lien on the whole project. So, owners shouldn't give the final payment to the general contractor until they know that all subcontractors have been paid. Most of the time, to become a general contractor, you have to pass a qualifying exam and get a license from the right state agency.
A person or company who, for a charge, develops a structure for another party.
Someone who is in charge of the project's implementation, supervision, and coordination. Some of the construction work can be done by the individual.
General improvement district
A local government agency, like a water district, that was set up to do a certain job. To do what it needs to do, it sells bonds and collects general taxes.
General law title
It is based on a thorough history of ownership and predates the Torrens title system, in which ownership is government-recorded via certificates of title.
A security interest or lien arising from conduct unrelated to property ownership.
A creditor's right to sell all of the debtor's property, both real and personal, to pay off the debt. In contrast to a specific lien on a certain piece of property, a general lien is against the debtors as a whole and is attached to all of their property. General liens are often caused by unpaid taxes like income, gift, estate, inheritance, and franchise taxes. Judgment liens and government tax liens are also common types of general liens.
A debtor's whole property, both real and personal, is encumbered by a lien.
A debt that ensnares a person's entire property.
A co-owner of a partnership who can sign contracts on behalf of the partnership and is fully responsible for all of its debts. The general partner can be a business or a person. In a limited partnership, the general partner is in charge of running the business, has the power to make decisions on behalf of the partnership on their own, is responsible to the limited partners as a fiduciary, and is fully responsible for the partnership's debts and obligations.
In a limited partnership, an individual or corporation acts as the managing partner and is liable for the firm's debts.
General market area gap analysis
In commercial real estate, a positive gap is identified by conducting a gap analysis for a city or multiple cities (concurrently) to determine where demand exceeds supply.
General market factors
Aspects of a market's structure that are affected by its demographics, economy, and location.
A legal organization in which all partners have equal rights to the firm's administration and behavior; each partner acts as an agent for the partnership.
Co-ownership is a way for two or more people to run a business together for profit. All of the owners are general partners, which means they are all fully responsible for the partnership's debts and obligations. A written agreement is a good idea, but it is not required. A general partnership can end if one of the general partners dies, leaves the business, goes bankrupt, or is legally unable to do so.
A partnership in which all partners are jointly and severally accountable for the partnership's debts and liabilities.
Multiple owners, limitless responsibility for each equity holder, and flow through taxation of both taxable income and cash payouts define this ownership arrangement.
A long-term plan by the government to control how land is used and built on in an orderly way; a plan for a well-balanced community growth.
When a developer plans a subdivision, he or she might come up with a general building scheme, also called a "general plan," so that the community as a whole will look similar. For a general plan to work, the sub-divider will make sure that each conveyance is subject to restrictions that are written down. So, a person who owns a lot can tell another person who owns a lot not to break the general plan. For example, one lot owner could stop another from building a restaurant in a subdivision where most of the lots are meant for residential use only.
General services administration (GSA)
In 1949, the U.S. government set up a separate agency to manage, lease, and sell its buildings.
General warranty deed
The highest type of deed in which the grantor is held accountable for all potential covenants or legal guarantees insuring proper title.
A deed in which the seller pledges to defend the buyer against any disputes to the property's title.
A deed that guarantees the right to ownership indefinitely.
People who were born in the 1960s and 1970s are called "baby boomers" in sociology, demography, and other fields. The term is also used in popular culture. Gen Xers were born after the baby boomers and grew up with TVs and computers. Gen Xers usually bought homes right after they finished school, because they were more likely to live in a two-income household. Their parents, who have more money, have often helped them buy things. They now buy from the baby boomer generation.
Multiple-purpose commercial real estate, like flexible office space.
Reclamation of physically degraded residential neighborhoods and repair of a dilapidated neighborhood for the usage of primarily middle-class people.
A coding procedure that assigns an attribute value to a digital map feature.
Geographic information system (GIS)
A mapping system built for overlapping and complicated distributional patterns in analysis, planning, and management applications. GIS is divided into two types: vector and raster.
Computerized ways for evaluating data about communities that make use of numerous maps and map combinations or layers.
System(s) (typically digital) used to collect, process, store, retrieve, manage, manipulate, and present geographical data and information.
Number of households or housing units within a specific geographic unit or division that are known to exist or estimated to exist based on tenure, income, and other socio-economic attributes (for example, in various census tracts).
A study that studies the terrestrial and underwater relief features of the earth's surface, as well as equivalent features of a celestial body, in order to find a genetic explanation for them.
To establish the link between planar map coordinates and real-world coordinates.
Geospatial data is information that identifies the geographic position and attributes of natural or artificial features and boundaries on the planet; it may be produced through methods such as remote sensing, mapping, and surveying.
GF C I, or G F I Ground Fault Circuit Interrupter
To turn off all electric current, this plug's ultra-sensitivity comes in handy. The majority of the time, external waterproof outlets and garage outlets are installed in bathrooms and kitchens.
Loan backed by the government.
Gift causa mortis
An older word for a gift made with the idea that the giver will die soon or that will only be used if or when the giver dies. For the purposes of the federal estate tax for people who died before 1982, a gift made within three years of death was considered a gift made in anticipation of death and was automatically added to the estate of the person who died, up to the amount of the annual exclusion. This rule no longer applies to people who died after 1981, unless they were given a life insurance policy as a gift.
A good deed where the payment is "love and affection." Because the deed is not backed by something of value, the donee (the person who gets the gift) may not be able to make the donor keep some of the promises or agreements in the deed. A gift deed is legal unless it was made to cheat creditors out of money. Most of the time, an attorney-in-fact isn't allowed to sign a gift deed.
When a gift deed is used to transfer real estate, a title report will often show that there may be an unpaid gift tax. This "cloud" must then be removed by tax officials by giving a clearance.
A deed performed for the sake of love and devotion rather than money.
A letter that tells a lender or government agency that the money being used to buy real estate (often the down payment) was a gift from a relative and that there is no need to pay it back. Depending on the type of loan, some lenders don't let you use gift letters.
A federal tax with different rates that a donor pays when making a gift. For the purposes of the gift tax, a gift is the transfer of any kind of property by an individual for less than what the property is worth in money or money's worth ("detached and disinterested generosity"). There is an exclusion of $13,000 per donor, per donee (the person who gets the gift), per year. The donor can subtract this amount from the taxable value of gifts to each donee. But you can't get a tax break for these gifts.
For example, a mother could give each of her five children $11,000 as a gift every year. He can also give each of their five children $11,000.
Tax laws are always changing, so you should talk to a tax lawyer or accountant for specific information.
Federal tax law also has an annual exemption for gifts that are given to pay for medical or educational costs (specifically, tuition). Note that room and board payments do not count.
Government bonds are referred to as gilts in the United Kingdom.
The Government National Mortgage Association's nickname (GNMA).
A government corporation that is owned by the government and is part of the U.S. Department of Housing and Urban Development (HUD). In 1968, the Federal National Mortgage Association (FNMA), which is now called Fannie Mae, was split into two separate companies, one of which became Ginnie Mae. Fannie Mae is still helping the traditional market. Ginnie Mae guarantees the principal and interest payments from mortgage-backed securities (MBS) that are backed by cash flows from insured or guaranteed loans from the Federal Housing Administration (FHA), the Department of Veterans Affairs Home Loan Program for Veterans (VA), the Office of Public and Indian Housing (PIH), and the U.S. Department of Agriculture Rural Development (RD).
Ginnie Mae brings together the global capital markets and the U.S. housing markets by making sure that payments will be made. Ginnie Mae doesn't buy mortgages, and it doesn't buy, sell, or issue mortgage-backed securities (MBS). It also doesn't hold an MBS investment portfolio or issue debt securities. Ginnie Mae pays for herself through a variety of fees.
Ginnie Mae can't buy mortgage loans to put together pools, so it works with loan poolers, who are usually big banks, to put together approved pools. Only loans that Ginnie Mae has approved can be put into a Ginnie Mae pool. This means that only FHA, VA, and some FmHA loans can be put into a Ginnie Mae pool.
The Government National Mortgage Association (GNMA) is a government agency that purchases FHA and VA mortgages on behalf of the United States government.
A large wooden or steel beam that supports the floor joists and serves as the primary horizontal support for the floor.
Main wood or steel beam used to support isolated spots along its length intense stresses.
A service that lets you do banking through the post office.
GIS data depot
Online clearinghouse for biophysical and cultural GIS data for counties and states in the United States and other countries; provider of GIS-related news and events.
Installing glass, which is often done with glazier's points and glazing compound.
Global coordinate system
The network of east-west and north-south lines (parallels and meridians) used to measure places on Earth; degrees, minutes, and seconds are the units of measurement in this system.
Global positioning system (GPS)
The Navigation Satellite Timing and Ranging (NAVST AR) GPS system is a passive satellite-based navigation system controlled and maintained by the United States Department of Defense (DOD).
Being or becoming globalized is a state. Local economic change and property values have been profoundly impacted by globalization, the concept used to acknowledge cross-jurisdictional interdependencies and the continuing integration of local, regional, and national economies into a larger global economic and production system.
Water flow can be adjusted to any level between completely on and completely off with this valve.
Finishing paint that dries to a sheen or lustre, develops a durable coating, and provides the greatest possible smoothness to the surface.
Glued laminated beam (Glulam)
A wood lamination or lam is used to construct a structural beam.
Going concern value
The difference between the value of an established business property and the value of selling the real estate and other assets of a new business. This is usually related to the concept of "value in use" instead of "market value." The term takes into account how well a business is known and how much it can make. Sometimes used to figure out if a company is solvent or not, or to figure out its value for a merger or to give out stock.
Going-in cap rate
The overall capitalization rate is the ratio of the first-year net operational income to the whole value (or acquisition price) of the property.
Going-out cap rate
The ratio of the property's total value at the time of sale to its estimated net operating income in the year following sale.
A reason in a gift deed that is based on love and affection for someone who is related to you by blood or marriage. But a good reason alone is not enough to back up a contract. For example, if a father writes in a contract that he will give his farm to his daughter on her 21st birthday and then changes his mind, the daughter can't sue him for breaking the contract because she didn't give him anything of value to back up his promise.
Bona fide: An action is done in good faith if it is done honestly, regardless of whether it is done carelessly or not. The laws about recording are meant to protect people who buy things in good faith. Most laws against discrimination say that a broker has to send all offers to lease or buy that are made in good faith. By "adverse possession," a person can get the title to someone else's real property without paying for it. However, many states add the requirement of "good faith" to this.
When someone does something in "bad faith," it is sometimes a crime. For example, under the National Banking Act, it is a misdemeanor for an investor-borrower to lie about his plans to live in the home when he applies for an owner-occupant loan.
An act between two parties that is carried out in good faith.
Good faith estimate (GFE)
At closing, the amount of money a borrower must pay to secure a mortgage. The Good Faith Estimate must be provided by the lender within three business days of the initial loan application, as mandated by federal law.
A first estimate of how much it will cost to close. The Real Estate Settlement Procedures Act says that lenders must give a good-faith estimate of closing costs to loan applicants within three business days of receiving a completed loan application. The application is not complete until the property is found. The goal of the GFE is to give the consumer enough information so that they can look for the best loan and terms. The GFE also sets rules for fees that might change before closing or might not. For example, a new three-day waiting period starts when lender fees like points, origination fees, underwriting fees, and loan processing fees change. When a lender's chosen settlement provider raises fees by more than 10% or when the borrower chooses a provider from the lender's list, a three-day waiting period is also triggered. Fees like those for escrow and title insurance, which the lender has no control over, can go up without a waiting period.
Before closing a deal, a state law requires escrow companies to prove that they have received loan funds (through a deposit or an electronic transfer). This puts an end to the practice of giving lenders a few days of "float" on the loan proceeds.
Goods or services
Items available for purchase in the marketplace.
An intangible asset that can be sold and comes from a business's reputation and the expectation that customers will keep coming back. It includes other intangible assets like a trade name and "going concern" value. When a business is sold, the price is often based on the value of its goodwill. Goodwill is a capital asset, but it is not an asset that loses value over time. So, a seller would rather put a high value on the goodwill (and get a capital gain) than put a low value on it (because goodwill cannot be depreciated). If goodwill is taken into account in a market value assessment, the appraiser should say so.
One of four elements influencing real estate value according to appraisal theory ( e.g., government controls and regulations, public services, zoning, and building codes). Environmental, economic, and social causes are the other three.
A governmental subsidy or set of measures designed to entice businesses or investment dollars to settle in a particular area, typically with the goals of boosting the local economy and fostering progress.
The first time the government gave land to the people, it was called a land grant.
Government sponsored enterprises (GSE)
A word that refers to Fannie Mae, Freddie Mac, and a number of other minor government corporations established by acts of Congress to support an active secondary market for house mortgages.
The United States Congress formed and chartered a financial services corporation for public policy goals. Despite the implied backing of the United States government, GSE securities are not backed by the federal government's complete faith and credit. Fannie Mae, Freddie Mac, the Federal Home Loan Bank System, and the Farm Credit System are a few examples.
Government survey method
A way to describe land that is used in over 30 states in the U.S., especially in the western states. This system is also called the geodetic or rectangular survey system. It is based on pairs of principal meridians and base lines. Each pair controls the surveys in a certain area. The main meridians run north to south, and the base lines run east to west. The government survey method was made to make a checkerboard of squares that are all the same size and cover a certain area. Quadrangles are squares with sides that are each 24 miles long. Each quadrangle is further broken up into 16 squares called townships. Each township's four sides are six miles long. A range is a row of townships that runs from north to south. It is numbered from east to west based on how far it is from the main meridian. Now, 36 major meridians run through different parts of the United States.
Because the earth is round, the north-south lines, also called range lines, come together as they move north. So that they stay as close to six miles apart as possible and keep the township's square shape, the lines are drawn for about 24 miles and then changed so that they are again six miles apart.
A township is 36 square miles and is six miles on a side. The baseline is used to number the townships from north to south. A section is the name for every square mile, which is equal to 640 acres. From the northeast corner of a township, the sections are numbered back and forth until the last section (36) is reached in the southeast corner. This way of numbering (shown in the picture) makes sure that the borders of any two sections with the same number are also the same. When describing land, sections are usually broken up into half-sections, which are 320 acres, quarter-sections, which are 160 acres, and so on. Then, land acreage is usually described by saying that a certain quarter of a certain township, or tier, is north or south of a certain baseline and east or west of a certain meridian.
A section is the smallest piece of land that is usually surveyed by the government. At the corner of each section, there is a survey monument. "the N12 of the NE14 of the SE14 of Section 17, Township 14 North, Range 4 West of the 6th Principal Meridian" is an example of how the government would describe a piece of land.
In general, the smaller the piece of land is, the longer the description is. This method works well for finding large parcels, but not for small lots.
A set amount of time after an obligation is due that a party can still meet it without being in default. For example, if a mortgage payment is due on March 1, but the mortgage has a ten-day grace period, the mortgagor is not in default as long as the payment is made by March 10. Sometimes called "days of grace."
Most of the time, the debtor does not need to be given written notice before a financial default. But when the default isn't about money, like when a property isn't kept clean or insured, the grace period usually doesn't start until written notice is given.
The amount of time a party has before being regarded in default.
The period of time during which a borrower must make a payment in order to avoid going into default.
The difference in height between a hill, road, sidewalk, or slope and level ground. Most of the time, the slope of a road or lot is given as a percentage of the level or horizontal distance. For example, a 5 percent grade means that for every 100 feet of level distance, 5 feet rise. The grade level of a lot is how high the land is in general. Rough grade is a surface where topsoil is spread to bring the level of the lot up to where it will be when it is finished.
The elevation at any given time or ground level. The process of levelling soil or the specified quality of a piece of manufactured wood.
At a level with or just below ground level, a foundation is poured for a building.
The inclination or slope of the terrain; this term is frequently used for systems such as streams and roadways.
The slope or rate of elevation increase or reduction of a surface, road, or pipe. Gradient is measured in inches per horizontal linear foot of ascent or decrease.
Approval to alter the land's topography.
During the period of the lease, the rent is subject to fluctuation. In the case of a new business tenant, a graduated lease is typically used.
Graduated lease payment
A lease payment that rises by a certain amount over the length of the lease.
Graduated payment mortgage (GPM)
A mortgage with lower payments at the beginning and rising payments over a certain period of time.
A mortgage that permits a borrower to borrow extra money during the initial years of the mortgage in order to minimize the monthly mortgage payment requirement during those initial years. This additional loan is added to the mortgage and is repaid over time through increasing debt service requirements.
A type of mortgage in which the monthly payment for principal and interest goes up by a certain amount each year for a certain number of years, and then stays the same for the rest of the mortgage's term. The FHA-245 programme is only for people who live in their own homes. There are five different versions of the plan.
The FHA-245 programme is especially good for people who are just starting out in their careers and expect their incomes to go up. It lets them buy a home with lower monthly payments at first than they could get with a fixed payment plan. This plan helps people get loans by making repayment plans based on how much money they expect to make and how much the value of their home will go up. Because FHA underwriting rules are based on how much principal and interest must be paid each month for the first year, people who use FHA-245 can qualify for larger loan amounts than they would normally be able to with other types of financing.
There are three things that are unique to the graduated-payment mortgage:
- The size of each payment is smaller than it would be with a fixed-payment loan.
- The first few years of the loan have negative amortization.
- The note's face value is more than the money that was given out at closing.
A mortgage with a graduated payment schedule includes smaller payments in the early years, but increases on a regular basis until it reaches an amortisation level.
Describes a lease in which the contract rental rate is subject to predetermined increases.
Graduated rental lease
A lease in which the rent starts out at a fixed, often low rate, but goes up at regular times as the lease term goes on. Such increases could be based on a percentage of how much the land has gone up in value since the last appraisal. This gives long-term commercial tenants a chance to start a business without having to spend a lot of money in the beginning. It may also be better for the owner from a tax point of view, if he or she wants to reduce cash flow during a high-tax time. A graduated rental lease can be a great way to find tenants in a tough market or for a building that is hard to rent. Also known as a tiered lease.
Wood's fibres, in terms of their size, direction, arrangement, look, or quality.
A common way to say that something is still allowed even though the law has changed. For example, a developer who already has county planning approval to build on minimum-size lots of 10,000 square feet can still build on those lots even if the current zoning rules are changed to require minimum-size lots of 12,000 square feet. The developer is protected by the subdivision plan that was first approved. This is similar to use that doesn't follow the rules.
Under state laws about the education needed to get a real estate license, current licensees may be "grandfathered" out of these new requirements.
A provision that allows acts that were permitted under a previous legislation to continue under the new law.
A clause that allows an action that was previously legal and acceptable to continue notwithstanding a change in the rules or regulations.
A slang word for extra apartments in areas where only one family can live. Most zoning laws don't allow these separate rental units, which can be found above a garage, in an attic, or in a basement. They are also known as "in-law apartments."
The act of giving someone else ownership of a piece of real estate. In the past, the most important words in a real estate transfer were grant, bargain, sell, warrant, and convey. The grantor gives the grant to the grantee in the form of a deed. If there is a leasehold, an assignment of lease is used to change the title of the leasehold.
A deed conveying ownership of real estate.
A deed that contains an implicit assurance that the grantor possesses title and that it is not burdened in any manner except as specified in the deed. A warranty deed is quite similar to a grant deed. It is the most common type of deed in California.
A type of deed in which the grantors promise that they haven't given the property to anyone else before, that they haven't put any liens on it other than what's written in the deed, and that they will give the grantee any title to the property that they may get in the future. In California, grant deeds are often used, especially when the buyer also gets a title insurance policy.
The recipient of a grant; the purchaser.
The holder of a real estate interest who has received a transfer of such interest.
The individual who receives a real estate conveyance from the grantor. The grantee must be a natural or legal person who exists at the time of the conveyance and is capable of taking title. Grantors cannot usually impart title to themselves alone. However, they may impart ownership to themselves and others; for example, John Park may convey title to John Park and George Ant as joint tenants.
The following are some general uses of these principles:
- If the grantee dies before the deed is delivered, the deed is null and void. (Delivery is considered to have occurred when the executed deed is placed in escrow, rather than when it is actually given to the grantee.)
- If the grantee is a corporation, an informal club, or a society that did not file its incorporation documents prior to the deed's delivery, the deed is null and void due to a lack of a competent grantee.
- A deed transferring an estate to the heirs of a live person is null and void since no one can be an heir during the lifetime of his or her ancestor. (The right phrase is "to Joe Young and his heirs and assigns... ")
- When the grantee's name is missing, the deed is often ineffectual in conveying complete title until the name is filled in with the grantor's agreement.
There are numerous variations of title ownership when title is transferred to different grantees. If a mother and father purchase a home with their daughter and son-in-law, title may be held as follows: "To James Lynch and Carolee Lynch, husband and wife, as joint tenants, an undivided one-third interest and Paul Jones and Mary Jones, husband and wife, as tenants by the entirety, an undivided two-thirds interest of Lot 123...." As a result, following James Lynch's death, Carolee will acquire a one-third undivided interest as tenant in common with Paul and Mary Jones, who retain their two-thirds undivided stake as tenants by the entirety.
An individual who gains a property stake by a deed or grant.
The seller is the individual who transmits real estate via deed.
The person or entity transferring the grantee's real estate interest.
The individual who transfers title to or an interest in real estate. A grantor must be competent to convey; consequently, a mentally retarded individual cannot convey real estate title. A deed executed by a minor is normally voidable (not void) and may be revoked before or within a reasonable time after the grantee attains majority. A corporate grantor must be legally formed, have the authority to possess and impart title to real property, and be represented by a duly authorized official of the corporation.
Grantors must be identified clearly in a deed. Misspellings do not render a deed ineffective unless the difference is so large that the grantor cannot be readily identified. Grantors should impart title under the same name that they obtained title under. If the grantor's name has changed, the transfer should indicate the change, such as "Joan Henry, who gained title under the name Joan H. Adams... "
Both the grantor and the grantee must be living individuals and cannot be the same person. A husband, for example, cannot convey his stake in a joint tenancy to himself as a tenant in common. However, even if Gomez and Jackson were deceased at the time of the conveyance, a conveyance to "Joe Gomez and Fred Jackson, their heirs and assigns" would be valid.
When title is vested in two or more people, they must each convey their own independent interest. Typically, all co-owners will sign a single deed, however separate deeds are entirely legitimate for transferring complete title to the grantee.
Even if one spouse is not a co-owner, that spouse should sign the deed conveying the other spouse's property in order to release dower, courtesy, and/or homestead rights (if applicable). As a result, the grantor's marital status should be included in the deed. In fact, the recorder may refuse to accept a deed for recording unless it includes the grantor's marital status and residence.
A person who, by a deed or grant, conveys an interest in a property to a grantee.
Public record books kept in the official recorder's office, listing all recorded instruments as well as the liber (book) and page numbers where the whole and exact document can be obtained. Separate index books are kept for grantors and grantees, allowing a document to be found by searching under either name. These books are alphabetically indexed by grantor in the grantor index and grantee in the grantee index. They include the following information: the type of instrument, the grantor's and grantee's names, the date of the instrument, the book, page, and date of recording, and a description. Also known as name-indices.
One way for searching a title using the grantor-grantee indexes is as follows: Abe Adams had a property on Interstate 890. Adams conveyed the farm to Bill Benny by deed in 1925. Benny deeded the land to Clarice Carver in 1950. Carver borrowed $50,000 from the Commercial Bank and mortgaged the property in 1960. Carver deeded the farm to Diane Dealer in 1974, and now Dealer has a contract to sell the land to Elbert Edwidge.
The fundamental title search process is to track each owner back via the grantee index to the source of his ownership, commencing with the most recent. In the preceding scenario, the title searcher would begin by searching the grantee index under Dealer's name from the present back to 1974, when he would find the deed to Dealer from Carver. He would then search under Carver's name from 1974 to 1950, where he finds the deed from Benny to Carver; then search under Benny's name from 1925 to 1890, where he finds the deed from Adams to Benny; and finally search under Adams's name from 1925 to 1890. The searcher would next seek in the grantor index under Adams' name from 1890 to 1925, then Benny's name from 1925 to 1950, Carver's name from 1950 to 1974, then Dealer's name from 1974 to the present. In this manner, the searcher will locate the mortgage to the Commercial Bank, which is listed in the grantor's index under Carver's name in 1960.
When an underlying pool of loans is made up of smaller loans, this is achieved. Pools with a few higher-value loans are considered to be lumpier or less granular.
An agent who is not paid for his or her services. Real estate agents are often compensated based on the sale of a property. Even if unpaid, the agent still owes the principal full fiduciary or statutory duties. This may be true even if a licensed agent offers to assist a buddy.
According to Reilly's Law of Retail Gravitation, shoppers will gravitate toward the largest retail location that is easily accessible.
Newton's gravity equation defines gravity, or the flow potential (between two sites or locations), as directly proportional to the product of their masses (or size), and inversely proportional to the square of the distance between them: gravity = (mass mass) distance2. This model is used to account for a wide range of flow patterns in human and economic systems.
REALTORS® Institute graduate
Before the ceiling panels are put, the main and cross tees of a suspended ceiling system are constructed.
The state-sponsored survey from which metes-and-bounds surveys can be drawn. It is extremely useful for surveying vast tracts of remote area land. It is also known as a coordinate system.
A phrase that refers to the rectangular street grid found in cities or subdivision projects.
A specific day or set of days during which the public may file complaints regarding tax assessments or other municipal issues.
It is the overall floor area of a building, excluding spaces like courtyards and patios, measured from the exterior of its walls. Generally, the gross floor area in commercial leasing is the whole perimeter of the floor, measured to the inner finish of the permanent outer building walls or to the glass line in newer structures, with no provision for structural projections and a minimum ceiling height of 71/2 feet.
In a building context, the total square footage of a given floor.
Gross asset value
The appraised value of a REIT's or a real estate fund's properties.
Gross floor area
A retail agency's gross floor area is equal to the entire gross leasable space plus the square footage of the shared areas.
All shared areas are included in the overall floor area.
For income tax purposes, any revenue earned from any source, unless explicitly excluded under Internal Revenue Code restrictions.
Amount of money you make before taxes.
The entire amount of rent earned from an investment property.
The complete income obtained from a business, wages, or income producing property before adjustments or deductions for expenses, depreciation, taxes, and similar allowances - that is, all income, referred to as "the top line."
Gross income multiplier (GIM)
A strategy for evaluating the link between the most likely sales price and gross income. A gross rent multiplier is a term that is used sometimes.
A number that shows the relationship between gross income and sales price or value. It is used to figure out the market value of industrial and commercial properties. GIM is a ratio that shows how much an annual income is worth on the market. It is found by dividing price by gross annual income.
Gross leasable area (GLA)
The GLA is the standard for measuring retail space. It is just the sum of the space occupied by the tenant, and is thus comparable to the usable area of office tenants.
The overall floor area of a leased business facility, which may include restrooms, stairwells, elevators, and basements.
The whole floor space planned for tenant occupancy and exclusive use for which rent is paid, including any basements, mezzanines, or upper floors, measured in square feet from the midline of connecting partitions and exterior wall faces.
Measured from the centre line of joint partitions and the exterior wall faces, the gross leasable area includes all floors (basement, mezzanine, and upper) and is intended for the sole use of the tenant. Gross leaseable area (GLA) is the rented space that generates revenue from tenants.
The landlord pays all of the property's operational expenditures under a lease.
An agreement in which the landlord pays for the tenant's truces, insurance, repairs, and other expenditures (including some or all utilities and garbage removal).
A property lease in which the lessee pays a fixed rent while the lessor pays the taxes, insurance, and other obligations that come with ownership; sometimes known as a fixed or flat lease. The lessee pays some or all of the operational expenditures under a net lease. The vast majority of residential and commercial office leases are gross leases. The majority of residential ground leases, as well as commercial and industrial building leases, are net leases.
A lease in which the landlord covers all of the costs ordinarily associated with property ownership.
A rental agreement in which the renter pays a fixed quantity of money each month to cover all of the home owner's expenses, including taxes, insurance, maintenance, utilities, and so on.
An arrangement in which the landlord is responsible for covering all of the costs of property maintenance and upkeep.
Gross leasing activity
It's the total of all leases signed over a certain amount of time. This includes leases that are renewed and leases that are signed in a new building.
Gross operating income
Total income from a property's operations before deducting all necessary operating costs. It is determined by subtracting vacancy and credit losses from potential rental income and any other income affected by vacancy. To determine a property's gross operating income, use either the Cash Flow Analysis Worksheet or the Annual Property Operating Data form.
Gross potential income (GPI)
The quantity of rental income that would be generated if a building were to be completely occupied.
Gross profit ratio (GPR)
The net revenue is split by the contract value in an installment transaction.
Gross rent multiplier (GRM)
The ratio of a property's sale price to the gross rentals collected.
A good starting point for determining the market value of income-producing residential property. To arrive at an acceptable average, the multiplier is calculated by dividing similar sales by actual or expected monthly rentals. A rough estimate of the property's market worth can be obtained by multiplying the estimated rent of the property under consideration by the multiplier. Because gross rent does not account for variations in vacancies, uncollectible rents, property taxes, management, and other unforeseeable events, only an approximate estimate of value is given. The estimate should normally be based on unfurnished rentals to be most accurate.
The gross rent multiplier, also known as the gross income multiplier, has been gradually dropping in recent years since it is a fairly basic guideline that does not take into account the tax implications of different types of investors and does not acknowledge other sources of financing.
A technique that can be used by financiers to estimate a company's worth. With this technique, the investor's projected gross rents at the end of the first year are multiplied by a set factor to determine the property's market value (known as the gross rent multiplier extracted from the marketplace).
The quickest method to the planet's surface using electricity.
The area of a building calculated from the ground floor's exterior dimensions. The ground covering area is the ratio of a building's floor space to its land area.
Grass, ivy, and other plants are grown to prevent soil erosion.
Data collected on the ground, and information derived from it, as an aid to the interpretation of remotely recorded surveys, such as airborne imagery; in general, this survey should be conducted concurrently with the airborne surveys; data collected on weather, soils, and vegetation types and conditions are typical.
Ground fault circuit interrupter
A device that monitors and interrupts the flow of electrical current when a dangerous event occurs is fitted in outlet plugs.
Underneath the basement floor, plumbing and waste lines were built.
A lease of either undeveloped property or land that does not include any buildings or structures.
Leases of vacant land or a piece of an upgraded plot of real estate.
A long-term lease on a piece of land that is distinct from and exclusive of the improvements on that site.
A land lease on its own, sometimes secured by improvements made to the land. The ground lease, sometimes known as a land lease, is a method of separating ownership of the land from ownership of the buildings and improvements built on the land. In most cases, a net lease generates a long-term tenancy, generally for 55, 75, or 99 years. Ground leases are often not for more than 99 years because early state laws considered leases of 100 years or more to be transfers of fee simple title rather than leases.
The lease rent (also known as ground rent) is typically established for a period of 30 years (determined as a percentage of the assessed valuation of the land on the day of lease execution), with the balance of the rent to be renegotiated on or before the specified term's expiration date. The new rent is usually based on a fixed percentage of the property's appraised value minus the cost of on-site and off-site upgrades. The rent rise is often determined at the time of lease execution, and a graduated lease with fixed increases at specified intervals is agreed to.
A ground lease is employed in both residential and condominium buildings in some areas, but it is also prevalent in commercial property development. Because land ownership and improvement ownership are separated, capital gains taxes on land transactions can be avoided, and financing requirements can be reduced.
A lease arrangement in which a lessor leases a piece of property for a certain period of time in exchange for a price.
A long-term lease of undeveloped land, typically for development purposes, is possible.
Lease of the property alone. Typically, a tenant who plans to build a structure on the leased land will sign a long-term lease agreement with the landlord. A land lease decouples land ownership from building and improvement ownership.
The region of the terrain covered by a detector's instantaneous field of vision; ground resolution is governed by the remote sensing system's altitude and the detector's instantaneous field of view.
The name was coined for data and information gathered on surface or subsurface characteristics to help in the interpretation of remotely sensed data; the recommended words are "ground data" and "ground information."
The mass of water occupying the subsoil and upper bedrock zone; the water occupying the saturation zone below the soil-water zone.
There is always water under the surface of the earth, no matter how it is standing or moving geologically. Water that flows in underground streams with beds and banks that can be seen is not considered groundwater.
The water comes from a well or aquifer beneath the ground.
A sort of antitrust violation in which many brokers agree to refuse or collaborate on less favorable terms with a third broker, typically in reaction to that broker proposing a cheap brokerage programme.
A fluid sand-cement mixture used to fill joints and small areas in masonry and tile work.
Cracks between different pieces in masonry or ceramics can be filled with a wet mixture of cement, sand, and water.
Growing equity mortgage (GEM)
A fixed-rate mortgage with an initial payment and interest rate that is normally equivalent to the current conventional market rate. The GEM has options for gradually increasing compensation (from 212 percent to 712 percent per year) depending on either predefined or index-linked increments. The additional payments are applied straight to principal, reducing both the period of the loan and the overall amount of interest paid significantly. The FHA 245 (a) programme is appealing to persons who have a restricted income but expect their monthly earnings to rise. These loans are eligible for FHA Section (b) insurance for one- to four-family homes, Section (k) insurance for properties that require refinancing and renovation, Section (n) insurance for cooperatives, and Section (c) insurance for condos.
The payment on a mortgage that is increased by a predetermined amount each year. The extra payments go toward paying down the main debt. The mortgage will be paid off in a shorter period of time as a result of this principle repayment.
A temporary halt on new growth in a community or jurisdiction.
Because retail tends to follow population shifts and income concentrations over time, understanding how those trends might affect a market's sales and revenue potential is crucial when conducting retail trade area analyses.
Guaranteed mortgage certificate (GMC)
Freddie Mac's debt instrument used to raise funds for its secondary market activity. Freddie Mac unconditionally guarantees each GMC, which represents an undivided interest in a broad, geographically diverse group of residential mortgages. Interest is paid to the security holder every six months. The principal is only paid once a year.
Guaranteed sale program (GSP)
Some brokers provide a service in which they commit to pay the owner of a listed property a predetermined amount if the property does not sell within a certain length of time. This allows the owner to buy a replacement property no matter how long it takes to sell the listed property.
In addition to the sales commission, the broker usually charges a fee. Brokers should be aware that the Internal Revenue Service considers property obtained under a guaranteed sales scheme to be dealer property under the IRC. (Contact the dealer.)
The guaranteed sale agreement must be carefully prepared to include all rights and obligations. Due to owner complaints that some brokers fail to deliver on their claims, state licensing officials are closely scrutinizing these programmes.
A third party to a contract who agrees to fulfill the promises if the original promisor fails to do so.
A promise or security made by one person (the guarantor) to make sure that another person (the obligor) will keep his or her promises to a third party (the guarantor) (the obligee). Lenders are becoming more likely to require a mortgagor to find someone to guarantee that a secured loan will be paid back, especially when the borrower is a new or financially weak company.
A borrower's promise to repay a loan or creditor.
A person designated by a court or by will to have lawful custody and care of another's person or possessions (called a ward). The ward could be a minor, deranged, or even a spendthrift. If it is in the best interests of the ward, the guardian may sell the ward's property with court consent and without the need for a real estate license. A guardian's deed would provide the grantee with legal title. A guardian ad litem is a person designated by a court to pursue or defend a legal action on his or her ward's behalf.
Guest car ratio (GCR)
The number of parking spaces provided to each living unit of guest use for the purposes of high-density housing development.
The survey lines go due north-south, 24 miles apart, as employed in the government (rectangular) survey method. Guide meridians compensate for the convergence of primary meridians caused by the curvature of the earth.
Plywood is a type of flat wood that serves as a connector between wood parts. Wood trusses frequently employ this type of fastener.
Drainage system for roof runoff that is installed below or below the fascia of a building.
Gyp board drywall, Wall board or gypsum
Incorporating Gypsum rock, this panel design covers interior walls and ceilings.
Basecoat plaster gypsum. Designed to be mixed with sand and water.