Colleen Belcher

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Commercial Real Estate Information A - I

• Adjoining- In actual contact with another object (i.e., attached). Same as "Contiguous".
• Agent- An individual/entity who transacts, represents, or manages business for another individual/entity. Permission is provided by the individual/entity being represented.
• Assignee- Individual to whom a contract is assigned.
• Assignment- The manner by which a contract is transferred from one individual to another individual.
• Assignor- An individual who transfers a contract to another individual.
• Build Out- The construction or improvements of the interior of a space, including flooring,walls, finished plumbing, electrical work, etc.
• Building Permit- Written government permission to develop, renovate, or repair a building.
• Cancellation Clause- A provision in a contract (e.g., lease) that confers the ability of one in the lease to terminate the party's obligations. The grounds and ability to cancel are usually specified in the lease.
• Capital Improvement- Any major physical development or redevelopment to a property that extends the life of the property. Examples include upgrading the elevators, replacement of the roof, and renovations of the lobby.
• Certificate of Occupancy(CO)- The government issues this official form, which states that the building is legally ready to be occupied.
• Chattel- Household goods, including personal property such as lamps, desks, and chairs.
• Common Area Maintenance(CAM)- This is the amount of additional rent charged to the tenant, in addition to the base rent, to maintain the common areas of the property shared by the tenants and from which all tenants benefit. Examples include: snow removal, outdoor lighting, parking lot sweeping, insurance, property taxes, etc. Most often, this does not include any capital improvements that are made to the property.
• Contiguous- Touching at some point or along a boundary
• Contingency- A requirement in a contract that must occur before that contract can be finalized.
• Contract- A legal agreement between entities that requires each to conduct (or refrain from conducting) certain activities. This document provides each party with a right that is enforceable under our judicial system.
• Covenants- Wording found in deeds that limits/restricts the use to which a property may be put (e.g., no bars).
• Deed- A signed, written instrument that conveys title to real property.
• Deed Restriction- An imposed restriction in a deed that limits the use of the property. For example, a restriction could prohibit the sale of alcoholic beverages.
• Default- Failure to fulfill a promise, discharge an obligation, or perform certain acts.
• Delivery- Transfer something from one entity to another.
• Ejectment- Action to regain possession or real property. This is a last-ditch effort that is used when there is no relationship between landlord and tenant.
• Eminent Domain- The government's right to condemn and acquire property for public use. The government must provide the owner fair compensation.
• Endorsement- Signing one's name on the back of a check.
• Escrow- A written agreement among parties, requiring that certain property/funds be placed with a third party. The object in escrow is released to a designated entity upon completion of some specific occurrence.
• Estoppel Certificate- A legal instrument executed by the one taking out the mortgage (i.e., mortgagor). The owner of a property may require an individual leasing a property to sign an estoppel certificate, which verifies the major points (e.g., base rent, lease commencement and expiration) existing lease between the landlord and tenant.
• Eviction(Actual)- Physical removal of a tenant either by law or force.
• Eviction(Constructive)- The landlord or his agents disturb the tenant, rendering the leased space unfit for the tenant's previous use.
• Eviction(Proceeding)- A legal proceeding by the landlord to remove a tenant.
• Exclusive Agency- An agreement in which one broker has exclusive rights to represent the owner or tenant. If another broker is used, both the original and actual broker are entitled to leasing commissions.
• Fiduciary- A person who represents another on financial/property matters.
• Fixtures- Personal property so attached the land or building (e.g., improvements) it is considered part of the real property.
• Grace Period- Additional time allowed to complete an action (e.g., make a payment) before a default or violation occurs.
• Gross Lease- A lease of property whereby the landlord (i.e., lessor) pays for all property charges usually included in ownership. These charges can include utilities, taxes, and maintenance, among others.
• Holdover Tenant- A tenant who remains in possession of leased property after the lease term expiration.
• Incompetent- An individual who is unable to handle his own affairs by reason of some medical condition (e.g., insanity, Alzheimer's).
• Instrument- A written legal document created to secure the rights of the parties participating in the agreement.
• Irrevocable- Incapable of being altered, changed, or recalled.

Real Estate defintions J-Z