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Commercial Real Estate Information J -Z
- Joint Tenancy Ownership of real property by two or more individuals, each of whom has an undivided interest with the right of survivorship.
- Judgement A formal decision issued by a court relating to the specific claims and rights of the parties to an act or suit.
- Landlord One who rents property to a tenant.
- Lease A contract whereby the landlord grants the tenant the right to occupy defined space for a set period at a specific price (i.e., rent).
- Leasehold The estate or interest a tenant has as stated in the tenant's lease.
- Lessee An individual (i.e., tenant) to whom property is rented under a lease.
- Lessor An individual (i.e. landlord) who rents property to a tenant via a lease.
- Letter of Intent An informal, usually non-binding, agreement among parties indicating their serious desire to move forward with negotiations.
- Listing An employment contract between principal and agent that authorizes the agent (such as a broker) to perform services for the principal and his property.
- Loss Factor What percentage of the gross area of a space is lost due to walls, elevator, etc. Rule of thumb in Manhattan is approximately 15%.
- Mandatory A requirement that must be conformed to as specified in any written document.
- Market Price The actual selling or leasing price of a property.
- Market Value The expected price that a property should bring if exposed for lease in the open market for a reasonable period of time and with market savvy landlords and tenants.
- Multiple Listing An arrangement among Real Estate Board of Exchange Members, whereby each broker presents the broker's listings to the attention of the other members so that if a lease results, the commission is divided between the broker bringing the listing and the broker making the lease.
- Net Lease Also called triple net lease. The lessee pays not only a fixed rental charge but also expenses on the rented property, including maintenance.
- Non-Disturbance Agreement The tenant signs this to prevent himself from being evicted if the property owner does not pay its mortgage to the bank.
- Notary Public A public officer who is authorized to witness and verify certain documents (e.g., contracts, deeds, mortgages). Also, an affidavit may be sworn before this public officer.
- Obligee The person who will receive the outcome of an obligation.
- Obligor An individual who has engaged to perform an obligation to another person (i.e., obligee).
- Open Listing A listing given to any broker without liability to compensate any broker except the one who first secures a buyer who is ready, willing, and able to meet the terms of the listing, or secures the acceptance by the landlord of a satisfactory offer; the lease of the property automatically terminates the listing.
- Option A right given to purchase or lease a property upon specified terms within a specified time. If the right is not exercised, the option holder is not subject to liability for damages. If the holder of the option exercises it, the grantor of option must perform the option's requirements.
- Percentage Lease A lease of property in which the rent is based upon the percentage of the sales volume made on the specific premises. There is usually a clause for a minimum rent as well.
- Personal Property Any property which is not real property. Examples include furniture, clothing, and artwork.
- Power of Attorney A written instrument duly signed and executed by an individual which authorizes an agent to act on his behalf to the extent indicated in the document.
- Principal The employer (e.g., landlord) of an agent or broker. This is the agent's or broker's client.
- Quiet Enjoyment The right of an landlord or tenant to use the property without disturbances.
- Real Estate Board An organization whose members consist primarily of real estate professionals such as brokers.
- Real Estate Syndicate When partners (either with or without unlimited liability) form a partnership to participate in a real estate venture.
- Real Property Land and any capital improvements (e.g., buildings) erected on the property.
- Restriction A restriction, often specified in the deed, on the use of property.
- Revocation An act of rescinding power previously authorized.
- Rule of Thumb A common or ubiquitous benchmark. For example, it is often assumed that each worker in an office will need approximately 250 square feet of space.
- Situs The location of a property.
- Specific Performance When a court requires a defendant to carry out the terms of an agreement or contract.
- Square Feet The usual method by which rental space is defined. It is the area of that space, calculated by taking length times width. For example, a room 30 feet by 60 feet has an area of 1,800 square feet.
- Statute A law established by an act of a legislature.
- Statute of Frauds State law (founded on ancient English law) which requires that contracts must be reduced to written form if it is to be enforced by law
- Statute of Limitations A law barring all right of redress after a certain period of time from the moment when a cause of action first arises.
- Subagent An agent of an individual already acting as an agent of a principal.
- Subletting The leasing of space from one tenant to another tenant.
- Subscribing Witness The witness to the execution of an instrument who has written his name as proof of seeing such execution.
- Surrender The cancellation of a lease by mutual consent of the tenant and the landlord.
- Tenancy at Will A license to occupy or use lands and buildings at the will of the landlord.
- Tenancy by the Entirety An estate which exists only between husband and wife. Each has equal right of enjoyment and possession during their joint lives, and each has the right of survivorship.
- Tenant Improvements Work done on the interior of a space, can be paid for by landlord, tenant, or some combination of both, depending on the terms of the lease.
- Tenancy in Common Ownership of property by two or more individuals, each of whom has an undivided interest, without the right of survivorship.
- Tenants at Sufferance An individual who comes to possess land via lawful title and keeps it in perpetuity without any title.
- Tie-in Arrangement A contract where one transaction depends upon another transaction.
- Tort A wrongful act or violation of a legal right for which a civil action will lie.
- Triple Net Lease A lease requiring tenants to pay all utilities, insurance, taxes, and maintenance costs.
- Urban Property Property in a city or a high-density area.
- Valid A binding situation that is authorized and enforceable by law.
- Valuation Estimated price, value, or worth. Also, the act of identifying a property's worth via an appraisal.
- Variance Government authorization to use or develop a property in a manner which is not permitted by the applicable zoning regulations.
- Violation Act, condition, or deed that violates the permissible use of property.
- Void Something that is unenforceable.
- Voidable A situation which is capable of being unenforceable but is not so unless direct action is taken.
- Waiver The intentional relinquishment or abandonment of a specific claim, privilege, or right.
- Work Letter An amount of money that a landlord agrees to spend on the construction of the interior of a space per the lease, usually negotiated.
- Zone An area, delineated by a governmental authority, which is authorized for and limited to specific uses.
- Zoning Ordinance A law by a local governmental authority (e.g., city or county) that sets the parameters for which the property may be put to use.