Real Estate Terminology Decoded

A summary of all the recorded documents and proceedings relating to a specific property that prove an owner's right to dispose of land, together with any encumbrances.

The right to use, develop or otherwise control the space above a property. Air Rights can sold, rented or leased to another party.

Useful features or facilities of an individual apartment/unit that may enhance its value or desirability.

An estimate of the value of the property, normally sought out for determination of the offering price during a sale.

An act of making a legal transfer of a right, property, or liability from one party to another. Real estate- related assigned contracts include mortgages, leases and deeds of trust.

A state-licensed sales professional who acts as agent for property owners, prospective purchasers, tenants and landlords in real estate transactions.

A 19th century townhouse, clad in eponymous sandstone, which shares a wall with the neighboring property.

The assets that buildings offer its owners or tenants (e.g. doorman, concierge, health club, swimming pool, garage)

Each New York City building is required to have a Certificate of Occupancy, a document indicating the structure is suitable for occupancy. This means that the building is in compliance to health and building codes. No one may legally occupy a building until the Department of Buildings has issued a CO.

A final step in executing a real estate transaction, closing is the transfer of ownership of a property from the seller to the buyer as per the sales contract.

Term used to describe the practice of a real estate broker sending their listings out to other brokerages. The brokerage community receives the listings, and should a co-broker produce a party to a real estate transaction, the commission will be split evenly between the seller's broker and the firm that produced the buyer of the property.

When an apartment owner combines two adjoining apartments into one in order to enhance the value of the combined asset.

Payment to the broker for his or her efforts on marketing and selling a real estate property. Agreed upon at the time of the listing, the commission is usually expressed as a percentage of the total purchase price.

The sharing of commissions between the listing agent and the buyer's broker.

The area on the property, or within a building that is available for use to all owners, tenants, and their invitees.

Used in evaluating or establishing the fair market value of a property, Comparable Market Analysis compares a property which has been recently sold that is similar to subject property in size, condition, location, and amenities.

A building where individuals or parties own individual units, but share common areas with the other unit owners in the building. A more liberal type of ownership than Cooperatives, Condominiums have more lenient subletting and pet policies.

A legally binding agreement between two parties. To have a valid contract for the sale of Real Estate, there must be:

an acceptance

consideration

written documentation

signatures of the principals

Real property changing to a different form of ownership, such as commercial property to a residential building, or a condominium to a cooperative.

A one- or two-bedroom apartment that has enough space so another bedroom could be carved out of it. The newly created bedroom can be made with the construction of a wall, provided however, that the new bedroom has a window.

A type of ownership of property where the owner of an individual unit owns shares in the cooperative building, without owning the actual property. The amount of shares owned is determined by the value and size of the apartment. The cooperative building owns all of the units and the purchaser is buying stock in the building, and receiving a proprietary lease that allows occupancy of the unit.

A written document by which title of property is conveyed from one party to another.

An apartment that occupies two separate yet adjoining floors, connected by a private, interior staircase.

A bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled.

Collection of all assets of a deceased person.

The interest of real property that ends with the death of a person.

A contract whereby the owner of a property grants only one broker the right to market the property for sale.

The exterior front wall of a building, the "face" of a building.

Borrowing funds to purchase a real property.

An asking price, normally for a property, that is not open for negotiation.

A loan where the interest rate remains constant over the entire term of the loan.

Tax imposed on an individual cooperative apartment by the cooperative. Flip tax can either be paid by either the seller or purchaser, subject to contract negotiations, and is usually expressed as a percentage of the purchase price.

A loan where the interest rate is not fixed over the term, but is allowed to vary according to the change in a specified index.

A scale diagram of the arrangement of rooms and their sizes drawn by an architect.

An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage.

A bathroom with a sink, toilet, bath or a shower. All homes must have at least one full bath.

If a new law is passed or an old is changed those people whose activity was legal under the previous law are allowed to continue because of this condition. This law is common with pets; some buildings that do not allow pets now, did in past, therefore, those owners are allowed to keep their pets.

A bathroom with a sink and toilet, but without a bath or a shower.

The cost of borrowing money from a lender. Rates are set by the Federal Reserve, and may vary over time.

A written agreement by which property owner rents out property, or part of property, to another for a specified time, in return for a periodic payment.

A legal claim against property for money owed.

The agreement that allows a real estate professional to market a real property. Available apartments, homes, or spaces, are also referred to as listings.

Open-plan living space that was converted from commercial space (oftentimes factories or warehouses) to residential space. Lofts traditionally have high ceilings, large windows and lots of open space, free of partitions.

A measured section of land.

Monthly charges paid by the owner or tenant of a cooperative building for their share of costs in keeping the common areas of the building in good condition. This includes the daily cost to operate the building, and is calculated based on each individual unit.

An independent company that is hired to manage a property on behalf and for the interest of its owner.

An estimation of the price for a property in relation to the current real estate market.

Money borrowed from a lender in order to purchase a property. Mortgages vary in terms of length and interest rates.

The process of discussing an issue between two parties aimed at reaching an agreement. Successful negotiation usually leads to a contract, followed by a sale.

To verify the authenticity of a signature by a certified Notary Public.

An expression of the desire to purchase a property at a specific price.

An act of property owner agreeing to, and accepting the offer and terms of the purchaser.

A specified time when a property that is being offered for sale is marketed by either owner or broker opening its doors to prospective buyers. Brokers advertise open houses to help the sale of a property.

A listing where the owner of the property hires more than one broker, and only pays commission to the one that provides the purchaser.

A law enacted by the local government.

A luxury apartment, normally on the top floor of a high-rise building.

A French term that refers to an apartment that is not the primary residence of the owner. A Pied a Terre is used when the property's owner lives in another location, and comes to New York several times a month or a few weeks in a year.

A post war building is one that was built after World War II.

A pre war building is one that was built before World War II. Common characteristics of a pre war apartment are grander dimensions, fireplaces, period moldings and hardwood floors.

The levy on a property that the owner is required to pay.

Fees paid by the borrower directly to the lender at closing, in exchange for a reduced interest rate. Each point is equal to 1% of the principal of the mortgage.

Also known as a half bath.

An apartment that spreads over four floors.

A recommendation made to a client about the services of a particular agent or firm.

A building where the apartments are only rented, and not available for sale.

Laws that regulate the amount of money that is charged to rent out space.

An account reserved to provide funds for future expenses in order to maintain the cooperative or condominium building. A healthy reserve fund is an indicator of a healthy and stable piece of property, improving overall value for shareholders and prospective buyers.

Also known as the "purchase price," this is the amount of money paid by the purchaser to the seller of real property at closing.

A payment required by a landlord to guarantee that the tenant meets his or her obligations under the lease, and to guard against any damages that may be incurred during the term of the lease.

When one purchases an apartment in a cooperative building, he or she is actually purchasing the shares in the cooperative. Shares represent the proportion of the building owned by the unit owner based on the size and value of the apartment.

The area measured in square feet of a certain property. Square footage can be measured in different ways and is usually considered approximate.

A lease of a property by a tenant to a subtenant. In cooperative ownership, owner of the unit (proprietary tenant) may sublet, depending on the building's sublet policy.

An expense that reduces taxable income. Each year, shareholders in cooperatives apartments are able to deduct a certain amount from their personal taxes. The amount is determined by the amount of owned shares.

A specified period of time.

The legal term for the evidence that the owner is in lawful possession of the land and property.

A townhouse is a low-rise private residential building where at least one wall is shared with another residence.

Refers to the condition of the residence. Triple mint condition means that the residence is in immaculate condition.

An apartment that spreads over three floors.

A single residence within a building.

Services such as water, gas, electricity, telephone and television. Utilities in some buildings throughout the city are included in the maintenance charges.Services such as water, gas, electricity, telephone and television. Utilities in some buildings in New York City are included in the maintenance charges.

To move out and leave the property.

Normally a four- to six-floor building that does not have an elevator.

The inspection of a property immediately before the closing to ensure that the property does not have any new, post-contract damages.

An area set by local law for specific use with certain rules and regulations.