[ a b c d e f g h i j k l m n o p q r s t u v w x y z ]
Accrued items of expense:
Incurred expenses that are not yet payable. In a closing statement, accrued expenses of the seller are credited to the purchaser (taxes, wages, interest, etc.).

Acknowledgment:
A declaration before a notary public or other officer by a party executing a legal document that the execution is his free and voluntary act and deed.

Acre:
A measure of land. One acre is equal to 43,560 square feet or 160 square rods or 4,840 square yards.

Ad valorem:
According to value (Latin). This term generally used to refer to real estate taxes.
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Affidavit:
A voluntary statement in writing, sworn to before a notary public or other officer.
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Agent:
One who acts or has the power to act for another. A licensed real estate broker authorized to act under a listing or management agreement executed by a property owner (the principal); this creates a fiduciary relationship under the law of agency. A building manager is the agent of the property owner.
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Air-handling light fixture:
A light fixture into which air is introduced by means of an air diffuser for quiet, draft-free distribution.
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Amortization:
The process of paying off a debt together with interest, usually with equal payments at regular intervals over a period of time.
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Amortized mortgage:
A mortgage loan in which the principal, as well as the interest, is payable in monthly or periodic installments during the term of the loan.
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Annual loan constant:
The principal and interest of a loan expressed as the constant annual payment required to retire a debt at a certain rate of interest over a certain period of time.
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Appraisal:
An estimate of quantity, quality or value. The process through which conclusions of property value obtained; also refers to the report setting forth the estimate and conclusion of value.
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Approaches to value:
Employed by an appraiser to estimate the value of real estate: cost approach, income approach and market data approach.
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Architect:
A person who normally functions as a creator, coordinator, author of the drawing and specifications and the general administrator of construction.
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Architectural drawing:
Includes all architectural contracts and drawings such as plot plans, floor plans, elevations, sections, details, schedules, etc., and any architectural drawing that forms a part of the contract documents. Exceptions include mechanical, electrical, and structural drawings, as well as specialized data that are normally handled by consultants to the architect or owner.
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Assessed value:
The value placed on land and buildings by a township or a county assessor for use in levying annual real estate taxes.
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Assignment:
The transfer in writing of an interest in a lease, mortgage or other instrument. The assignor, or lessee, transfers the entire remainder of the term created by the lease, and the assignee becomes liable to the original lessor for rent. Assignor may or may not retain secondary liability for performance under the lease, depending upon the terms of the lease pertaining to assignment.
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Bag filter:
A unit within a mechanical system that bellows in a bag form when air flows through, cleaning the air by collecting particles of foreign matter. This system of filtering is rated the most efficient- in a range of 92 to 95 percent.
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Banked elevators:
A group of elevators adjacent to each other with a specific demised enclosure
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Bank partition:
A type of space divider usually made of steel and glass and extending only approximately five to six feet up from the floor rather than to the ceiling.
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Base lease:
A contract stating the minimum established requirements that are applicable to all tenants.
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Base year:
The year of a lease term that is used as the standard when implementing as escalator clause. Operating costs are judged higher or lower during the next year when compared to the base year.
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Bay:
An unfinished area or space between a row of columns and the bearing wall. Usually the smallest area into which a building floor can be partitioned.
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Bids:
A competitive system in which each bidder submits a sealed proposal to execute construction work for a specified sum. The list of bidders (bid list) is controlled by the client and architect.
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Binder:
A preliminary agreement evidencing a meeting of the minds and effective until the principal agreement can be executed.
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Block Layout:
The preliminary sketch showing different tenants' spaces on various floors. This helps the building management to understand the feasibility of the building.
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Board of underwriters:
An organization that fixes rates for fire insurance and other types of coverage. The organization also maintains a laboratory that tests safety factors of materials, substances, electrical equipment, machinery and other apparatus.
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Boot:
(See Fixture boot.)
Borrowed light:
A partition containing glass or plastic panels between an interior dark space and a space illuminated by daylight or high-intensity artificial light.
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Buck:
(See Door frame.)
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Building codes:
Ordinances that specify minimum construction standards. These ordinances are enforced for the protection of public safety and health.
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Building core:
The central or arterial part of a multistory building that integrates functions and service needs for established occupants. Such areas are normally composed of toilet facilities, elevator banks, janitors' closets, utilities, mechanical facilities. smoke shafts and stairwells.
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Building module:
A unit of length and width by which the plan of a building can be standardized and which facilitates the design and layout of office space, The module places constraints on the size and shape of many of the elements of the physical systems. In contrast, buildings of a non-modular design present many problems for initial design and subsequent alterations.
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Building permit:
The approval that must be obtained under state of local regulations. Drawings and specifications must be filed with the legal authorities in control of building operations.
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Building shell:
The skeleton of a building to which the finished exterior and interior are applied. It includes the building foundation.
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Building skin:
All the materials that cover a building's shell (see Building shell).
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Building standard:
The specific construction standards that have been established by the owner and architect to achieve a uniform element of design throughout the building and to establish a cost basis for fitting up charges and/or allowance. Such items may be changed only with the approval of the building owner or the managing representative.
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Build-to-suit:
An agreement between a landlord and a new tenant whereby the landlord assumes the obligation of fitting up the demised space to the tenant's specification within the constraints of building standards. The tenant takes possession when the space is completed.
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Cancellation clause:
A provision in a lease that confers upon one or both of the parties to the lease the right to terminate the lease upon the occurrence of the condition or contingency set forth in the said clause.
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Capitalization:
The process of ascertaining the value of a property by the use of a proper investment rate of return and the net income expected to be produced by the property. The formula of net annual income divided by proper capitalization rate is expressed: Income/Rate = Value.
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Cash flow:
The net operation income of a property minus its debt service.
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Cash-on-cash return:
A percentage figure arrived at by dividing the cash flow from a property by the total investment in the property and multiplying by 100. Also called Cash yield.
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Cash yield:
(See Cash-on-cash return.)
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Certificate of insurance:
A certificate issued by an insurance company or its agent. It verifies that a certain insurance policy is in effect for stated amounts and coverage and names those insured.
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Certificate of payment:
A certificate issued by the architect to the contractor for such amount as the architect decides is properly due. The amount of the certificate is therefore left, subject to the contract's provisions, entirely to the architect's discretion. However, in reaching a decision, the architect is acting not as the owner's agent but in a judicial capacity.
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Chain of title:
The succession of conveyances from some accepted starting point, usually beginning with the original recorded source, whereby the present holder of real property derives the title.
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Change order:
An order issued any time there is a change in the specifications, price or time set forth in the building contract as authorized by the owner, architect or engineer.
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Channeling:
Cutting, chipping or routing a prescribed sectional area in a linear pattern on any surface, usually in concrete or plaster.
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Chattels:
Personal property items.
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Circulation allowance:
The space needed to have sufficient access to, from and around workspaces.
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Clear span:
The amount of floor area clear of interference form columns.
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Commitment:
A pledge, promise, or affirmation of agreement.
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Common areas:
Areas used by two or more tenants and/or third parties and not under control of any one tenant.
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Comparison year:
During the term of a lease with an escalator clause, any year that is compared with a base year for the purpose of establishing a rise or fall in operating costs (see Base year).
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Condemnation:
The taking of private property for public use, with adequate compensation to the owner, under the right of eminent domain.
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Condition or conditions:
A provision in a deed or a will. It guarantees that upon the occurrence or nonoccurrence of a certain event, the title of the purchaser of devisee will be limited, enlarged or terminated. A condition in a deed is a restriction that is coupled with a reverter clause.
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Consideration:
Anything of value given by one party to induce another to enter into a contract. It may be money, personal services of even "love and affection'.
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Construction allowance:
A landlord's contribution to the cost of construction and/or alteration necessary to prepare a space for a tenant's occupancy. This may be an established amount, or it may vary from one kind of transaction to another.
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Construction cost:
Total expense, plus normal overhead and profit, that must be paid for the job in question.
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Construction cost estimate:
A figure submitted in advance of construction, not binding unless submitted as a bid. It is used to help arrive at a decision concerning the feasibility of a proposed project.
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Constructive eviction:
Any disturbance by the landlord of the tenant's possession of leased premised, whereby they are rendered unsuitable for occupancy (the purpose for which they were leased). In such a case, the tenant is not liable for further payment of rent.
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Constructive notice:
Notice given to the world by the recording of documents with a public official. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them.
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Contingency fund:
A fund established by a developer to cover unforeseen construction costs.
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Contract documents:
Documents consisting of the agreement and the conditions of the contract (general, supplementary and other conditions). They include the drawings, the specifications, all addenda issued prior to execution of the contract and all modifications thereto. A modification is (1) a written amendment to the contract signed by both parties; (2) a written interpretation issued by the architect in the form of a drawing or otherwise; (3) a change order; or (4) a written order issued by the architect for a minor change in the work.
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Contractor:
An individual and/or firm used in performing work on construction projects. There are different classes of contractors, which are normally listed under the heading of subcontractors. The function of the subcontractor is to perform a particular task only under the direction and coordination of the general contractor, who takes on the responsibility of managing the project in accordance with the construction documents. The general contractor is normally selected through bidding procedures and is totally responsible for completion of the project in a skillful manner that is acceptable to both architect and owner. However, the general contractor may be pre-selected to handle all work within a particular project. This is usually the case for multistory office buildings where the general contractor is the same for all tenant space construction. The contractor also could be contracted on a time-and-material basis, which may or may not have an upset maximum.
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Contractor's affidavit:
A written statement, made under oath before a notary public by a contractor, stating facts regarding the contract, subcontracts, material suppliers and labor and setting forth the amounts paid and unpaid and the balance of payments due.
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Convection system:
A system in which heat is transferred through the circulatory motion of air that occurs when the temperature varies due to the difference in air density and the action of gravity. A hot-water or steam radiator is one such system.
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Convector:
A heating unit in which air, heated by contact with a heating device in a casing, circulated by convection. This term is often used by the layperson in identifying what is really an induction unit or system, which it resembles. It is usually taken for granted that all systems are the same, and thus it is often used as a generic term when identifying either system.
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Conventional mortgage:
A mortgage loan that is not insured or guaranteed by any government agency (FHA or VA).
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Conveyance:
A written instrument by which title or an interest in real estate is transferred; a deed.
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Core:
(See Building core.)
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Coring:
A mechanical system of removing a cylindrical section of concrete from the existing floor to gain access to the duct system.
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Cost approach:
The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the replacement cost of the building, less depreciation.
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Cove base:
(See Wall base.)
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Covenant:
An agreement, written into deeds and other instruments, promising performance or nonperformance of certain acts or stipulation certain uses or non-uses of the property.
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Damages:
The estimated reparation in money for an injury sustained.
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Damper:
A valve or plate that is operated mechanically or manually to regulate air flow to or from any prescribed point.
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Debt service:
The total annual debt payment calculated by multiplying the loan constant by the outstanding loan balance.
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Dedication:
The voluntary giving of private property by the owner of a development for some public use (streets, schools, etc.,).
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Deed:
A written instrument that, when executed and delivered, conveys title to an interest in real estate.
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Deed of trust:
Also known as a trust deed, an instrument used to create a mortgage lien by which the mortgagor conveys a title to a trustee who holds it for the benefit of the noteholder (the lender).
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Deed restrictions:
Clauses in a deed limiting the future uses of the property. Deed restrictions may take many forms. They may limit the density of buildings, dictate the types of structures that can be erected and/or prevent buildings from being used for specific purposes or used at all. Deed restrictions may impose a myriad of limitations and conditions.
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Default:
Failure to meet an obligation when due or to perform any provision f a lease, mortgage or other agreement.
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Demised premises:
Premises, or parts of real estate, in which an interest or estate has been transferred temporarily, such as an interest in real property conveyed in a lease.
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Demising clause:
The clause in a lease whereby the landlord (Lessor) leases and the tenant (Lessee) takes the property. Demise is synonymous with "lease" or 'let".
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Demolition clause:
The clause within a lease denoting the fact that if or when the ground lease has expired, the building will be demolished per such clause. The lessor must notify the tenants within an established time of such condition.
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Depreciation:
Loss of value due to all causes. Depreciation usually includes: (1) physical deterioration (ordinary wear and tear); (2) functional depreciation (Obsolescence); and (3) economic obsolescence (causes outside the property).
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Design cost or budget cost:
Cost based on an agreed-upon concept where specific units have been established.
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Design development:
The process by which, upon approval of the schematic design, the architect proceeds with development of the plans and elevations of the building. Drawings establishing all major elements and outline specifications are prepared. A revised statement of probable construction cost is usually made at this time.
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Developmental planning:
Establishing a plan for the current spaces needs of an office that also takes into account anticipated future needs.
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Diffuser:
A device for reducing the velocity of air flow from a mechanical duct system supplying air. Its shape is usually circular or square and it is set in the ceiling at predetermined locations to diffuse air within that space.
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Door frame:
Made of either wood or hollow metal. A frame includes the following components: (a) head - the horizontal top portion of the door frame; (b) jamb - either the left or right vertical portion of the frame; (c) sill - the bottom of the door at floor level; (d) stop - a continuos projection around the frame to resist the door from traveling beyond a closing point; (e) buck - the subframe of wood or pressed metal to which the door case is fixed.
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Doors:
The most common types are solid-core wood (S.C.), hollow-core wood (H.C.), or hollow metal (H.M.). All of the doors can be furnished for paint finish; wood doors, when it is requested, may be furnished with any particular wood veneer available, at an additional cost. (One particular type of door that may come up periodically on proposed construction jobs is the class B door. This door of wood or metal, but usually metal, has a two-hour fire rating and is primarily located at stairwells or other enclosures requiring fire protection for at least two hours.)
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Dry and wet bulb thermometer:
A special thermometer that measures relative humidity.
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Duct:
A pipe, tube, channel or any other necessary for conveying gases, liquids or solid units from one point to another. The term is mostly identified with air-conditioning systems where the transfer of air is necessary. This is accomplished through sheet-metal ducts. The term is also applicable to under-floor duct systems for conveyance of telephone lines and other electrical conductors.
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Easement:
A right to use the land of another for a specific purpose, such as a right-of-way or for utilities (see Incorporeal interest). An easement, appurtenant passes with the land when it is sold.
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Economic obsolescence:
Impairment of desirability or useful life or loss in the use and value of property arising from economic forces outside the building or property, such a changes in optimum land use, legislative enactment that restrict or impair property rights and changes in supply-demand relationships.
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Effective gross income:
The scheduled gross income of a property minus the vacancy rate.
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Egress:The right to leave a tract of land. Often used in connection with access.
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Electrified floor:
A floor in a commercial or office building containing ducts that house telephone and power lines, which emerge from the floor at frequent intervals for easy installation of telephones and power equipment.
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Eminent domain:
The right of a government or municipal quasi-public body to acquire private property for public use. It is acquired through a court action called condemnation in which the court determines the use is a public use and decides the price or compensation to be paid to the owner.
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Encroachment:
A building or some portion of it, or a wall or fence that extends beyond the land of the owner and illegally intrudes upon land of an adjoining owner, a street, or an alley.
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Encumbrance:
Any lien, such as a mortgage, tax, or judgement lien. It can also be an easement, a restriction on the use of the land or an outstanding dower right that may diminish the value of the property.
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Entrepreneurial building:
A building where the landlord is not a major tenant and that is built primarily for its investment-return potential.
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Equalization:
The raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts.
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Equity:
The interest or value an owner has in real estate over and above the mortgage against it.
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Escalation clause:
A clause in a contract providing for increases or decreases in rent payments in accordance with fluctuations of certain costs or expenses of the landlord.
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Escalation payments:
Payments under an escalation clause.
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Escrow:
A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition.
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Eviction:
The forced removal, by legal means, of a tenant from the leased premise (see Constructive eviction).
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Exclusive agency listing:
A listing contract under which the owner appoints a real estate broker as the one exclusive agent for a designated period of time to sell the property on the owner's stated terms, and under which the owner agrees to pay the broker a commission. However, the owner reserves the right to sell without a commission to a prospect not introduced or claimed by the broker (see Exclusive right to sell).
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Exclusive listing:
A contract to sell property as an agent, whereby the agent is given the exclusive right to sell the property or is made the exclusive agent for its sale.
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Exclusive right to sell:
A listing contract in which the owner appoints a real estate broker as the exclusive agent for a designated term. The broker must sell the property on the owner's stated terms, and the owner agrees to pay the broker a commission when the sale is consummated.
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Expense ratio:
The percentage of gross income that is consumed by the operating expenses of a property.
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Expense stop:
A ceiling or limit on the dollar amount one party, typically the landlord, will pay in an expense category. This ceiling is determined by adding a percentage or dollar amount to the base year costs.
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Exploratory costs:
The cost figures collected on the basis of a discussion of possible needs and reviewed with an interested individual (see Preliminary cost estimates).
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Fee simple:
The largest possible estate or absolute right of ownership or real property. It can be held without time limitation and is freely transferable and inheritable.
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Fiduciary:
A person to whom power or property is entrusted for the benefit of another.
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Field of observation:
(On-site observation.) Observation deemed necessary by the architect to ensure successful completion of the project.
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Fin-tube radiation system:
A heating convection system that transmits heat through a series of sheet-metal plates spaced at close intervals on a center pipe. The energy of heat transmission is usually through hot water or steam.
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First right of refusal:
A lease concession that gives a tenant the first right, within a limited period, to a designated additional space that another prospective tenant has expressed a desire to lease.
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Fit up:
(Fitting up). The construction necessary within the enclosing walls, i.e., the space the tenant is leasing, to divide and improve that tenant's space into a functional layout, including partitions, doors, telephone and electrical outlets, finished surfaces, paint, tile, carpet, etc., and up to the point of furnishing with personal property.
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Fixture:
Personal property or improvements so attached to the land as to become part of the real property. The right of the tenant to remove fixtures may be given by stipulation in the lease or by separate written agreement between the parties.
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Fixture boot:
A sheet-metal housing, over air-handling light fixtures, that will receive ducts for conveying conditioned air through such light fixtures to particular areas at certain required quantities.
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Flat base:
(See Wall base.)
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Footcandle:
A measurement of light level. It is equivalent to the light intensity made by one candle at a distance of one foot.
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Footcandles maintained:
The level of light that will be maintained after the initial drop-off of footcandles following installation. Usually it will be after the first 100 hours of burning.
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Footprint:
The shape and configuration of a building.
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Foreclosure:
A court action initiated by the mortgagee or a lienor for the purpose of having the court order the debtor's real estate sold to pay the mortgage or other lien (mechanic's lien or judgement).
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Functional obsolescence:
Defects in a building or structure that detract from its value or marketability. (See Obsolescence.)
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Garden-type building:
A modern, low-rise building typically found in suburban areas, that is built to blend in with its surroundings. Often of stucco exterior.
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General lien:
A lien on all property, both real and personal, of a debtor.
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Glazier:
A mechanic responsible for handling and installing glass.
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Graduated lease:
A lease that provides for specific increases or decreases in rent at definite times during the term of the lease.
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Grantee:
A person to whom an interest in land is conveyed by deed, grant, or other written instrument.
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Grantor:
A person who transfers his or her interest in land to another by a written instrument.
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Gross lease:
A lease of property whereby the lessor is to pay all property charges regularly incurred through ownership. (See Net lease.)
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Gross rent multiplier:
A figure that produces an estimate of the property's value when used as a multiplier of the gross income of a property.
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Ground lease:
A lease (usually of long duration) of land to a tenant who covenants to erect a building on the premises. The building is security for rentals. If the tenant defaults, the landlord may foreclose on the lease. (See Subordinated ground lease).
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Hard construction costs:
The costs of constructing a building shell plus most of the covering materials.
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Hardware:
General term that includes the following: (a) hinges, butt or pivot; (b) lever handles, knobs or pulls; (c) latchset, lockset, magnetic and friction catches; and (d) door closers, door holds, door bumpers.
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Highest and best use:
The possible use of land that will produce the greatest net income and thereby develop the highest land value.
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High rise:
An inexact term, usually denoting a building of steel frame construction regardless of the building height.
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Hold harmless:
(See Save harmless.)
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Holding area:
A space or room usually in the freight-docking area where deliveries to a tenant (or the building management) may be held until delivered; sometimes also called a receiving area.
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Holding over:
The act of a tenant retaining possession of the premises longer than the term expressed in the lease.
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HVAC:
An abbreviation for heating, ventilating, and air conditioning.
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Improvements on land:
Usually publicly owned structures such as buildings, fences, driveways, and retaining walls erected so that a site can be used.
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Improvements to land:
Usually publicly owned structures such as curbs, sidewalks, streetlights, and sewers constructed to enable the development of privately owned land.
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Income approach: