Chapter 14 - Real Estate Specialization Vocabulary Flashcards
Chap 14 Vocab
agricultural property
Property zoned for use in farming, including the raising of crops and livestock.
Brownfield
An abandoned commercial or industrial site or under-utilized neighborhood where redevelopment is complicated by actual or perceived contamination.
urban sprawl
The unplanned and often haphazard growth of an urban area into adjoining areas.
directional growth
The location or direction toward which the residential sections of a city are destined or determined to grow.
infill development
The development of vacant parcels in existing urban and suburban areas.
Urban Renewal
The acquisition of certain areas by government action for the purpose of redevelopment.
Leverage
The investment strategy of using borrowed funds, such as a mortgage, to increase the potential return on an investment. – Using a lender’s money to finance a sale.
sales tax
Collected as a percentage of the retailing sales of a product, by a retailer, and forwarded to the State Board of Equalization.
1031 Exchange
The Internal Revenue Code Section that allows a taxpayer to sell an investment property and purchase another investment property in its place without paying capital gains on the proceeds from the sale.
Also called Like-Kind Exchange or Tax-Deferred Exchange.
A method of deferring tax liability.
tax-deferred exchange
The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade.
estate tax
Federal tax on the transfer of assets owned by the estate of a person who has died.
equity buildup
The gradual increase of the borrower’s equity in a property caused by amortization of loan principal.
inheritance tax
A tax levied by states on inherited property and paid by the person receiving the property.
gift tax
Tax that can be due when you give property or other assets to someone.
Balance Sheet
A property management report that shows a snapshot of a specific property at specific moment in time, for example, cash on hand, liabilities, outstanding loan balance, etc.
financing statement
(1) A written notice filed with the county recorder by a creditor who has extended credit for the purchase of personal property; establishes the creditor’s interests in the personal property which is security for the debt. (2) A document used to record debt.
building manager
A person employed by a property manager or directly by an owner, and usually manages a single large building or office complex.
Property Manager
A person hired by a real property owner to administer, market, and maintain property, especially rental property.
Property Management
Leasing or renting, or offering to lease or rent, real property of others for a fee, commission, compensation, or other valuable consideration pursuant to a property management employee contract. – (1) A specialty in which real estate brokers manage homes and large real estate projects such as industrial complexes, shopping centers, apartment houses and condominiums. (2) The branch of the real estate business involving the marketing, peration, maintenance and day-to-day financing of rental properties.
Property Management Agreement
A written agreement that creates an agency relationship between the property owner/investor and the property manager.
Resident Manager
Represents a property management firm and may live on the premises of the building being managed. A person employed to manage an apartment building on a part or full-time basis.
Management Agreement (contract)
A written agreement that governs the relationship between the property owner/investor and the property manager and outlines the duties of the property manager.
Management Proposal
A plan created by the property manager for overseeing the principal’s property, including market analysis, and developing a variety of financial reports, including the operating budget.
rent control
(1) Laws in some communities that limit or prohibit rent increases. (2) Also known as rent stabilization.
no fault eviction
A lawful eviction in which the tenant is not at fault. This includes whether the owner wants to occupy the apartment or to get out of the rental housing business.
maximum allowable rent
The maximum legal rent that a landlord may charge for a controlled rental unit.
Consumer Price Index (CPI)
An index published monthly by the United States Bureau of Labor Standards (BLS) considered by many to be the basic indicator of inflation in the U.S.
Floor Area Ratio
The maximum size of a building permitted on a development site according to zoning requirements. The floor area ratio (FAR) is typically stated as a percentage, such as 25%, 30%, etc.
hedge against inflation
Real property appreciation keeps pace or exceeds inflation rates.
installment note
A note which provides for a series of periodic payments of principal and interest, until amount borrowed is paid in full. This periodic reduction of principal amortizes the loan.
installment sales
Where payments are made, by the buyer, to the seller, over a period of more than one year.
Mansionization
A new trend of home remodeling and construction that is emerging in older neighborhoods with small to medium-sized homes.
Houseboat
A barge that is designed and equipped for use as a dwelling.
manufactured home
A home built in a factory after June 15, 1976 and must conform to federal Manufactured Home Construction and Safety Standards.
Mobilehome
A factory-built home manufactured prior to June 15, 1976, constructed on a chassis and wheels, and designed for permanent or semi-attachment to land.
mobilehome park
Any area or tract of land where two or more mobile home lots are rented or leased or held out for rent or leased to accommodate manufactured homes or mobilehomes used for human habitation.
Timeshare
A form of property ownership in which several buyers purchase interests in real estate with each party having the right to use the property and facilities for a designated period of time.
NIMBY
The mnemonic for Not In My Backyard.
Note
A signed instrument acknowledging the existence of a debt and the promise to pay. An evidence of a debt.
pro rata
In proportion; according to a certain percentage or proportion of a whole.
Pro-Rata Share
The equitable distribution of expenses among tenants for the operating expenses of a building, generally based on the percentage of the property occupied by the tenant.
Probate
A judicial proceeding in which the validity of a will is established and the executor is authorized to distribute the estate property; when there is no valid will, a judicial proceeding in which an administrator is appointed to distribute the estate to heirs according to the laws of intestate succession. The legal process to prove a will is valid.
probate sale
A court-approved sale of the property of a deceased person.
Promulgate
To publish or make laws known.
turnkey projects
Investors purchase projects that are ready for occupancy.
Uniform Commercial Code (UCC)
A general set of laws adopted by most states with the purpose of providing uniformity and fairness in commercial transactions, including the sale and financing of personal property.
