RE - Set 04 Flashcards
ACTUAL AGE
The real age of a building.
NET INCOME
Sometimes known as net operating income. The remaining income after operating expenses have been subtracted from the gross income of a property.
ECONOMIC LIFE
The estimated period over which an improved property may be profitably used to yield a return.
CAPITALIZATION
The process of calculating the present worth of a property on the basis of its capacity to continue to produce an income stream.
BOOK VALUE
The initial cost of the property plus the capital improvements and minus the total accrued depreciation.
VACANCY FACTOR
Lost income because of a vacant unit.
DEFERRED MAINTENANCE
Negligent care of a building.
CAPITAL IMPROVEMENTS
Any permanent improvement made to real estate for the purpose of increasing the useful life of the property or increasing the property’s value.
EFFECTIVE AGE
The years or age shown by the condition and utility of a structure, rather than its actual or chronological age.
CAP RATE
A term sometimes used to refer to capitalization rate.
VARIANCE
An exception granted to existing zoning regulations for special reasons.
ENVIRONMENTAL IMPACT REPORT
A study of how a development will affect the ecology of its surroundings.
CHAIN OF TITLE
A chronological history of a property’s ownership.
WARRANTY DEED
A deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it; no longer used in California.
PUBLIC GRANT
The transfer of title by the government to a private individual.
