Frequently Used Terms​

Features both tangible and intangible, that enhance the value or desirability of real estate.

A room or a group of related rooms, among similar sets in one building, designed for use as a dwelling.

One who buys and sells for another for a commission. In real estate, a broker must be properly licensed to perform certain activities specified in the real estate license laws and collect compensation.

The absolute ownership of a unit in a multi-unit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.

Conforming or adhering to the acceptable standards or market rate of housing in an area (see Market Rate)

A signer in addition to the principal signer (to verify the authenticity of the principal signature or to provide surety)?

A house having separate apartments for two families, esp. a two-story house having a complete apartment on each floor and two separate entrances.

The trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction 

The system of moral principles and rules that becomes the standards for professional conduct.

A legal process to oust a person from possession of real estate.

The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin.

A building in which people live; residence for human beings.

These are income limits based on the median household income of the government agency used to provide limits on tax credit and other affordable housing. 

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and the use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent). By state law, leases for longer than a certain period of time (generally one year) must be in writing to be enforceable. 

A lease under which the tenant has the right to purchase the property either during the lease term or at its end. (See Rent to Own).

A renewal of the lease for a period of time generally under its original conditions unless otherwise stated in the renewal.

The term or duration of the lease that the landlord (lessor) and tenant (lessee) agree that that tenant will occupy, or have possession of the real property. 

A real estate agent employed by a licensed real estate broker who leases (rents) property owned by a landlord (lessor) to a tenant (lessee) and has the authority to sign on that lessor’s behalf. 

The tenant that has the possession of the real property for the lease term for a specified consideration (rent).

The landlord that has given possession of their real property for the lease term for a specified consideration (rent). 

The care or upkeep of a property or unit. This usually does not increase the value but keeps the property in good working order (i.e. grass cutting, minor plumbing, etc.).

These are properties that are leased at the current rates of the market (what the market will bear, or pay for a said property). 

A piece of land or real estate, including any permanent fixtures attached thereto. 

An agreement between a landlord (lessor) and a real estate broker (management company) about the details of how a property will be managed, the compensation paid to the broker, and any other criteria deemed to be necessary between the two parties.

Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting. 

Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing or landlord and tenant at the signing of the lease.

Land; a portion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.

An agent with a licensed real estate broker engaged in the sale or lease of real estate. 

A registered trademark term reserved for the sole use of active members of the local REALTOR® boards affiliated with the National Association of REALTORS®.

A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties. 

A statement of proposed rental rates, determined by the owner or the property manager or both, based on a building’s estimated expenses, market supply and demand, and the owner’s long-range goals for the property. 

Typically, this is a lease where you would have the option to buy, and part of your rent may go towards the purchase of the house.

(See Lease Option

The discount provided by the landlord (lessor) or management company to the tenant if the tenant will pay the consideration (rent) by a certain day. 

Improvements made on properties that enhance the value or fix something outdated or broken. 

A person who performs real estate activities while employed by or associated with a licensed real estate broker. 

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or destruction of the premises by the tenant.

A detached dwelling on a piece of land (real estate) that typically is for one family’s use. 

Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest. 

Damages done by the tenant or guest of the tenant during the tenants lease term that are outside the normal wear and tear of that unit.

One of a row of houses joined by common sidewalls.

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