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["Zoning (down/up)"]
["Zoning is governed by municipalities according to a master plan which can change the classification of a property to a lower use (down-zoning) or a higher use (up-zoning). Zoning typically covers not only use but lot size, building heights, setbacks, etc."]

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["Term","Definition","Star"]
["Operating Leverage","The expense-to-revenue ratio. If expenses are significant (such as with hotels), a property has high operating leverage (i.e., a small decrease in expenses will have a significant impact on NOI). If expenses are insignificant (such as industrial leases), a property has low (or no) operating leverage.",true]
["Standby fee","A fee charged by a lender to a borrower to remain available to provide a loan on pre-arranged terms and conditions for a period of time.",false]
["Parking ratios","usually expressed in terms of number of “car parks” to rentable square footage. (For example, office buildings and shopping centers usually require something on the order of 4 parking places for every 1,000 feet of leased space; industrial might be 1 space per 1,000 s.f.)",true]
["“Sweat Equity”","An economic interest earned by work rather than capital invested.",false]
["Comps (comparables)","Sales prices (or lease rates) of similar properties used to estimate value for another property taking into account similarities/differences. Used as one method of determining value.",true]
["Acceleration","The outcome of a default whereby a loan becomes due prior to its contractual due date due to a default.",false]
["Anchor","A major tenant that generates significant traffic. Generally used in describing a department store or supermarket in a retail center.",false]
["Condemnation","The taking of property by use of “eminent domain” (a power of government to take private property for public use, requiring “just compensation” to owner.)",false]
["Broker","A licensed, paid professional who represents others as agent in buying, selling or leasing real estate. Agents work for brokers and are not state licensed. Realtors are members of the National Association of Realtors (and may be brokers or agents).",false]
["Cash-on-cash Return","The first year pre-tax yield on capital invested (equal to the cap rate.)",false]
["Leverage","Financial leverage has to do with the use of borrowed funds to magnify the returns on equity. (Negative leverage occurs when total project yield is inferior to the cost of borrowed funds; positive leverage when project yield exceeds the cost of borrowed funds.) Operating leverage occurs when a change in expenses has a magnified effect on net income.",false]
["Access","The entry to a property via public street or easement across another’s property.",false]
["BATNA","(Best Alternative To a Negotiated Agreement) used by negotiators to determine ultimate fallback position in negotiations fail.",false]
["Quiet enjoyment","An exclusive right of possession a tenant is extended by the landlord.",false]
["Value","Real estate is valued according to i) the income method (“capitalizing NOI at a cap rate intended to capture in a simple calculation a value that will provide investors with a required rate of return over time), ii) the cost method (valuing land at highest and best use value and all improvements at replacement cost), and iii) the comparable method (assessing like-property sales over the recent past and making adjustments for differences.)",false]
["Lessee","The tenant. (A tenant may have various kinds of leases such as “at sufferance” [occupying a property after expiration of lease], “at will” [terminable by either lessee or lessor at any time], or “for a term” [use for a period of time, also called “estate for years.”])",false]
["BOMA","Building and Owners Management Association.  The trade association of professional building managers. Determines standards.",false]
["Buy-sell Agreement (tripartite agreement)","Contract between buyer, seller and lender covering various rights, obligations on a transfer of property.",false]
["Purchase money","Seller financing for all or part of the financing requirements upon sale of a property.",false]
["Cap Rates","The initial before-tax rate of return sought by a buyer of real property based on expected Net Operating Income. The “capitalization” of pre-tax cash flows, used to estimate a value of a property.",false]
["Tax avoidance/tax fraud","Avoidance is simply using available code provisions to minimize taxes; fraud will get you time in the “iron house.”",false]
["Asset/Property Management","Asset management deals with capital expenditures and financing issues that relate to maximizing property value. Property management deals with the physical maintenance of property.",false]
["Absorption","The rate at which properties are expected to lease up at prevailing rates.",false]
["Rail spur","An auxiliary track branching off a more significant railroad track to allow for delivery and loading of goods to a warehouse.",false]
["Leasehold/freehold","forms of property interest. A leasehold interest is subject to a lease and is for a limited time. A freehold interest is subject to title and lasts until a conveyance of that title.",false]
["CPI (Consumer Price Index) escalator","is used to adjust rent based on figures issued by the US Dept of Labor gathered to estimate the change in price levels.",false]
["Sale-leaseback","A transaction in which a seller immediately leases back a property from its buyer.",false]
["Deed restriction","A limit on the use of a property placed on it in perpetuity by an owner prior to sale.",false]
["Liens","a claim on real property. A “mechanic’s lien” is one created by a laborer who’s added value to a property and has not been paid. A “materialman’s lien” is one created by a supplier of goods to a property who has not been paid. A “tax lien” is owed to the government. A “judgment lien” is created by a court granting a creditor an interest Liens are also created by lenders who secure their interests by a deed of trust or a mortgage lien.",false]
["Statute of Frauds","The legal doctrine that requires that all real estate contracts be in writing to be enforceable.",false]
["HVAC","(Heating, Ventilating and Air Conditioning)",false]
["NOI","Income after operating expenses (before deductions for debt service or income taxes). The key number used in establishing property value.",false]
["Situs","The total environment impacting on a specific urban land parcel, capturing how a property interacts with its environs and all surrounding parcels.",false]
["“Highest and best use”","the term used for maximizing the rental income (and hence value) available from a particular property.",false]
["Metes and bounds","The dominant method of land description used by surveyors in the US, based on starting at a point (an iron pin deep in the ground), and describing a parcel of land by use of distances (metes) and directions (bounds) from that reference point.",false]
["Remedies","What is available by law or contract to recover one’s rights or interests. Contracts provide remedies for breaches.",false]
["ERISA","The Employee Retirement Income Security Act governing, among other things, pension fund investment in real estate. (Also known as Every Rotten Idea Since Adam.)",false]
["Dry gains","Gains for which no cash is received. So-called dry gains occur when depreciation is recaptured.",false]
["Foreclosure","A legal process whereby a lender forces the sale of a property in order to pay off a loan.",false]
["REIT (Real Estate Investment Trust)","An ownership entity created by congress in 1960 that provides limited liability, no tax at the entity level, and liquidity (required net income distribution.) Beneficial interest has certain limitations and is evidenced by shares of stock traded.",true]
["Purchase and sale agreement","A contract between the buyer and seller that specifies sales price and terms of sale.",false]
["CC&R's","Covenants and restrictions placed on a property regarding its use generally involving such things as building heights, density, signage, etc.",false]
["Depreciation","The allowable annual deduction on real property improvements. Land may not be depreciated. Property used for personal use may not be depreciated. Income producing property may be depreciated according to schedules provided by the Internal Revenue Service as updated from time to time.",false]
["Agency","The arrangement regarding representation of one person by another (such as a broker or attorney) to buy, sell or lease real estate. A real estate “agent” as the term is commonly used works for a “broker” who is licensed to provide 3rd party services.",false]
["Triple net (Net3) lease","the tenant pays taxes, insurance and operating expenses in addition to rent. (Typical of industrial leases)",false]
["Workouts","Negotiations between borrowers and lenders to restructure obligations.",false]
["Tax-free exchange","Should be called tax-deferred; often called a Section 1031 Exchange, whereby a like-kind swap of properties occurs that meets IRC tests and allows seller(s) to defer payment of taxes on the appreciation of property.",false]
["Title","The evidence of ownership of real property. Title is made a part of the public record, can be insured and is passed from owner to owner by conveyance.",false]
["Multiple Listing Service (MLS)","A listing of all properties in a given area by brokers who distribute information to all members of the service. Provides broader exposure to a property.",false]
["CERCLA","Comprehensive Environmental Response, Compensation and Liability Act.  This act, passed in 1980, was what authorized the original Super-fund legislation aimed at environmental clean-up.",false]
["Escrow","An account governed by a third-party until terms of a contract are met.",false]
["Earnest Money","Funds deposited in escrow to show a good faith offer.",false]
["Lessor","The landlord.",false]
["Encumbrance","Any restriction that limits the use of property.",false]
["Floor-Area-Ratio (FAR)","The relationship of the total floor area of a building and the total land area of its site. Typically used to limit the permitted density of development.",false]
["Acre","43,560 square feet.",false]
["Costs (Hard/Soft)","Hard costs are those related to “bricks and mortar” or construction costs. Soft costs are all development costs except for hard costs (including A&E fees, interest, taxes, insurance, marketing expenses, development fees, etc.)",false]
["Chattel","Physical property that is movable, not real estate.",false]
["Common area","Land or building areas used by all tenants or owners (halls, elevators, landscaping, parking.)",false]
["Capital Accounts","A partner’s basis in a property as measured by original capital invested plus additional contributions, plus profits, less losses, less distributions.",false]
["Basis","Original investment + additions - depreciation. Basis is used for the calculation of gain on sale. Net sales price less “adjusted basis” equals taxable gain upon which capital gains tax is applied.",false]
["Easement","A non-possessory right of one owner to use a part of the land of another. Generally created by writing and fairly permanent; however, can be implied (called “prescriptive”) and gained simply by repeated use over time.",false]
["Certificate of Occupancy (C.O.)","Building approval by local officials (zoning board or building department) certifying that it meets code and is ready for occupancy. Generally marks the end of the construction phase of a project.",false]
["Cost Method","One of 3 standard appraisal methods (comparables, cost and income) to assess the value of a property. The cost method assumes the value of the underlying land at its “highest and best” use, then “reconstructs” all buildings and amenities at current market costs and adjusts for wear-and-tear and obsolescence.",false]
["Financial Leverage","The impact on returns of adding debt to the capital structure of property financing. (If the cost of debt > overall return on assets, the financial leverage is “negative,” if overall ROA > cost of debt, it is “positive.” Also called “gearing.”)",false]
["Deed of Trust","A 3-party agreement (buyer, lender, trustee) that secures an obligation by making real estate a security. (In some states, done by mortgage.)",false]
["Joint Venture (JV)","a special purpose association of individuals (or firms) to carry out a for-profit effort. (Also may be defined as an arrangement where someone with money joins up with someone with experience, resulting in the party with experience ending up with the money and the party with the money ending up with experience.)",false]
["RTC (Resolution Trust Corporation)","Established by the government to manage loans and liquidate properties acquired in the S&L collapse of the late 1980’s.",false]
["Plat","a survey that shows location of streets, blocks and lots in a given area. Usually part of the public record. Used to identify particular parcels. Subdivisions require “plat approval” prior to putting in streets, utilities.",false]
["Zoning (down/up)","Zoning is governed by municipalities according to a master plan which can change the classification of a property to a lower use (down-zoning) or a higher use (up-zoning). Zoning typically covers not only use but lot size, building heights, setbacks, etc.",true]
["Recapitalization","Exchanging existing financing for new financing. Sometimes includes bringing in new equity and/or debt, or restructuring current obligations with new terms.",false]
["Chain of Title","The recorded history of conveyances and encumbrances affecting the title of a specific parcel of land. The various owners of a particular property are considered to be “in the chain of title.” Particularly significant when determining liability for environmental clean-up and liability.",false]
["Condo/Co-op","Forms of R/E ownership relating to a partial interest in a property, associated with specific space. A condominium ownership is a form of joint ownership in which a property owner owns his “demised premises” as well as a percentage of common areas. A co-op differs in that its owners own shares in a corporation that owns the R/E and have rights to a specific unit.",false]
["Variance","Unlike in statistics, where variance refers to the square of the standard deviation, or in accounting, where variance refers to the difference between actual and expected results, in real estate, one is granted a variance, which allows for building something otherwise not allowed by zoning, or setbacks or other restrictions.",false]
["Deed-in-lieu","A deed offered voluntarily instead of requiring a secured party to foreclose to perfect its security interest. (Deed-in-lieu of foreclosure.)",false]
["Demised premises","The exclusive space leased by a tenant (not including common areas.)",false]
["Return on equity","The yield on capital invested above debt. (Return of equity is sometimes applied to recover outstanding funds prior to sale or refinancing.)",false]
["Fee Simple","The most extensive interest in land recognized by law (subject only to police seizure, taxation, eminent domain, escheat and/or deed restrictions.)",false]

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