A
Abatement
Often and commonly referred to as free rent or early occupancy and may
occur outside or in addition to the primary term of the lease.
Abutting
The joining, reaching or touching of adjoining land. Abutting pieces
of property have a common boundary
Acceleration Clause
A
provision in a written mortgage, note, bond or conditional sales
contract that, in the event of default, the whole amount of principal
and interest may be declared to be due and payable at once.
Acre (AC)
A measure of land area equal to 43,560 square feet or 208,71 feet by
208,71 feet. Equivalent to 4,840 square yards, 4,047 square meters,
160 square rods or 0.4047 hectare. A square mile contains 640 acres
(25.6 hetares).
ADR
(Hospitality)
Average Daily Rate - Usually associated with the daily rate for a
Motel or Hotel rooms.
Adjoining
In actual contact with another object (i.e., attached). Same as
"Contiguous".
Agent
An individual/entity who transacts, represents, or manages business
for another individual/entity. Permission is provided by the
individual/entity being represented.
Assignee
Individual to whom a contract is assigned.
Assignment
The manner by which a contract is transferred from one individual to
another individual.
Assignor
An individual who transfers a contract to another individual.
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B
B & B
Bed and Breakfast Inns
Blending
(Fuels)
The mixing together by
any process whatsoever, of any one or more products with other
products, regardless of the original character of the products so
blended, provided the resultant product so obtained is suitable or
practical for use as a motor fuel, except such blending as may occur
in the process known as refining by the original refiner of crude oil,
and except, also, the blending of products known as lubricating oil in
the production of lubricating oils and greases and except, also, the
dyeing of special fuel as required.
Brokerage
For a commission or fee, bringing together parties
interested in buying, selling, exchanging or leasing real property.
Building Classifications
Building classifications in most markets refer to Class
"A", "B", "C" and sometimes
"D" properties. While the rating assigned to a particular
building is very subjective, Class "A" properties are
typically newer buildings with superior construction and finish in
excellent locations with easy access, attractive credit to tenants and
which offer multitude of amenities to tenants. The class of a building
may vary depending on the location of the property. What is a class B
in one market might be a class C in a different market. Also, as the
class of the building decreases (moves from A to B etc) the rents tend
to decrease.
Build Out
The construction or improvements of the interior of a space, including
flooring, walls, finished plumbing, electrical work, etc.
Building Permit
Written government permission to develop, renovate, or repair a
building.
Build-to-suit
An approach taken to lease space by a property owner where
a new building is designed and constructed to the tenant's
specifications.
Buyer's broker
A licensee who has declared to represent only the buyer in
a transaction, regardless of whether compensation is paid by the buyer
or the listing broker through a commission split.
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C
C-Store
(See Convenience Store)
Convenience Store, with or without fuel
Cancellation Clause
A provision in a contract (e.g., lease) that confers the ability of
one in the lease to terminate the party's obligations. The grounds and
ability to cancel are usually specified in the lease.
Capital Improvement
Any major physical development or redevelopment to a property that
extends the life of the property. Examples include upgrading the
elevators, replacement of the roof, and renovations of the lobby.
Certificate of Occupancy (CO)
The government issues this official form, which states that the
building is legally ready to be occupied.
Certified Property Manager (CPM)
Certified Property Manager. Professional designation conferred by
Institute of Real Estate Management; requires extensive specialized
education and experience.
Chattel
Household goods, including personal property such as lamps, desks, and
chairs.
Cityfeet
The preeminent real estate Internet site that provides prospective
tenants with commercial space availabilities.
Common Area Maintenance (CAM)
This is the amount of additional rent charged to the tenant, in
addition to the base rent, to maintain the common areas of the
property shared by the tenants and from which all tenants benefit.
Examples include: snow removal, outdoor lighting, parking lot
sweeping, insurance, property taxes, etc. Most often, this does not
include any capital improvements that are made to the property.
Contiguous
Touching at some point or along a boundary.
Contingency
A requirement in a contract that must occur before that contract can
be finalized.
Contract
A legal agreement between entities that requires each to conduct (or
refrain from conducting) certain activities. This document provides
each party with a right that is enforceable under our judicial system.
Convenience Store
(C-store)
According to the National Association of Convenience Stores (NACS),
the definition of a convenience store is as follows: 1) While building
size may vary significantly, typically the size will be less than
5,000 sq ft; 2) Have off-street parking and/or convenient pedestrian
access; 3) Extended hours of operation with many open 24 hours, seven
days a week; 4) Offer at least 500 stock keeping units (SKUs); and 5)
Product mix includes grocery type items, and also includes items from
the following groups: beverages, snacks (including confectionery) and
tobacco.
Consumer Price Index (CPI)
Sometimes used to index rental rate escalations.
Covenants
Wording found in deeds that limits/restricts the use to which a
property may be put (e.g., no bars).
D
Deed
A signed, written instrument that conveys title to real property.
Deed Restriction
An imposed restriction in a deed that limits the use of the property.
For example, a restriction could prohibit the sale of alcoholic
beverages.
Default
Failure to fulfill a promise, discharge an obligation, or perform
certain acts.
Delivery
Transfer something from one entity to another.
Diesel Fuel
Any
liquid other than gasoline that is capable of use as a fuel or a
component of a fuel in a motor vehicle that is propelled by a
diesel-powered engine or in a diesel-powered train. Diesel fuel
includes number 1 and number 2 fuel oils, kerosene, dyed diesel fuel,
and mineral spirits. Diesel fuel also includes any blendstock or
additive that is sold for blending with diesel fuel, any liquid
prepared, advertised, offered for sale, sold for use as, or used in
the generation of power for the propulsion of a diesel-powered engine,
airplane, or marine vessel. An additive or blendstock is presumed to
be sold for blending unless a certification is obtained for federal
purposes that the substance is for a use other than blending for
diesel fuel.
Dyed Diesel Fuel
Diesel
fuel that is dyed in accordance with internal revenue service rules or
pursuant to any other internal revenue service requirements, including
any invisible marker requirements.
E
Ejectment
Action to regain possession or real property. This is a last-ditch
effort that is used when there is no relationship between landlord and
tenant.
Eminent Domain
The government's right to condemn and acquire property for public use.
The government must provide the owner fair compensation.
Endorsement
Signing one's name on the back of a check.
Environmental Lien
A charge, security, or encumbrance on a property's title to secure
payment of cost or debt arising from response actions, cleanup, or
other remediation of hazardous substances or petroleum products.
Environmental Impact Statement
A document required of federal agencies by the National Environmental
Policy Act for major projects or legislative proposals significantly
affecting the environment. A tool for decision making, it describes
the positive and negative effects of the undertaking and cites
alternative actions.
Environmental Site Assessment
The process of determining whether contamination is present on a
parcel of real property.
EPA
Environmental Protection Agency
Escrow
A written agreement among parties, requiring that certain
property/funds be placed with a third party. The object in escrow is
released to a designated entity upon completion of some specific
occurrence.
Estoppel Certificate
A legal instrument executed by the one taking out the mortgage (i.e.,
mortgagor). The owner of a property may require an individual leasing
a property to sign an estoppel certificate, which verifies the major
points (e.g., base rent, lease commencement and expiration) existing
lease between the landlord and tenant.
Ethanol (Fuel Industry Related)
An alternative automotive fuel derived from grain and corn; usually
blended with gasoline to form gasohol.
Ethylene Dibromide (EDB)
(Fuel Industry Related) (Fuel)
A chemical used as an agricultural fumigant and in certain industrial
processes. Extremely toxic and found to be a carcinogen in laboratory
animals, EDB has been banned for most agricultural uses in the United
States.
Eviction (Actual)
Physical removal of a tenant either by law or force.
Eviction (Constructive)
The landlord or his agents disturb the tenant, rendering the leased
space unfit for the tenant's previous use.
Eviction (Proceeding)
A legal proceeding by the landlord to remove a tenant.
Exclusive Agency
An agreement in which one broker has exclusive rights to represent the
owner or tenant. If another broker is used, both the original and
actual broker are entitled to leasing commissions.
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F
Fiduciary
A person who represents another on financial/property matters.
Fixtures
Personal property so attached the land or building (e.g.,
improvements) it is considered part of the real property.
Food and Beverage (F
& B) (Hospitality)
Ability to provide food and beverage, includes catering, banquet
and restaurants to a hospitality industry client/guest.
Fractional Ownership
(Hospitality)
An alternative to second home ownership, fractional ownership is the
purchase of a multiple-week interest for usage throughout the
year.
Fuel Economy Standard
The Corporate Average Fuel Economy Standard (CAFE) effective in 1978.
It enhanced the national fuel conservation effort imposing a
miles-per-gallon floor for motor vehicles.
Fuel Efficiency (Fuel Industry
Related)
The proportion of energy released by fuel combustion that is converted
into useful energy.
Fuel Switching (Fuel Industry
Related)
1. A precombustion process whereby a low-sulfur coal is used in place
of a higher sulfur coal in a power plant to reduce sulfur dioxide
emissions. 2. Illegally using leaded gasoline in a motor vehicle
designed to use only unleaded.
Fuel Transportation Vehicle (Fuel
Industry Related)
A vehicle designed or
used to transport motor fuel on the public roads or highways.
Fuel transportation vehicle includes, but is not limited to, a
transport truck and a tank wagon. Fuel transportation vehicle does not
include a vehicle transporting a nurse tank or limited volume
auxiliary-mounted supply tank used for fueling an implement of
husbandry.
Fuel Vendor
(Fuel Industry Related)
A person who receives,
stores, or distributes gasoline or diesel fuel for resale within this
state.
Furniture, Fixtures & Equipment
(FF&E)
G
Gas Chromatograph/Mass Spectrometer
Instrument that identifies the molecular composition and
concentrations of various chemicals in water and soil samples.
Gasahol (Fuel Industry Related)
Mixture of gasoline and ethanol derived from fermented agricultural
products containing at least nine percent ethanol. Gasohol emissions
contain less carbon monoxide than those from gasoline.
Grace Period
Additional time allowed to complete an action (e.g., make a payment)
before a default or violation occurs.
Gross Lease
A lease of property whereby the landlord (i.e., lessor) pays for all
property charges usually included in ownership. These charges can
include utilities, taxes, and maintenance, among others.
H
Holdover Tenant
A tenant who remains in possession of leased property after the lease
term expiration.
Hospitality
A general term used in travel & tourism describing the
"hospitality industry"; Refers to the general greeting,
welcoming, food service, etc
I
Incompetent
An individual who is unable to handle his own affairs by reason of
some medical condition (e.g., insanity, Alzheimer's).
Instrument
A written legal document created to secure the rights of the parties
participating in the agreement.
Irrevocable
Incapable of being altered, changed, or recalled.
J
Joint Tenancy
Ownership of real property by two or more individuals, each of whom
has an undivided interest with the right of survivorship.
Joint
venture
A form of strategic alliance or co-operative arrangement where
ownership is shared and a separate enterprise formed. This may
strengthen existing businesses through shared expertise, capital,
removal of competition and creation of economies of scale.
International tourism joint ventures between foreign organisations and
local partners facilitate introduction of foreign products into local
markets.
Judgement
A formal decision issued by a court relating to the specific claims
and rights of the parties to an act or suit.
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K
Kiosk
A freestanding display used to provide merchandise, services or
information. They are located on streets, shopping malls and in
stores.
L
Landlord
One who rents property to a tenant.
Lease
A contract whereby the landlord grants the tenant the right to occupy
defined space for a set period at a specific price (i.e., rent).
Leasehold
The estate or interest a tenant has as stated in the tenant's lease.
Lessee
An individual (i.e., tenant) to whom property is rented under a lease.
Lessor
An individual (i.e. landlord) who rents property to a tenant via a
lease.
Letter of Intent
An informal, usually non-binding, agreement among parties indicating
their serious desire to move forward with negotiations.
Listing
An employment contract between principal and agent that authorizes the
agent (such as a broker) to perform services for the principal and his
property.
Loss Factor
What percentage of the gross area of a space is lost due to walls,
elevator, etc. Rule of thumb in Manhattan is approximately 15%.
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M
Mandatory
A requirement that must be conformed to as specified in any written
document.
Market Price
The actual selling or leasing price of a property.
Market Value
The expected price that a property should bring if exposed for lease
in the open market for a reasonable period of time and with market
savvy landlords and tenants.
Meeting of the Minds
When all individuals to a contract agree to the substance and terms of
that contract.
Minor
A person under a legal age, usually under 18 years old.
MPD (Fuel
Industry Related)
See
“Multiple Product Dispensers.”
MTBE (Fuel
Industry Related)
Methyl Tertiary Butyl Ether
Multiple Listing
An arrangement among Real Estate Board of Exchange Members, whereby
each broker presents the broker's listings to the attention of the
other members so that if a lease results, the commission is divided
between the broker bringing the listing and the broker making the
lease.
Multiple Product Dispensers (MPD) (Fuel
Industry Related)
Most people associate these with
gasoline pumps. Most MPDs have six hoses and dispense three grades of
fuel.
N
Net Lease
Also called triple net lease. The lessee pays not only a fixed rental
charge but also expenses on the rented property, including
maintenance.
Non-Disturbance Agreement
The tenant signs this to prevent himself from being evicted if the
property owner does not pay its mortgage to the bank.
Notary Public
A public officer who is authorized to witness and verify certain
documents (e.g., contracts, deeds, mortgages). Also, an affidavit may
be sworn before this public officer.
O
Obligee
The person who will receive the outcome of an obligation.
Obligor
An individual who has engaged to perform an obligation to another
person (i.e., obligee).
Occupancy
rate
A tourism business occupancy rate refers to the number of airline
seats or the units of hotel room space sold. This demand is usually
measured as a percentage of available seats or space occupied for a
given period of time. It is calculated by dividing the number of
occupied rooms/seats by the total number available for sale during the
same perio
Open Listing
A listing given to any broker without liability to compensate any
broker except the one who first secures a buyer who is ready, willing,
and able to meet the terms of the listing, or secures the acceptance
by the landlord of a satisfactory offer; the lease of the property
automatically terminates the listing.
Option
A right given to purchase or lease a property upon specified terms
within a specified time. If the right is not exercised, the option
holder is not subject to liability for damages. If the holder of the
option exercises it, the grantor of option must perform the option's
requirements.
P
Percentage Lease
A lease of property in which the rent is based upon the percentage of
the sales volume made on the specific premises. There is usually a
clause for a minimum rent as well.
Personal Property
Any property which is not real property. Examples include furniture,
clothing, and artwork.
PETE (Polyethylene Terepthalate) (Fuel
Industry Related)
Thermoplastic material used in plastic soft drink and rigid
containers.
Petroleum
(Fuel Industry Related)
Crude oil or any fraction thereof that is liquid under normal
conditions of temperature and pressure. The term includes
petroleum-based substances comprising a complex blend of hydrocarbons
derived from crude oil through the process of separation, conversion,
upgrading, and finishing, such as motor fuel, jet oil, lubricants,
petroleum solvents, and used oil.
Petroleum Derivatives (Fuel Industry
Related)
Chemicals formed when gasoline breaks down in contact with ground
water.
pH
An expression of the intensity of the basic or acid condition of a
liquid; may range from 0 to 14, where 0 is the most acid and 7 is
neutral. Natural waters usually have a pH between 6.5 and 8.5.
Power of Attorney
A written instrument duly signed and executed by an individual which
authorizes an agent to act on his behalf to the extent indicated in
the document.
Principal
The employer (e.g., landlord) of an agent or broker. This is the
agent's or broker's client.
Q
Quiet Enjoyment
The right of an landlord or tenant to use the property without
disturbances.
QSR (Fuel Industry Related)
See “Quick
Service Restaurant.”
Quick Service Restaurants
(QSR)
Limited service restaurants that specialize in quick service. Sometimes
known as fast food
R
Rack (Fuel Industry Related)
A mechanism for delivering
motor fuel from a refinery, a terminal, or a marine vessel into a
railroad tank car, a transport truck, a tank wagon, the fuel supply
tank of a marine vessel, or other means of transfer outside of the
bulk transfer/terminal system.
Rational Pricing
The process of offering sensible, market based, value-oriented
rates to the customer on the first customer inquiry.
Sleep
Well Bed – refers to the initial research done in 1999 called
“Sleep Well Research.” The Marriott Comfortable Bed and the
Comfort Collection resulted from the study.
Real Estate Board
An organization whose members consist primarily of real estate
professionals such as brokers.
Real Estate Syndicate
When partners (either with or without unlimited liability) form a
partnership to participate in a real estate venture.
Real Property
Land and any capital improvements (e.g., buildings) erected on the
property.
Realtor
A coined word which may only be used by an active member of a local
real estate board, affiliated with the National Association of Real
Estate Boards.
Refinery
A facility used to produce
motor fuel from crude oil, unfinished oils, natural gas liquids, or
other hydrocarbons and from which motor fuel may be removed by
pipeline, by marine vessel, or at a rack.
Removal
A physical transfer other
than by evaporation, loss, or destruction of motor fuel from a
terminal, manufacturing plant, customs custody, pipeline, marine
vessel, or refinery that stores motor fuel.
Rent
Compensation from tenant to landlord for the use of real estate.
Restriction
A restriction, often specified in the deed, on the use of property.
Revocation
An act of rescinding power previously authorized.
RevPAR (Hospitality)
A performance metric in the hotel industry which stands for
"revenue per available room." RevPAR is typically calculated
by multiplying a hotel's average daily room rate (ADR) by its
occupancy rate. It may also be calculated by dividing a hotel's total
guestroom revenue by the room count and the number of days in the
period being measured.
Keep in
mind that RevPAR does not take into account revenue from other hotel
services, such as restaurants, spas, golf courses, marinas, casinos
etc.
RHR (Hospitality)
Renaissance Hotels & Resorts
Rule of Thumb
A common or ubiquitous benchmark. For example, it is often assumed
that each worker in an office will need approximately 250 square feet
of space.
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S
Situs
The preference by people for a certain location. 2) The place where
something exists or originates; the place where something (as a right)
is held to be located in law.
Sleep
Well Bed (Hospitality)
Refers to the initial research done in 1999 called “Sleep Well
Research.” The Marriott Comfortable Bed and the Comfort Collection
resulted from the study.
Specific Performance
When a court requires a defendant to carry out the terms of an
agreement or contract.
Square Feet
The usual method by which rental space is defined. It is the area of
that space, calculated by taking length times width. For example, a
room 30 feet by 60 feet has an area of 1,800 square feet.
Statute
A law established by an act of a legislature.
Statute of Frauds
State law (founded on ancient English law) which requires that
contracts must be reduced to written form if it is to be enforced by
law.
Statute of Limitations
A law barring all right of redress after a certain period of time from
the moment when a cause of action first arises.
Subagent
An agent of an individual already acting as an agent of a principal.
Subletting
The leasing of space from one tenant to another tenant.
Subscribing Witness
The witness to the execution of an instrument who has written his name
as proof of seeing such execution.
Surrender
The cancellation of a lease by mutual consent of the tenant and the
landlord.
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T
Tenancy at Will
A license to occupy or use lands and buildings at the will of the
landlord.
Tenancy by the Entirety
An estate which exists only between husband and wife. Each has equal
right of enjoyment and possession during their joint lives, and each
has the right of survivorship.
Tenant Improvements
Work done on the interior of a space, can be paid for by landlord,
tenant, or some combination of both, depending on the terms of the
lease.
Tenancy in Common
Ownership of property by two or more individuals, each of whom has an
undivided interest, without the right of survivorship.
Tenants at Sufferance
An individual who comes to possess land via lawful title and keeps it
in perpetuity without any title.
Tie-in Arrangement
A contract where one transaction depends upon another transaction.
Tort
A wrongful act or violation of a legal right for which a civil action
will lie.
Triple Net Lease
A lease requiring tenants to pay all utilities, insurance, taxes, and
maintenance costs.
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U
Urban Property
Property in a city or a high-density area.
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V
Valid
A binding situation that is authorized and enforceable by law.
Valuation
Estimated price, value, or worth. Also, the act of identifying a
property's worth via an appraisal.
Variance
Government authorization to use or develop a property in a manner
which is not permitted by the applicable zoning regulations.
Violation
Act, condition, or deed that violates the permissible use of property.
Void
Something that is unenforceable.
Voidable
A situation which is capable of being unenforceable but is not so
unless direct action is taken.
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W
Waiver
The intentional relinquishment or abandonment of a specific claim,
privilege, or right.
Work Letter
An amount of money that a landlord agrees to spend on the construction
of the interior of a space per the lease, usually negotiated.
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Z
Zone
An area, delineated by a governmental authority, which is authorized
for and limited to specific uses.
Zoning Ordinance
A law by a local governmental authority (e.g., city or county) that
sets the parameters for which the property may be put to use.
