Back by popular demand. Below is a general glossary of general New York residential real estate terms.
Abstract of Title. A historical summary of the recorded instruments and proceedings on the title of a property.
Air Rights. The right to use or control the space above a property. Air rights can also be sold, rented or leased to another party.
Appraisal. Typically a third-party estimate of the value of the property.
Assignment. The process by which a right or contract is transferred from one party to another. Assigned contracts include mortgages, leases and deeds of trust.
Broker. A state licensed sales agent who acts for property owners and prospective purchasers in real estate transactions. The term “broker” and “agent” are often used interchangeably, but technically a broker requires a higher level of training and experience.
Building amenities. The assets that buildings offer its owners or tenants. These can include a doorman, health club, pool, parking garage, etc.
Building restrictions. Building code requirements that affect the size and appearance of the building.
Capital expenditure. An improvement to the property that will have a life of one year or more and will generally increase or preserve the value of the property.
Certificate of Occupancy. In New York City, each building is required to have a Certificate of Occupancy which permits the structure to be occupied by members of the public. This means that the building is in compliance with health and building codes. Often refereed to as a “C of O.”
Closing. The transfer of ownership of a property from the seller to the buyer according to the sales contract.
Co-broke. This is the term used when a broker sends out their listing to other brokers and other firms. The brokerage community then receives the listings and the commission will be split evenly between the seller’s broker and the firm that provides the buyer of the property.
Combination. Refers to when an owner combines two adjoining apartments into one.
Commission. Payment to the broker for his or her efforts on marketing and selling the property. It is usually a percentage of the total purchase price.
Commission Split. The sharing of commissions between the listing agent and the buyer’s broker.
Common Area. The area on the property or in the building that is available for use to all owners and tenants.
Comparables. Apartments that are similar in size, condition, location and amenities. Comparables are used to assess or establishing the fair market value of a property.
Condominium. A building in which individuals own individual units (“real” property) but share common areas with the other owners of the building. A more liberal type of ownership than co-ops, condominiums also have more lenient policies regarding subletting and pets.
Contract. A legally binding agreement between two parties. To have a valid contract for the sale of real estate there must be:
- an offer
- an acceptance
- competent parties
- consideration
- legal purpose
- written documentation
- description of the property
- signatures of the principals
Conversion. Property that changes form of ownership, such as a condominium to a cooperative or a commercial building to a residential building.
Convertible. A one or two bedroom apartment that has space to make another bedroom. The other bedroom can be made with the construction of a wall, however, the new bedroom must have a window in order for it to be legal.
Deed. A written document by which title of property is expressed from one party to another.
Duplex. An apartment that has two levels.
Escrow. A state where consideration, benefits, legal rights, money, documents or other valuables are transferred to another party in advance of that party’s legal claim to them, on the basis that the legal claim will arise at a given point in the future. It is a form of trust.
Estate. The word used to describe the collection of all assets of a deceased person. Also, the extent of interest a person has in real property.
Estate for Life. The interest of real property that ends with the death of a person.
Exclusive Listing. A contract whereby the owner of a property grants a single broker or agent the right to market the property for sale.
Façade. The exterior front wall of a building.
Financing . Borrowing money to purchase a property.
Firm Price. An asking price for a property that is not open for negotiation.
Fixed-Rate Mortgage. A loan in which the interest rate remains constant over the entire term of the loan.
Flip Tax. A fee imposed on a cooperative apartment by the cooperative that is typically a percentage of the purchase price. It can be paid by either the seller or purchaser.
Floating Rate. A loan in which the interest rate is not fixed over the term but is allowed to vary according to the change in a specified index.
Floor Plan. A scale diagram of the arrangement of rooms and their sizes.
Foreclosure. An enforcement process in which the lender under a defaulted mortgage takes title to the property.
Full Bath. A bathroom with a sink, toilet, and bath or shower.
Grandfather Clause. If a new law is passed or an old law is changed, those people whose activity was legal under the previous law are allowed to continue because of this condition.
Half Bath. A bathroom without a bath or a shower.
Interest Rates. The cost of borrowing money from a lender. Rates change over time and are set by the Federal Reserve.
Lease. A written agreement to rent a property, or part of a property.
Lien. A legal claim against property for money owed.
Listing agreement. The agreement that allows a real estate professional to market a property. Available apartments are referred to as listings.
Loft. A loft refers to open living space that was converted from commercial space to residential space. Lofts contain very high ceilings, large windows and open space. In New York City, most loft and converted commercial space is located Downtown.
Lot. A measured section of land.
Maintenance. Monthly charges paid by the owner or tenant of a cooperative building for that person’s share of the cost of keeping the common use portions of the building in good condition. This includes the daily cost to operate the building and is calculated based on each individual unit’s number of shares in the corporation.
Managing Agent. An independent company that is hired to manage a property. In New York City, most cooperative and condominium buildings are managed by a company which is responsible for the building‘s day to day operations.
Market Value. An estimate of the value of a property.
Mortgage. Money borrowed from a lender in order to purchase a piece of property. Mortgages vary in terms of length as well interest rates.
Negotiation. The process of discussing an issue between two parties who are working towards the same goal. Successful negotiation usually leads to a contract and then a sale.
Notarize. To verify the authenticity of a signature by a certified Notary Public.
Offer. An expression of the desire to purchase a property at a specific price with certain terms, such as timing and financing.
Offers Accepted. The term used when an owner of a property agrees and accepts the offer and terms of the purchaser.
Open House. A specified time when a property that is for sale is advertised by opening its doors to visits from prospective buyers.
Open Listing. A listing in which the owner of the property hires more than one broker and only pays commission to the one that brings the purchaser.
Ordinance. A law enacted by the local government.
Penthouse. An apartment on the top floor of a building (typically a high-rise).
Pied a Terre. A French term that refers to an apartment that is not the owner’s primary residence. Typically refers to the a smaller apartment.
Points. A charge levied by the lender to the borrower for prepaid interest on the mortgage. Each point is equal to 1% of the principal of the mortgage.
Post-War. A post-war building is one that was built after World War II.
Powder Room. Also known as a half bath. A powder room is a bathroom without a shower or a bath.
Pre-War. A pre-war building is one that was built before World War II. Common characteristics of a pre-war apartment are fireplaces, moldings and hardwood floors.
Property Tax. The yearly tax payable by the owner of real property.
Referral. A recommendation made to a client about the services of a particular agent or firm.
Rental Building. A building in which the apartments are rented and not sold. Often used to describe a building that is not a rental building, but has the “feel” of one that is.
Rent Control. New York City laws that regulate the amount of money that can be charged for rent by landlords.
Reserve Fund. An account reserved to provide funds for future expenses in order to maintain the cooperative or condominium building.
Sale Price. The amount of money paid by the purchaser to the seller. Also known as the purchase price.
Security Deposit. A payment required by a landlord to guarantee that the tenant meets his or her obligations under the lease and to guard against any potential damages that may be incurred during the term of the lease.
Shares. When a buyer purchases an apartment in a cooperative building, they are actually purchasing a certain amount of shares in the cooperative company that owns the building.
Square Footage. The area measured in square feet of a certain property. Square footage can be measured in different ways and is usually considered approximate. Because condominium apartments have specific laws that determine the way in which the apartment is measured, condominium measurements are more accurate.
Sublet. The term used when a renter of an apartment decides to re-rent the apartment to another tenant.
Tax Deductible. Shareholders in cooperative apartments are able to deduct a certain percentage of the maintenance they have paid for the year. This percentage is based on the proportion of property tax and interest (paid on the co-op’s underlying mortgage) to total maintenance paid.
Title. The legal term for the evidence that the owner is in lawful possession of the land and property.
Townhouse. A townhouse is a private residence in which at least one wall is shared with another residence. In New York City, townhouses are very popular because they offer a more private way of living.
Triple Mint. Refers to the condition of the residence. Triple mint condition means that the residence is in immaculate condition.
Triplex. An apartment that has three levels.
Unit. A single residence within a multi-family building.
Utilities. Services such as water, gas, electricity, telephone and television. Utilities in some buildings in New York city are included in the maintenance charges.
Vacate. To move out and leave the property.
Walk-Up Building. A building that does not have an elevator. Most walk up buildings are four to six floors.
Walk-through Inspection. The inspection of a property immediately before closing.
Zone. An area set by local law for specific use with certain rules and regulations.
