GLOSSARY TO NEW YORK CITY REAL ESTATE

A handy reference of commonly used real estate terms in New York City...

Abstract of Title: A summary prepared by a licensed abstractor of all documents recorded in the public records of the political subdivision where the land is located.

Air rights: Rights to the use of the open space or vertical plane above a property. Ownership of land includes the right to all air above the property. This right can also be rented sold or leased to another entity
 
Amenities: The qualities and state of being pleasant and agreeable to the inhabitants of a building
 
Appraisal:  An estimate of the monetary value of a property on the open market;
 
Assignment:  The transfer of the right, title and interest in the property of one person (the assignor) to another (the assignee)
 
Broker:  One who acts as an intermediary on behalf of others for a fee or commission.
 
Brownstone:  A nineteenth-century-style row house, with up to five storeys and a front stoop, verandah or porch leading up to the front door, characterized by the reddish-brown facing on the exterior.
 
Building code:  An ordinance that specifies the minimum standards of construction for buildings in order to protect public safety and health.
 
Capital Expenditure:  Funds and improvements used by a company to acquire or upgrade physical assets and value of the property.
 
Certificate of occupancy (CO):  A certificate issued by a governmental authority indicating that a building is ready and fit for occupancy and that there are no building code violations.
 
Close-of-escrow/closing:  The consummation of a real estate transaction, when the seller delivers title to the buyer in exchange for payment by the buyer of the purchase price.
 
Co-broke: An agreement between two brokerage firms to share a listing and the commission of that listing.
 
Commission:  Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.
 
Comparables:  Properties that are substantially equivalent to the subject property.
 
Condominium:  A subdivision providing an exclusive ownership interest in the airspace of a particular portion of real property, as well as an interest in common in a portion of that property.
 
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

Convertible:  A one or two bedroom unit that has enough space to create an additional room.  A wall is usually put up to create the conversion
 
Cooperative:  A residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholders of the corporation, each possessing a proprietary lease.
 
Deed:  A written instrument, when executed and delivered, conveys title to or an interest in real estate.
 
Duplex:  A structure that provides housing accommodations for two families and supplies each with separate entrances, kitchens, bedrooms, living rooms and bathrooms. A two-family dwelling with the units either side by side or one above the other. A duplex apartment is one that has two levels.
 
EIK: Eat in kitchen
 
Escheat:  The reversion of property to the state or county, as provided by state law, in cases where a decedent dies intestate and there are no heirs capable of inheriting.
 
Escrow:  The process by which money and/or documents are held by a disinterested third person (a stakeholder) until satisfaction of the terms and conditions of the escrow instructions (as prepared by the parties to the escrow) have been achieved.
 
Estate in land:  The degree, quantity, nature and extent of interest a person has in real property.
 
Exclusive agency listing:  A written listing agreement giving a sole agent the right to sell a property for a specified time, but reserving to the owner the right to sell the property himself
 
Fixed-rate loan:  A loan with the same rate of interest for the life of the loan.
 
Floating Rate:  A mortgage where payments can be fixed from one to five years, but the interest rate could change from month to month depending on market conditions.
 
Floor Plan:  A scaled diagram depicting the arrangement of rooms and their sizes in an apartment.
 
Full bath:  Is a bathroom with a latrine along with either a shower or a bath.
 
Grandfather clause:  An expression that conveys the concept that something that was once permissible continues to be so, despite changes in the law.
 
Guarantor:  A party who guarantees repayment of a loan, using their own assets if necessary.
 
Half bath:  Is a bathroom with a latrine and no shower or bath. Also known as a powder room
 
Interest:  A charge made by a lender for the use of money.
 
Investment property rule:  The Internal Revenue Code specifies that no gain or loss should be recognized on the exchange of property held for productive use in trade or business or for investment if the property is exchanged for property of like kind that is to be held for productive use in trade or business or for investment.
 
Lease:  An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time.
 
Lessee:  The person to whom property is rented or leased; called a tenant in most residential leases.
 
Lessor:  The person who rents or leases property to another. In residential leasing, he or she is often referred to as a landlord.
 
Lien:  A charge or claim that one person (lienor) has on the property of another (lienee) as security for a debt or obligation.
 
Listing agreement:  A written employment agreement between a property owner and a real estate broker authorizing the broker to find a buyer or a tenant for certain real property.
 
Loft:  A big, open space (often a former commercial building) that has been converted into an apartment. Because of their popularity, loft-style apartments are now being built from the ground up.
 
Lot-and-block system:  A method of describing real property that identifies a parcel of land by reference to lot and block numbers within a subdivision, as specified on a recorded subdivision plat.
 
Maintenance:  Monthly or annual charges assessed in a condominium, planned united development, or cooperative development to cover operational costs.
 
Market value:  The price at which buyers in the open marketplace are willing to pay for a product or service.
 
Mortgage:  A financial agreement between a lender and a buyer in which the property is used as collateral for the loan. A mortgage gives the lender the right to collect payments on the loan (and to foreclose on the property if those payments are not made).
 
Negotiation:  The act of discussing an issue between two or more parties with competing interests with an aim of coming to an agreement.
 
Notarize:  To confirm the signature of another in one's official capacity as a notary public.
 
Offer:  The price at which a person is ready to sell. Opposed to bid, the price at which one is ready to buy.
 
Open House:  A time scheduled and advertised by the broker, to get a large number of people and/or other brokers through the property in a short period of time.
 
Open Listing: A property given to a number of brokers to market at the same time.
 
Ordinance:  A rule or by-law enacted by a local government.
 
Penthouse:  The dwelling(s) located at the top of a tall building, often luxurious.
 
Pied a Terre: A French expression; translated literally it means "foot on the earth". It refers to an apartment that someone uses as a second home.
 
Post War:  A post war building is one that was built after World War II.
 
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:  A tax levied on any kind of property.
 
Point:  This is a dollar amount paid to a Lender for making a loan. A point is one percent of the loan amount.
 
Referral: When someone, particularly a satisfied client, suggests or recommends services to other buyers.
 
Rental Building:  This is a building with only rental units and no units for sale.
 
Rent Stabilization: Rent stabilization refers to laws or ordinances that set price controls on the renting of residential housing. It functions as a price ceiling.
 

Sale Price: Purchase price
 

Security deposit: A payment required by a landlord to ensure that a tenant pays rent on time and keeps the rental unit in good condition. If the tenant damages the property or leaves owing rent, the landlord can use the security deposit to cover what the tenant owes.
 

Share:  Represents a part ownership, or share, in a cooperative,
 

Square footage:  The number of square feet of livable space in a home or building.
 

Sublet:  This means to rent property you lease to another person while still maintaining your responsibility to your landlord under your rental agreement.
 

Tax deductible:  An expense that can be offset against assessable income.
 

Title:  Title is a legal term for an owner's interest in a piece of property. It may also refer to a formal document that serves as evidence of ownership. Conveyance of the document may be required in order to transfer ownership in the property to another person.
 

Townhouse:  A dwelling unit, generally having two or more floors and attached to other similar units via party walls.
 

Triple Mint:  Refers to the condition of the apartment.  It basically means that the apartment is in pristine condition.  These apartments have sometimes never been lived in before.
 

Triplex:  An apartment with three levels or house that has three living units.
 

Unit: The premises rented under one tenancy agreement, usually an apartment within a condominium complex with a group of units
 

Utilities:  Services, such as gas, electricity, water, sewers, which are required in any dwelling and for which the owner must pay separately.
 

Vacate:  To leave or move out of a premises.
 

Walk up building:  Is a building with no elevator service.  It is often seen in pre war buildings.
 

WBFP:  Wood burning fire place

WIC:  Walk in closet

Walk through inspection:  The inspection of a property prior to the closing to ensure that there are no damages to the property.

Zoning:  Regulations that control the use of land within a jurisdiction.