Understand the terms that appear in leases, listings and property conversations. Search by word or definition, or choose a category to focus on valuation, land use or transaction questions.
17 terms shown
An exchange of qualifying business or investment real property under IRC §1031 that may defer gain if its requirements are met. Identification generally must occur within 45 days; completion is generally within 180 days or the tax-return due date (including extensions), whichever is earlier. Confirm eligibility and deadlines with your qualified intermediary and tax advisor.
#The unique number a county assessor assigns to a parcel for tax and identification purposes. Used to pull title, tax, and zoning records.
#Combining adjacent parcels under one ownership to create greater development value.
#Net operating income divided by purchase price, expressed as a percentage. The unlevered yield on a stabilized asset. A lower cap rate implies a higher price per dollar of income.
#The original purchase price plus improvements, less depreciation, used to compute taxable gain. Simplified reference; confirm the applicable adjustments with a tax professional.
#The investigation period in which a buyer examines a property's physical condition, title, environmental status, financials, and legal encumbrances before closing.
#A recorded right allowing a third party to use a portion of the property for a specified purpose, such as utility access, drainage, or pipeline right-of-way.
#The approvals, permits, and zoning designations a parcel must obtain before a specific use is allowed. Entitled land has cleared this process; raw land has not.
#The neutral third-party arrangement that holds funds and documents during a real estate transaction until all conditions of the purchase agreement are satisfied.
#The length of a parcel that borders a road or right-of-way, affecting access and visibility.
#The cap rate based on in-place income at the time of acquisition.
#A non-binding written outline of the principal terms of a proposed transaction, used to establish mutual interest before a formal purchase agreement is drafted.
#A confidentiality agreement that restricts the recipient from sharing proprietary information, typically required before a buyer receives sensitive financial or operational data from a deal room.
#A lease structure in which the tenant pays base rent plus all three operating expense categories: property taxes, insurance, and maintenance.
#Net operating income. Revenue less operating expenses, before debt service and capital items.
#A projected financial statement modeling a property's expected income and costs.
#The municipal designation that governs what a parcel may be used for, how it may be developed, and what restrictions apply. Common commercial designations include C-1 (commercial), M-1 (light industrial), and M-G (manufacturing-general).
#General definitions; the governing document and local requirements control for a specific property. A 1031 exchange has additional qualification and deadline rules; consult your qualified intermediary and tax advisor.
Check the figure, condition or projection against the underlying records before relying on it.
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