#RHEinsights

RHEinsights

Our glossary for investors & sellers

The real estate world is full of technical terms.
In our real estate glossary we explain the most important ones briefly and clearly.

From A like Acquisition Costs to Z like Zero Vacancy Rate,
you will find everything here in a nutshell.

Is a term missing? Write to us and we will be happy to add to the glossary!

A

Additional costs associated with property purchases, such as notary fees, property transfer tax, and brokerage commissions.

Criteria investors use to select real estate for purchase.

The original cost of a property plus improvements, minus depreciation, used for tax purposes.

The process of gradually paying off a loan over time through regular payments.

Loan with consistent repayment installments over the entire term.

An evaluation of a property’s market value conducted by a licensed appraiser.

A contract provision requiring disputes to be settled through arbitration rather than litigation.

Large-scale development of undeveloped or derelict land.

The transfer of lease rights from one tenant to another.

Management and optimization of real estate assets to increase value.

B

Official approval for executing a construction project.

A detailed inspection of a property’s condition.

Regulations governing the design and construction of buildings.

Purchasing a property to rent it out for income.

Commission paid to a broker for facilitating a real estate transaction.

A mortgage with low initial payments followed by a large final payment.

Short-term financing used until permanent financing is secured.

Failure to fulfill the terms of a real estate agreement.

Previously developed land that may require environmental cleanup before reuse.

A competitive situation where multiple buyers submit higher offers to acquire a property.

C

Ratio of net operating income to property purchase price.

Difference between income and expenses of a property over a certain period.

Finalization of a real estate purchase, where all contractual obligations are fulfilled.

Properties in prime locations with stable rental income and low risk.

Commercial properties such as offices, retail spaces, or warehouses.

Investment expenses for upgrading or maintaining real estate.

Concept combining various uses within a single building.

Financing model where multiple small investors invest in a real estate project.

Residential unit legally sold as a separate entity.

Properties used by companies for their own operations.

D

A thorough investigation before finalizing a real estate transaction.

A legal document transferring ownership of a property.

The gradual loss of value in a property over time.

A person or company that constructs or renovates properties for sale or lease.

An upfront payment made when purchasing a property.

A situation where one agent represents both the buyer and the seller.

A financial metric used to assess a borrower’s ability to manage payments.

A timeline outlining payment disbursements for a construction project.

Increasing the number of units in a given land area through redevelopment.

A legal approval required before demolishing a structure.

E

The ownership interest in a property, calculated as property value minus debt.

A legal right allowing someone to use another person’s land for a specific purpose.

A neutral third party holding funds or documents during a transaction.

A classification that indicates how energy-efficient a building is.

The legal process of removing a tenant from a rental property.

A property listing contract granting one agent the exclusive right to sell.

A sum paid by a buyer to show commitment to a real estate transaction.

A claim or restriction on a property, such as a mortgage or lien.

A study evaluating a project’s effects on the surrounding environment.

A loan secured by the borrower’s equity in a property.

F

The estimated price a property would sell for under normal conditions.

The legal process where a lender takes ownership of a property due to unpaid debt.

A mortgage with a constant interest rate throughout the loan term.

A mortgage rate that varies based on market conditions.

Buying a property, renovating it, and selling it for a profit.

A shared property ownership model where multiple parties hold stakes.

An analysis to determine if a real estate project is viable.

A designated area prone to flooding, impacting property insurance and regulations.

A contract granting a party the right to operate under a company’s brand.

A contract clause allowing a buyer to back out if financing is not secured.

G

A lease in which the landlord pays all property expenses, including maintenance and taxes.

A long-term lease of land, typically used for commercial development.

A structure designed to be environmentally sustainable and energy-efficient.

The process of urban renewal leading to higher property values and displacement of lower-income residents.

The primary entity responsible for overseeing a construction project.

A lender’s estimate of mortgage costs given to a borrower before closing.

A ratio used to evaluate rental property value based on income.

A legal document used to transfer property ownership with certain guarantees.

A person or entity that guarantees loan repayment if the borrower defaults.

Short-term funding used to bridge financial shortfalls in property transactions.

H

An organization managing common areas and rules for residential communities.

The supply and demand of residential real estate in a particular area.

A short-term loan secured by real estate, often used by investors.

The most financially viable use of a property.

A policy covering property damage from natural disasters and accidents.

Ongoing expenses incurred while owning a property, such as taxes and maintenance.

A loan that starts with a fixed interest rate and later switches to a variable rate.

A loan secured against the equity of a homeowner’s property.

The process of purchasing, renovating, and reselling a property for profit.

The maintenance and protection of properties with historical significance.

I

Real estate purchased for generating rental income or appreciation.

A mortgage where the borrower only pays interest for an initial period.

Real estate used for manufacturing, storage, or distribution purposes.

A clause allowing a buyer to withdraw from a purchase if the inspection reveals issues.

Rent that increases based on inflation indices.

A company that owns and manages income-generating real estate.

A real estate transaction where payments are made in installments over time.

Construction on vacant or underused urban land to maximize space utilization.

Temporary funding used before securing long-term financing.

Non-physical rights associated with property, such as air rights or lease agreements.

J

A form of property ownership where two or more parties share equal rights.

A foreclosure process that goes through the court system.

A mortgage that exceeds conforming loan limits set by regulatory agencies.

The fair market value paid to a property owner when land is taken for public use.

A partnership between two or more parties for a real estate project.

The legal authority governing real estate regulations in a specific location.

A court-ordered claim against a property due to unpaid debts.

A financial trend where initial losses precede future gains in a real estate investment.

A review of construction progress and compliance with building codes.

A property sale ordered by a court, often resulting from foreclosure proceedings.

K

A non-refundable fee paid by a tenant to secure a lease agreement.

A contract provision allowing a seller to accept a better offer even after an agreement.

The process of demolishing an old structure to build a new one.

A design principle optimizing movement between a stove, sink, and refrigerator.

A loan with additional incentives, such as equity participation.

The interest rate set by a central bank affecting real estate financing.

A small cooking area, typically in apartments or commercial units.

A contract ensuring financial stability for a subsidiary’s real estate assets.

Metrics used to assess the success of real estate investments.

A legal provision addressing the risk of invasive plants affecting property value.

L

The owner of a rental property.

A contract outlining rental terms between a landlord and tenant.

A legal claim against a property used as security for a debt.

A risk assessment metric comparing a loan amount to property value.

The initial asking price for a property on the market.

A precise measurement defining property boundaries.

A property ownership structure where land is leased instead of owned.

Regulations determining permissible property use.

High-end properties featuring premium amenities and locations.

The practice of purchasing undeveloped land for future development.

M

The estimated price a property would fetch in an open market.

A loan secured by real estate property.

A property combining residential, commercial, and recreational spaces.

The study of trends influencing real estate values and demand.

A residential building containing multiple separate units.

A policy protecting lenders in case of borrower default.

A tax imposed on high-value real estate transactions.

A comprehensive design strategy guiding urban development.

Costs associated with property upkeep, typically in shared ownership settings.

Replacing an existing loan with a new one, often to secure better terms.

N

A property’s income after operating expenses but before financing costs.

A formal request requiring a tenant to leave a property.

A mortgage where the lender cannot pursue the borrower personally for repayment.

Initiatives aimed at improving infrastructure and living conditions.

A loan structure where payments are insufficient to cover interest, increasing debt.

Properties built from scratch rather than renovated or repurposed.

A rental agreement where the tenant covers property expenses like taxes and insurance.

An official who verifies legal documents in real estate transactions.

Local laws governing property use to prevent disturbances.

A contract ensuring confidentiality in real estate deals.

O

The percentage of rented or used space in a property.

A scheduled event where potential buyers view a property.

A clause giving a buyer the right to buy at a set price in the future.

Payments that a tenant has failed to make on time.

A transaction where the seller provides financing instead of a traditional lender.

Costs necessary for maintaining and managing a property.

A property bought before construction is completed.

A formal document outlining the terms of a real estate deal.

Excessive construction leading to potential negative impacts on an area.

Adhering to local building and zoning regulations.

P

The supervision of real estate assets, including maintenance and tenant relations.

The sale of units before construction is completed.

Investing in multiple real estate assets to mitigate risk.

Highly desirable property locations with strong demand.

A collaboration between government and private entities for real estate projects.

A designed community featuring mixed-use spaces.

Insurance required for high-risk mortgage loans.

The number of parking spaces relative to building size or occupancy.

A professional assessment of a property’s market value.

A binding contract for purchasing a property before its completion.

Q

A metric used by lenders to determine a borrower’s ability to repay a mortgage.

A legal process to resolve disputes and establish a clear property title.

A residential building containing four separate units.

A legal document transferring a property’s ownership without warranties.

A property right that resembles an easement but is not legally established.

A real estate transaction completed in a short time frame, often below market value.

A property valuation meeting specific professional standards.

Rent payments made every three months instead of monthly.

The minimum number of stakeholders required for a decision-making meeting.

A mortgage meeting regulatory requirements ensuring borrower affordability.

R

A company that owns, operates, or finances real estate properties.

A contractual right allowing a party to match an offer before others.

A document listing tenants, lease terms, and rent payments for a property.

Land and anything permanently attached to it, such as buildings.

The time allowed for a borrower to reclaim a foreclosed property.

Replacing an existing mortgage with a new loan under different terms.

A legal condition limiting how a property may be used.

A financial metric measuring the profitability of an investment.

Properties owned by lenders after unsuccessful foreclosure auctions.

Changing the designated land use of a property through municipal approval.

S

A professional assessment of a property’s boundaries and features.

An agreement where an existing tenant rents out their space to another party.

An additional charge levied by homeowners’ associations for specific projects.

A zoning rule determining how far a building must be from a property line.

The sale of a property for less than the outstanding mortgage balance.

A legal document ranking one debt below another in priority.

A method of valuing a property by comparing it to similar properties.

A loan where the lender shares in the property’s appreciation.

A detailed architectural drawing outlining a property’s layout and structures.

Legal principles granting certain rights to individuals occupying property without permission.

T

A policy protecting against legal disputes over property ownership.

A government claim against a property for unpaid taxes.

A lease where the tenant pays property taxes, insurance, and maintenance costs.

Customizations made to a rental property to fit a tenant’s needs.

A fully renovated and move-in-ready investment property.

A fee imposed by governments when property ownership changes hands.

A tax-saving strategy allowing real estate investors to reinvest profits without immediate tax liability.

A review of property records to confirm ownership and identify legal issues.

A physical property with monetary value.

A short-term approval allowing use of a property before final inspections.

U

The process of evaluating a borrower’s creditworthiness for a mortgage.

A legal document authorizing property occupancy.

The likelihood of a property increasing in value.

Property without infrastructure, utilities, or buildings.

Redevelopment programs aimed at revitalizing city areas.

A right allowing utility companies to access private property for service maintenance.

A legal action taken by landlords to evict tenants.

The distribution of different types of units within a property.

A loan not backed by real estate collateral.

Changing zoning laws to allow for higher-density developments.

V

The percentage of unoccupied rental units in a property.

A mortgage rate that fluctuates based on market conditions.

A property with potential for increased value through renovations or management improvements.

A legal right or claim in a property.

A debt willingly placed on a property, such as a mortgage.

The process of estimating a property’s market value.

A short-term rental property catering to tourists.

A financing arrangement where the seller provides a loan to the buyer.

A legal agreement ensuring a property maintains a specific view.

A rental agreement where rent changes over time.

W

A measure of how friendly an area is for pedestrians.

A document guaranteeing the property title is clear of liens.

A lease agreement document detailing construction obligations.

A document waiving a party’s right to claim a lien against a property.

Laws protecting environmentally sensitive wetland areas from development.

Commercial properties used for storage and logistics.

Legal rights to use water resources on or near a property.

A financing option where a new mortgage includes an existing one.

A court order granting a landlord the right to reclaim property from a tenant.

Housing designed for middle-income workers in high-cost areas.

X

A property with unique and highly desirable features.

Landscaping designed to reduce water usage, common in arid regions.

High-efficiency lighting used in commercial and luxury properties.

A structural reinforcement technique used in high-rise buildings.

A contract provision allowing duplication of lease terms for multiple tenants.

A tax system impacting real estate transactions and investments.

Discriminatory land-use policies restricting certain groups from residing in specific areas.

Urban design incorporating public green spaces in commercial developments.

A roofing system designed to withstand extreme heat conditions.

A modern, flexible architectural design for commercial buildings.

Y

The income generated by a property relative to its cost.

A financial metric comparing property performance annually.

A valuation method comparing similar properties in the market.

A decline in rental yields due to rising property values.

A zoning rule requiring open space around a property.

A graph showing interest rates of bonds influencing mortgage rates.

A federally accepted appraisal standard for government property acquisitions.

A foreign loan issued in the U.S. real estate market.

A prepayment penalty ensuring lenders receive full interest payments.

A legal agreement allowing shared use of a property’s yard space.

Z

Regulations dictating how properties can be used within a jurisdiction.

A property built up to the boundary line with no setback.

An exception allowing property use that differs from zoning regulations.

A structure that generates as much energy as it consumes.

Special zoning requirements applied to specific geographic areas.

A local authority that reviews zoning variance requests.

A mortgage where interest accrues but is not paid until maturity.

A land-use planning strategy balancing development with green spaces.

A document verifying a property’s compliance with zoning laws.

A situation where all rental units in a property are occupied.