We are committed to making the purchase or sale of your home as simple and easy as possible. During this process, you may encounter real estate terminology that is new to you. Following is a guideline of real estate terms, as well as financial and architectural terms to help you during the purchase or sale of your home.
A joist is a wooden framing member used in the construction of floors and ceilings.
A judgment lien is a general lien resulting from a court decree.
A mortgage issued in an amount exceeding the threshold stipulated under Fannie Mae (FNMA) regulations for a conforming loan.
A land lease is a situation in which a building and other land improvement are rented for a term of years. At the end of the lease term, the right…
Landmark status is the designation given to a building or neighborhood that is under government protection for purposes of preservation.
The Landmarks Commission is a city governmental agency assigned responsibility for recommending properties and neighborhoods to be landmarked and ensuring that landmarks are properly preserved.
A lease is a written agreement to rent a property or part of a property from an owner.
A letter (usually issued by a managing agent) found in the offering plan of a building converting to cooperative or condominium ownership affirming that the income and expenses, as expressed…
A liability is a debt or claim that is owed.
Stands for “London Interbank Offered Rate”, and is the average yield of interbank offered rates for one-year U.S. dollar-denominated deposits in the London market. LIBOR is a common index used…
A lien is an encumbrance on property which acts as security for the payment of a debt or the performance of an obligation. A mortgage is a lien. A lender…
A lien foreclosure sale is the sale of property without consent of the owner, as ordered by a court or authorized by state law due to a debt resulting in…
Life estate is a freehold estate created for the duration of the life or lives of certain named persons. It is a non-inheritable estate.
A life estate in remainder is a form of life estate in which certain persons are designated to receive the title upon termination of the life tenancy.
The like-kind exchange is an exchange of similar property, as defined in the Internal Revenue Code that can be performed without recognition of taxable gain at the time of transfer.
A form of organization that is similar to a partnership, in that recognition of income and expenses flow directly through to the owners for tax purposes (without a corporate tax),…
Liquidated damages are the agreed amount to be paid as compensation for a breach of contract.
Liquidity refers to the ability of assets that are readily convertible to cash.
Lis pendens means a “lawsuit pending”. See Notice of Lis Pendens.
The term used by brokers to market an apartment for sale or rent.
The listing broker represents the interests of the seller or landlord in the sale or rental of his or her property.
The loan commitment is the written obligation from a lending institution to provide a mortgage to a borrower.
The loan origination fee is the financing charge required by a lender.
The loan-to-value ratio is the mortgage amount divided by the lower of the purchase price or the appraised value of the property. This ratio is expressed as a percentage. A…
A lock-in is an agreement by the lender guaranteeing the applicant a specified interest rate on the mortgage loan provided the loan closes within a set period of time.
A loft refers to an open living space that was converted from commercial space to residential space. Lofts contain very high ceilings, large windows and open space.
A lot is a measured section of land.
The monthly charge levied on owners by a cooperative corporation to cover the building’s operating costs, real estate taxes, and the debt service on the building’s underlying mortgage.
Many cooperative and condominium buildings are managed by an outside company, or managing agent, which is responsible for the building operations.
The market value of a property is an estimation of the price for a property in relation to the current real estate market.
A master deed is the instrument that legally establishes a condominium. It is also referred to as a condominium declaration.
A mechanic’s lien is a statutory lien available to anyone supplying labor or material to the construction of an improvement of land that ahs not been properly compensated.
Metes and bounds is a system of land description with distances and directions.
A monolithic slab is a type of foundation in which the footing and slab are poured at the same time.
A mortgage is a pledge of real estate collateral to secure a debt. Also, it is a legal document describing and defining the pledge. The mortgage may also include the…
A mortgage banker is an institution that performs services similar to those of a mortgage broker. However, a mortgage banker is also legally permitted to lend its own funds.
A real estate professional who represents an array of banks seeking to issue mortgages. The mortgage broker meets with a customer, assists with the application, and facilitates the mortgage process…
Mortgage insurance is insurance that protects the lender in case the home buyer does not make their mortgage payments. Typically, a borrower would be required to pay a fee for…
A mortgage note is a document signed at closing which states the borrower’s promise to re-pay a sum of money. The note states an interest rate and a fixed period…
Mortgage satisfaction refers to the full payment of a mortgage loan.
The mortgagee is the lender in a mortgage transaction.
The mortgagor is the borrower in a mortgage transaction.
A multiple dwelling is a structure with two or more residential units.
A MLS is a central service for real estate listings available to member brokers.
The NAR is the largest and most prominent trade organization for real estate brokers and agents.
This occurs when a loan permits the borrower to make a payment that is less than the full amount required to cover the interest charge on the open balance and…
A negative pledge is when the condominium places restrictions on the unit deed and trust agreement restricting the right of an owner to finance a condominium unit for more than…
A net lease refers to a type of lease in which the tenant pays a fixed rent plus the operational costs of the property.
A net listing is a method of establishing the listing broker’s commission as the entire amount above specified new amount to the seller.
Net worth is your assets less your liabilities.