The article of New York's Real Property Law that contains the real estate license law. Its saving clause expressly excludes certain people, such as attorneys at law.

Associate real estate broker

A person with broker qualifications who chooses to work under another broker's name and supervision instead of running an independent brokerage. The license reflects broker qualifications, but the working role is supervised.

Acting for another, for a fee or other valuable consideration, in listing, selling, buying, exchanging, renting or collecting rent on real property. Offering or attempting to negotiate counts, even if no transaction closes.

The New York agency that administers and enforces the real estate license law, under the Secretary of State. It investigates complaints and disciplines licensees.

Action by a state licensing agency against a license for causes such as fraud, misrepresentation, negligence, incompetence or inadequate supervision. Sanctions include revocation, suspension, a fine or a reprimand, generally after notice and an opportunity to be heard.

A specific statutory exclusion from the license requirement, such as for attorneys at law or public officers performing official duties. It depends on a person's legal capacity and activity, not on a job title or the brevity of an assignment.

A licensee who, for another and for a fee, commission or other valuable consideration, lists, sells, buys, exchanges, rents or collects rent on real property, or offers or attempts to negotiate such a transaction. New York defines brokerage in Real Property Law § 440; a completed closing is not required.

Real estate salesperson

A licensee who performs licensed real estate activities through an associated sponsoring broker rather than operating an independent brokerage. The salesperson's application identifies that broker, and the salesperson stays responsible for personal conduct.

The New York official who holds exclusive regulatory authority over certain licensee matters, such as the handling of clients' funds and transaction records.

The broker who sponsors a sales agent's license and is responsible for the agent's brokerage activity. Work such as a BPO goes out in this broker's name, and trust money and compensation pass through this broker.

State Board of Real Estate

A New York board with rulemaking and education-related functions, such as prescribing course content. It does not administer or enforce the license law; the Department of State does.

Valuable consideration

Compensation of value given for brokerage work, whether or not it is called a commission. A fee, or services given in exchange, can qualify.

Approved 77-hour course

The minimum approved salesperson education that Real Property Law § 441 requires an applicant to complete before applying for a license. Approved distance learning may qualify when participation can be monitored and verified.

Coursework a real estate licensee must complete to renew an active license, abbreviated CE. Each state sets the required hours and topics, which usually include law updates and ethics or agency.

One of the required continuing education topics for New York renewal: at least two hours of approved instruction within the preceding two years.

Presenting oneself to the public as a broker or salesperson. Real Property Law § 440-a requires the license before acting, or holding oneself out, even temporarily and even if no client has been accepted.

An automatic association that can affect judgment without conscious awareness. Anti-bias training aims to change real decisions.

A document granting another person authority to act for the principal, limited to the powers its text specifies; it is not necessarily universal.

A limited discretion the Department of State has under Real Property Law § 441 to renew a license temporarily when the licensee's failure to submit continuing education proof is not the licensee's fault.

The Department of State's written salesperson examination, which assesses competence and trustworthiness, including law, fair housing, practical skills and ethical obligations. A course completion certificate is not a license.

An additional office of a broker, other than the principal office, which the broker must supervise. States set the licensing or registration, fee and relocation rules.

Change of association

The move of a salesperson or associate broker from one sponsoring broker to another. The departing broker must forthwith notify the Department of State, the new broker endorses the new association, and no licensed activity may occur in the gap between brokers.

Representation of both the buyer and the seller in the same transaction by one licensee or brokerage. States treat it differently: some permit it with the informed written consent of both parties, some use an intermediary or transaction-broker arrangement instead, and some prohibit it.

Holding concurrent licenses or associations, which requires appropriate licensing arrangements and the brokers' consent. It is different from dual agency, which concerns representing parties in a transaction.

The two-year period for which a New York real estate license is issued before renewal. Renewal requires approved continuing education.

Information about listings obtained during an association, including information the salesperson personally acquired. When the association ends, the salesperson must turn it over to the former broker.

The identification card issued under Real Property Law § 441-a, showing the licensee's photograph, name and business address. A salesperson's card also names the associated broker and that broker's business address. It must be shown on demand.

Representative broker

The broker who acts for a licensed corporation or partnership. Direct supervision of a branch office must be by the licensed broker or by this representative broker.

An approved course for which a salesperson may receive continuing education credit. It does not remove the required topics, and excess hours cannot carry into the next renewal cycle.

A listing in which one brokerage alone holds the listing, as with exclusive right to sell and exclusive agency. It still permits cooperation with other brokers.

Notice and opportunity to be heard

The procedural protection before ordinary license discipline: written notice of charges at least ten days before the hearing and a chance to be heard in person or by counsel. The Department may also suspend a license pending a hearing.

Paid advertising disclosure

If a licensee pays a third party to advertise another broker's listing and the advertisement names the advertising broker, it must also disclose that it is paid advertising, using at least the word 'advertisement'.

The Department of State regulations (19 NYCRR Part 175) governing licensee conduct, including advertising in § 175.25. Part 175 does not itself decide whether a salesperson is an employee or independent contractor.

Photograph permission

Written permission from the copyright holder, required to reproduce listing photographs on a broker's website. Permission to advertise the listing does not itself grant it.

Real estate advertising

Promotion or solicitation related to licensed activity through websites, email, business cards, signs, flyers, mail and telephone. Commentary unrelated to promoting licensed activity falls outside the definition.

Licensees working under the same broker or brokerage who present themselves as a team or group, often under a shared name or logo. States define the term differently and set its advertising rules.

Court action separate from administrative discipline. Under Real Property Law § 442-e a single prohibited act can be a violation and a misdemeanor, prosecuted by the attorney general or a deputy.

The withdrawal of a license as a disciplinary sanction, more severe than a reprimand or suspension.

The written notice, required by Real Property Law § 441-e at least ten days before the hearing date, that starts ordinary license disciplinary proceedings.

A civil suit by an aggrieved person when an offender received commission, compensation or profit through a violation. The court sets a penalty of at least the amount received and no more than four times that amount, distinct from an administrative fine.

Notice that the Department of State intends to deny a license application. The applicant must request a hearing in writing within thirty days after receipt, or the notice becomes the final determination.

A formal, written expression of disapproval imposed as a license-law sanction, without removing authority to practice. It differs from an internal office warning.

A commission, rebate or profit that a property-managing broker takes on client expenditures without the client's full knowledge and consent. 19 NYCRR § 175.3 prohibits it even when the work was satisfactory.

A temporary disciplinary bar on practicing under a license for a stated period.

A person without a license who may do only clerical work, such as scheduling appointments, organizing records and typing licensee-approved information. The assistant may not negotiate terms, solicit listings, show property as an agent or give licensed advice.

A ground for license discipline. Under 19 NYCRR § 175.17, a competent agency's or court's finding of unlawful discrimination in licensed activities is presumptive evidence of it.

What the seller truly knows. The seller answers the disclosure form from it, writing 'unknown' or 'not applicable' where appropriate; the Act requires no investigation, inspection or public-record search.

Agent duties under the Disclosure Act

Under Real Property Law § 466, the listing agent timely informs the seller of the seller's obligations, and the buyer's agent informs the buyer before a binding contract is signed. If the buyer is unrepresented, the seller's agent does so.

A sale in which the buyer accepts the property in its present condition, without seller repairs. It does not remove the seller's required disclosures, such as a state's property condition disclosure form.

One-to-four family dwelling

Property improved by a dwelling for one to four families, used or intended wholly or partly as a residence. This is the kind of property the Property Condition Disclosure Act generally covers.

Property Condition Disclosure Act

New York law requiring a seller of covered residential property to complete and sign a condition statement and deliver it before the buyer signs a binding contract of sale. It excludes unimproved land, condominium units and cooperative apartments.

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784 terms from the New York exam outline, sorted by exam module. Flip a card for its definition and the lessons that teach it.

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Article 12-A: The article of New York's Real Property Law that contains the real estate license law. Its saving clause expressly excludes certain people, such as attorneys at law. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee
Associate real estate broker: A person with broker qualifications who chooses to work under another broker's name and supervision instead of running an independent brokerage. The license reflects broker qualifications, but the working role is supervised. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Brokerage: Acting for another, for a fee or other valuable consideration, in listing, selling, buying, exchanging, renting or collecting rent on real property. Offering or attempting to negotiate counts, even if no transaction closes. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Education requirements, activities that require a license, and exemptions
Department of State: The New York agency that administers and enforces the real estate license law, under the Secretary of State. It investigates complaints and disciplines licensees. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Department of State regulations and the advertising rules, Common violations, penalties, disciplinary proceedings, and unlicensed assistants
License discipline: Action by a state licensing agency against a license for causes such as fraud, misrepresentation, negligence, incompetence or inadequate supervision. Sanctions include revocation, suspension, a fine or a reprimand, generally after notice and an opportunity to be heard. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Department of State regulations and the advertising rules, Common violations, penalties, disciplinary proceedings, and unlicensed assistants
License exemption: A specific statutory exclusion from the license requirement, such as for attorneys at law or public officers performing official duties. It depends on a person's legal capacity and activity, not on a job title or the brevity of an assignment. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Education requirements, activities that require a license, and exemptions
Real estate broker: A licensee who, for another and for a fee, commission or other valuable consideration, lists, sells, buys, exchanges, rents or collects rent on real property, or offers or attempts to negotiate such a transaction. New York defines brokerage in Real Property Law § 440; a completed closing is not required. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Education requirements, activities that require a license, and exemptions
Real estate salesperson: A licensee who performs licensed real estate activities through an associated sponsoring broker rather than operating an independent brokerage. The salesperson's application identifies that broker, and the salesperson stays responsible for personal conduct. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Secretary of State: The New York official who holds exclusive regulatory authority over certain licensee matters, such as the handling of clients' funds and transaction records. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Department of State regulations and the advertising rules, Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Sponsoring broker: The broker who sponsors a sales agent's license and is responsible for the agent's brokerage activity. Work such as a BPO goes out in this broker's name, and trust money and compensation pass through this broker. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Education requirements, activities that require a license, and exemptions, Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Broker supervision of salespersons and records of transactions
State Board of Real Estate: A New York board with rulemaking and education-related functions, such as prescribing course content. It does not administer or enforce the license law; the Department of State does. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Department of State regulations and the advertising rules
Valuable consideration: Compensation of value given for brokerage work, whether or not it is called a commission. A fee, or services given in exchange, can qualify. — License law and regulations · Taught in Purpose of the license law, license categories, and the responsibilities of each licensee, Education requirements, activities that require a license, and exemptions
Approved 77-hour course: The minimum approved salesperson education that Real Property Law § 441 requires an applicant to complete before applying for a license. Approved distance learning may qualify when participation can be monitored and verified. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Continuing education: Coursework a real estate licensee must complete to renew an active license, abbreviated CE. Each state sets the required hours and topics, which usually include law updates and ethics or agency. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions, Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Cultural competency: One of the required continuing education topics for New York renewal: at least two hours of approved instruction within the preceding two years. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Holding oneself out: Presenting oneself to the public as a broker or salesperson. Real Property Law § 440-a requires the license before acting, or holding oneself out, even temporarily and even if no client has been accepted. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Implicit bias: An automatic association that can affect judgment without conscious awareness. Anti-bias training aims to change real decisions. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions, Pressure to discriminate and anti-bias training
Power of attorney: A document granting another person authority to act for the principal, limited to the powers its text specifies; it is not necessarily universal. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Temporary renewal: A limited discretion the Department of State has under Real Property Law § 441 to renew a license temporarily when the licensee's failure to submit continuing education proof is not the licensee's fault. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Written examination: The Department of State's written salesperson examination, which assesses competence and trustworthiness, including law, fair housing, practical skills and ethical obligations. A course completion certificate is not a license. — License law and regulations · Taught in Education requirements, activities that require a license, and exemptions
Branch office: An additional office of a broker, other than the principal office, which the broker must supervise. States set the licensing or registration, fee and relocation rules. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Change of association: The move of a salesperson or associate broker from one sponsoring broker to another. The departing broker must forthwith notify the Department of State, the new broker endorses the new association, and no licensed activity may occur in the gap between brokers. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Dual agency: Representation of both the buyer and the seller in the same transaction by one licensee or brokerage. States treat it differently: some permit it with the informed written consent of both parties, some use an intermediary or transaction-broker arrangement instead, and some prohibit it. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education, The real estate agent, agency defined, and client versus customer, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Agency alternatives and subagency, Dual agency, informed consent, and designated sales agents, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443
Dual licensure: Holding concurrent licenses or associations, which requires appropriate licensing arrangements and the brokers' consent. It is different from dual agency, which concerns representing parties in a transaction. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
License term: The two-year period for which a New York real estate license is issued before renewal. Renewal requires approved continuing education. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Listing information: Information about listings obtained during an association, including information the salesperson personally acquired. When the association ends, the salesperson must turn it over to the former broker. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education, Listing and buyer agency agreements, and termination of agency
Pocket card: The identification card issued under Real Property Law § 441-a, showing the licensee's photograph, name and business address. A salesperson's card also names the associated broker and that broker's business address. It must be shown on demand. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Representative broker: The broker who acts for a licensed corporation or partnership. Direct supervision of a branch office must be by the licensed broker or by this representative broker. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Supplemental course: An approved course for which a salesperson may receive continuing education credit. It does not remove the required topics, and excess hours cannot carry into the next renewal cycle. — License law and regulations · Taught in Maintaining a license: pocket cards, changes of association, branch offices, dual licensure, renewal and continuing education
Exclusive listing: A listing in which one brokerage alone holds the listing, as with exclusive right to sell and exclusive agency. It still permits cooperation with other brokers. — License law and regulations · Taught in Department of State regulations and the advertising rules
Notice and opportunity to be heard: The procedural protection before ordinary license discipline: written notice of charges at least ten days before the hearing and a chance to be heard in person or by counsel. The Department may also suspend a license pending a hearing. — License law and regulations · Taught in Department of State regulations and the advertising rules
Paid advertising disclosure: If a licensee pays a third party to advertise another broker's listing and the advertisement names the advertising broker, it must also disclose that it is paid advertising, using at least the word 'advertisement'. — License law and regulations · Taught in Department of State regulations and the advertising rules
Part 175: The Department of State regulations (19 NYCRR Part 175) governing licensee conduct, including advertising in § 175.25. Part 175 does not itself decide whether a salesperson is an employee or independent contractor. — License law and regulations · Taught in Department of State regulations and the advertising rules
Photograph permission: Written permission from the copyright holder, required to reproduce listing photographs on a broker's website. Permission to advertise the listing does not itself grant it. — License law and regulations · Taught in Department of State regulations and the advertising rules
Real estate advertising: Promotion or solicitation related to licensed activity through websites, email, business cards, signs, flyers, mail and telephone. Commentary unrelated to promoting licensed activity falls outside the definition. — License law and regulations · Taught in Department of State regulations and the advertising rules
Team: Licensees working under the same broker or brokerage who present themselves as a team or group, often under a shared name or logo. States define the term differently and set its advertising rules. — License law and regulations · Taught in Department of State regulations and the advertising rules
Criminal prosecution: Court action separate from administrative discipline. Under Real Property Law § 442-e a single prohibited act can be a violation and a misdemeanor, prosecuted by the attorney general or a deputy. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
License revocation: The withdrawal of a license as a disciplinary sanction, more severe than a reprimand or suspension. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Notice of charges: The written notice, required by Real Property Law § 441-e at least ten days before the hearing date, that starts ordinary license disciplinary proceedings. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Penalty recovery: A civil suit by an aggrieved person when an offender received commission, compensation or profit through a violation. The court sets a penalty of at least the amount received and no more than four times that amount, distinct from an administrative fine. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Proposed denial: Notice that the Department of State intends to deny a license application. The applicant must request a hearing in writing within thirty days after receipt, or the notice becomes the final determination. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Reprimand: A formal, written expression of disapproval imposed as a license-law sanction, without removing authority to practice. It differs from an internal office warning. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Secret rebate: A commission, rebate or profit that a property-managing broker takes on client expenditures without the client's full knowledge and consent. 19 NYCRR § 175.3 prohibits it even when the work was satisfactory. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants, Property management and the management agreement
Suspension: A temporary disciplinary bar on practicing under a license for a stated period. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Unlicensed assistant: A person without a license who may do only clerical work, such as scheduling appointments, organizing records and typing licensee-approved information. The assistant may not negotiate terms, solicit listings, show property as an agent or give licensed advice. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Untrustworthiness: A ground for license discipline. Under 19 NYCRR § 175.17, a competent agency's or court's finding of unlawful discrimination in licensed activities is presumptive evidence of it. — License law and regulations · Taught in Common violations, penalties, disciplinary proceedings, and unlicensed assistants
Actual knowledge: What the seller truly knows. The seller answers the disclosure form from it, writing 'unknown' or 'not applicable' where appropriate; the Act requires no investigation, inspection or public-record search. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Agent duties under the Disclosure Act: Under Real Property Law § 466, the listing agent timely informs the seller of the seller's obligations, and the buyer's agent informs the buyer before a binding contract is signed. If the buyer is unrepresented, the seller's agent does so. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
As-is sale: A sale in which the buyer accepts the property in its present condition, without seller repairs. It does not remove the seller's required disclosures, such as a state's property condition disclosure form. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
One-to-four family dwelling: Property improved by a dwelling for one to four families, used or intended wholly or partly as a residence. This is the kind of property the Property Condition Disclosure Act generally covers. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Property Condition Disclosure Act: New York law requiring a seller of covered residential property to complete and sign a condition statement and deliver it before the buyer signs a binding contract of sale. It excludes unimproved land, condominium units and cooperative apartments. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Property condition disclosure statement: The form the seller completes and signs and delivers to the buyer or buyer's agent before the buyer signs a binding contract. It records the seller's representations, not the agent's, and is not a warranty or a substitute for inspections. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure, The sales contract, binders, purchase offers, installment contracts, and options
Revision of disclosure: Updating the statement as soon as practicable when new knowledge makes it materially inaccurate. No revision is required after title transfers or the buyer occupies the property, whichever occurs first. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Uncapped natural gas well: A natural gas well on real property that has not been capped. Under Real Property Law § 242, a seller with actual knowledge must inform the purchaser before entering the sale contract; this applies to any real property, not only residential. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Willful failure: The level of failure needed for seller liability under Real Property Law § 465 for not performing the Act's requirements. Actual buyer damages and other existing remedies remain available. — License law and regulations · Taught in The Property Condition Disclosure Act and the uncapped natural gas well disclosure
Agency: A relationship in which an agent acts on behalf of a principal, subject to the principal's authority and direction. In real estate, the represented principal is the client. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer
Agency disclosure form: New York's form identifying the agency relationship in covered residential transactions. It is not a representation contract, and signing its receipt does not hire the agent. It is given before a listing or buyer agency agreement, and by a seller's agent to a buyer at first substantive contact. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Creating agency, how compensation is set, and antitrust, Dual agency, informed consent, and designated sales agents, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, Listing and buyer agency agreements, and termination of agency, The agency disclosure form under Real Property Law section 443, Contract preparation: data, the mortgage contingency, the down payment, and signing practice, Broker and salesperson fair housing responsibilities and New York's disclosure forms
Agent: A person authorized to act on behalf of a principal within the scope of authority the principal grants. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer
Buyer's agent: An agent who represents the buyer's interests, and who must also treat the seller honestly and fairly. A buyer can be a client of a buyer's agent while being a customer of the seller's agent. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443
Client: The party an agent represents and owes fiduciary duties to, as distinct from a customer. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Customer: A party the agent does not represent. Customers are still owed honest treatment and required disclosures, but not fiduciary loyalty. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer
Fiduciary: Describes the relationship of trust in which an agent owes a client duties of loyalty, confidentiality, accounting, reasonable care, disclosure and obedience. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer
Informed written consent: The agreement in writing, given by both buyer and seller after understanding the arrangement, that New York requires before a broker may act as a dual agent. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Agency alternatives and subagency, Dual agency, informed consent, and designated sales agents, The agency disclosure form under Real Property Law section 443
Principal: The person who authorizes an agent to act on the principal's behalf. Also called the client. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Seller's agent: An agent who represents the seller. The agent owes the seller reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and accounting, and must deal honestly and fairly with an unrepresented buyer. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443
Undivided loyalty: The fiduciary duty to put the client's interests ahead of the agent's own and ahead of others'. Dual agents and designated sales agents cannot provide it. — Law of agency · Taught in The real estate agent, agency defined, and client versus customer, Fiduciary duties, duties to other parties, and misrepresentation, Dual agency, informed consent, and designated sales agents
Accounting: The fiduciary duty to safeguard money and property entrusted by a client and keep accurate records of them. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation, Property management and the management agreement
Commingling: Mixing a client's entrusted funds with the agent's personal or business funds, even if the money is not spent. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation, Property management and the management agreement
Confidentiality: The fiduciary duty to protect a client's confidential information, such as a bargaining limit, unless disclosure is authorized or required. It generally survives the end of the agency. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Conversion: Using a client's entrusted funds or property for an unauthorized purpose, such as paying the agent's own expenses. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Fraudulent misrepresentation: A knowingly false material statement of fact, made to induce reliance, such as saying a twenty-year-old roof was replaced last year. Deliberate concealment where disclosure is required can also be deceptive. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Full disclosure: The fiduciary duty to keep the client informed of material information and conflicts. An agent must also disclose known facts materially affecting the property's value or desirability, except as otherwise provided by law. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Material fact: A fact that could affect a reasonable person's transaction decision or the property's value or desirability, such as known recurring foundation problems or leaks. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent
Negligent misrepresentation: False factual information given carelessly, without intent to deceive, such as a misread floor-area figure. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Obedience: The fiduciary duty to follow the client's lawful instructions within the agency. It does not extend to unlawful instructions such as lying. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Ownership-interest disclosure: A licensee's duty to disclose a direct or indirect ownership interest in a property, including through related persons or entities, before buying or selling it in a transaction. Each state sets who must be told and when. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Puffing: Subjective praise, such as calling a garden beautiful, that a reasonable person would not take as a verifiable fact. A measurable claim like acreage is not puffing. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Reasonable care: The fiduciary duty to perform the client's work with professional competence and diligence, such as checking information and tracking deadlines. It does not guarantee investment success. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation
Special account: The separate, federally insured bank account in which a broker must deposit principal funds within three business days under 19 NYCRR § 175.1. The broker must also account for and remit unexpended client funds within a reasonable time. — Law of agency · Taught in Fiduciary duties, duties to other parties, and misrepresentation, Property management and the management agreement
Broker supervision: A broker's duty to direct, control and oversee the licensees who work under them. Merely lending a name is not enough. Each state sets the specific standard and the records to keep. — Law of agency · Taught in Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Independent contractor or employee: the salesperson's status, Broker supervision of salespersons and records of transactions
Broker's agent: A broker engaged by a listing broker to assist the listing broker's client through that broker, without forming a direct agency relationship with the client. — Law of agency · Taught in Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443
Cooperating broker: A broker from another brokerage who works with the listing broker on a transaction. Cooperation alone does not make the broker a subagent. — Law of agency · Taught in Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Designated sales agent: In a New York dual agency, a salesperson who advocates for the assigned buyer or seller under the dual broker's supervision. Designation does not remove dual agency or restore undivided loyalty. — Law of agency · Taught in Agency and brokerage: who is the agent, the salesperson, and cooperating brokers, Agency alternatives and subagency, Dual agency, informed consent, and designated sales agents, The agency disclosure form under Real Property Law section 443
Listing broker: The broker who represents the seller under a listing agreement to market the property. — Law of agency · Taught in Agency and brokerage: who is the agent, the salesperson, and cooperating brokers
Antitrust law: Law that protects competition by prohibiting agreements that unlawfully restrain trade, such as competitors agreeing on commissions. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Commission: The broker's compensation for brokerage services, earned as the brokerage agreement provides, often as a percentage of the price. Rates are negotiable. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Compensation from more than one party: Under 19 NYCRR § 175.7, a broker who will be paid by more than one party must clarify whom the broker represents and obtain the client's full knowledge and consent. This differs from informed written consent to dual agency. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust, Dual agency, informed consent, and designated sales agents
Estoppel: A doctrine that can prevent a person from denying agency when that person's conduct caused another's reasonable, detrimental reliance on the appearance of agency. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Express agency: An agency created by an explicit agreement between principal and agent. It describes formation, not the scope of authority. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Implied agency: An agency inferred from the parties' conduct rather than an explicit agreement. Conduct cannot replace a legally required writing. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Market allocation: Competitors dividing territories or customers among themselves instead of competing. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Owner authorization: Under 19 NYCRR § 175.10, a broker needs the owner's authorization before offering property for sale or lease. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Price fixing: Competitors agreeing on commissions, minimum fees or other price terms. Similar prices set independently are not price fixing. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Ratification: Adopting, with knowledge of the material facts, something one could otherwise reject, such as a voidable contract or an agent's unauthorized act. An illegal, void bargain cannot be ratified. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Salesperson compensation: Under Real Property Law § 442-a, a salesperson receives compensation for licensed services from the sponsoring broker, not directly from the client. — Law of agency · Taught in Creating agency, how compensation is set, and antitrust
Advance informed consent: Written, signed consent to dual agency, and separately to dual agency with designated sales agents, recorded in advance on New York's agency disclosure form for residential property subject to a listing agreement. — Law of agency · Taught in Agency alternatives and subagency, Dual agency, informed consent, and designated sales agents, The agency disclosure form under Real Property Law section 443
Landlord's agent: An agent who obtains a tenant for a landlord; the rental counterpart of a seller's agent. The agent owes the landlord fiduciary duties and must deal honestly and fairly with the prospective tenant. — Law of agency · Taught in Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent
Nonagency assistance: Work performed for a consumer in an agreed capacity other than as an agent. Real Property Law § 443 does not apply to it, and it differs from fiduciary representation. — Law of agency · Taught in Agency alternatives and subagency
Seller's subagent: A licensee who cooperates with a listing agent and acts on the seller's side. Under Real Property Law § 443 it falls within 'seller's agent', and working with a buyer does not make it the buyer's representative. — Law of agency · Taught in Agency alternatives and subagency
Single agency: A model in which the brokerage represents only one side of a transaction, such as the seller or the tenant. — Law of agency · Taught in Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent
Tenant's agent: An agent who locates rental property for a tenant, or presents an offer and negotiates for the tenant; the rental counterpart of a buyer's agent. — Law of agency · Taught in Agency alternatives and subagency, Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent
Vicarious liability: Responsibility for another person's conduct based on the legal relationship and the conduct's connection to it, such as a brokerage's liability for its agent. — Law of agency · Taught in Agency alternatives and subagency
Dual broker: The broker who represents both parties in a dual agency and supervises the designated sales agents. The broker remains a dual agent even after assigning separate agents to each party. — Law of agency · Taught in Dual agency, informed consent, and designated sales agents
Receipt acknowledgment: The signature on the agency disclosure form that records only that the form was received. It does not hire the agent, establish a commission or consent to dual agency. — Law of agency · Taught in Dual agency, informed consent, and designated sales agents, The agency disclosure form under Real Property Law section 443
First substantive contact: The point in dealings with the opposite side when an agent must give the agency disclosure form, before discussing specifics such as negotiating limits. Disclosure cannot wait until the offer or closing. — Law of agency · Taught in Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443, Pressure to discriminate and anti-bias training, Broker and salesperson fair housing responsibilities and New York's disclosure forms
Residential real property under § 443: The property covered by New York's agency disclosure law: one-to-four family dwellings and condominium or cooperative apartments used or intended wholly or partly as a residence. Unimproved land is excluded. — Law of agency · Taught in Single agency: seller and landlord agency, buyer and tenant agency, and the broker's agent, The agency disclosure form under Real Property Law section 443
Automatic continuation: A clause that extends an exclusive listing past its fixed termination date without a new agreement. New York prohibits it under 19 NYCRR § 175.15; an agreed renewal is different. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Buyer agency agreement: A contract employing a broker to represent a buyer in locating and negotiating a purchase. In New York the buyer's agent provides the agency disclosure form before it is signed. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Exclusive agency: An exclusive engagement of one brokerage that preserves the client's right to sell or acquire property independently, without any broker's help, without owing that brokerage's fee. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Exclusive right to sell: A listing giving one brokerage the exclusive listing and its commission on any covered sale during the term, whoever finds the buyer, including the owner. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Listing agreement: An agreement in which an owner employs a broker to market property, setting exclusivity, commission terms and duration. It creates express agency and is separate from the purchase contract. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency, Broker supervision of salespersons and records of transactions
Multiple listing service: A system through which brokers share listings. It must not discriminate in membership or participation terms. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Net listing: A compensation method in which the broker keeps the sale proceeds above the owner's desired net amount. It does not decide exclusivity. Many states restrict or prohibit it because it sets the broker's interest against the seller's. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Open listing: A nonexclusive listing that lets the owner engage several brokers and sell independently. Only the broker who is the procuring cause of the sale earns the commission. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Operation of law: Termination that happens by legal effect rather than the parties' choice, such as the death or incapacity of an individual principal or agent, destruction of the subject property, or a change making performance unlawful. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Prescribed explanation: The statement that 19 NYCRR § 175.24 requires in residential exclusive listing commission agreements, attached or printed in type of at least six points and signed or initialed by the homeowner or homeowner's agent. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Procuring cause: The broker whose uninterrupted chain of efforts brings about the completed sale, not merely the first to advertise or mention the buyer. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Termination of agency: The ending of the agent's authority by performance, expiration, mutual agreement, principal revocation, agent renunciation or operation of law. It does not necessarily end liability for damages, earned compensation or confidentiality. — Law of agency · Taught in Listing and buyer agency agreements, and termination of agency
Declaration of refusal: If a party refuses to acknowledge receipt of the agency disclosure form, the agent makes a written declaration of the facts of the refusal under oath or affirmation and keeps it at least three years. An unsigned form or informal note alone is not enough. — Law of agency · Taught in The agency disclosure form under Real Property Law section 443
Retention of acknowledgment: The agent must obtain a signed acknowledgment of the agency disclosure form, give the party a copy, and keep a copy for not less than three years. — Law of agency · Taught in The agency disclosure form under Real Property Law section 443
Employment classification: The treatment of a worker as employee or independent contractor for purposes such as taxes, unemployment insurance and workers' compensation. It is purpose-specific and separate from licensing obligations. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Independent contractor: A worker classified as not an employee for certain purposes. Independent contractor status does not give a salesperson independent brokerage authority or remove the sponsoring broker's New York supervision duties. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Output-based remuneration: Pay tied to sales or other output rather than hours worked. Commissions fit the concept, but commission alone is insufficient to meet the federal test; cash and noncash remuneration both count. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Qualified real estate agent: Under 26 U.S.C. § 3508, a licensed individual whose substantially all remuneration for real estate services is directly related to sales or other output rather than hours worked, and who performs services under a written contract stating they will not be treated as an employee for federal tax purposes. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Transaction records: Written records of all listings obtained by the salesperson and all sales and other transactions effected with the salesperson's aid, clearly identified and dated. Both broker and salesperson keep them, even if the salesperson is an independent contractor. — Law of agency · Taught in Independent contractor or employee: the salesperson's status, Broker supervision of salespersons and records of transactions
Unemployment insurance: State coverage for which New York requires its own classification analysis, separate from federal tax treatment. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Workers' compensation: State coverage for which New York requires its own classification analysis. The real estate independent contractor exclusion looks to output-based pay and a written agreement. — Law of agency · Taught in Independent contractor or employee: the salesperson's status
Binder: A preliminary written purchase agreement, usually with a deposit, preceding the full contract. A broker's covered sale records must contain the broker-prepared contract or binder. — Law of agency · Taught in Broker supervision of salespersons and records of transactions, The sales contract, binders, purchase offers, installment contracts, and options
Covered sale records: The records 19 NYCRR § 175.23 requires a broker to keep for three years, on paper or electronically, for covered residential sales through the office, including one-to-four family dwellings and condominium or cooperative apartments. Unimproved land is excluded. — Law of agency · Taught in Broker supervision of salespersons and records of transactions
Deposit: Money or other items of value, such as checks or drafts, delivered toward a purchase or to secure a transaction. — Law of agency · Taught in Broker supervision of salespersons and records of transactions
Appurtenance: A right or item that goes with the land, such as an access easement, and generally passes with the benefited parcel. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Fixture: An item that began as personal property but became part of the real estate by being attached or adapted to it, such as a built-in cabinet. It normally transfers with the property. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Immobility: The physical characteristic that a parcel of land cannot be moved to another location. Moving a building does not move the land under it. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Improvement: A building or other addition on or near a parcel that can affect its value. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Indestructibility: The physical characteristic that land endures, unlike a building that can wear out or burn. Land can still be damaged or lose value. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Land: The ground, naturally growing vegetation, and associated rights in the space above and the material below. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Mixed-use property: Property combining uses, such as apartments above shops. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics, Characteristics of real property investments and investment property types
Permanence of investment: The economic characteristic that capital put into real estate improvements is a long-lasting commitment that is hard to recover by moving the improvement. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Personal property: Movable property that has not become part of the real estate, such as an ordinary sofa. Also called chattel. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Real estate: Land together with permanent improvements, such as buildings. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Real property: Land, everything permanently attached to it, and the ownership rights that go with it. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Scarcity: The economic characteristic of limited supply relative to demand. Scarcity alone does not mean a high price; buyers must want the property. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Severance: The process by which something attached to the real estate is detached and becomes personal property again. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Situs: Another name for area preference: the market's preference for a particular location. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Special-purpose property: Property designed for a particular use, such as a house of worship. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics, Characteristics of real property investments and investment property types
Trade fixture: A business item a tenant installs, such as a removable salon station. Under the general rule, the tenant may remove it within the permitted time and must repair removal damage. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Uniqueness: The physical characteristic that no two parcels are exactly alike, if only because each occupies a different location. Also called nonhomogeneity. — Legal issues · Taught in Real and personal property, uses of real property, and its characteristics
Defeasible fee: A freehold estate that can end on violation of a stated condition or ceasing of a stated use. — Legal issues · Taught in Freehold and leasehold estates
Estate: A legal interest in real property, including its duration. — Legal issues · Taught in Freehold and leasehold estates
Estate at sufferance: The status of a tenant who entered lawfully but stays after the right to possession ends without the landlord's consent. — Legal issues · Taught in Freehold and leasehold estates
Estate at will: A leasehold that continues with both parties' permission, without a definite term or recurring rental period. — Legal issues · Taught in Freehold and leasehold estates
Estate for years: A leasehold with a definite beginning and end, of any length; the name does not require a full year. — Legal issues · Taught in Freehold and leasehold estates, Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Estate pur autre vie: A life estate measured by someone else's life rather than the holder's own. — Legal issues · Taught in Freehold and leasehold estates
Fee simple absolute: The broadest estate: potentially perpetual, transferable during life and able to pass at death, though still subject to taxes, zoning and valid restrictions. — Legal issues · Taught in Freehold and leasehold estates
Freehold estate: An ownership interest with no definite lease term, such as a fee simple or a life estate. — Legal issues · Taught in Freehold and leasehold estates
Joint tenancy: Co-ownership with equal interests and a right of survivorship, traditionally requiring the four unities of time, title, interest and possession. — Legal issues · Taught in Freehold and leasehold estates, Forms of ownership: severalty, co-ownership, and partition
Leasehold estate: A tenant's possessory interest for a tenancy while the landlord retains ownership. Occupancy alone does not identify the estate. — Legal issues · Taught in Freehold and leasehold estates
Life estate: An estate that lasts for the life of a measuring person and ends at that person's death, even if the life estate has been transferred. — Legal issues · Taught in Freehold and leasehold estates
Periodic tenancy: A leasehold that continues for successive periods, such as month to month, until properly terminated. — Legal issues · Taught in Freehold and leasehold estates, Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Remainder: A future interest under which possession passes to a designated third party when a prior estate ends. — Legal issues · Taught in Freehold and leasehold estates
Reversion: A future interest under which possession returns to the grantor when an estate ends. — Legal issues · Taught in Freehold and leasehold estates
Tenancy by the entirety: Where recognized, a form of ownership by spouses that includes survivorship and restricts one spouse from transferring alone. — Legal issues · Taught in Freehold and leasehold estates, Forms of ownership: severalty, co-ownership, and partition
Tenancy in common: Co-ownership with separate interests and no survivorship. Under New York law, a disposition to two or more people creates it unless joint tenancy is expressly declared. — Legal issues · Taught in Freehold and leasehold estates, Forms of ownership: severalty, co-ownership, and partition
Untenantable premises: Under New York Real Property Law § 227, premises made unfit to live in without the tenant's fault or neglect, which a tenant may quit and surrender absent a contrary written agreement, ending rent liability. — Legal issues · Taught in Freehold and leasehold estates
Waste: Use or neglect by a life tenant that injures the property and the future interests in it. — Legal issues · Taught in Freehold and leasehold estates
Co-ownership: Ownership of the same property by multiple owners. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Cooperative apartment: An apartment in which the owner holds shares in a cooperative corporation together with a proprietary lease, rather than title to the unit. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition, Trusts, ownership by business organizations, and what cooperative and condominium owners own, Cooperatives: shares, due diligence, and the documents a sale needs
Heirs property: Qualifying tenancy-in-common real property meeting the family-title, use and no-binding-partition-agreement requirements of RPAPL § 993. In partition the court weighs buy-out options and favors division in kind unless it would cause great manifest prejudice. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Intestacy: Passing of property of a person who died without a valid will. In New York, property passing by intestacy to multiple persons is taken as tenancy in common. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Ownership in severalty: Ownership by one person or legal entity. The word does not mean several owners. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Partition: A legal process that ends shared ownership by physically dividing the property or selling it and dividing the proceeds. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Partition in kind: Actual division of land into distinct parcels, considering quality and quantity relative to the parties' rights. Equal acreage is not necessarily a fair division. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition
Proprietary lease: The lease from a cooperative corporation that accompanies shares in a cooperative and gives the shareholder the right to occupy a specific apartment. — Legal issues · Taught in Forms of ownership: severalty, co-ownership, and partition, Trusts, ownership by business organizations, and what cooperative and condominium owners own, Cooperatives: shares, due diligence, and the documents a sale needs
Beneficiary: In a trust, a person who holds the beneficial interest in property whose legal title the trustee holds. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Bylaws: The internal rules a body adopts to run itself. A condominium's or community association's bylaws address its board, operations and charges and rank below the declaration and articles of incorporation. A state real estate commission may also adopt bylaws for its own operations. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Condominiums: definition, by-laws, the sponsor, and the offering plan
Common charges: The shared expenses of a condominium. Under § 339-m they generally follow the owners' respective common interests, with authorized special allocations, so equal numbers of units do not necessarily mean equal charges. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Common elements: The parts of a condominium owned together by the unit owners, in which each unit owner holds an undivided interest. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Condominiums: definition, by-laws, the sponsor, and the offering plan
Condominium: Ownership of a unit, with exclusive possession of it, plus an undivided interest in the common elements, usually administered by an association. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Condominiums: definition, by-laws, the sponsor, and the offering plan
Condominium declaration: The document that submits New York property to the Condominium Act. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Condominiums: definition, by-laws, the sponsor, and the offering plan
Cooperative housing corporation: The corporation that owns a cooperative building or its leasehold. A purchaser acquires shares in it and a proprietary lease, not a deed to the apartment. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Cooperatives: shares, due diligence, and the documents a sale needs
Corporation: A legal entity that can own real estate in its own name. Shareholders own stock, not a fractional deeded interest in each corporate asset. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
General partnership: A partnership that can own property for its business. Its general partners are personally liable for partnership obligations. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Limited liability company: A business entity that can hold real estate in its own name. Its members hold membership interests, not deeded interests in its property, and generally have limited liability. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Limited partnership: A partnership that distinguishes general partners, who manage and are personally liable, from limited partners. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Offering statement: The statement filed with the New York Department of Law that offering literature must use under General Business Law § 352-e. It is not the deed or proprietary lease that identifies the purchaser's ownership rights. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own, Cooperatives: shares, due diligence, and the documents a sale needs
Personal guarantee: A person's own promise to repay an entity's debt. It can create personal responsibility despite limited liability. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Settlor: The person who creates a trust. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Shareholder: An owner of corporation stock. A shareholder has no personal title to the corporation's real estate and generally has limited liability. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Trust: An arrangement that separates legal title from beneficial enjoyment. The settlor creates it, the trustee holds and administers the property under its terms, and the beneficiary receives the benefits. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Trustee: The person or entity that holds legal title to trust property and administers it for the beneficiaries. — Legal issues · Taught in Trusts, ownership by business organizations, and what cooperative and condominium owners own
Constructive notice: Knowledge the law attributes to a person, commonly from proper recording in the chain of title, whether or not the person looked. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination, The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
General lien: A lien that reaches the debtor's property generally, within its legal scope. It does not make exempt property available to creditors. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Involuntary lien: A lien that arises through law, such as a property tax lien, a mechanic's lien or a judgment lien. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Judgment lien: A lien arising from a court judgment that can reach the debtor's property within its legally defined scope; the usual example of a general lien. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Lien: A claim against property that secures payment of an obligation, such as unpaid association assessments. It does not by itself transfer ownership. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Mechanic's lien: A lien on improved property for qualifying unpaid construction work or materials, once properly perfected. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Mortgage: A pledge of identified real property as security for a loan. It is a voluntary, specific lien. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination, The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Notice of pendency: Also called lis pendens. Under New York CPLR § 6501 it gives constructive notice of qualifying litigation affecting real property, binding later recorders as parties. It is not itself a mortgage or money judgment. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Priority: The order in which competing liens are paid from available proceeds, usually first in time but subject to statutory priority and agreements. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Real property tax lien: A specific lien for unpaid real property taxes on the taxed parcel. It arises by law and generally outranks ordinary mortgage liens. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination, Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Specific lien: A lien that burdens only identified property, such as a mortgage or a property tax lien on a parcel. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Subordination: A change in lien priority, as when a lienholder agrees that another lien will rank ahead of its own. The debt itself remains. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Voluntary lien: A lien created by agreement, such as a mortgage or deed of trust securing a loan. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Wage laborer preference: Under New York Lien Law § 13, daily or weekly wage laborers have a preference among mechanic's lienors. Their liens are also excluded from subordination by certificate under § 33. — Legal issues · Taught in Liens: general and specific liens, priority, and subordination
Adverse possession: A doctrine under which qualifying possession can establish ownership of land, as opposed to prescription, which establishes only a use right. — Legal issues · Taught in Deed restrictions and easements
Appurtenant easement: An easement that benefits one parcel and burdens another. Its benefit generally passes with the dominant land. — Legal issues · Taught in Deed restrictions and easements
Deed restriction: A private limit on property use created in a deed, separate from government zoning and enforceable alongside it. — Legal issues · Taught in Deed restrictions and easements
Dominant estate: The parcel that benefits from an easement appurtenant. — Legal issues · Taught in Deed restrictions and easements
Easement: A nonpossessory right to use another person's land for a specified purpose, such as access or utilities. The landowner keeps ownership. — Legal issues · Taught in Deed restrictions and easements, The bundle of rights, planning, and private land use controls
Easement by necessity: An easement that can arise when dividing commonly owned land leaves a parcel without legally sufficient access. It ends when the necessity ends. — Legal issues · Taught in Deed restrictions and easements
Easement in gross: An easement that benefits a person or entity rather than a parcel, such as a utility company's right to maintain lines. Commercial ones may be transferable. — Legal issues · Taught in Deed restrictions and easements
Express easement: An easement created by a written grant or reservation. — Legal issues · Taught in Deed restrictions and easements
Party wall: A wall serving adjoining buildings. Agreements commonly create reciprocal support rights and allocate maintenance and expenses, and alterations must respect the neighbor's support rights. — Legal issues · Taught in Deed restrictions and easements
Prescriptive easement: A use right that arises from open, notorious, adverse and continuous use for the required period. Permission defeats it while the permission continues. — Legal issues · Taught in Deed restrictions and easements
Revocable license: Permission to use land that grants no easement interest and can be withdrawn. — Legal issues · Taught in Deed restrictions and easements
Servient estate: The parcel burdened by an easement, across which the use is exercised. — Legal issues · Taught in Deed restrictions and easements
Acceptance of a deed: The grantee's taking of a deed, which with delivery completes the transfer. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Acknowledgment: A formal declaration before an authorized officer that authenticates a deed's signing for recording purposes. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Bargain and sale deed: A deed that implies the grantor owns the property but, without express covenants, does not promise to defend title. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions, Forms of deeds and conveyance after death
Consideration: A bargained-for exchange of legal value, such as a seller's promise to convey for a buyer's promise to pay. Immediate cash and equal value are not required. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions, Contracts: types, the essentials of a valid contract, and the statute of frauds
Deed: The document that conveys ownership of real estate, as opposed to a bill of sale, which transfers personal property. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Delivery: Transfer of a deed with intent that it take effect now, completed by the grantee's acceptance. Signing and keeping a deed is not delivery. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Full covenant deed: A deed that carries title promises, in the form set out in Real Property Law § 258. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Grantee: The party who receives a real property interest by deed. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Grantor: The party who conveys a real property interest by deed. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Legal description: A description that identifies the exact land in a transaction, more reliably than a street address or tax parcel number. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Legal title: Formal ownership of property, passed by conveyance of a deed. Under a purchase contract or contract for deed, the seller keeps it until the agreed performance. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions, The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Lot and block: A legal description method that identifies a lot and block in a named subdivision by reference to its recorded plat. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Metes and bounds: A legal description method that traces boundary distances, directions and reference points from a point of beginning back to that point. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Quitclaim deed: A deed that releases whatever interest the grantor has, if any, without title warranties. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions, Forms of deeds and conveyance after death
Recording: Placing a document in the public records, which gives public notice and helps protect against competing claims. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions, The title closing: recording acts, chain and abstract of title, title insurance, and RESPA, The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Rectangular government survey: A description system using townships, ranges and sections where applicable. It is not New York's usual description system. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Statutory short form: A deed form that Real Property Law § 258 sets out; New York also allows other forms. — Legal issues · Taught in Deeds: purpose, essential elements, and legal descriptions
Administrator: The estate representative who generally serves when a person dies without a will. — Legal issues · Taught in Forms of deeds and conveyance after death
Covenant against grantor's acts: A limited covenant, when included in a deed, protecting against the grantor's own conduct. It does not imply a general warranty. — Legal issues · Taught in Forms of deeds and conveyance after death
Deed covenant: A promise in a deed. In New York, Real Property Law § 251 says covenants are not implied, so a buyer must read the promises actually included. — Legal issues · Taught in Forms of deeds and conveyance after death
Devise: A gift of real property made in a will. — Legal issues · Taught in Forms of deeds and conveyance after death
Executor: The estate representative who serves under a will. A representative's deed conveys in a representative capacity and should not be confused with a personal general warranty. — Legal issues · Taught in Forms of deeds and conveyance after death
Full covenant and warranty deed: A deed with broad title covenants, including ownership, the right to convey, quiet enjoyment, freedom from encumbrances, further assurances and warranty of title. New York's form is in Real Property Law § 258. — Legal issues · Taught in Forms of deeds and conveyance after death
General warranty: A broad warranty of title that can reach defects arising before the grantor owned the property. — Legal issues · Taught in Forms of deeds and conveyance after death
Intestate succession: The passing of a deceased owner's property to heirs under the law of descent and distribution when there is no valid will. — Legal issues · Taught in Forms of deeds and conveyance after death
Probate of a will: The process that establishes a will's validity. Estate administration separately addresses obligations and distribution. — Legal issues · Taught in Forms of deeds and conveyance after death
Right of survivorship: The right of a surviving co-owner to take a deceased co-owner's interest automatically, rather than under the deceased owner's will. — Legal issues · Taught in Forms of deeds and conveyance after death
Special warranty deed: A deed whose warranty covers only claims arising by, through or under the grantor. Special means narrower, not stronger. — Legal issues · Taught in Forms of deeds and conveyance after death
Testate: Describes a person who dies leaving a valid will. — Legal issues · Taught in Forms of deeds and conveyance after death
Transfer of an interest in an estate: Under Real Property Law § 274, a transfer of an interest in a decedent's estate must be written and acknowledged or proved as required for recording. — Legal issues · Taught in Forms of deeds and conveyance after death
Will: A document by which a person directs the disposition of property at death. An ordinary attested New York will is signed at the end by the testator and requires at least two attesting witnesses. — Legal issues · Taught in Forms of deeds and conveyance after death
Abstract of title: A summary of recorded instruments, such as deeds, mortgages and easements, affecting the property. It summarizes the records but does not insure against loss. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Chain of title: The sequence of ownership transfers leading to the current owner. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Inquiry notice: Notice arising from facts that call for reasonable investigation, such as someone other than the seller occupying the property. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Kickback: A thing of value given or accepted under an agreement or understanding, written or not, to refer settlement business. Disclosure does not make it lawful. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Lender's title policy: A title policy that protects the lender's insured mortgage interest, not the buyer's ownership. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Loan Estimate and Closing Disclosure: The disclosure forms most covered closed-end consumer mortgages use under RESPA's integrated rules; older settlement forms remain for certain transactions. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Memorandum of contract: Under Real Property Law § 294, a recordable memorandum identifying the parties, property and time fixed for conveyance. Its recording protection generally lasts through the thirtieth day after the day fixed for conveyance. It is not a deed. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Mortgage escrow account: An account a servicer maintains from part of each monthly payment to pay future property taxes and insurance. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Owner's title policy: A title policy that protects the owner's insured interest in the property. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Race-notice: New York's recording rule: a later purchaser for value must act in good faith, without notice, and record first to obtain recording-act protection. Recording does not cure a forged instrument. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Recording act: A statute that protects certain later purchasers by giving priority to those who record without notice of an earlier unrecorded conveyance. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Required title company: A seller may not condition a sale financed with a federally related mortgage loan on the buyer buying title insurance from a particular company. Under 12 U.S.C. § 2608, liability is three times the charges. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
RESPA: The federal Real Estate Settlement Procedures Act, which regulates settlement-service referrals and charges, prohibiting kickbacks and unearned splits on federally related mortgage loans. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Title commitment: A title insurer's conditional promise to issue a policy once its requirements are satisfied. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Title insurance: Insurance against covered title losses, usually from events before the policy date, paid for with a one-time premium. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Title search: A review of the public records that follows the chain of title and checks for mortgages, easements, judgments and releases. — Legal issues · Taught in The title closing: recording acts, chain and abstract of title, title insurance, and RESPA
Additional residential transfer tax: Under Tax Law § 1402-a, an additional 1% of residential consideration when total conveyance consideration is at least $1 million. It is paid by the grantee, with the grantor liable if the grantee fails to pay or is exempt. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Closing costs: Charges for obtaining the loan and completing the transaction, such as fees, taxes and prepaid items. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Credit: A settlement entry recognizing funds or an adjustment in a party's favor, such as loan proceeds or earnest money credited to the buyer. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Day-count convention: The rule for counting days in a proration, such as a 360-day year of 30-day months or a 365-day year, along with who owns the closing day. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Debit: A settlement entry charging a party, such as the price charged to the buyer or the seller's share of unpaid taxes. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Earnest money: A buyer's deposit made under a purchase contract. It is distinct from the mutual promises that supply consideration and is not required for a contract to exist. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Metropolitan commuter transportation district: The region where the higher additional mortgage recording tax of 30 cents per $100 applies under Tax Law § 253(2); outside it the rate is 25 cents. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Mortgage recording tax: A New York tax on the secured principal of a mortgage, not the sale price. Tax Law § 253 imposes 50 cents per $100 or major fraction, plus additional components. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations, Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Proration: Allocating income or expenses, such as taxes or dues, between seller and buyer by their ownership periods. Unpaid taxes give a seller debit and buyer credit. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations
Transfer tax: A tax on transferring property, a zero-tolerance item on the Loan Estimate. — Legal issues · Taught in Closing costs, transfer and mortgage recording taxes, and prorations, Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Assignment: The transfer of a tenant's entire remaining leasehold interest. It does not by itself release the original tenant. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Gross lease: A lease under which the landlord generally pays the property's operating expenses and the tenant pays agreed rent. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals, Commercial lease types: net, gross, office, retail, percentage, and loft leases
Late fee: In an ordinary New York residential rental, rent must remain unpaid beyond five days after due before a late fee may be charged. The maximum is the lesser of $50 or 5% of monthly rent. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Lease: An agreement giving a tenant (lessee) the right to possess and use property while the landlord (lessor) keeps ownership. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Lessee: The tenant under a lease. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Lessor: The landlord under a lease, who keeps ownership and a reversion. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Net lease: A lease that shifts specified property expenses to the tenant in addition to rent. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals, Commercial lease types: net, gross, office, retail, percentage, and loft leases
Percentage lease: A lease that ties some rent to the tenant's business sales, often a percentage added to base rent. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals, Commercial lease types: net, gross, office, retail, percentage, and loft leases
Rent stabilization: A New York regulatory system under which eligible tenants generally may choose a one-year or two-year renewal at regulated increases. High-rent and high-income deregulation were repealed in 2019. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Sublease: A transfer of less than the tenant's entire leasehold interest, leaving the original tenant an interest as sublessor. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Tenancy at sufferance: Lawful entry followed by unauthorized holding over after the right to possession ends. Unauthorized holding over does not permit self-help eviction. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Tenancy at will: Continuing permission to occupy with no agreed fixed term. State law sets the details, and some states treat one with monthly rent as month to month. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Warranty of habitability: In New York, a protection covering residential premises and common areas. It cannot be waived, and conditions caused by the tenant's misconduct are excluded. — The contract of sales and leases · Taught in Leases: leasehold estates, standard provisions, and rent-stabilized renewals
Bilateral contract: A contract that exchanges a promise for a promise, such as a seller's promise to convey for a buyer's promise to pay. Obligations arise before either performs. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Contractual capacity: A person's legal ability to enter a binding contract. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Counteroffer: A reply that changes a material term of an offer. It is not an acceptance and rejects the original offer. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds, The sales contract, binders, purchase offers, installment contracts, and options
Duress: Wrongful pressure that forces a party's assent, which can make a contract voidable by that party. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Executed contract: A contract on which the contractual performance is complete. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Executory contract: A contract on which performance remains due. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds, The sales contract, binders, purchase offers, installment contracts, and options
Express contract: A contract whose terms are stated in spoken or written words. Express does not mean written; an oral exchange of promises is express. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Implied in fact contract: An actual agreement inferred from the parties' conduct and circumstances showing mutual assent, such as an established paid arrangement repeated without restating the terms. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Mutual assent: Agreement by the parties to the same terms, shown objectively through words or conduct such as offer and acceptance rather than by secret intentions. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Offer: A definite proposal to contract on stated terms. A listing price generally invites offers rather than being an offer itself. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds, The sales contract, binders, purchase offers, installment contracts, and options
Part performance: Acts of performance under an oral agreement. Section 5-703(4) preserves courts' equitable power to compel specific performance in such cases. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Party to be charged: The person against whom enforcement of an agreement is sought, whose signature, or an authorized representative's, the required writing must bear. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Statute of frauds: A law, found in every state, requiring certain contracts, including contracts for the sale of real property and most leases longer than one year, to be in a signed writing to be enforceable. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Unenforceable: Describes an agreement that may otherwise satisfy formation requirements but that a court will not enforce because of a legal barrier, such as a missing required writing. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Unilateral contract: A contract that invites acceptance through performing the requested act, not a return promise. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Void: Describes an agreement that has no legal effect as a contract from the outset, such as one whose purpose is illegal. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Voidable: Describes a contract that is binding unless a protected party, such as a minor or a victim of fraud or duress, chooses to avoid it. The other party has no equal right to escape. — The contract of sales and leases · Taught in Contracts: types, the essentials of a valid contract, and the statute of frauds
Casualty loss: Under General Obligations Law § 5-1311, before title or possession transfers, material destruction without buyer fault prevents the seller from enforcing and lets the buyer recover payments; an immaterial loss leaves enforcement with a price abatement. After transfer, the buyer still owes payment. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options, Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Condemnation: The legal process by which government exercises eminent domain to take private property. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Contingency: A contract term making a party's obligation depend on a condition, such as an inspection or financing. Adding one to a response is a counteroffer. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Installment land contract: A seller-financed sale in which the buyer pays over time, usually with possession and equitable title, while the seller keeps legal title until the agreed performance is completed. Also called a contract for deed. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Option: A right to buy on stated terms within a specified period, without an obligation to buy before exercise. Consideration supports the optionor's promise to keep it open. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Purchase offer: A buyer's proposal of the terms on which the buyer will buy. Acceptance must match it; a material change is a counteroffer. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Right of first refusal: A right to buy on matching terms if the owner decides to sell. Unlike a purchase option, it gives no power to initiate a purchase. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Sales contract: A contract that ordinarily exchanges the seller's promise to convey title for the buyer's promise to pay, stating parties, property, price, payment terms, contingencies, closing arrangements and default provisions. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Specific performance: A discretionary equitable remedy in which a court orders a party to perform as promised, such as conveying land. Land's uniqueness can support it, but it is not guaranteed. — The contract of sales and leases · Taught in The sales contract, binders, purchase offers, installment contracts, and options
Contract deposit: Money paid under the purchase contract and held by the named escrow holder pending authorized disposition. It ordinarily counts toward the price at closing and is not an extra charge. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Down payment: The buyer's cash paid toward the purchase price at closing. Earnest money is commonly credited toward it but is not the whole down payment. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Escrow holder: The person or firm named in the contract to hold the contract deposit until its authorized disposition. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Lead-based paint disclosure: A federal requirement for covered housing built before 1978. Applicable disclosures should be confirmed before the buyer becomes obligated. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice, Asbestos, lead, radon, indoor air quality, and PCBs
Mortgage commitment: A lender's approval to make a loan on stated terms. The contract usually sets a deadline for it, and an agreed extension should be sought before time runs out. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Mortgage contingency: A purchase-contract clause making the buyer's obligation conditional on obtaining financing on specified terms. The buyer must satisfy its requirements, including application duties, deadlines and written notice; a loan denial alone does not guarantee a right to cancel. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Prequalification: A lender's preliminary indication that a buyer may qualify for a loan. It is not a financing or appraisal contingency. — The contract of sales and leases · Taught in Contract preparation: data, the mortgage contingency, the down payment, and signing practice
Acceleration: A clause letting the lender demand the entire remaining debt after a specified trigger, commonly default. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Assignment of mortgage: A transfer of the lender's interest in a mortgage. It is different from a discharge, which records a paid mortgage's release. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Assumption: A buyer's agreement to take on personal liability for the seller's existing loan. Buying subject to the loan does not by itself create that liability. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Default: A party's failure to perform as the contract requires, which can trigger the other party's contractual remedies. Check duties, deadlines, conditions and notice before calling a failed closing a default. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Due-on-sale clause: A loan provision letting the lender demand full payment when the property is transferred, which can limit assumptions and other existing-loan transfers. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Foreclosure: The legal process of enforcing a lien by selling or taking the property. Default alone does not transfer title. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Lien theory: The view that a borrower keeps title to mortgaged property while the lender holds only a lien. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Mortgagee: The lender who receives a mortgage as security for a loan. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Mortgagor: The borrower who gives a mortgage on property to secure a loan. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Note: The borrower's promise to repay the debt, stating principal, interest, installments and maturity. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Payoff statement: A lender's quote of the amount needed to satisfy a loan on a specified date, which can include accrued interest and charges beyond principal. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Satisfaction: A document, also called a discharge, that records the release of a paid mortgage. Under Real Property Law § 275 a certificate of discharge must be given when the mortgage is fully paid, and presented for recording within thirty days. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Subject to: Taking property subject to an existing mortgage: the buyer acquires property exposed to the lien without personally assuming the seller's debt. — Real estate finance · Taught in The mortgage and note, the mortgagor's duties, selling mortgaged property, and recording
Adjustable-rate mortgage: A loan whose rate resets under its terms, commonly an index plus a margin, subject to applicable caps. — Real estate finance · Taught in Types of mortgages and loans
Balloon payment: A large final loan payment. Its presence alone does not establish predatory lending. — Real estate finance · Taught in Types of mortgages and loans
Blanket mortgage: A single mortgage covering multiple parcels, often with partial releases as parcels are sold. — Real estate finance · Taught in Types of mortgages and loans
Bridge loan: Temporary financing between transactions, such as before the old home's sale proceeds arrive. — Real estate finance · Taught in Types of mortgages and loans
Conforming loan: A loan that meets applicable Fannie Mae or Freddie Mac purchase standards. Conforming and conventional describe different features. — Real estate finance · Taught in Types of mortgages and loans
Construction loan: A loan that commonly releases funds in draws as work progresses. — Real estate finance · Taught in Types of mortgages and loans
Conventional loan: A mortgage loan that is not federally insured or guaranteed. It may be conforming or nonconforming and can have less than 20% down. — Real estate finance · Taught in Types of mortgages and loans
FHA loan: A loan insured by the Federal Housing Administration. — Real estate finance · Taught in Types of mortgages and loans
Fixed-rate loan: A loan whose stated interest rate stays the same for its term. Taxes and insurance can still change the total monthly payment. — Real estate finance · Taught in Types of mortgages and loans
Fully amortizing loan: A loan whose scheduled payments retire principal and interest by maturity. With level payments and a fixed rate, the interest share falls and the principal share rises as the balance declines. — Real estate finance · Taught in Types of mortgages and loans
Graduated-payment loan: A loan that starts with lower scheduled payments that increase on a set schedule; depending on design, early payments may cause negative amortization. — Real estate finance · Taught in Types of mortgages and loans
Home equity line of credit: A loan secured by home equity that allows draws up to an agreed limit during its draw period. — Real estate finance · Taught in Types of mortgages and loans
Home equity loan: A loan secured by a borrower's existing home, which can carry a Truth in Lending rescission right when the home is the principal dwelling. — Real estate finance · Taught in Types of mortgages and loans
Jumbo loan: A loan too large to meet conforming standards. It can be conventional but nonconforming. — Real estate finance · Taught in Types of mortgages and loans
Loan flipping: Refinancing without a tangible net benefit to the borrower considering the full circumstances. New York Banking Law § 6-L prohibits it on high-cost home loans. — Real estate finance · Taught in Types of mortgages and loans, Predatory lending
Negative amortization: An increase in principal when unpaid interest is added to the loan balance. — Real estate finance · Taught in Types of mortgages and loans
Open-end mortgage: A mortgage that can secure later advances under its terms. — Real estate finance · Taught in Types of mortgages and loans
Package mortgage: A mortgage covering real estate together with specified personal property, such as listed furniture. — Real estate finance · Taught in Types of mortgages and loans
Partially amortizing loan: A loan whose scheduled payments leave a balance due at maturity as a balloon payment. — Real estate finance · Taught in Types of mortgages and loans
Purchase-money mortgage: A mortgage the buyer gives to secure financing of the purchase price, such as a seller's note. With it, the buyer receives legal title at closing. — Real estate finance · Taught in Types of mortgages and loans
Release clause: A mortgage provision that lets an individual parcel be released from a blanket mortgage on agreed terms. — Real estate finance · Taught in Types of mortgages and loans
Reverse mortgage: A loan that converts home equity into proceeds, commonly without scheduled monthly principal-and-interest payments; interest and charges can increase the debt. The homeowner still has property-related obligations. — Real estate finance · Taught in Types of mortgages and loans
Straight loan: A loan, also called interest-only, that pays interest periodically and leaves the principal due at maturity. — Real estate finance · Taught in Types of mortgages and loans
VA loan: A loan carrying a Department of Veterans Affairs guaranty. — Real estate finance · Taught in Types of mortgages and loans
Wraparound loan: A loan that includes an existing loan within a larger financing arrangement, with the existing debt remaining outstanding. — Real estate finance · Taught in Types of mortgages and loans
Fannie Mae: A secondary-market company that, like Freddie Mac, purchases eligible mortgages and supports securitization. Their standards define conforming loans. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
FHA mortgage insurance: Insurance from the Federal Housing Administration that protects the lender's credit risk on qualifying loans. It includes mortgage insurance premiums and does not pay for physical damage to the house. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Freddie Mac: A secondary-market institution that purchases mortgages and supports mortgage securitization. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Ginnie Mae: A federal entity that guarantees payments on eligible mortgage-backed securities. It does not originate home loans. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Primary mortgage market: The market in which borrowers obtain new loans from originating lenders. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Secondary mortgage market: The market in which existing loans and mortgage-backed securities are bought and sold, replenishing originators' funds for new lending. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Securitization: Pooling mortgages into securities sold to investors. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Servicing: Collecting loan payments and administering the account. Loan ownership and servicing can be separated, and a loan sale does not change the note's terms. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
SONYMA: The State of New York Mortgage Agency, a New York state home-financing program that helps people finance homes. It is separate from federal FHA insurance and VA guaranties. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
VA loan guaranty: A guaranty by the Department of Veterans Affairs on qualifying loans, for purposes such as purchasing or constructing a veteran's home, improving an owned and occupied dwelling and certain refinancing. — Real estate finance · Taught in Government-backed loans, SONYMA, and the secondary market
Annual percentage rate: The cost of credit expressed as a yearly rate, abbreviated APR. It includes interest and certain charges, so it can exceed the note rate, but it does not capture every closing expense. — Real estate finance · Taught in Truth in Lending and private mortgage insurance, Percentages: commissions, interest, appreciation and depreciation, and points
Automatic PMI termination: Ordinarily occurs when the scheduled balance reaches seventy-eight percent of original value, if payments are current; final termination follows the amortization midpoint. Unearned premiums must be returned within forty-five days. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Closing Disclosure: The final mortgage disclosure of loan terms and costs, which the consumer must receive at least three business days before consummation. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Consummation: The time the consumer becomes contractually obligated on the credit transaction under state law, which anchors the disclosure waiting periods. It is not necessarily funding or recording. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Finance charge: The dollar cost of credit, including interest and certain other credit charges. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Loan Estimate: The early mortgage disclosure of estimated loan terms, payments, closing costs and cash to close, delivered or mailed within three business days after application and at least seven business days before consummation. It is not loan approval. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
PMI cancellation: The borrower's written request to the servicer, once the balance reaches eighty percent of original property value, with a good payment history, current payments and any required evidence of no value decline and no subordinate lien. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Private mortgage insurance: Mortgage insurance on a conventional loan, abbreviated PMI, commonly used with less than 20% down. Covered borrower-paid PMI can be cancelled at 80% of original value and generally ends at 78%. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Right of rescission: A federal right, on a qualifying nonpurchase loan secured by the principal dwelling, to cancel through midnight of the third business day after the latest of consummation, notice delivery or material disclosure delivery. A home-purchase mortgage has no such right. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Servicer: The entity that collects loan payments and administers the loan; borrowers send PMI cancellation requests to it. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Truth in Lending: The federal law promoting meaningful disclosure of consumer credit costs, implemented by Regulation Z. Disclosure does not guarantee affordability or the lowest rate. — Real estate finance · Taught in Truth in Lending and private mortgage insurance
Adverse action: A creditor's denial or other unfavorable action on a credit application, which entitles the applicant to specific reasons, supplied directly or on request. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Appraisal: An opinion of value for a defined property interest as of an effective date, supported by analysis. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay, Appraisal, valuation and evaluation; market value; value, price and cost
Appraisal copy: Under ECOA, an applicant for a first-lien dwelling loan must receive copies of written appraisals promptly upon completion and no later than three days before closing, free of additional charge. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Credit history: A borrower's record of repayment behavior, which addresses willingness to repay rather than capacity. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Equal Credit Opportunity Act: Federal law, 15 U.S.C. § 1691, barring credit discrimination based on race, color, religion, national origin, sex, marital status or age, public-assistance income, or good-faith exercise of credit-protection rights. Public assistance itself is not a reason for denial. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Housing ratio: Monthly qualifying housing expense divided by gross monthly qualifying income. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay, Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Loan-to-value ratio: The loan amount divided by underwriting value, times 100. Purchase lending commonly uses the lower of purchase price or appraised value; a $240,000 loan on $300,000 of value is 80%. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Reserves: Cash remaining after closing, separate from the down payment, that underwriters consider. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Total debt ratio: Housing expense plus other counted monthly debt payments, divided by gross monthly qualifying income. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay, Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Underwriting: A lender's evaluation of the borrower's income, debts, credit and assets and of the property's value and condition. Program eligibility is not loan approval. — Real estate finance · Taught in The lender's criteria: the property and the borrower's ability to repay
Caution notice: A notice required for a New York high-cost home loan within three days after the loan is determined to be high-cost, but at least ten days before closing. An application does not obligate the borrower to complete the loan. — Real estate finance · Taught in Predatory lending
Financed insurance premium: A prohibited add-on: both New York categories bar financing specified insurance premiums, debt cancellation or suspension charges and unrelated products. Premiums or fees calculated and paid monthly are not considered financed. — Real estate finance · Taught in Predatory lending
High-cost home loan: A New York loan category with its own definition and protections, including limits on financed points and fees and a ban on prepayment penalties. — Real estate finance · Taught in Predatory lending
Housing counseling: Counseling from a HUD-approved housing counselor. New York requires counseling disclosures and a counselor list at application for high-cost loans, and documented counseling before refinancing certain special mortgages. — Real estate finance · Taught in Predatory lending
Points and fees: Charges financed in a loan. For a New York high-cost home loan they cannot exceed three percent of principal, and a lender refinancing its own or an affiliate's high-cost loan cannot charge them. — Real estate finance · Taught in Predatory lending
Predatory lending: Abusive lending practices that exploit borrowers, such as deceptive pricing, repeated fee-generating refinancing without benefit, or unaffordable loans that strip equity. — Real estate finance · Taught in Predatory lending
Prepayment penalty: A charge for paying a loan off early. Adding one after the Closing Disclosure is received starts a new three-business-day wait. — Real estate finance · Taught in Predatory lending
Subprime home loan: A New York loan category distinct from high-cost loans, with its own protections. Violations can support actual damages, equitable relief and a foreclosure defense. — Real estate finance · Taught in Predatory lending
Bundle of rights: The rights of ownership: possession, control, enjoyment, exclusion and disposition. They can be divided, as when a lease transfers possession. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls
Comprehensive plan: A community's long-range development framework, which the enforceable zoning ordinance implements. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The local legislative body, the planning board, and the zoning board of appeals
Environmental impact statement: A document evaluating a proposal's significant environmental effects, alternatives and mitigation. Not every action requires one. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, Police power: state environmental review, subdivided land sales, codes, and local authority
Generic environmental impact statement: A statement addressing broader actions. Later site-specific actions meeting its conditions and thresholds need no further compliance with the review law. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls
Homeowners association: An organization that commonly administers a development's private restrictions and maintains common property, often with mandatory membership and assessments. Abbreviated HOA. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls
Planning board: A town board body that may prepare a comprehensive plan at the town board's direction, and reviews subdivisions and, if authorized, site plans. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The local legislative body, the planning board, and the zoning board of appeals, Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Restrictive covenant: A private restriction arising from an instrument rather than zoning legislation, such as a limit on building height, setbacks or uses. It may bind later owners and must be respected alongside zoning. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls
State Environmental Quality Review Act: The New York law that brings environmental considerations into agency decisions. Town comprehensive plans and amendments are subject to it. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, Police power: state environmental review, subdivided land sales, codes, and local authority
Town board: The New York town body that adopts a comprehensive plan by resolution and may prepare it or direct a planning board or special board to do so. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The local legislative body, the planning board, and the zoning board of appeals
Zoning: Public land-use control, exercised under the police power, that divides land into districts and regulates permitted uses and development such as height and density. — Land use regulations · Taught in The bundle of rights, planning, and private land use controls, Police power: state environmental review, subdivided land sales, codes, and local authority, Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Building code: Rules that set construction safety standards, separate from zoning's regulation of use. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority, Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Eminent domain: Government's power to acquire private property for public use, provided it pays just compensation. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Fire code: A code regulating fire safety in construction and use. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Interstate land sales law: Federal law, 15 U.S.C. § 1703, requiring an effective statement of record and a printed property report delivered before signing for covered transactions. It prohibits material misstatements and requires developer promises of utilities or amenities to be stipulated in the contract. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Police power: Government's power to regulate property use to protect public health, safety, morals and general welfare, through zoning, building codes and similar rules. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Property report: The printed report the federal interstate land sales law requires the purchaser to receive before signing a covered contract. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
State code council: The New York body whose affirmative determination, under Executive Law § 379, is required before a qualifying stricter local construction standard takes effect; local adoption alone is insufficient. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Subdivided lands: Under New York Real Property Law § 337, covered subdivided vacant land, including installment arrangements that defer title until payments are completed and covered out-of-state land marketed in New York. Offering materials must be filed with the Department of State under § 337-a. — Land use regulations · Taught in Police power: state environmental review, subdivided land sales, codes, and local authority
Area variance: Permission to depart from a dimensional zoning requirement, decided by the zoning board of appeals rather than the planning board. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The zoning board of appeals, variances, special permits, Article 78, and local enforcement, The local legislative body, the planning board, and the zoning board of appeals
Conditional approval: Under Town Law § 276, approval of a final plat that requires completion of stated requirements before the authorized signature. It expires within 180 days unless requirements are certified complete; warranted extensions are 90 days each. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review
Final plat filing: After final approval, the owner generally must file the approved plat with the county clerk or register within 62 days, or approval expires. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review
Planned unit development: A planning approach that treats development as a coordinated whole, potentially combining flexible building placement, shared open space and different uses. It is not a form of ownership or an exemption from approvals. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review
Plat: A recorded map of a subdivision showing its lots and blocks, which lot-and-block descriptions refer to. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review
Site plan: Under Town Law § 274-a, a drawing showing the arrangement, layout and design of a proposed use on a single parcel, including elements such as parking, access, screening, landscaping and building locations. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review
Site plan review: Review of a proposed use's layout on one parcel. The town board may authorize the planning board or another administrative body to approve, approve with modifications or disapprove, with conditions reasonable and related to the site plan. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The local legislative body, the planning board, and the zoning board of appeals
Subdivision: The division of land into lots, reviewed through plats. Review has distinct steps: preliminary review, conditional approval, final approval and filing. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The local legislative body, the planning board, and the zoning board of appeals
Zoning board of appeals: The local board that decides needed area variances. — Land use regulations · Taught in The planning board: the comprehensive plan, subdivisions, PUDs, and site plan review, The zoning board of appeals, variances, special permits, Article 78, and local enforcement, The local legislative body, the planning board, and the zoning board of appeals, Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Area variance balancing test: The New York test weighing the applicant's benefit against detriment to the neighborhood or community, using five factors: neighborhood change, feasible alternative, substantiality, physical or environmental effects, and whether the difficulty was self-created. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement
Article 78 proceeding: A special proceeding in New York Supreme Court for court review of an administrative decision. For a town special use permit decision, Town Law § 274-b requires starting it within 30 days after filing of the decision with the town clerk. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement
Setback: The required distance between a structure and a specified boundary, such as a property line. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement, Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Special use permit: Authorization for a use that zoning already permits subject to requirements. A town board may authorize the planning board or another designated body to grant it, with conditions reasonable and directly related to the proposed special use. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement
Unnecessary hardship: The four-part showing for a use variance: no reasonable return, shown by competent financial evidence; hardship unique to the property; no change to the neighborhood's essential character; and hardship that was not self-created. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement
Use variance: Permission for a purpose otherwise prohibited by zoning. New York requires unnecessary hardship, shown for each and every permitted use, and the board grants the minimum relief necessary and adequate. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement, The local legislative body, the planning board, and the zoning board of appeals
Zoning enforcement official: The local official whose decisions or interpretations of zoning the zoning board of appeals may affirm, reverse or modify on appeal. — Land use regulations · Taught in The zoning board of appeals, variances, special permits, Article 78, and local enforcement
Beam: A horizontal member that supports other members. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Building permit: The document that primarily authorizes specified construction work before it proceeds. A permit alone does not establish that an addition is approved living space. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure, Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Certificate of occupancy: The document identifying approved occupancy or use after the applicable approval process. In New York, an exterior electric-box marker must be affixed as a condition of its final receipt. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure, Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department, Condominium certificates of occupancy, title, closing costs, and buyer qualification
Flashing: Material that directs water away from vulnerable joints, such as where a roof meets a chimney. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Footing: The part that spreads a structure's loads over supporting soil. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Foundation: The part that transfers building loads to the footings. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Grade: The ground's slope around a building, which should direct surface water away from foundations. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Joist: A framing member that supports a floor. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Load-bearing wall: A wall that supports loads beyond its own weight. A partition primarily divides space. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Partition wall: A wall that primarily divides space rather than carrying structural loads. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Rafter: A sloping framing member that supports a roof; engineered trusses serve a similar role. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Sheathing: The covering fastened over framing. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Soil bearing capacity: The ability of ground to support a building's loads. A soil investigation evaluates it; a survey does not. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
State Energy Conservation Construction Code: New York's energy code. Energy compliance is distinct from structural compliance. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Stud: A framing member that commonly forms the structure of a wall. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Survey: A drawing that establishes boundaries and locates improvements. It does not evaluate ground conditions. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Truss: An engineered framework that supports a roof. New York requires residential permit applications using truss type, pre-engineered wood or timber construction to identify it with the prescribed designation form. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure
Uniform Fire Prevention and Building Code: New York's construction and fire safety standards. The state fire prevention and building code council formulates it, and local governments generally enforce it; New York City has its own building code system. — Construction and environmental issues · Taught in Construction: permits, codes, certificates of occupancy, site requirements, and the structure, Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Air sealing: Reducing air leakage through gaps. It is distinct from insulation. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Boiler: Heating equipment that heats water or makes steam for radiators or other emitters. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Building envelope: The parts of a house that control heat and air movement between inside and outside. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Circuit breaker: A device that protects a circuit against overcurrent. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Condensation: Moisture that forms when moist air meets a sufficiently cold surface, such as droplets on a cold window. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Condenser: The outdoor air conditioning component that rejects the heat removed from indoors. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Cross connection: A link that can expose potable water to contamination through backflow. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Evaporator: The indoor air conditioning coil that absorbs heat. Water condensing on it dehumidifies the air and requires drainage. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Furnace: Heating equipment that heats air, commonly distributed through ducts. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Ground-fault circuit interrupter: A device, called a GFCI, that detects current imbalance to help protect people from shock. Grounding and bonding support a safe fault path and do not replace circuit protection. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Heat pump: Equipment that transfers heat rather than converting electricity directly to heat, and can often reverse operation to cool. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Insulation: Material that resists heat flow, helping in both winter and summer. It is distinct from air sealing. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Plumbing vent: A pipe that helps maintain drainage pressures and protect trap seals. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
R-value: A measure of thermal resistance of insulation; a higher R-value means greater resistance to heat flow. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Trap: A plumbing fixture that retains water to block sewer gas. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Ventilation: Exchanging indoor and outdoor air to control moisture and pollutants. Recirculating room air is not ventilation; blocking intended ventilation openings can cause moisture problems. — Construction and environmental issues · Taught in Insulation, ventilation, heating, air conditioning, plumbing, and electrical systems
Cancellation period: The owner's right under a covered New York home improvement contract to cancel by written notice until midnight of the third business day after signing. An owner-initiated emergency exception needs a separate dated, signed handwritten waiver. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Home improvement contract: Under General Business Law § 770, a contract for remodeling, roofing, additions and similar work with an aggregate price exceeding $500. It must be written, with written amendments signed by all parties. An ordinary new home sale is excluded. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Housing merchant implied warranty: New York's implied warranty for qualifying new homes under General Business Law § 777-a. It survives title transfer and provides one year for unskillful construction, two years for unskillful installation of building systems, and six years for material defects. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Material defect: A term used in two settings. In seller disclosure, a known fact materially affecting property value that is not readily observable and not known to the buyer. Under a new home warranty, actual physical damage to specified load-bearing portions that makes the home unsafe or unlivable; cosmetic damage alone does not qualify. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Progress payments: Payments under a home improvement contract that must state amounts and work stages and reasonably relate to work, materials or expenses. A bond, indemnity contract or irrevocable letter of credit may guarantee return or proper application of payments. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Replacement limited warranty: Under General Business Law § 777-b, the only way to replace the housing merchant implied warranty. It must meet statutory requirements, be available before signing and be incorporated into the contract; a bare disclaimer is not enough. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Warranty claim notice: Written notice that must reach the builder before suit and no later than 30 days after the applicable warranty expires. The owner must allow reasonable inspection, testing and repair. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Warranty date: The date from which the one-, two- and six-year periods of the housing merchant implied warranty run. — Construction and environmental issues · Taught in Mandated guarantees and warranties: home improvement and new home construction
Carpenter ant: An insect that excavates nesting galleries in wood rather than eating it, and can be associated with damp, damaged wood. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Clean Water Act section 404: The federal provision addressing permits for discharging dredged or fill material into covered waters. Filling a covered wetland can raise a permitting issue separate from well and septic condition. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Drainfield: The area where septic tank effluent receives further treatment in the soil. Pumping the tank does not repair a failed drainfield. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Effluent: The liquid sent from a septic tank to the drainfield. It is not potable water. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Mud tubes: Tubes built by subterranean termites, a sign of their activity near damaged wood. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Percolation test: A test of how water moves into soil, used to evaluate a septic site. It does not evaluate drinking-water quality. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Potable water: Water suitable for drinking. Appearance, taste and odor do not establish safety; laboratory testing identifies only the contaminants included in the test. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Scum: The material that floats on top of the liquid in a septic tank. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Septic system: A conventional on-site wastewater system that separates solids in a tank and sends liquid effluent to a drainfield for further treatment in suitable soil. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Sludge: The solids that settle to the bottom of a septic tank. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Subterranean termite: A wood-eating insect that may build mud tubes along foundations. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Well yield: A well's ability to produce water over time. It is separate from water quality. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Wood-boring beetle: An insect whose presence may be signaled by exit holes and powdery debris in wood. — Construction and environmental issues · Taught in Long-standing environmental issues: water, septic systems, and wood-destroying insects
Asbestos: Mineral fibers historically used in products such as pipe insulation, floor tiles and textured coatings. The concern is inhaling fibers released when material is damaged or disturbed. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Condition conducive to lead poisoning: Under New York Public Health Law § 1370, accessible lead paint, peeling or chipping paint, and other significant lead exposure conditions. Section 1373 provides notice and demand to correct qualifying paint conditions in high-risk areas. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Friable: Describes asbestos-containing material that can be crumbled under hand pressure when dry, which makes fiber release more likely. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Indoor air quality: The condition of indoor air as shaped by pollutant sources, ventilation and moisture. Combustion gases, volatile organic compounds and mold can impair it; fragrance merely masks odors. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Lead: A metal that can occur in paint, contaminated dust and soil, and plumbing. Deteriorating paint and renovation dust create exposure risks, especially for young children. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Lead risk assessment opportunity: A ten-day period, unless the parties mutually agree to a different one, that a purchaser of covered housing must receive to conduct a lead risk assessment or inspection. This purchaser opportunity is distinct from disclosures owed to tenants. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Lead Warning Statement: Required warning language about lead hazards that must appear in a contract to sell target housing, along with signed buyer acknowledgments. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Mold: Fungal growth supported by moisture and suitable material. Response requires correcting the moisture source and appropriately cleaning or removing affected material. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs, Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Polychlorinated biphenyls: Persistent industrial chemicals, called PCBs, associated with some older electrical equipment such as transformers and capacitors, and certain building materials such as caulk. They are not asbestos fibers or radon. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Radon: A radioactive gas from natural uranium decay in soil and rock that can enter through ground-contact openings and accumulate indoors. It cannot be seen or smelled, so each home must be tested. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Radon mitigation: Reducing indoor radon, commonly by drawing soil gas from beneath the building and venting it outside, followed by testing to confirm the reduction. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Volatile organic compound: A chemical released as gas from some products and materials that can impair indoor air quality. — Construction and environmental issues · Taught in Asbestos, lead, radon, indoor air quality, and PCBs
Chlorofluorocarbons: Refrigerants, called CFCs, used in older refrigeration and air conditioning equipment. Their release damages stratospheric ozone, and trained technicians handle recovery and servicing. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Electromagnetic fields: Fields that occur around electrical equipment and power lines, called EMFs. Proximity alone does not establish a particular health effect. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Financial responsibility: Required evidence that a regulated tank owner can pay for corrective action and covered third-party damage. It does not certify a leak-free tank. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Petroleum bulk storage law: New York law directing the Department of Environmental Conservation to establish facility standards and operator training. An unconnected heating oil tank storing under 1,100 gallons for consumption on site is excluded unless the site otherwise qualifies, which does not establish safety. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Phase I environmental site assessment: A review of historical uses, records, site conditions and interviews to identify potential environmental concerns. It ordinarily does not include soil or groundwater sampling. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Phase II environmental assessment: A follow-up investigation that may use targeted sampling and laboratory analysis to examine concerns identified in a Phase I. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Remediation: Work that addresses an environmental hazard or exposure, such as removal, encapsulation or cleanup, as distinct from disclosure or investigation. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Underground storage tank: A tank, such as for fuel, buried below the surface. Releases can contaminate soil and groundwater, and taking a tank out of service does not remove past contamination. — Construction and environmental issues · Taught in Environmental assessments, storage tanks, EMFs, CFCs, mold, and the agent's role
Appraisal analysis: A study of real estate that does not estimate value, such as a study of a site's physical usefulness. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Appraisal report: A communication of an appraiser's opinion of value. A federally related transaction needs a written report, which generally identifies the property and rights, explains the procedures and reasoning, and states the effective date and report date. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Cost: The amount spent to acquire or produce something. An improvement's cost does not establish what it adds to value. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Effective date: The date as of which an appraisal's value opinion applies, which need not be the report date. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Evaluation: A broad assessment of a property's characteristics, usefulness or suitability. In lending, a value assessment used when applicable rules allow it in place of an appraisal; the label does not establish that it satisfies a lender. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Investment value: Value to a particular investor based on that investor's own financing and return requirements, which can differ from market value. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Market value: An opinion of the most probable price a property should bring in a competitive, open market under normal sale conditions as of a specified date. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Price: The amount asked, offered or actually paid. A completed sale produces a transaction price. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Valuation: The part of an appraisal that estimates value. In New York's statutory definition, an appraisal can be a valuation or an analysis. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Written appraisal: Under federal law for a federally related transaction, an independent, impartial opinion of defined value by a licensed or certified appraiser for an adequately described property on a specific date, supported by relevant market information. — Valuation process and pricing properties · Taught in Appraisal, valuation and evaluation; market value; value, price and cost
Active listing: A property currently offered for sale, which shows competing asking prices but not completed sale prices. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Adjustment: A dollar or percentage change made to a comparable's sale price for a difference from the subject: subtract for a superior feature, add for an inferior one. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Asking price: The price a seller requests for a property. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Closed sale: A completed transaction, which supplies evidence of an actual sale price. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Comparable: A recently sold or listed property similar to the subject, used as evidence of the subject's value. Often called a comp. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Comparative market analysis: A license holder's analysis of comparable sales and listings to help a seller set an asking price or a buyer decide on an offer. Abbreviated CMA; it is not an appraisal. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Days on market: The time a property has been listed; with price reductions and sales pace it indicates how competitive a market is. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Expired listing: A listing that ended without a sale, which may suggest unsuccessful pricing or marketing, though failure to sell can have other causes. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Months of supply: Active inventory divided by average monthly sales; 24 listings with 6 sales per month is 4 months. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Pending listing: A listed property under contract but not yet closed, which may suggest market direction before its final price is known. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Reconciliation: Weighing the indications from the valuation approaches by their reliability and relevance to reach a conclusion, rather than averaging them. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property, Highest and best use, site valuation, and the three approaches to value
State certified appraiser: One of two credentials that New York Executive Law § 160-a distinguishes, along with state licensed appraiser. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
State licensed appraiser: One of two credentials that New York Executive Law § 160-a distinguishes, along with state certified appraiser. — Valuation process and pricing properties · Taught in The comparative market analysis, residential market analysis, and pricing a property
Accrued depreciation: The total loss in value of the improvements from all causes, compared with their cost new. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Allocation: A site valuation method that estimates land value by applying a supported land-to-total-value ratio. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Capitalization rate: The rate used to convert annual net operating income into value: value equals NOI divided by the rate. A higher rate gives a lower value. Also called a cap rate; it is not a mortgage interest rate. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value, Valuation by capitalization and the cap rate
Cost approach: A valuation approach that adds land value to the current cost new of the improvements minus accrued depreciation. It is most useful for new or special-purpose buildings. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
External obsolescence: Loss in value from causes outside the property, such as neighboring industrial noise or reduced local demand. Also called economic obsolescence; generally incurable by the owner. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Extraction: A site valuation method that subtracts the depreciated value of improvements from an improved property's sale price. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Functional obsolescence: Loss in value from a problem within the property itself, such as an awkward layout or an expensive feature buyers do not value. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value, Characteristics of real property investments and investment property types
Gross rent multiplier: A comparable's sale price divided by its gross rent for a stated period, usually monthly. Abbreviated GRM; multiplying the subject's rent for the same period by it estimates value. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Highest and best use: The reasonably probable use that is legally permissible, physically possible, financially feasible and maximally productive. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Income approach: A valuation approach that estimates value from a property's expected earning power, used especially for income-producing property such as apartment buildings. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Net operating income: Effective gross income minus operating expenses, before debt service. Abbreviated NOI; it is the income capitalized into value. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value, The reconstructed income and expense statement: NOI and cash flow, Valuation by capitalization and the cap rate, The property manager's skills, markets, obligations to the owner, and budgets
Principle of substitution: The principle that a buyer will pay no more for a property than the cost of an equally desirable substitute. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Replacement cost: The current cost to build a building with equivalent utility using modern materials, standards and design. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value, Property insurance: homeowners and tenant policies, coverage, and the agent's role
Reproduction cost: The current cost to build an exact duplicate of a building with the same design and materials, including outdated features. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Sales comparison approach: An approach using recent comparable sales and the principle of substitution, adjusting each comparable to the subject and never the subject to the comparable. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Site valuation: Valuing land, commonly by comparing sales of similar vacant sites, adjusted for location, size, utilities, access and permissible use, on a unit such as price per square foot. — Valuation process and pricing properties · Taught in Highest and best use, site valuation, and the three approaches to value
Discriminatory instruction: A client's or colleague's demand to exclude people because of a protected characteristic. A salesperson must refuse it, involve the sponsoring broker and document the facts; agency loyalty does not require unlawful obedience. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training
Fair housing disclosure notice: The Department of State notice that 19 NYCRR § 175.28 requires licensees to give prospective purchasers, tenants, sellers and landlords at first substantive contact. It covers all real property, and oral disclosure alone is insufficient. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training, Broker and salesperson fair housing responsibilities and New York's disclosure forms
Fair housing public notice: The notice 19 NYCRR § 175.29 requires in offices and open houses and as a conspicuous link on covered websites. It supports, but does not replace, individual disclosure. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training, Broker and salesperson fair housing responsibilities and New York's disclosure forms
Lawful source of income: A protected ground in New York, such as a lawful housing subsidy. Legitimate financial qualifications may be applied without excluding the protected source itself. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training, The New York State Human Rights Law and protected classes in New York
New York State Human Rights Law: The New York law, in Executive Law § 296, that prohibits housing discrimination by owners, managing agents, brokers and salespersons. It protects more classes than federal law and is stricter than the federal exemptions. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training, The New York State Human Rights Law and protected classes in New York
Protected characteristic: A trait on which housing decisions may not lawfully be based. The federal Fair Housing Act protects race, color, religion, sex, national origin, familial status and disability. States can add more: New York also protects, for example, creed, marital status, lawful source of income and citizenship or immigration status. — Human rights and fair housing · Taught in Pressure to discriminate and anti-bias training, Broker and salesperson fair housing responsibilities and New York's disclosure forms, The New York State Human Rights Law and protected classes in New York
Discriminatory advertising: Advertising or inquiries that express a preference or limitation based on a protected characteristic. It is prohibited even where an owner exemption applies. Describe the property, not a preferred class of customer. — Human rights and fair housing · Taught in Broker and salesperson fair housing responsibilities and New York's disclosure forms
Blockbusting: Seeking profit by inducing owners to sell or rent through representations that members of a protected group are entering the neighborhood. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Brown v. Board of Education: The Supreme Court case that rejected separate-but-equal in public education. It was not the enactment of a housing statute. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Buchanan v. Warley: The Supreme Court case that invalidated a racial residential zoning ordinance. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Civil Rights Act of 1866: A federal law (42 U.S.C. 1982) that protects citizens' equal rights in real and personal property against racial discrimination; Fair Housing Act owner exemptions do not remove it. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Direct threat: A distinct statutory limit on disability protection: a threat to others' health or safety or of substantial physical damage to others' property. Disability alone does not establish it. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Fair Housing Act: The federal law that prohibits housing discrimination based on race, color, religion, sex, national origin, familial status and disability. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Familial status: A protected class that generally covers children under 18 living with a parent, legal custodian or authorized designee, plus pregnancy and people securing legal custody. — Human rights and fair housing · Taught in Federal fair housing laws and their history, The New York State Human Rights Law and protected classes in New York
Federal 55-and-over housing: Older-person housing requiring at least 80 percent of occupied units to have at least one occupant 55 or older, published and followed policies showing the intent, and occupancy verification. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Federal protected classes: The seven categories covered by the Fair Housing Act: race, color, religion, sex, national origin, familial status and disability (called handicap in the statute). — Human rights and fair housing · Taught in Federal fair housing laws and their history
Housing for older persons: Housing exempt from familial-status restrictions, but not from other protected categories: qualifying government programs, housing solely occupied by persons 62 or older, or qualifying 55-and-over housing. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Plessy v. Ferguson: The Supreme Court case that upheld racial segregation under the separate-but-equal doctrine. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Private club exemption: An exemption letting a genuinely private club prefer members in noncommercial lodgings incidental to its primary purpose. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Private single-family exemption: A federal exemption requiring an individual owning no more than three such houses, using no brokerage services and complying with advertising restrictions. A sale outside the residence condition is limited to one in twenty-four months. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Reasonable accommodation: A change to a rule, policy or service needed for a person with a disability, such as an assistance-animal exception to a no-pets policy. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Reasonable modification: A physical change to premises needed for a person with a disability, such as grab bars, generally at that person's expense under the Fair Housing Act. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Religious organization exemption: An exemption letting a qualifying religious organization prefer its own religion in noncommercial housing, unless religious membership is restricted by race, color or national origin. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Small-building exemption: A federal exemption for an owner who lives in a building with no more than four independently occupied family quarters. It does not remove the discriminatory-advertising prohibition. — Human rights and fair housing · Taught in Federal fair housing laws and their history
Steering: Directing someone's housing choices based on a protected characteristic, such as showing homes only in certain neighborhoods. — Human rights and fair housing · Taught in Federal fair housing laws and their history, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Assistance animal: An animal that can be a reasonable accommodation in rules, policies, practices or services necessary for equal use and enjoyment of a dwelling. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York
Citizenship or immigration status: A New York protected ground in housing discrimination law, beyond the federal list. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York
Domestic violence victim status: A New York protected ground: an owner may not reject an otherwise qualified applicant because the applicant is a victim of domestic violence. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York
Election of remedies: Under Executive Law § 297, the general choice between an administrative complaint and a court action, with specified exceptions. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York, Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Managing agent: A person who manages property for an owner. Executive Law § 296 imposes duties on managing agents as well as owners, brokers and salespersons. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York
Marital status: A New York protected ground distinct from familial status: rejecting an applicant for being unmarried or divorced implicates it. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York
Owner-occupied rental exemption: New York's exemption for a building housing not more than two families living independently, with the owner residing in one. It is not a four-unit exemption and does not excuse discriminatory advertising. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York, Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Punitive damages: Damages that punish misconduct, as distinct from compensatory damages, which address injury. Housing discrimination may support them in appropriate cases. — Human rights and fair housing · Taught in The New York State Human Rights Law and protected classes in New York, Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Federal 62-and-over housing: Federal older-person housing that requires intended and sole occupancy by persons at least 62. — Human rights and fair housing · Taught in Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Section 3603(b) exemptions: Federal exemptions for qualifying owner-occupied and single-family housing. They preserve the § 3604(c) prohibition on discriminatory advertising. — Human rights and fair housing · Taught in Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Unequal treatment: Discriminatory terms, services, negotiations or access, such as a higher deposit because of religion or falsely claiming an available apartment is rented because the applicant has children. — Human rights and fair housing · Taught in Exemptions, and types of discrimination: steering, blockbusting, and unequal treatment
Administrative punitive damages cap: In a New York administrative housing proceeding, punitive damages to the aggrieved person may not exceed $10,000; this cap does not transfer to a court action. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Cease and desist list: The current list of owners in a cease and desist zone who have filed no-solicitation statements. Mere residence in the zone does not replace list membership. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Cease and desist zone: A defined area, established by the Secretary of State under Real Property Law § 442-h after intense, repeated solicitation, where residential owners may file statements requesting no solicitation. It protects only owners on the current list and lasts up to five years. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Compensatory damages: Money awarded to make up for proven loss caused by a breach, not to punish the breaching party. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Direct listing solicitation: Telephone calls, mail and personal contact by brokers, salespersons and others regularly engaged in buying and selling real estate to obtain a listing. Cease and desist zones restrict it for owners on the list. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Nonsolicitation order: An order by the Secretary of State, after a public hearing, restricting solicitation of residential listings or sales throughout a defined area where intense, repeated solicitation caused owners to fear declining values from people of different backgrounds moving in. It lasts up to five years and does not depend on an owner joining a list. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Probable-cause determination: The finding that allows any party in a New York housing discrimination complaint to elect a civil court action within twenty days. — Human rights and fair housing · Taught in Legal responsibility and penalties, cease and desist zones, and nonsolicitation orders
Appreciation: An increase in property value, often expressed as a percentage of the starting value. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points, Characteristics of real property investments and investment property types
Base: The whole amount a percentage is applied to. Identify it before calculating; part equals base times decimal rate. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Commission split: Division of a commission among parties. Apply each split to the correct share: on a $20,000 commission, a 50% brokerage share is $10,000 and a salesperson's 60% of that is $6,000. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Contract interest rate: The rate stated in the loan contract, used for simple interest calculations. It differs from the annual percentage rate, which reflects borrowing costs under federal disclosure rules. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Depreciation: Loss in value from any cause in appraisal, or a tax cost-recovery deduction for a building or improvement. A tax deduction is not a cash outflow or proof of declining market value. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Percent: Per hundred. Convert a percent to a decimal by dividing by 100, and a decimal to a percent by multiplying by 100. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Point: One percent of the loan amount. Two points on a $300,000 loan is $6,000; discount points are upfront interest charges, not a guaranteed rate reduction. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Simple interest: Interest computed as principal times annual rate times years. — Real estate mathematics · Taught in Percentages: commissions, interest, appreciation and depreciation, and points
Acre: A unit of land area equal to 43,560 square feet. It measures area and does not prescribe a shape. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Area: The surface inside a boundary, measured in square units such as square feet or acres. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Assessed value: The value assigned to property for tax purposes, which can differ from market value and sale price. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates, Property taxation, assessed value, and computing the tax rate and tax
Gross monthly income: Annual gross income divided by 12, used in the monthly qualifying ratios. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Mill: One dollar of tax per $1,000 of taxable value, or 0.001. Fifteen mills equals 1.5 percent, or $1.50 per $100. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates, Property taxation, assessed value, and computing the tax rate and tax
Perimeter: The distance around a boundary, measured in linear units such as feet. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Property tax: Annual tax equal to taxable assessed value divided by the rate unit, times the stated rate. At $20 per $1,000, a $150,000 assessment gives $3,000. — Real estate mathematics · Taught in Area and length, basic mortgage qualifying, and transfer, mortgage recording and property tax rates
Local legislative body: The body that adopts local laws. For a New York town it is the town board, which adopts zoning laws. — Municipal agencies · Taught in The local legislative body, the planning board, and the zoning board of appeals
Variance: Specific relief from a zoning requirement, commonly a dimensional one such as a setback, granted when hardship standards are met. Wanting more profit is not enough. — Municipal agencies · Taught in The local legislative body, the planning board, and the zoning board of appeals
Zoning amendment: A legislative change to a district's permitted uses. It is made by the town board, not by a planning board approval or a variance. — Municipal agencies · Taught in The local legislative body, the planning board, and the zoning board of appeals
Zoning authority: Under Town Law § 261, the town board's power to regulate land uses, building height, lot coverage, yards and population density for community health, safety and welfare. It applies outside incorporated villages and cities. — Municipal agencies · Taught in The local legislative body, the planning board, and the zoning board of appeals
Assessor: The official who values property for assessment purposes and maintains assessment information. Under Real Property Tax Law § 505 the assessor verifies the tentative assessment roll. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department, Taxing jurisdictions, special assessment districts, and exemptions
Board of assessment review: The board that hears administrative complaints that a property's assessment is excessive. Paying a tax bill does not resolve an assessment challenge. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department, Property taxation, assessed value, and computing the tax rate and tax, Taxing jurisdictions, special assessment districts, and exemptions, Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Building department: The municipal office handling permits, inspections, code compliance and occupancy documentation. Final occupancy or completion documentation addresses a different stage than a permit. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Health department: The agency addressing sanitation and public health, including private wells and septic systems within its jurisdiction. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Municipal engineer: The official who addresses infrastructure and technical matters such as roads, grading, drainage, and water or sewer improvements. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Receiver of taxes: The official, also called the tax collector, who collects taxes and maintains payment records. Payment questions go to this office; valuation questions go to the assessor. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Tentative assessment roll: The preliminary list of properties and estimated values the assessor prepares and must verify under Real Property Tax Law § 505. — Municipal agencies · Taught in Review boards, the building department, the assessor, the receiver of taxes, the engineer, and the health department
Actual cash value: Generally replacement cost less depreciation. A $8,000 item with $2,000 depreciation has an actual cash value of $6,000. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Deductible: The amount the insured must pay toward a covered claim before the insurer pays. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-3: A homeowners form that generally covers the dwelling on an open-peril basis and personal property against named perils. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-4: The renters form, covering a tenant's belongings, liability and loss of use rather than the landlord's building. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-5: A homeowners form that generally provides open-peril protection for both the dwelling and personal property. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-6: The condominium unit-owner form, covering belongings and covered unit improvements alongside the association's master policy. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-7: A homeowners form designed for mobile or manufactured homes. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
HO-8: Modified coverage often suited to older homes whose replacement cost exceeds market value; its settlement terms differ from ordinary replacement-cost protection. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Homeowners insurance: A standard property policy for a home, which generally excludes flood damage unless separate flood protection is arranged. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Loss of use: Homeowners coverage that can pay additional living expenses, such as hotel costs, after a covered loss makes the home uninhabitable. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Named-peril coverage: Coverage that applies only to a listed cause of loss. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Open-peril coverage: Coverage that applies to any cause of loss unless it is excluded. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Personal liability coverage: Homeowners coverage for covered claims by others. Medical payments coverage can pay certain injuries without requiring a finding of fault. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Property Insurance Underwriting Association: The New York association to which a person with an insurable interest, who has made a diligent normal-market effort, may apply under Insurance Law § 5403. Its fire coverage is not a complete homeowners package. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Windstorm deductible disclosure: Under New York Insurance Law § 3445, regulations require an insurer's plain-language notice explaining the amount and circumstances of a windstorm deductible. The law does not set one universal percentage or trigger. — Property insurance · Taught in Property insurance: homeowners and tenant policies, coverage, and the agent's role
Check-in plan: A plan telling a designated colleague where the salesperson will be, whom they are meeting and when they will check in, with agreed steps after a missed check-in. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Defense of a person: Under New York Penal Law § 35.15, justified physical force based on a reasonable belief that it is necessary against unlawful or imminent unlawful physical force, with limits. For anticipated deadly attacks, retreat is required when complete safety is possible, subject to exceptions. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Defense of premises: Under New York Penal Law § 35.20, reasonably necessary nondeadly force for crimes involving damage and, for eligible persons, criminal trespass. Deadly force has separate arson and qualifying burglary conditions; ordinary trespass does not satisfy them. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
General liability insurance: Coverage for bodily injury and property damage claims arising from premises and operations, such as a visitor's fall. It addresses different exposure than professional liability insurance. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Licensee safety: Procedures covering the office, showings, travel and online communication, applied consistently: control visitor access, use the brokerage's intake and appointment procedures, and arrange check-ins with a designated colleague. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Multifactor authentication: A login protection requiring more than a password. Combined with unique passwords, it strengthens access security for business accounts. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Negligence: A claim that generally involves a duty, breach, causation and damages. Safety procedures reduce risk but do not eliminate liability. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Professional liability insurance: Coverage for claims arising from professional services. It addresses different exposure than general liability insurance. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Wire fraud: A scam using changed wiring instructions. Confirm payment instructions by calling a known, verified number, not one in the suspicious message. — Licensee safety · Taught in Licensee safety: at the office, in the field, online, and liability
Ad valorem: Based on value. Ad valorem property taxes are computed from a property's taxable value and the tax rate. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Assessment: A word with two real estate meanings. In a condominium or community, a charge on owners for common expenses, owed even by an owner who does not use an amenity. In property tax, the official determination of a property's value and whether it is taxable. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax, Taxing jurisdictions, special assessment districts, and exemptions
Assessment roll: The official list of assessments. Real Property Tax Law § 502 requires it to show the applicable percentage, land assessment, total assessment and full value, with an exception for condominium land values. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Classified assessment system: An exception to the uniform percentage standard, used by a qualifying city, under which property classes are assessed at different percentages. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Equalization: A process that helps allocate taxes across assessing units with different assessment levels. The county equalization rate is not a parcel's tax rate. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Tax levy: The amount a taxing body raises through property taxes, after subtracting other revenue from the budget. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Tax rate: The rate a taxing authority adopts and applies to taxable value, expressed as a percentage, in mills or in dollars per $100. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Taxable assessed value: The assessment after applicable exemptions for the particular levy. It, not market value, is the base the tax rate applies to. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Uniform percentage standard: Real Property Tax Law § 305 generally requires assessment at a uniform percentage of value within an assessing unit. A qualifying city's classified assessment system is an exception. — Taxes and assessments · Taught in Property taxation, assessed value, and computing the tax rate and tax
Assessing unit: The jurisdiction that prepares an assessment roll. Assessment, collection and review are separate functions. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Senior citizens exemption: A property tax exemption; Real Property Tax Law § 467 includes a procedure for a qualifying purchaser acquiring property after taxable status date to apply within thirty days of title transfer. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Special ad valorem levy: A charge on benefited property in the same manner and at the same time as municipal taxes. New York's definition excludes charges imposed by or on behalf of a city or village. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Special district: A district that provides or finances improvements or services benefiting its inhabitants or real property, such as a water or sewer improvement district. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Special district assessment: A charge on benefited property in proportion to the benefit received. It can cover operation and maintenance, not only initial construction. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
STAR: School Tax Relief, a New York program concerning school taxes. Its exemption and its personal income tax credit are distinct routes, and an administrative error omitting an eligible exemption may be remedied by direct payment but not also a refund. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Tax exemption: A reduction of the taxable assessed value for a particular levy and qualified owner. It must be matched to the program, local adoption and application requirements; a seller's exemption does not establish the buyer's savings. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Taxing jurisdiction: A governmental unit that levies property tax, such as a county, city, town, village or school district. Several can use an assessment prepared by one assessing unit. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Veterans exemption: A property tax exemption; Real Property Tax Law § 458 provides a mechanism to adjust an existing exemption after a qualifying revaluation. An increased exempt assessment is not an equal cash refund. — Taxes and assessments · Taught in Taxing jurisdictions, special assessment districts, and exemptions
Excessive assessment: A ground for an assessment complaint: the assessment overvalues the property. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Grievance: The administrative complaint to the board of assessment review challenging an assessment. Under Real Property Tax Law § 524 it is filed before or at the board hearing, not at an adjourned hearing. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Grievance day: The applicable date for administrative review of assessments; it varies by locality, so check the local calendar. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Misclassified assessment: A ground for an assessment complaint: the property was placed in an incorrect property class. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Small claims assessment review: A simplified hearing-officer route for qualifying residential owners after administrative review. It requires a separate petition and $30 fee for each parcel, and the hearing officer cannot reduce the assessment below the amount requested. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Tax certiorari: The formal court route for judicial review of an assessment, commonly used for commercial property. It involves legal pleadings and valuation evidence. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Unequal assessment: A ground for an assessment complaint: the assessment level is unfair compared with other property. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Unlawful assessment: A ground for an assessment complaint: the assessment was imposed contrary to law. — Taxes and assessments · Taught in Protesting assessments: grievance, small claims assessment review, certiorari, and tax liens
Attorney General filing letter: A letter stating that an offering has been filed, required before offers, advertising or sales of a covered offering. Filing is not approval of the issue or sale by the Attorney General. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Common interest: A unit owner's undivided share in the common elements. A unit together with its common interest is real property under Real Property Law § 339-g, and voting measures may use common interest, unit count or both. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Condominium Act: The New York law to which a condominium declaration submits property. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Floor plans: Plans showing unit layouts, locations and approximate dimensions, with professional certification, filed with the recording officer at the same time as the declaration under Real Property Law § 339-p. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Governing board: The owners' board that administers a condominium's common affairs under the by-laws. It has a different role from the sponsor. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
No-approval statement: A statement required in sales literature and advertising that the Attorney General has not approved the offering. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Offering plan: The document that discloses the transaction to prospective purchasers, including the interest offered, how title will be held and specified financial information, under General Business Law § 352-e. It is not the declaration. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Sponsor: The person or entity organizing and offering a condominium project, often a developer or an owner converting a building. — Condominiums and cooperatives · Taught in Condominiums: definition, by-laws, the sponsor, and the offering plan
Condominium project eligibility: A lender's evaluation of the condominium project itself, which may involve finances, insurance and litigation, in addition to the borrower's qualification. Preliminary borrower approval is not final approval of the project. — Condominiums and cooperatives · Taught in Condominium certificates of occupancy, title, closing costs, and buyer qualification
Fee condominium: An ordinary condominium in which the deed conveys the unit and its associated common interest. New York also recognizes qualified leasehold condominiums. — Condominiums and cooperatives · Taught in Condominium certificates of occupancy, title, closing costs, and buyer qualification
Leasehold condominium: A qualified condominium in which the unit owner holds a leasehold estate rather than fee title; the estate being purchased must be identified. — Condominiums and cooperatives · Taught in Condominium certificates of occupancy, title, closing costs, and buyer qualification
Temporary certificate of occupancy: A certificate permitting occupancy within its stated scope and duration, rather than providing permanent authorization. — Condominiums and cooperatives · Taught in Condominium certificates of occupancy, title, closing costs, and buyer qualification
Board approval: The cooperative's consent to a transfer, when its documents require it. It is separate from loan approval. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs, The co-op board package and interview, subletting, and condops
House rules: Cooperative rules governing daily use of the building. Bylaws govern corporate affairs. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Maintenance: Charges a cooperative shareholder pays to fund corporate expenses; they may include taxes and underlying mortgage payments. Low maintenance alone does not establish financial health. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Proportionate share: Under § 216(b)(3), a tenant-stockholder's stock compared with total outstanding stock, including stock held by the corporation; 120 of 6,000 shares is 2%. An elected special allocation can apply in qualifying cases. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Recognition agreement: An agreement in a financed cooperative purchase addressing the rights of the lender and the cooperative. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Share loan: A buyer's loan secured by cooperative shares and the proprietary lease. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Stock certificate: The document that evidences a cooperative purchaser's ownership of corporate shares. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Tenant-stockholder: Under 26 U.S.C. § 216(b)(2), a person who owns fully paid-up stock in a cooperative housing corporation in an amount bearing the required reasonable relationship to the corporation's equity attributable to the dwelling the person may occupy. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Underlying mortgage: The cooperative corporation's own mortgage on the building, distinct from a shareholder's share loan. — Condominiums and cooperatives · Taught in Cooperatives: shares, due diligence, and the documents a sale needs
Board interview: A meeting that often follows review of a complete board package. An invitation is not an approval, and the board's discretion does not permit unlawful discrimination or retaliation. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Board package: The application materials a cooperative board commonly reviews, such as a financial statement, tax returns, account statements, income verification, references and financing information. The contents are building-specific practice, not a statewide checklist. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Condop: In its structural sense, a condominium framework with a cooperative residential component, such as a condominium whose residential unit is owned by a cooperative corporation. As a marketing label it proves neither ownership structure nor rental permission. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Cooperative sublet: An arrangement under which another person occupies while the shareholder remains the proprietary lessee. It needs the permission required by the lease, bylaws and policies, and the shareholder generally remains responsible for maintenance. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Financial statement: A summary of an applicant's assets and liabilities; supporting documents verify the figures. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Retaliation: Threats, coercion or interference against people who assert fair housing rights or help others assert them, which the law prohibits. — Condominiums and cooperatives · Taught in The co-op board package and interview, subletting, and condops
Equity: Current property value minus the outstanding debt secured by it. It is not the same as net sale proceeds, and a higher LTV means less equity. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Hotel: Short-term lodging property with intensive hospitality operations. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Illiquid: Describes an asset that is hard to convert to cash quickly. Directly owned real estate is relatively illiquid because selling takes time and transaction costs. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Industrial property: Property used for manufacturing, storage and distribution, where loading access and transportation links matter. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Leverage: The use of borrowed money. It reduces the equity needed to control a property and magnifies gains and losses relative to that equity. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Multifamily building: A residential rental building with multiple housing units. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Office property: Property providing workspace for businesses, where employment and tenant space needs influence demand. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Principal reduction: Equity growth through loan principal repayment. It reduces debt, whereas appreciation increases property value. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Rental income: Rent collected from tenants, one source of investment return. It is not the owner's spendable cash, since operating expenses and debt payments must be considered. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Retail property: Property providing space for selling goods and services, where visibility and customer access matter. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Section 1031 exchange: Under 26 U.S.C. § 1031, nonrecognition of gain or loss for a qualifying exchange of real property held for investment or productive business use for like-kind real property held for those purposes. Property held primarily for sale is excluded, and the result is generally tax deferral. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Undeveloped land: Land held for potential future use or appreciation, often with carrying costs and no current rent. — Commercial and investment properties · Taught in Characteristics of real property investments and investment property types
Before-tax cash flow: Net operating income minus debt service, assuming no other cash adjustments. Tax depreciation is not subtracted. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Debt service: Mortgage principal and interest payments. They are not operating expenses, so financing does not change NOI. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Effective gross income: Potential gross income minus vacancy and collection losses, plus other income. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow, Valuation by capitalization and the cap rate, The property manager's skills, markets, obligations to the owner, and budgets
Operating expenses: Recurring costs of running a property, such as property taxes, insurance, management and routine maintenance. Mortgage payments, income taxes and accounting depreciation are excluded. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Potential gross income: A property's income at full occupancy, before vacancy and collection losses. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Reconstructed income and expense statement: An adjusted statement that estimates a property's supportable ongoing performance, using leases, the rent roll, collection history, bills and market evidence. It corrects omissions, separates personal costs from property costs and excludes unusual expenditures. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Rent roll: A schedule of a property's tenants, units and rents, used to review lease income. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Vacancy and collection loss: An allowance subtracted from potential gross income for unrented space and uncollected rent. — Commercial and investment properties · Taught in The reconstructed income and expense statement: NOI and cash flow
Cap rate relationships: Cap rate equals NOI divided by value, and NOI equals value times cap rate. At constant NOI, a higher cap rate gives a lower value; greater perceived risk generally supports a higher cap rate. — Commercial and investment properties · Taught in Valuation by capitalization and the cap rate
Cash-on-cash return: Annual before-tax cash flow divided by the initial cash invested. Unrealized appreciation is not added to it. — Commercial and investment properties · Taught in Valuation by capitalization and the cap rate
Direct capitalization: Estimating value by dividing one year's net operating income by a capitalization rate expressed as a decimal. — Commercial and investment properties · Taught in Valuation by capitalization and the cap rate
Add-on percentage: (Rentable minus usable) divided by usable area. With 1,200 rentable and 1,000 usable square feet it is 20%. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Carpetable area: Clear floor area available for floor covering or layout, excluding walls, columns and similar obstructions. It is not the amount of carpet actually installed. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Loss factor: (Rentable minus usable) divided by rentable area; 200 over 1,200 is about 16.67%. It measures the share of rentable area that is not usable, not vacancy, and differs from the add-on because of its denominator. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Rentable area: Usable area plus an allocated share of common areas such as shared lobbies and corridors. The allocation does not confer exclusive possession of the common areas. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Rentable-to-usable multiplier: Rentable area divided by usable area; 1,200 over 1,000 is 1.20. Rentable equals usable times one plus the add-on. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Usable area: The tenant's exclusive-use space under the applicable measurement convention. — Commercial and investment properties · Taught in Rentable, usable and carpetable square footage, and loss and add-on factors
Base rent: The starting rent in a lease, before additional charges or percentage rent. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Double net lease: Conventionally, a net lease adding property taxes and property insurance to base rent. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Loft lease: A lease of a large, relatively open space, often in a former industrial building. A loft designation does not itself authorize residential occupancy. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Modified gross lease: A lease dividing specified expenses between landlord and tenant, such as landlord payment of base year expenses and tenant payment of an agreed share of later increases. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Natural breakpoint: In a percentage lease, base rent divided by the percentage rate as a decimal: $30,000 over 0.06 is $500,000 of sales. It is a rent threshold, not the store's profit break-even point. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Office lease: A lease of business workspace, addressing services, heating and cooling hours, improvements and usable versus rentable area. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Overage: Percentage rent owed on sales above the breakpoint, added to base rent: $200,000 of excess sales at 6% is $12,000. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Retail lease: A lease of customer sales space, addressing permitted use, signs, common area expenses and sometimes exclusive use or percentage rent. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Single net lease: Conventionally, a net lease adding property taxes to base rent. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Triple net lease: A net lease under which the tenant typically pays property taxes, insurance and maintenance expenses in addition to rent. — Commercial and investment properties · Taught in Commercial lease types: net, gross, office, retail, percentage, and loft leases
Alteration clause: A lease clause addressing approvals, payment and removal of tenant improvements. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Base-year expense clause: An escalation clause under which the tenant pays its agreed share of eligible expense increases above a designated year's baseline, not its share of the entire current bill. $230,000 less $200,000 at 10% is $3,000 a year. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Consumer Price Index clause: An escalation clause tying rent to a named inflation index. It identifies the index series, comparison dates, adjustment interval and any floor or cap; an index moving from 250 to 260 raises rent 4%. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Escalation clause: A lease clause that adjusts rent or additional charges using a stated trigger, such as a fixed schedule, a base-year comparison, a tax stop, a wage index or an inflation index. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Exclusive-use clause: A lease clause that can restrict competing uses elsewhere in a project. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Porter's-wage clause: An escalation clause tying an adjustment to a specified building-service wage rate used as an index, not necessarily the property's actual payroll increase. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Renewal option: A lease right stating how and when the tenant may extend the term and how renewal rent will be determined. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Tax-stop clause: An escalation clause setting the property-tax amount the landlord absorbs. The tenant pays its specified share above that stop; it is not a freeze on the government's tax bill. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Use clause: A commercial lease clause identifying the permitted activities in the premises. — Commercial and investment properties · Taught in Commercial lease clauses and escalation clauses
Acquisition debt: Debt used to buy, build or substantially improve a residence and secured by it. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion, Like-kind exchanges and the tax rules for acquisition financing
Adjusted basis: Cost plus capital improvements, less depreciation adjustments. Ordinary maintenance does not add to it. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion, Investment property: classes of income, gain and loss, depreciation, and recapture
Amount realized: Generally the sale price less selling expenses. A mortgage payoff reduces cash received but does not reduce gain. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion, Investment property: classes of income, gain and loss, depreciation, and recapture
Capital improvement: A substantial addition or upgrade to a property, such as a new rental wing, which is separated from routine operating expenses. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Deduction: An amount that reduces taxable income. It is not a dollar-for-dollar tax credit. A homeowner generally must itemize to deduct qualifying mortgage interest and real property taxes. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Exclusion: A word with two real estate meanings. As an ownership right, the right to keep out those with no right to enter. In tax, an amount of qualifying gain kept out of gross income, as with the principal residence exclusion. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Home mortgage interest: Interest, but not principal, on qualifying home debt. Borrowing to buy, build or substantially improve the secured home can be acquisition debt; a 'home equity loan' label does not decide tax treatment. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Nonqualified use: Use that is not as a principal residence; gain allocated to it can be ineligible for exclusion, with statutory exceptions. Gain from depreciation adjustments after May 6, 1997 also cannot be excluded. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Principal residence exclusion: Under Section 121, exclusion of up to $250,000 of gain ($500,000 for qualifying joint filers) if the home was owned and used as a principal residence for periods totaling at least two years in the five years before sale. It cannot apply twice within two years. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Qualified residence: A principal residence and one selected other residence meeting the requirements, for qualified residence interest. Under Section 163, debt secured by qualifying cooperative shares can be treated as secured by the apartment. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion
Realized gain: Amount realized minus adjusted basis: $600,000 less $300,000 is $300,000. A loss on a personal residence generally is not deductible. — Income tax issues in real estate transactions · Taught in Federal income tax treatment of a home: deductions and the principal residence exclusion, Investment property: classes of income, gain and loss, depreciation, and recapture
Active income: Income from personal-service compensation. Making rental management decisions does not turn rent into wages. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Additional depreciation: Under § 1250(b), for property held more than one year, the excess of depreciation adjustments over the straight-line amount. Equal amounts give zero. It is not synonymous with all depreciation. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Basis: The starting tax measure of an owner's investment: original cost, increased by capital improvements and reduced by depreciation, giving adjusted basis. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Depreciation deduction: A noncash deduction that allocates the depreciable cost of income-producing improvements over time. Land is not depreciable, and the deduction is distinct from changes in market value. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Passive income: Income from passive activities. Under § 469, businesses without material participation and rental activities generally fall in the passive category, subject to exceptions. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Passive loss limitation: Section 469 generally limits passive losses against nonpassive income and carries disallowed losses forward. Passive income can absorb passive losses, and the rental active-participation allowance has eligibility and income limits. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Portfolio income: Investment interest and dividends outside an ordinary trade or business. — Income tax issues in real estate transactions · Taught in Investment property: classes of income, gain and loss, depreciation, and recapture
Boot: Cash or nonqualifying property received in an exchange. It can trigger gain recognition up to the realized gain, and another party's assumption of the taxpayer's liability is treated as money received. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Delayed exchange: A like-kind exchange where replacement property is acquired later. It must meet identification and completion deadlines; simply collecting proceeds and later buying another investment is not enough. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Investment interest deduction: For a noncorporate taxpayer, investment-interest deductions cannot exceed net investment income, and disallowed amounts carry forward. Qualified residence interest and passive-activity interest are excluded from this category. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Like-kind exchange: Since 2018, a tax-deferred exchange available only for real property held for business or investment use, for other such real property. Personal residences and property held primarily for sale do not qualify, and U.S. and foreign real property are not like kind. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Net investment income: Investment income minus qualifying investment expenses; it caps the investment-interest deduction. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Qualified intermediary: A party that commonly helps structure an exchange without the taxpayer receiving the sale proceeds. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Recognized gain: The part of realized gain that is taxed currently. In a like-kind exchange, deferral preserves the rest through replacement-property basis. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Replacement basis: In a simple exchange, old adjusted basis minus cash received plus recognized gain. Market value does not replace the carryover basis. — Income tax issues in real estate transactions · Taught in Like-kind exchanges and the tax rules for acquisition financing
Application fee disclosure: Under Banking Law § 595-a, a mortgage broker must disclose, at or before application, fees payable at application and the conditions under which they may be refunded. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Mortgage banker: A firm that originates and funds loans and may sell them to investors. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Mortgage broker: A party who arranges financing by matching borrowers with lenders and submitting applications, without funding the loans. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Mortgage broker dual agency disclosure: The Department of Financial Services rule requiring disclosure to the borrower when a mortgage broker also acts as the real estate broker in the transaction. It is separate from identifying buyer and seller representation in the sale. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Mortgage brokerage business: Business of soliciting, processing, placing or negotiating mortgage loans for a fee. A real estate broker or salesperson accepting no fee is not deemed in it, but a separate mortgage services fee changes that, and a real estate credential alone does not authorize it. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Superintendent of Financial Services: The New York official who administers mortgage banker licensing and mortgage broker registration under Banking Law article 12-D. — Mortgage brokerage · Taught in Mortgage brokers and bankers, their role, and the Banking Law dual agency disclosure
Emergency authority: The management agreement's provision allowing a manager to act in an emergency, with the response documented. — Property management · Taught in Property management and the management agreement
Management agreement: A written contract identifying the parties, property, term, services, compensation, authority to lease, collect, hire and spend, approval limits, emergency procedure, reserves, reporting and transition of records and funds when management ends. — Property management · Taught in Property management and the management agreement, The property manager's skills, markets, obligations to the owner, and budgets
Management fee: A property manager's compensation, computed on the base the agreement specifies, such as rents actually collected. — Property management · Taught in Property management and the management agreement
Property management: The operation of real estate for an owner: collecting rent, arranging maintenance, coordinating leasing, paying authorized expenses and reporting results. — Property management · Taught in Property management and the management agreement
Security deposit: Money a tenant pays to secure lease obligations. It is not rent income and must be recorded separately, with deductions limited to lawful ones. — Property management · Taught in Property management and the management agreement, The property manager's skills, markets, obligations to the owner, and budgets
Spending authority: The limit in a management agreement on what a manager may spend without owner approval. A budget does not replace a separate approval restriction. — Property management · Taught in Property management and the management agreement
Budget variance: The difference between actual results and the budget. A favorable expense variance may mask deferred maintenance, and significant variances should be investigated and explained. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Capital budget: A plan for major improvements and replacements, such as a new roof. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Cash forecast: A projection of when funds will arrive and bills will fall due, showing timing problems even when projected NOI is positive. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Concession: A benefit given to a tenant to secure a lease, such as a free month's rent. A manager may grant one only with the authority the agreement provides. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Deferred maintenance: Needed upkeep that has been postponed, which can be hidden by low expenses. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Operating budget: A forecast of recurring income and expenses. Potential rent less vacancy and collection loss plus other income gives effective gross income; subtracting operating expenses estimates net operating income. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Property manager: A person who operates property for an owner, combining financial analysis, market knowledge, communication, recordkeeping and maintenance judgment. The manager owes the owner loyalty, reasonable care, disclosure of material information and an accounting. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets
Tenant retention: Keeping tenants through lease renewals; a manager studies move-outs and turnover to address it. — Property management · Taught in The property manager's skills, markets, obligations to the owner, and budgets

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