The period during which the exchanger must identify
replacement property in a 1031 tax deferred exchange.
The identification period starts on the day the
exchanger transfers the first relinquished property and
ends at midnight on the 45th day thereafter.
An agency agreement created by the actions of the
parties, and not a stated (written or verbal) agreement.
When the owner of two or more adjacent properties sells
a part thereof, he or she grants by implication all
those apparent and visible easements which are necessary
for the reasonable use of the property granted.
A theory in landlord/tenant law in which the landlord
renting residential property implies quiet enjoyment of
the property or that the property is habitable.
1) Any structure, usually privately owned, erected
on a site to enhance the value of the property--for
example, building a fence or a driveway. 2) A publicly
owned structure added to or benefiting land, such as a
curb, sidewalk, street or sewer.
income and expense report
A financial report generated by a property manager that
details the income and expenses from a property and the
amount remitted to the owner.
The process of estimating the value of an
income-producing property through capitalization of the
annual net income expected to be produced by the
property during its remaining useful life.
The relationship between a person's total income and the
amount needed to make one month's mortgage payment.
increasing and diminishing returns
The addition of more improvements to land and structures
which increases value only to the assets' maximum value.
Beyond that point, additional improvements no longer
affect a property's value. As long as money spent on
improvements produces an increase in income or value,
the law of increasing returns applies. At the point
where additional improvements do not increase income or
value, the law of diminishing returns applies.
To compensate for damage or loss sustained, or loss
A clause designed to hold harmless the broker against
any and all liability, claims, suits, losses, costs and
legal fees caused by, arising out of, or resulting from
any negligent act or omission and/or failure to perform
on the part of its agents involved in the execution of
One who is retained to perform a certain act, but who is
subject to the control and direction of another only as
to the end result and not as to how he or she performs
the act. The critical feature, and what distinguishes an
independent contractor from an employee or agent, is the
degree of control the employer has over such a person's
Used to set interest rates, such as the six month
Treasury bill rate.
A lease containing an escalation clause that is tied to
The appraisal method of estimating building costs by
multiplying the original cost of the property by a
percentage factor to adjust for current construction
Breathing air inside a habitable structure, often highly
polluted because of lack of exchange with fresh oxygen
from outdoors. Solvents, smoke, paints, furniture glues,
carpet padding, and other synthetic chemicals trapped
inside contribute to an often unhealthy environment.
The gradual reduction of the purchasing power of the
dollar, usually related directly to the increases in the
money supply by the federal government.
A way to enter a property - access.
A sale in which the listing broker is the only broker in
the transaction; there is no outside broker involved as
in a cooperative sale. Either the listing salesperson
finds the buyer, or another salesperson working for the
listing broker finds the buyer. If the buyer is a client
of the broker, the issue of dual agency arises.
A legal action whereby a court issues a writ that
forbids a party defendant from doing some act or compels
the defendant to perform an act. An injunction requires
the person to whom it is directed to refrain from doing
a particular thing, such as violating deed restrictions
or house rules.
A term loan calling for payments of interest only, not
to include any amount for principal.
A judicial proceeding by which, when two parties make
the same claim against a third party, the rightful
claimant is determined. As such, he could require them
to litigate their problems between themselves, instead
of litigating it with him.
A judicial proceeding where an innocent third party,
such as an escrow agent or broker, can deposit with the
court property or money that he or she holds and that is
subject to adverse claims. The court can then distribute
it to the rightful claimant.
An appraisal term referring to the value created by a
person's personal preferences for a particular type of
1. to come into use; take or have effect. 2. to become
beneficial or advantageous.
A lien placed on property without the consent of the
IRS tax lien
A federal tax lien, or Internal Revenue Service (IRS)
tax lien, results from a person's failure to pay any
portion of federal taxes, such as income and withholding
taxes. A federal tax lien is a general, statutory,
involuntary lien on all real and personal property held
by the delinquent taxpayer. Its priority, however, is
based on the date of filing or recording; it does not
supersede previously recorded liens.