A transaction in which, typically, an owner sells his improved property and as part of the same transaction signs a long-term lease and remains in possession

Narrow ridge of sand formed in a body of water or along the shore

A measure of merchantable timber in live trees of merchantable species. Generally, sawlogs should be a minimum of eight inches (8") diameter at breast height (dbh) and eight feet (8') in length.

Live trees of merchantable species that are suitable for harvesting and sawing into lumber according to specific criteria. Generally, sawtimber should be greater than eight inches (8") diameter at breast height (dbh), and should contain at least one (1) sawlog. Merchantable sawlogs are usually a minimum of eight feet (8') in length.

A relative lack or limited supply of a good or commodity. Scarcity is one of the economic properties of real estate that makes it valuable and desirable.

Preliminary architectural drawings and sketches; basic layouts not containing the final details of design

1. The series of rational steps that leads to the proof (or disproof) of a scientific or research hypothesis. The steps are observation, which leads to the formulation of a hypothesis through abductive reasoning, followed by tests or experiments to determine the validity of the hypothesis (deductive reasoning). The observed result of the experiment is compared to the expected result, and a conclusion is made supporting or contradicting the hypothesis. 2. The scientific method is the process by which scientific facts are discovered, proven, or learned.

1. Large body of water partly or nearly surrounded by land 2. sometimes used to describe all the oceans of the world as a whole

Mean level of the sea's surface, used in measuring elevation

1. Port or harbor developed with facilities to load and unload oceangoing ships 2. city or town built at this point

A mortgage which is junior or subordinate to a first mortgage; typically, an additional loan imposed on top of the first mortgage, which is taken out when the borrower needs more money

A market for the purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages; also called secondary money market

A section is a tract of land approximately one (1) mile square and containing 640 acres, within a township. Sections are used in the government rectangular survey system (U.S. Public Lands Survey). Each section is approximately 1/36th (0.0278) of a township. Irregularities exist due to the curvature of the earth; these irregularities are corrected for in the northern and western tiers of sections in each township. One (1) section is equal to 640 acres, one (1) mile square, one (1) square mile, and 27,878,400 square feet.

One (1) section of a township is one (1) mile square and has an area of one (1) square mile. One (1) section is equal to 640 acres. One (1) section is equal to 27,878,400 square feet. One (1) section is equal to 2.59 square kilometers. One (1) section is equal to 3,097,600 square yards. One (1) section is equal to 102,399.59 square rods, poles, or perches. One (1) section is equal to 6,399.9744 square chains. One (1) section is equal to 2,560.0 roods. One (1) section is equal to 757.5523 arpents. One (1) section is equal to 0.0278 (1/36th) townships. One (1) section is equal to 2,589,988.1103 square meters. One (1) section is equal to 258.9988 hectares.

Identifies a within a . Sections are usually numbered 1 to 36 but can be higher in some states.

A security document which creates a lien upon chattels, including chattels intended to be affixed to land as fixtures; known as a chattel mortgage prior to the adoption of the Uniform Commercial Code

Money deposited by or for the tenant with the landlord, to be held by the landlord for the following purposes: to remedy tenant defaults for damage to the premises (be it accidental or intentional), for failure to pay rent due, or for failure to return all keys at the end of the tenancy

A sewage settling tank in which part of the sewage is converted into gas and liquids before the remaining waste is discharged by gravity into a leaching bed underground

Beginning in July 1908 with Serial Patent Number 1, serial patents were assigned numbers consecutively, regardless of State, and filed numerically. A patent is the original document issued for the purpose of granting public land to an individual.

One of the two parcels of real estate of an appurtenant easement. The servient tenement is the property that provides the easement; the dominant tenement is the property for which the easement is necessary, as for access to the property.

Zoning restrictions on the amount of bare land required surrounding improvements; the amount of space required between the lot line and the building line.

The act of adjusting and prorating the various credits, charges and settlement costs to conclude a real estate transaction

Sole ownership of real property

1. A commercial or residential building with a finished exterior facade and landscaping and unfinished interior units, to allow for tenant improvements (TI) and the installation of furniture, fixtures, and equipment (FFE). "Base shell" and "grey shell" refer to a more or less unfinished interior. "Vanilla shell" refers to a minimally finished interior, usually with ceilings, lighting, plumbing, heating and cooling (HVAC,), interior walls (painted or unpainted), electrical outlets, rest rooms, and a concrete floor.
2. The completeness of a building at a specific stage of construction; usually refers to a completely finished exterior and a minimally finished or unfinished interior.

Definition: A lease agreement wherein a tenant leases the unfinished shell of a building, as in a new shopping center, and agrees to complete construction himself by installing ceilings, plumbing, heating and air conditioning systems (HVAC), and electrical wiring, as well as those trade fixtures necessary for the operation of the business.

Discussion: Like many real estate terms and phrases, those associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" building has been or will be completed prior to tenant occupancy.

Shell leasing and its various forms (warm, cold, base) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Title and Title Insurance, Appraisal, Auction, Finance and Investment, Management, Legal (Law)