Real Estate

Definition: An auction process in which bidders receive information about offers made by other bidders. In dynamic auctions, bidders use this information to modify previous offers. Also known as price discovery.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition:
1. A secret, illegal agreement between two or more auction bidders to place bids in such a way as to influence the auction outcome, as when two bidders agree to refrain from bidding against one another in order to keep the price of an item artificially low.
2. An illegal agreement between an auctioneer and a seller of an item to place and accept fictitious bids in order to artificially increase the price of the item.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: A type of auction or sale in which the winning bidder (also known as the high bidder) chooses a property from among a grouping of similar or like properties. The remaining properties are offered in subsequent rounds of bidding, with the high bidder in each round choosing a property. This process continues until all properties are sold or there are no more bids.
Also known as high bidder's choice.

Terms, Definitions, and Concepts: Auction, Real Estate

Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.

Definition: One who engages in the illegal practice of blockbusting, or attempting to profit by telling homeowners that "undesirable" people - those of a different race, religion, etc. - moving into a neighborhood will lower home values or create other negative conditions. A blockbuster hopes to intimidate homeowners into selling their homes to the blockbuster at reduced prices, so that he or she may then resell those homes at profit.

Example: A real estate investor spreads rumors in a predominantly Asian neighborhood that a Latino family is considering purchasing a home there, which will bring undesirable elements and lower nearby property values. The investor hopes that people in this area will sell their homes to him at a price that is less than market value because they are alarmed the arrival of the newcomers will result in even lower home values or other undesirable neighborhood conditions. Under the Federal Fair Housing Act, it is illegal even to suggest that changes will occur in a neighborhood because persons of a protected class have moved there or will move there.


Terms, Definitions, and Concepts: Real Estate, Legal, Management

Definition: The act of creating or causing panic among homeowners with the intent to make them sell their homes by stating or implying that persons of a protected class moving into the neighborhood will have negative results such as lowered home values or increased crime. Blockbusters attempt to profit from this tactic by purchasing the homes of panicked people at less than market value, then reselling those homes at a greatly increased price. Blockbusting is illegal according to the Federal Fair Housing Act (1968, 1974, 1988), which lists as protected classes race, skin color, national origin, religion, handicap status, familial status, and gender.
Same as Panic selling.

Example: A real estate investor spreads rumors in a predominantly Asian neighborhood that a Latino family is considering purchasing a home there, which will bring undesirable elements and lower nearby property values. The investor hopes that people in this area will sell their homes to him at a price that is less than market value because they are alarmed the arrival of the newcomers will result in even lower home values or other undesirable neighborhood conditions. Under the Federal Fair Housing Act, it is illegal even to suggest that changes will occur in a neighborhood because persons of a protected class have moved there or will move there.


Terms, Definitions, and Concepts: Real Estate, Legal, Management

Bounds refers to definite boundary markers such as natural landmarks. Natural landmarks may often consist of such things as a specific tree or stream. Part of an old system of measuring land and establishing boundaries, commonly referred to as Metes and Bounds.

Broker's Price Opinion.
A real estate valuation performed by a local, licensed real estate professional. It is used in situations where a formal appraisal is not required. It usually is based on such information as an exterior examination, estimates of necessary repairs, tax records, recent comparable home or business sales, property sale history, and current comparable listings.
A common abbreviation used in classified advertising and real estate listings.

Definition: A broker's price opinion, or BPO, is a real estate valuation performed by a local, licensed real estate broker or salesperson. A BPO is used in situations where a formal appraisal is not required. It usually is based on such information as an exterior examination, estimates of necessary repairs, tax records, recent comparable home or business sales, property sale history, and current comparable listings. Similar to a Drive-by appraisal.


Terms, Definitions, and Concepts: Appraisal, Real Estate, Management, Finance and Investment

An area of land, usually open space, intended to mitigate land use effects and serve as a physical separation, transition, or screen between adjacent zoning districts. The most common examples include parks, greenways, or retention ponds between residential, commercial, or industrial zoning districts.

Definition: The completion of construction of a shell lease building according to the terms agreed upon by the landlord (lessor) and the tenant (lessee). Like many real estate terms, the definition, description, and details of a "build-out" are relative to the location and situation. For example, one shell lease may include tenant improvements (TI's) in the build-out description; a different shell lease may not.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Zoning ordinances meant to regulate density and discourage overcrowding by restricting building heights or new construction, increasing setbacks, and mandating certain percentages of open space.

The ownership of property; allows one to buy, sell, or encumber real property or personal property. Also referred to as the bundle of rights; includes the rights of possession, control, enjoyment, exclusion, and disposition.

The ownership of property; allows one to buy, sell, or encumber real property or personal property. Also referred to as the bundle of legal rights; includes the rights of possession, control, enjoyment, exclusion, and disposition.

Creates or re-establishes, marks, and defines boundaries of tracts of lands.

Definition: The act of orally offering for sale items at an open outcry auction and taking bids on the items until they are sold or withdrawn. The auction "call" is characteristically conducted in a rapid cadence in order to encourage bidding. The person who calls the auction may be the auctioneer, or she may be a professional auction caller employed by the auctioneer.
Also known as "crying the auction".

Terms, Definitions, and Concepts: Auction, Real Estate

The percentage return on an investment before mortgage payments and income taxes. Cap Rate Formula: Net Operating Income (NOI) / Market Value x 100.

Latin for "buyer beware". This phrase means that the buyer is responsible for verifying any and all claims by the seller; a prospective vendee of real property should observe and practice due diligence.

A unit of length used in the metric system that is equal to 1/100 (0.01) meters. One (1) centimeter (cm) is equal to 0.3937 inches (in). For more information, see Centimeter equivalents and conversions or the various Converting centimeters to ... entries.

One (1) centimeter (cm) is equal to 0.3937 inches (in).
One (1) centimeter is equal to 0.01 meters (m).
One (1) centimeter is equal to 0.00001 kilometers (km).
One (1) centimeter is equal to 0.0328 feet.
One (1) centimeter is equal to 0.0497 links.
One (1) centimeter is equal to 0.0109 yards.
One (1) centimeter is equal to 0.002 rods, poles, or perches.
One (1) centimeter is equal to 0.0005 chains.
One (1) centimeter is equal to 0.00005 furlongs.
One (1) centimeter is equal to 0.000006 miles.
See the various Converting centimeters to... entries for conversion examples.

Definition: A document issued by a government department overseeing construction and building safety stating that a structure complies with local building codes and is safe for use and habitation.

Terms, Definitions, and Concepts: Construction and Building, Management, Real Estate, Zoning

A document issued by the Veterans Administration detailing a property's current market value estimate, based upon a VA approved appraisal.

1. Document designating the legal owner of a parcel of real property and the state of its title, provided by a title company.
2. An opinion issued by a title examiner or attorney that the title to a particular property is clear and marketable.
3. Document issued by the Registrar of Titles for real estate registered under the Torrens system, which is considered conclusive evidence of the present ownership and state of the title to the property described therein.

A usually metal chain used to measure length and distance. Less commonly used in land surveys than a Gunter's or surveyor's chain, the engineer's or Ramsden's chain is 100 feet in length, with 100 1-foot links. The terms "engineer's chain" and "Ramsden's chain" apply primarily to the measuring utensil itself and not to any particular unit of length.

A common forestry and land survey term that is equivalent to 66 linear feet. Often referred to as simply "chain", this term is more formally known as the surveyor's or Gunter's chain. A chain is broken into 100 equal parts, or links. One (1) mile is equal to 80 chains. A one (1) mile square piece of land (one section or 640 acres) is 80 chains on each side. Although an engineer's or Ramsden's chain is also used to measure length in surveys, the generic term "chain" when used in reference to land measurements refers to the unit of length (66 feet) represented by the Gunter's or surveyor's chain. For more chain conversions, equivalents, and examples, see Chain equivalents and conversions or the various Converting chains to... examples.