Part exchange on a house is a scheme where a property developer purchases a buyer’s existing home to facilitate the sale of a new property. This process eliminates property chains and provides certainty for both parties involved in the transaction.
Modified gross rent is a commercial lease agreement where the tenant pays a base rent and a portion of the operating expenses. It serves as a middle ground between a full-service gross lease and a net lease.
Triple net, often abbreviated as NNN, is a lease agreement in commercial real estate where the tenant is responsible for paying property taxes, insurance, and maintenance costs in addition to rent. This structure shifts many typical landlord expenses to the tenant, affecting risk and cash flow for both parties.
A trustee on property refers to an individual or entity responsible for managing real estate assets held in a trust, acting according to the terms set by the grantor.
Entitlement in real estate refers to the legal process of obtaining all necessary permissions, approvals, and rights from governmental authorities to develop or modify a property according to a specific plan.
Base rent is the minimum fixed amount a tenant pays under a commercial lease, excluding variable costs such as operating expenses, property taxes, and insurance. It serves as the foundation for total rent and is commonly used in net lease structures.
A marketable title indicates ownership of property free from reasonable doubt or legal disputes. This concept is crucial in real estate transactions to ensure buyers receive clear ownership rights. Lenders typically require proof of marketable title before approving mortgage loans.
Real estate concessions are incentives offered by sellers or landlords to buyers or tenants to facilitate a transaction. These may include covering closing costs, repairs, or providing rent-free periods. They are negotiated terms that affect the overall financial structure of the deal.
Grandfathered in in rental property refers to the continuation of an existing lease’s terms despite later changes in law or landlord policies. It allows tenants to keep earlier rights while new rules apply to future agreements.
Exclusive of decoration is a term used in property sales and leases to indicate that decorative elements such as paint, wallpaper, or floor coverings are not included in the transaction or price. It clarifies that the buyer or tenant is acquiring the property without those finishes, often requiring them to arrange for decoration themselves.