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Glossary of Terms

Use this glossary to look up definitions of mortgage terms. The definitions given here explain how the terms are used in the field of real estate finance. Some of the terms have additional meanings, which can be found in a standard dictionary.


  


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38 matches found for A

A/C

Abbreviation for Air Conditioning - only used if buildings are completely air conditioned

Acceleration

The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due On Sale Clause.

Adaptive Reuse

A building converted to a different use in order to meet contemporary demand. Examples would include a factory converted to a retail use or an office building converted to a school.

Adjustable Rate Mortgage

A loan in which the interest rate is periodically increased or decreased to reflect changes in the cost of money; commonly called an ARM.

Air Lines

Compressed air lines for operating machinery, such as pneumatic tools. See also: Features

Alimony Received

Can be counted on to qualify if it is received on a regular basis and will continue for another 3 years.

Allocated Price

Used in some Multi-Property/Portfolio Sales Comparables -- If an individual property's sale price is unknown, an estimate of a sale price for each property in the portfolio using market average sales prices for that property type and period of time to develop both a market average price for the portfolio and each individual property in the portfolio. These market average values allow for a determined each property's portion of the actual portfolio value. Note that when the actual price of a property is secured, that will be used in lieu of the "allocated price," and the "allocated price" of any other properties in the portfolio will be adjusted accordingly.

Amenities

Special characteristics that can enhance a property's appeal. The list below identifies tracked Amenities. Items on the list with an asterisk have additional separate definitions found within this glossary. 24/7 Building Access A/C* Abatement Zone (NYC Only) Atrium* Auditorium Balconies Banking Bio-Tech/Lab Space* Bus Line Card Key Access* Commuter Rail Concierge* Conferencing Facility* Convenience Store Courtyard Data Center/Telecom Hotel* Day Care Dry Cleaner Empowerment Zone* Enterprise Zone* Exercise Facilities Exterior Signage Fenced Lot Food Court Food Service Golf Course High-Speed Internet* Hotel Jogging Trail Landmark* Mail Room Marketing Suite* MBTA Station (Boston only) Medical* Metro Mixed-Use* On-Site Management Pond Restaurant Retail Shops Rooftop Terrace SCIF* Security Shallow Bay* Shuttle to Train Site Plan Approved* Subway Tenant Controlled HVAC Tennis Courts Trading Floor* Travel Agency Tunnel Access Underground Space Vending Area Waterfront See also: Features

Amortized Loan

A loan structured to require regular, level payments, each including a portion for principal and a portion for interest. The loan is fully amortized if the payments will pay off the debt in full by the end of the loan term; it is partially amortized if a balloon payment of the remaining principal balance will be required at the end of the term.

Amps

The basic flow of electrons in a conductor is called current. The basic unit of electrical current is measured in Amperes, often referred to as Amps. Any service rated over 400 amps is typically commercial service although 200-400 amps are generally seen in flex buildings and 800+ for heavy industrial buildings. Amps fields allow a range from low to accommodate different sources of power.

Anchor Tenant

Tenants that are considered "credit worthy" and attract or generate traffic for a retail facility (e.g. a supermarket in a neighborhood shopping center, a major chain or department store in a regional mall).

Annual Avg Daily Traffic

(AADT) This is the total volume of vehicle traffic for a highway or road for a year divided by 365 days.

Annual Debt Service

Annualized payment of a loan obligation. (AKA monthly payment annualized)

Annual Percentage Rate (APR)

Under the Truth In Lending Act, the relationship between a loan's total finance charge and the total amount financed, expressed as an annual percentage. The total finance charge includes interest, any discount points paid by the borrower, the loan origination fee, and mortgage insurance costs.

Appraisal

An expert's estimate of the value of a piece of real estate as of a particular date, based on a documented analysis of the property's features; also called a valuation.

Appreciation

An increase in a property's value; the opposite of depreciation.

Arm's Length Transaction

Any transaction in which there is no pre-existing family or business relationship between the parties.

Asking Rent

AKA Face Rent, this represents the dollar amount the lessor is asking for in order to lease their building/space/land. It is represented as an annual or monthly amount depending on the area where the property is located. Most markets reflect an annual amount while some western markets use a monthly amount.

Assemblage

A purchase of two or more parcels by one property owner. When a premium is paid over the market value that amount is the Assemblage Value because of the buyer's special motivations associated with their use of the combined parcels. Typically the buyer is in the process of assembling several contiguous parcels to make one large parcel for a particular project and this transaction is one of many purchases that have or will take place. For the purchase of a lot to expand the buyer's existing parcel, see "Expansion" definition.

Assessed Value

For commercial real estate it's a value assigned by the local tax assessor on land and/or structures for purposes of taxation only.

Assessment

A local tax levied against a property for a specific purpose, such as a sewer or street lights.

Asset

Anything of value that a person owns. When completing your loan application, you will have to provide the following information regarding your assets: complete information on all bank and money market accounts, two months of current bank statements, current values of stocks, bonds, mutual funds, and other investments, vested interest in retirement funds, face amount and cash value of life insurance, information on any cars and real estate you own; and the value of any significant personal property you own.

Asset Manager

The company or contact that handles all the financial transactions for the subject property insuring the loans, appraisals, and management requirements are in order and operating correctly. Asset Managers usually handle portfolios of properties, which the subject property may be one of.

Assets, Liquid

Cash or other assets that can be readily turned into cash (liquidated), such as stock.

Assumption

The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.

Atrium

A lobby with a high, vaulted ceiling or a grand, central court that separates two halves of a large building. An atrium will decrease the amount of rentable area in a building but increase the amount of high value space by incorporating more windowed offices into the building design and adding aesthetic value. See also: Amenities

Attachment

In context of the My Surveys page, refers to a file that is associated with a saved survey and is uploaded for storage into a Client Folder. See also: Client Folder, Publish

Auction Sale

The offering for sale of real property to the highest bidder. It's important to understand the reason for the auction. Typically this type of sale occurs in a declining market when other traditional types of sales have not been successful.

Auditorium

A large room used to accommodate an audience for large meetings or performances.

Auto Dealership

Retail secondary type. New or used car dealership facility with substantial amount of building improvements that includes some or all of the following: showroom, offices, parts dept., auto repair/service dept., body shop.

Auto Mall

A group of retail stores clustered together involved in sales, service, repair, and/or parts for automobiles.

Auto Repair

Retail secondary type. Commercially zoned single and/or multi-tenant buildings featuring service/work bays for wide ranges of auto repair and auto care services.

Availability Rate

The percent of space available on the last day of each quarter or the current date in the case of the current quarter. Total Available SF divided by the total RBA on the last day of each quarter. See also: Available Space, Total Available.

Available Floors

The floors that are available, identified by the floor number or name such as "MEZZ" (Mezzanine), "BSMT" (Basement), "CNCR" (Concierge).

Available in: # of days

Available in: 30, 60, 90 or 120 Days: primarily used with sublet space, but may be used with relet space also. The number of days indicates the length of time it will take the current occupant to vacate the space once a new tenant has subleased the space.

Available on (by a date)

space that will be vacated at a known date in the future.

Available Space

The total amount of space that is currently being marketed as available for lease or sale in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date.

Average Rent

Average rent is the weighted average rent for a building or market. Rents are weighted based on the total square footage available at a rental rate. If the rental rate is zero, TBD (to be determined) or negotiable; it is not counted in the average rent. Average rent is calculated from suite-by-suite detail. However, average rent can be reconstituted by multiplying the listed average by the listed space available. See Weighted Average Rent