Archives: Glossary Terms

That which must be given up to obtain property.

A value estimate of a property by one of three appraisal methods which is arrived at by estimating the replacement cost of the improvements and then deducting the estimated accrued depreciation from it and then adding back the market value of the land.

The cost of a parcel of real estate can expressed in terms of front foot units where the total sales price of the parcel is divided by its number of front feet to state the cost per front foot.

An agreement on a construction project in which the contractor is paid a named fixed fee over and above the actual costs of construction as profit.

An agreement on a construction project in which the contractor is paid a named percentage over and above the actual costs of construction as profit. These contracts are considered poor business practice because the contractor has little incentive to hold down costs. See Cost-plus-fixed-fee contract.

Ownership of an interest in a particular parcel of land by more than one person such as with tenancy in common or joint tenancy.

A response to an offer to enter into a contract which acts as a rejection of the original offer and introduces a new offer or one with different terms and conditions.

A contractual promise that may be positive by agreeing to do or negative by agreeing not to do a particular act such as a promising to build a house of a particular size or to not use property in a certain way.

An undertaking in the form of a covenant on the part of the vendor of real estate to perform such further acts for the purpose of perfecting the purchaser’s title as the latter may reasonably require.

A covenant implied by law by which a landlord guarantees that a tenant may take possession and use of leased premises and that the landlord will not interfere in the tenant’s enjoyment of the property.