Archives: Glossary Terms

A loan payment term that includes both principal and interest – a level-payment plan or an amortized loan.

An ordinance that requires a builder of new housing to set aside a designated number of units for low and moderate income people.

A property in which the the purpose of its existence is to produce income which may come from several sources such as commercial rents or business profits attributable to real estate other than rents, etc. is generated by means of commercial rentals or in which the returns attributable to the real estate can be so segregated as to permit direct estimation.

The non-possessory rights in real estate arising out of ownership such as rents or out of a right-of-way.

The increase of value of land most frequently used to refer to that which accompanies population growth and increasing wealth in the community

A person who estimates the value of property and who has no personal interest in the property nor connected to it by any lender.

A lease in which the rental payment varies in accordance with variations in an agreed-upon established index of prices or costs

An appraisal method of estimating building costs by multiplying the original cost of the property by a percentage factor to determine current cost of construction.

The generally older and more urbanized area of a large city surrounding the central business district which often refers to densely populated blighted areas characterized by low-income residents and a high proportion of minority racial and ethnic groups. Examples: Many inner city neighborhoods have been rehabilitated by URBAN RENEWAL projects. Violence is a problem in some inner city schools. The mayor promises a construction program to rehabilitate the inner city

A party not responsible for cleanup of contaminated property. Under SARA. anyone who is in the chain of title becomes responsible for such cleanup, even those with no responsibility for the pollution. One exception is a purchaser who knew nothing about the contamination and had a Phase I investigation done prior to the purchase. Example: Discarded electrical parts containing hazardous PCBs and lead were found on land, requiring a cleanup of the environmentally contaminated property. All current and prior owners and users were potentially responsible parties. Irene, however, bought the land after a qualified inspector had determined that it was free of hazards, so she is an innocent purchaser, not responsible for cleanup.