Archives: Glossary Terms

The fixtures that are generally acquired or installed by a non-residential tenant and which can normally be removed upon lease expiration provided no damage is done to the property and the removal does not conflict with the lease terms.

The value of a tenant’s interest in a lease which can be significant when the rent is below market and the lease has a considerable term remaining. Example: When land rent for an acre of Manhattan was $10,000 per year, a knowledgeable investor bought the rights of a 99-year lease. A comparable TRACT today commands $150,000 annual rent. The lease-hold value of the subject property is the present value of the bargain rent ($140.000) over the remaining lease term.

A description of land recognized by law by which property can be positively located by reference to government surveys or approved recorded maps such as Lot, Block, and Tract; U.S. Government Survey; and Metes and Bounds.Legal description – A means of identifying the exact boundaries of land by metes and bounds, by a plat or by township and range survey system. Metes refer to measures; bounds refer to direction. Metes and bounds descriptions are means of describing land by measurement and direction from a known point or marker on land. A plat is a recorded map of land that identifies a parcel by a number or other designation in a subdivision. A township and range survey system is a system of legal description of land with a township as the basic unit of measurement. Abase line is a parallel that serves as a reference for other parallels. Meridians are the north-south lines of survey, 6 miles apart. Parallels are the east-west lines of survey, 6 miles apart. A principal meridian is a meridian that serves as a reference for other meridians. A range is a north-south row of townships; the 6-mile strip of land between meridians. A section is a 1-mile square in a township. A tier is an east-west row of townships; the 6-mile strip of land between parallels. A township is a 6-mile square of land bounded by parallels and meridians and composed of 36 sections.

The information required to be given by law.

An entity which is usually a corporation that has the legal powers and duties of a natural person.

A person’s permanent home. Example: Although President Gardner lives in Washington, DC, and has a vacation home in New England, he claims Houston as his legal residence because he maintains a permanent home there.

A title which lacks the full bundle of rights commonly associated with ownership and which might be being held by a trustee under a trust deed.

An essential element of every contract is that it involves a lawful object and if not, the contract is void. See Lawful object.

An estate commonly called a leasehold that exists for a definite period of time or for successive periods of time until terminated.

The party commonly referred to as the tenant who has the right to possession and use of real estate for a limited time under a lease agreement.