Definitions H-N
H
Holdover Tenant: A tenant who remains in possession of leased property after the lease term expiration.
I
Identification Period: The 45-day period during which an individual conducting a 1031 exchange must identify replacement property that begins on the day escrow is closed on the relinquished property.
In-Cash: The point in time when an investor has closed escrow on the relinquished property and the money from the sale of the relinquished property is held by a Qualified Intermediary waiting to be reinvested into the replacement property.
Incompetent: An individual who is unable to handle his own affairs by reason of some medical condition
Instrument: A written legal document created to secure the rights of the parties participating in the agreement.
Irrevocable: Incapable of being altered, changed, or recalled.
J
Joint Tenancy: Ownership of real property by two or more individuals, each of whom has an undivided interest with the right of survivorship.
Judgement: A formal decision issued by a court relating to the specific claims and rights of the parties to an act or suit.
L
Landlord: One who rents property to a tenant.
Lease: A contract whereby the landlord grants the tenant the right to occupy defined space for a set period at a specific price (i.e., rent).
Leasehold: The estate or interest a tenant has as stated in the tenant’s lease.
Lessee: An individual (i.e., tenant) to whom property is rented under a lease.
Lessor: An individual (i.e. landlord) who rents property to a tenant via a lease.
Letter of Intent: An informal, usually non-binding, agreement among parties indicating their serious desire to move forward with negotiations.
Like-kind property: any two properties that are held for investment, making an exchange between them potentially tax-free.
Limited Partnership: a form of partnership in which there is one or more general partners, jointly and severally responsible as ordinary partners with liability, and one or more special partners, who are not liable for the debts of the partnership beyond the amount of cash they contribute as capital.
Liquidity or liquid: the ability to quickly convert an asset to cash.
Listing: An employment contract between principal and agent that authorizes the agent (such as a broker) to perform services for the principal and his property.
Loss Factor: What percentage of the gross area of a space is lost due to walls, elevator, etc.
M
Mandatory: A requirement that must be conformed to as specified in any written document.
Market Price: The actual selling or leasing price of a property.
Market Value: The expected price that a property should bring if exposed for lease in the open market for a reasonable period of time.
Meeting of the Minds: When all individuals to a contract agree to the substance and terms of that contract.
Multiple Listing: An arrangement among Real Estate Board of Exchange Members, whereby each broker presents the broker’s listings to the attention of the other members so that if a lease results, the commission is divided between the broker bringing the listing and the broker making the lease.
N
Net Lease: Also called triple net lease. The lessee pays not only a fixed rental charge but also expenses on the rented property, including maintenance.
Non-Disturbance Agreement: The tenant signs this to prevent himself from being evicted if the property owner does not pay its mortgage to the bank.
Notary Public: A public officer who is authorized to witness and verify certain documents (e.g., contracts, deeds, mortgages). Also, an affidavit may be sworn before this public officer.
