Real Estate Glossary
Whether you’re a seasoned investor or a first-time homebuyer, navigating the world of real estate can involve a whole new language. From appraisals to zoning codes, understanding the key terms is essential for making informed decisions. This glossary is your one-stop shop, demystifying the real estate jargon you’ll encounter throughout your journey. With clear definitions and helpful explanations, you’ll be equipped to navigate every step of the process confidently.
A
Term | Description |
Abstract of Title | A comprehensive summarization of facts regarding the title, including ownership and legal proceedings related to the title. |
Air Rights | City ordinances and necessity determine an owner’s property rights to the air space above their property or ground rights. |
Alcove | A multi-function half-room of less than 100 square feet. It usually connects with the living room and can be termed a dining alcove. It can be converted into an extra bedroom if it is large enough. |
Alcove Studio | This is similar to a typical studio, except that the sleeping area is in its own L-shaped corner of the room. This kind of apartment may have one and one-half or two full rooms. |
Appraisal | The estimated value of a property from an unbiased, competent third party. The third party will evaluate the property and all issues regarding its value, resulting in the appraisal. |
Assignment | A written document that states the transfer of property, the rights to a property, or the use of the property from one person or organization to another. |
Attended Elevator | Some elevators with attendants may still be manually operated, while others may not. It is common for full-service buildings to have the attendants work as security guards for the lobby. |
B
Term | Description |
Balcony | An area outside the building, usually above the first floor, that is enclosed for the personal use of an apartment owner. |
Building Amenities | The specific services or perks a building offers its tenants are as follows: Common amenities are garages, pools, fitness areas, laundry facilities, doormen, and lobby attendants. |
Built | The exterior dimensions of a building or house. City-zoning laws currently regulate how large a building may be built on a piece of property. |
C
Term | Description |
Capital Improvement | Any improvements to a piece of property, such as a new roof, new windows, or a garage, will increase the property’s value. |
Certificate of Occupancy | Sometimes called COO, a certificate issued by the local government stating that a piece of real estate meets all proper health and building codes and can be occupied by the public. |
Co-borrower | An individual is also financially responsible for a loan and is on the property title. |
Co-broke | When the real estate firm representing the seller states they will split the commission of the sale 50/50 with the real estate firm representing the buyer. |
Commission | The commission is the payment a real estate broker receives from selling a property. The owner sets the commission, which is usually 6% of the property’s value. In some cases, such as if the property is difficult to sell or very valuable, the commission rate may be adjusted up or down. |
Common Area | The general area in a building that all the tenants share, whether as more than one tenant. It could be the hallways, a lounge area, or a lobby. |
Complimentary | A property listing is made by a real estate firm to the real estate community. This is done so that the buyer/tenant’s firm can collect any commission from the purchase. |
Concierge | A concierge is a person situated inside a building’s lobby who acts as a receptionist. This individual is responsible for receiving packages or alerting tenants of visitors. In some buildings, the concierge may also work as security in the lobby. This person usually does not have the same duties as the doorman. |
Condominium | A type of property ownership in which all the owners/tenants own the property, the common areas, and the building together, but they have individual rights to their unit. While a condo is often referred to as a type of development, it means a kind of ownership. |
Contact Person | An individual hired by a property owner or a developer to promote and show the property. |
Contract Out | The time at which a buyer and seller agree on a price. At this time, the seller will have their attorney write up a contract of sale for the purchaser to sign. |
Conversion | (1) Change in use of a building, like from a commercial space into a residential space. (2) A public rental property being changed to a cooperative property ownership. |
Convertible | A large one- or two-bedroom with an “L” shaped room. This room could be converted into another bedroom with a wall. For the new room to be considered a bedroom, it must have a window. |
Co-operative | (Co-op) A property that has multiple ownership by all its tenants/owners. The owners own shares in the property, giving each tenant the right to live in a specific unit. , it |
Courtyard | Generally refers to an enclosed garden area of a building on the property’s interior. When a listing relates to a “courtyard view,” it typically means there is a window facing the courtyard and a little natural light. |
D
Term | Description |
Deed | A legal document stating the title of a property. |
Dual Sinks | Two sinks are usually side-by-side in a bathroom. Some people enjoy this arrangement as a “his and hers” arrangement. |
Dual Vanity | See Dual Sinks. |
Duplex | In other areas of the country, this would be called a townhome—an apartment with more than one level. |
E
Term | Description |
EIK | Abbreviation for Eat In Kitchen. |
En-suite Bathroom | A bathroom directly connects this room. Thise of bathroom is for generally the use of the bedroom occupants only and is attached to the master bedroom. |
Escrow | When an item of value, usually money, is delivered to a third party to be distributed upon fulfillment of an agreement. |
Estate | The total of all property, personal and honest, a person has at the time of death. |
Exclusive Listing | A contract gives a real estate agent exclusive rights to sell a property. |
F
Term | Description |
Facade | The façade is generally one side of the exterior of a building. Typically, this refers to the front, but it can also refer to the sides or the back. From a design standpoint, the façade sets the tone for the building and refers to the materials on the outside of the building, such as brick, marble, or brownstone. |
Financing Allowed | Something unique to cooperative buildings is that they may allow an owner to finance up to 70-80% of the purchase price. However, some buildings do not allow financing at all. The co-op’s board of directors determines whether or not this is allowed. |
Fixed Rate | An interest rate that does not change during the life of the loan. |
Flip Tax | A tax imposed by a co-operative on the sale of a co-operative apartment. The total fee may be calculated as a percentage of the gross sale, net sale, or a set fee determined by the cooperative. The fee may be paid by the buyer or the seller or shared by both transactors. |
Floor-thru | An apartment occupies an entire level of a building, running from the front to the back wall. This is often seen in townhouses. |
Foreclosure | A legal process occurs when the borrower of money defaults on a mortgage. This usually involves an auction of their property to pay back their mortgage. |
Service Building | A building that employs a doorkeeper and a Concierge. At some buildings, both of these positions are staffed 24 hours. |
G
Term | Description |
Grantee | The person or organization that a grantor informs of an interest in a property. |
Grantor | A specific person who is interested in a piece of property. |
H
Term | Description |
Half Bath | A bathroom that does not have a bathtub or a shower. It is typical to see an apartment listed with 1 ½ baths. |
Hazard Insurance | Insurance protects property when fire, natural disasters, or vandalism cause damage. All insurance policies are written differently, so be sure you know what your policy covers. |
Historic District | A specific area in a community in which the properties have historic significance or value. This value is not always reflected in the market value. City zoning or historic societies usually define landmark districts. |
I
Term | Description |
In contract | Refers to the period after a buyer and seller both sign a contract. |
Interest Rate | A fee is charged to someone borrowing money from a lender. The rate itself can vary and is ultimately set by The Federal Reserve board. |
J
Term | Description |
Joint Tenancy | A form of property ownership, which means the property is owned equally by all parties involved. |
Junior/Convertible | This is another variation of the alcove apartment. Like the alcove studio, this apartment contains an alcove that can also be used as a bedroom or dining room. In New York terminology, a Junior or Convertible Five would be an apartment with two bedrooms, a living room, a kitchen, and an alcove that can be converted into another room. |
K
Term | Description |
Keyed Elevator | An elevator that usually opens directly to an apartment or its foyer is generally seen in lofts, penthouses, or any large apartment that covers the entire floor. |
L
Term | Description |
Lease Assignment | A tenant (lessee) can do this to transfer all their rights in the leased property to a third party. It is not the same as subleasing. |
Lease | A written agreement between a property owner and a tenant defines the responsibilities and agreements of each party. |
Liabilities | A person’s financial responsibilities encompass any debts owed. |
Listings | Property that is currently on the market either for sale or renting. |
Local Tax | A tax imposed by a local government for services like garbage collection or water. |
Loft Buildings | Very popular for the artistic type, initiallyings were initially used as warehouses, factories, or manufacturing centers. Converted into residences, the staples of these apartments are high ceilings (sometimes up to twenty feet) and wide-open floor plans. Some even have columns or other ornate decor. Greenwich Village, Chelsea, SoHo, and Tribeca are popular areas for loft buildings. |
Loft Space | Lofts usually refer to property that has been converted from commercial to residential use. They usually cover one entire floor of a building. Some of the benefits of a loft space are large windows, lots of open space, and high ceilings. |
Loft Studio | A studio apartment that has a separate area for sleeping. |
Lot | Parcels of land were divided out for identification purposes by New York City. |
M
Term | Description |
Maintenance | This is another fee that is unique to co-ops. It comprises: 1) The daily cost to operate the building. 2) A share of the building’s underlying mortgage, and 3) A share of the building’s real estate taxes. These three things combined are the monthly charges paid by a co-operative owner to the co-op. |
Maisonette | A ground-floor apartment is usually in a co-op with a separate street entrance from the rest of the building. Apartments like this give the tenants the feel of a townhouse in a co-op environment. |
Mansard Roof | A flat roof on top, then sloping steeply down on all four sides. The roof appears to cover the entire top story of a building. |
Managing Agent | An independent company hired by a co-op or condominium to manage the property. The management agents collect rent or dues, maintain property, and enforce building policies. |
Market Value | The estimated amount would be paid for the property if offered on the open market. |
Mortgage | A mortgage is a loan you take out from a lender, typically a bank, to finance the purchase of a property. You gradually repay the loan with interest over 15-30 years. The property is security for the loan, and you gain ownership rights as you make payments. However, the lender holds the legal title until the loan is fully repaid. If you fail to make payments, the lender can foreclose, repossess the property, and sell it to recoup their losses. Different mortgage options are available, so consulting a professional is critical to choosing the best fit for you. |
Murphy Bed | A bed attached and built into a wall can be pulled down or out of the wall. You will usually find Murphy beds in small apartments. |
N
Term | Description |
Negative Pledge | Also known as a “negative pledge,” a negative pledge loan is a loan that exceeds the financing limit set by a cooperative. |
New Windows | Windows that have been newly replaced in a building. This is usually done to make the building more energy efficient or to update its façade. |
No Board Approval | This can refer to one of two things. 1) When a prospective purchaser of a co-op unit does not have to be reviewed by the co-op board. Or 2) When a prospective renter of a co-op unit does not have to be approved by the op-op board or owner. |
Note | A legal document that outlines the obligation a borrower has to pay off a mortgage at a stated interest rate over a specific period. |
Notice of Default | A written notice to a borrower formally informing them of the default on their account. |
O
Term | Description |
Oblique Views | This term refers to an apartment with panoramic views of either Central Park or either of the two rivers. |
Offer Accepted | This is when a renter accepts the terms of an apartment listing. |
On-site Broker or Contact Person | A building owner hires this person to show the apartments, answer questions about the units, or handle transactions at the building. |
Open House | An open house is a sales tactic a real estate broker uses to advertise an available listing. At an open house, buyers can look around the property and ask the broker questions about it. The Sunday edition of the New York Times usually has a section listing open houses. |
Open Kitchen | A kitchen that is not separated from the other living areas of the apartment is a pretty common feature in loft-style apartments. |
Open Listing | A listing made directly to the brokerage community by an apartment owner or management firm that is not managed on a co-broke basis. |
Original Detail | This refers to original design details on the interior of a pre-war apartment. The design details can include ceiling moldings, trim around fireplaces, or chair rails. |
Original Room Count | This term applies to pre-war apartments that originally had many rooms. Over time, and due to different owners’ and renters’ needs, the original apartments have been turned into smaller units with fewer rooms. |
Owner Pays (OP) | A situation where the owner of an apartment building will pay all or part of the commission from the sale of a unit. This is done to entice a prospective tenant to rent or purchase a property. |
Ownership | There are several levels of ownership: Condominiums, Co-operatives, and Cond-ops. |
P
Term | Description |
Parlor Floor | The second floor of a townhouse typically has the highest ceilings, and because of this, it was traditionally used for entertaining. |
Partial Views | This term refers to units offering partial views of Central Park or one of the two rivers. |
Pass-through Kitchen | A kitchen is a door through which one can walk into another room, usually a dining area or the living room. |
Penthouse | An apartment located on the top floor of a building is often quiet and luxurious and offers more privacy than other apartments in the same building. |
Pet Policy | A policy a building has about what types, sizes, and how many (if any) pets a tenant may have. |
Petite Kitchen | See Pullman Kitchen. |
Pied à Terre | Translated from French, it means “foot on the ground,” but we would call it a “landing pad.” These apartments are usually small but quite comfortable and are often kept by business travelers who need to be in the city for business monthly or weekly. At times, these apartments are maintained by the well-to-do so they can have a location in the City without the bother of frequently traveling from their home to enjoy City life. |
Possession | In real estate, possession refers to a property’s physical control and occupancy. It marks where the buyer or renter gains the right to be on the property and use it according to the agreed terms. |
Post-War | This term refers to buildings built after World War II or about 1945. The style of these buildings and the apartments in them are drastically different from the pre-war apartments. Generally, the interior and exterior are less ornate, with less trim, moldings, and exterior decor. |
Powder Room | The same is true for a half-bath, a bathroom with no shower or bathtub. |
Pre-War | If a building was built before 1945, it is considered pre-war. At 10-20 stories tall, they are mid-size as far as apartment buildings go. Some buildings might have a doorman. The advantages of living in a pre-war apartment often include hardwood floors, spacious rooms, and higher ceilings. Many also have a fireplace. |
Professional Space | A unit in an apartment building is typically used for office space; this term usually refers to medical office space. |
Property Value | Property value refers to the estimated market value of a property. It’s essentially the price a willing buyer would pay to a willing seller in an open and fair market. This definition focuses on fair market value, which differs from the sentimental value a homeowner might place on their property. |
Pullman Kitchen | A small kitchen situated against one wall has room for a fridge, oven, and sink. These kitchens are often found in pre-war apartments or buildings that were originally hotels. This small kitchen generally doesn’t count as a separate room. Pullman Kitchens are sometimes referred to as Petite Kitchens. |
Purchase Agreement | A written contract signed by a buyer and a seller defines the terms under which a property will be sold. |
Q
Term | Description |
Quadraplex | An apartment that covers four levels |
R
Term | Description |
Real Estate Agent | A person licensed to transact the sale of property on behalf of a buyer. |
Recessed Lighting | Lighting that is set into the ceiling and not hanging from a light fixture. This style of lighting continues clean lines in a building. |
Renovation | Renovation refers to repairing, renewing, or restoring something, most commonly a building, to a good condition. It involves making improvements that can be functional, aesthetic, or both. |
Rental Building | Buildings owned by an individual or a company that offers units for rent only. |
Rental Commission | This refers to the commission a real estate broker earns from the rental of an apartment. It is typical for a renter to pay the commission, which is about 10-15 percent of a year’s rent. |
Reserve Fund | A fund set aside by a co-op or condo’s board to pay for monthly or unexpected expenses. |
Room Count | The number of rooms an apartment has. Every style of apartment has a different number of rooms. Styles: Straight Studio, Petite Kitchen: One room. Straight Studio, Full Kitchen: Two rooms. Alcove Studio, Full Kitchen: 2.5 Rooms. Junior-One, Full Kitchen, No Wall: 2.5 Rooms. Junior-One, Full Kitchen, Wall: 3 Rooms. One Bedroom, Living Room, Kitchen: 3 Rooms. Junior-Four, Living Rooms, Kitchen, Dining Alcove: 3.5 Rooms. Convertible-2, Living Rooms, Kitchen, Dining Alcove, No Wall: 3.5 Rooms. |
S
Term | Description |
Security Deposit | Money deposited by a tenant to a landlord or a rental agency as security against damages and terms of the lease. |
Service Entrance | An entrance is usually into the kitchen from the rear of a building or a secondary hallway. In the past, this entrance was typically used by servants and may still be used the same way today. |
Service Level | The level of front door service at a particular building. |
Shares | This is unique to a co-op building in the real estate world. Like a publicly traded company, each apartment owner in a co-op owns a share in the building. The share represents the amount of the building owned by a shareholder, and the amount is determined by the size of the apartment, which floor it’s on, and whether there are any special features associated with the apartment. |
Short-Term | Apartments are explicitly rented for short periods of time, usually not more than six months. They are often furnished. |
Shortfall | This happens when a building brings in less than it needs to cover its operating expenses. |
Square Footage | The amount of livable space, in square feet, in an apartment or building. Sometimes, the amount of square footage is approximated, while the measurements are often more accurate at a condo. |
Sublet | An agreement a new tenant would make with the current tenant of a property who is moving out. The new tenant would assume responsibility for all rental costs from the person who is moving out. |
T
Term | Description |
Tax Abatement | Tax breaks are offered to developers developing residential properties in certain areas. |
Tax Deductible | The percentage a shareholder at a co-op can deduct from their annual taxes. |
Term | The period that a lease is for. |
Terrace | A terrace is a roof or part of a roof on a building. In real estate terms, it often refers to an area on the exterior of a building that an apartment owner has exclusive rights to. It’s not the same thing as a balcony. |
Townhouse | A single-family dwelling having two or more floors. The kitchen is usually set in an English-style basement at a half level and is entered through a service entrance at the back of the unit. The street entrance is the main entrance and leads directly into the parlor floor area. This design structure was typical in the City from the 1900s through about 1930. |
Triplex | An apartment covering three levels. |
U
Term | Description |
Unsold Shares | These shares or apartments in a co-op have not been purchased outright. When a rental property is converted into a co-op, it is common for some renters to prefer to continue paying rent on their unit for a period of time rather than buying it. |
Use | The specific purpose for which a building is intended to be used or has been designed. |
Utilities Included | This refers to charges for some of an apartment’s utilities that are included in the monthly rent price. Often, the utilities will be water, electricity, gas, and sometimes cable. |
V
Term | Description |
Vacancy Rate | The amount of unoccupied units or apartments in a building compared to all units. This rate is usually expressed as a percentage. |
Vacation Home | A second home used for recreational purposes. When the house isn’t in use, some owners rent it out. |
Variable Interest Rate | An interest rate fluctuates with the current cost of borrowing and lending money. |
W
Term | Description |
Waive | To voluntarily and intentionally give up any rights, privilege, or claims to a property. |
Walk Through Kitchen | A kitchen with two entrances or exits would allow an individual to enter from one room, move through the kitchen, and exit into another room. |
Walk-up building | A building that has no elevator, with more than one floor. These buildings are predominantly pre-war types and have up to six floors. |
WEIK | An abbreviation meaning a Windowed Eat In Kitchen. |
Window Treatments | This refers to the types of coverings someone may put on windows, such as blinds, shades, or curtains. |
Z
Term | Description |
Zone | An area defined and designated by a governmental authority, which is authorized for and limited to specific uses. Residential, commercial, and industrial zones are the three most common types. |
Zoning Ordinance | A law by a local governmental authority that sets the parameters for which the property within a particular zone may be used. |