Real Estate Glossary

Clause used in contracts to bind one party to performance at or by a specified time in order to bind the other party to performance.

The means whereby one has just and full possession of real property.

Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (i.e. chain of title) or to encumbrances.

A review of all recorded documents affecting a specific piece of property to determine the present condition of title.

Total square footage of rentable office or industrial space, vacant and occupied, ready for tenant finish. Includes owner-occupied space.

Personal property used in a business and attached to a structure, but removable upon sale because it is deemed to be part of the business, not of the real estate.

Rent stipulated in a lease in which the tenant agrees to pay a share of the landlord's operating expenses or real estate taxes for the building proportionate to the amount of space it occupies. See Also: Full Service Rent

A project in which the developer is responsible for the total completion of a building (including interior design and construction) or demised premises to the customized requirements of a future owner or tenant.

Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included.

A property for which a purchase offer has been accepted by the seller is said to be "under contract." Generally, the prospective buyer is given a certain period of time in which to perform feasibility studies and finalize financing arrangements. During the time, the seller cannot entertain offers from other buyers unless the purchase contract is allowed to expire without going to closing.

Describes title to property that is free of liens and any other encumbrances. Free and clear.

Most commonly refers to land without buildings; it can also mean land in its natural state. See Also: Raw Land

Specific purpose for which a parcel of land or a building is designed, arranged, intended, occupied, or maintained.

The amount of gross revenue lost because of vacant space; an allowance item on pro-forma income statements, usually calculated as a percentage of gross revenue.

A measurement expressed as a percentage of the total amount of available space compared to the total inventory of space. Computed by multiplying vacant space times 100 and divided by total inventory.