An absentee owner is a person who owns a property but does not live on or near the property, and may not even be located in the same state or country. This type of owner is typically an investor, and the property is usually managed by a property management company. The absentee owner may not … Read more
A construction bond is a type of surety bond that is often required in order to obtain a construction loan. The bond essentially guarantees that the construction project will be completed according to the agreed-upon terms and schedule. In the event that the contractor defaults on the loan, the bond will cover the cost of … Read more
An easement is a legal right to use someone else’s land for a specific purpose. For example, you may have an easement to use a neighbor’s driveway to access your own property. Easements are created by agreement between the parties or by prescription (meaning the easement has been used for a certain period of time). … Read more
A property manager is an individual or company that is responsible for the day-to-day management of a real estate property, including tasks such as rent collection, maintenance and repair work, and enforcing the terms of the lease. Property managers typically work on behalf of the property owner, and their fees are usually a percentage of … Read more
An attornment definition is a legal term that refers to the act of a tenant agreeing to recognize a new landlord after a change in ownership of the property. This usually occurs when a property is sold and the new owner wants the tenants to start paying rent to them instead of the previous landlord. … Read more
A land flip is when a person buys a piece of land, improves it in some way, and then sells it for a profit. This can be done by simply cleaning up the land and making it more presentable, or by making more substantial improvements such as adding a driveway, clearing trees, or leveling the … Read more
The occupancy rate is the percentage of rental units in a given property that are occupied by tenants. A property with a high occupancy rate is considered to be more desirable and valuable than one with a low occupancy rate. Is ADR and ARR same? No, ADR and ARR are not the same. ADR (Average … Read more
The chain of title is the history of all previous owners of a property. This history is important to ensure that the current owner has a valid and clear title to the property. The chain of title can be traced back to the original owner of the property. What is the Habendum clause in a … Read more
To be announced (TBA) is a term used to describe an event or activity that has not yet been scheduled. It is often used as a placeholder until more information is available. TBA can be used to describe an event that is in the planning stages, or it can be used to describe an event … Read more
A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that repackages and directs the payments of principal and interest from a pool of mortgage loans to different investors. A CMO creates several classes of bonds, each with different maturities, called tranches. Each class of bond is repaid from the cash flow of the … Read more
