Real Estate Glossary

A large payment due on a loan. Generally a balloon payment is required when regular monthly or quarterly payments have not covered both the increase due and the principal of the loan.

A large payment due on a loan. Generally a balloon payment is required when regular monthly or quarterly payments have not covered both the increase due and the principal of the loan.

The condition when one is found to be unable to repay one's debts by a court having proper jurisdiction. The bankruptcy may be one of two types: one that is petitioned by the debtor (voluntary) or petitioned by creditors (involuntary).

The condition when one is found to be unable to repay one's debts by a court having proper jurisdiction. The bankruptcy may be one of two types: one that is petitioned by the debtor (voluntary) or petitioned by creditors (involuntary).

Proceedings under federal statutes to relieve a debtor who has been declared bankrupt from insurmountable debt. After addressing certain priorities and exemptions, the bankrupt's property and other assets are distributed by the court to creditors as full satisfaction for the debt. See Also: Chapter 11

A set amount used as a minimum rent in a lease which also employs a percentage or other allocation for additional rent.

The year upon which a direct expense escalation of rent is based. See Also: Escalation Clause

Any facility or part of a facility located underground or below the surface grade.

The failure of the seller of real property to pass title as either expressed or implied by law in the conveyancing document..

A strip of land established as a transition between distinct land uses. May contain natural or planted shrubs, walls or fencing, singly or in combination.

A method of leasing property whereby the landlord builds a new building in accordance with a tenant's specifications.

Class "A"-- Building has excellent location and access to attract the highest quality tenants. Building must be of superior construction and finish, relatively new or competitive with new buildings, and providing professional on-site management. Class "B" -- Building with good location, management, construction land tenancy. Can compete at low end of Class A. Class "C"-- Generally an older building with growing functional land/or economic obsolescence. Class "D"-- An older building in need of extensive renovation as a result of functional obsolescence or deterioration.

A set of laws, usually enacted by city ordinance or other local jurisdiction, regulating the design, materials and construction of buildings.

A list of construction materials and finishes used in building out office space for a tenant that the landlord contributes part of the tenant improvements. Examples of standard building items are: doors, partitions, lights, floor covering, telephone outlets, etc. May also specify the quantity and quality of the materials to be used and often carries a dollar value. See Also: Workletter

One of three arrangements often used for financing tenant improvements (finishing out office space to accommodate a tenant such as walls, doors, carpeting etc.) Under this arrangement the landlord lists in detail all materials and costs to make the premises suitable for occupancy and provides a negotiated allowance for the tenant to customize or upgrade materials. See Also: Workletter