«GLOSSARY OF TERMS The following Glossary of Terms is not intended to be legal definitions, but rather a lay expression or explanation of how the ...»
CENTER CORE BUILDING: A building in which the core is located midway between each side and center.
CERCLA (Comprehensive Environmental Response, Compensation and Liability Act): A federal law administered by the Environmental Protection Agency that establishes a process for identifying parties responsible for creating hazardous waste sites, forcing liable parties to cleanup toxic sites, bringing legal action against responsible parties and funding the abatement of toxic sites.
CERTIFICATE OF INSURANCE: A certificate issued by an insurance company or its agent. It verifies that a certain insurance policy is in effect for stated amounts and coverage and names those insured.
CERTIFICATE OF OCCUPANCY: A certificate issued by a governmental authority indicating that a building is ready and fit for occupancy and that there are no building code violations.
CERTIFICATE OF TITLE: A statement of opinion prepared by a title company or an attorney on the status of a title to a parcel of real property, based on an examination of specified public records. This certificate of title should not be confused with a title insurance policy. A certificate of title does not guarantee title, but certifies the condition of title as of the date the certificate is issued, on the basis of an examination of the public records maintained by the recorder of deeds, the county clerk, the county treasurer, the city clerk and collector and clerks of various courts of record. The certificate also may include records involving taxes, special assessments, ordinances, zoning and building codes. Note that a certificate of title does not offer protection against "off -the-record" matters such as undisclosed liens, rights of parties in possession and matters of survey and location. Nor does it protect against "hidden defects" in the records themselves, such as fraud, forgery, lack of competency or lack of delivery. A title insurance policy, not a certificate of title, protects against certain off-the-record and hidden defects risks.
CFM: Cubic feet per minute. Used in this context as a measurement of air volume.
CHAIN OF TITLE: The succession of conveyances from some accepted starting point, usually beginning with the original recorded source, whereby the present holder of real property derives the title.
CHANNELING: Cutting, chipping or routing a prescribed sectional area in a linear pattern of any surface, but usually in concrete or plaster.
CHATTEL MORTGAGE: A mortgage on personal property.
CHATTEL REAL: An item of personal property which is connected to real estate; for example, a lease.
CHILLER: Freon Compressor or steam absorption equipment that produces chilled water at 45 degrees.
Allard Commercial Brokerage –Glossary of Terms Page 12 of 12 CLAIM: An adverse right or interest asserted by one party against another or against an insurer or indemnifier. Claims may arise from unpaid debts or taxes, as well as from hidden title defects such as fraud, forgery, missing heirs, etc.
CLARIFIER: A system of underground tanks engineered to dissipate water, acids and other harmful agents prior to disposal into sewer or septic tank.
CLEAN ROOM: A room constructed to maintain a controlled atmosphere (humidity, temperature,
dust, germ free, etc.) Class explanations follow:
CLASS 100,000: 100,000 particles of 1/2 micron or greater per cubic foot of air. 20-30 air changes per hour. 95% bag filters.
CLEAR HEIGHT: The height within a building from the floor to the lowest point of obstruction (i.e.
under the fixed HVAC).
CLEAR SPAN: Area within building unobstructed by columns or posts.
CLEAR TITLE: Real property ownership free of liens, defects, encumbrances or claims.
CLIENT: The person who employs an agent to perform a service for a fee. In traditional real estate brokerage, the client was the seller, and the buyer was the prospect. In modern practice, more and more buyers are seeking representation as a client. Dual agency occurs when a broker represents both seller and buyer as clients.
CLOSE-OF-ESCROW/CLOSING: The consummation of a real estate purchase and sell transaction, when the seller delivers title to the buyer in exchange for payment by the buyer of the purchase price. Closing in some areas may not occur until the documents are recorded; however, under general rules of real estate law, transfer of title takes place upon delivery of the deed to the grantee.
CLOUD ON TITLE: An irregularity, possible claim or encumbrance that, if valid, would adversely affect or impair the title. Usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.
Allard Commercial Brokerage –Glossary of Terms Page 13 of 13 C.L.T.A. POLICY: A standard coverage title insurance policy which protects real estate buyers in matters of record and specific risk.
CODE COMPLIANCE TRIGGER: Certain costs, structural changes or other defined events, which necessitate the compliance of a building to current codes.
CODE REQUIREMENTS: Building code requirements, which must be satisfied by either the tenant or the tenant occupancy. Included are seismic life safety, energy, hazardous/toxic materials and handicapped code requirements.
C.O.L.: Cost of Living refers to a percentage (%) increase to a rate such as a rental or sale price.
COLLATERAL: The lender as security, to insure the performance of the obligation, holds Property given in addition to the personal obligation of the borrower. The collateral for a real estate mortgage loan is the mortgaged property itself.
COLUMN: A vertical structural member that supports a roof or floor joists.
COMMERCIAL INVESTMENT REAL ESTATE INSTITUTE (CIREI): A professional organization of real estate practitioners specializing in commercial real estate; confers the designation CCIM (Certified Commercial Investment Member).
COMMERCIAL REAL ESTATE: A classification of real estate that includes income-producing property, such as office buildings, gasoline stations, restaurants, shopping centers, hotels, motel, parking lots, and stores.
COMMISSION: Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price or total rent for the transaction.
COMMISSION SPLIT: The previously agreed upon division of money between a broker and sales associate when the brokerage has been paid a commission from a sale made by the associate.
COMMITMENT FEE: A sum of money, generally 1% or 2% of the loan amount, retained by the lender for making the commitment--considered the same as a non-refundable standby fee.
COMMON AREAS: In an office building, common areas are those portions of the building used by all office tenants or which serve all office areas. Common areas include corridors, restrooms, janitorial closets, utility closets, telephone closets, public lobbies, etc.
COMMON AREA MAINTENANCE (CAM): CAM refers to any and all areas, which are for the Allard Commercial Brokerage –Glossary of Terms Page 14 of 14 convenience of all tenants. The costs associated therewith may be paid by landlord by incorporation in the rent structure with a base year established and increases passed on to the tenants, or by a formula in which all costs including management thereof are directly passed on to the tenant.
COMMUNITY PROPERTY: Real and personal property earned or accumulated after marriage through the joint efforts of husband and wife while living together.
COMPACTION: Whenever extra soil is added to fill low areas or to raise the level of land. The added soil is often too loose and soft to sustain the weight of buildings. Therefore, it is necessary to compact the added soil so that it will carry the weight of structures without the danger or their cracking or shifting.
COMPACTOR: A rubbish disposal container and compressing unit that packs rubbish into a container, thus reducing volume to a 6:1 ratio.
COMPARTMENTALIZATION: A code requirement to divide large floor plates into smaller units to meet fire code requirements.
COMPENSATION: The source of compensation does not determine agency. An agent does not necessarily represent the person who pays his or her commission. In fact, agency can exist even if no fee is involved (called a gratuitous agency). Buyers and sellers can agree however they choose to compensate the broker, regardless of which is the agent's principal. For instance, a seller could agree to pay a commission to the buyer's agent. The written agency agreement should state how the agent is being compensated and explain all the alternatives available.
COMPS/COMPARABLES: An abbreviation for comparable properties, rentals, incomes, etc., used for comparative purposes in the appraisal process. Facilities of reasonably the same size and location, and with similar amenities.
COMPETITION: Those properties, which may be considered as alternative rental or leaseable facilities, although they may not be comparable.
COMPOUND INTEREST: Interest computed on the principal sum plus accrued interest. At the beginning of the new interest period, all interest is added to the principal, forming a new principal figure on which interest is then calculated. This process repeats itself each interest period;
interest may be compounded daily, monthly, semiannually or annually.
COMPRESSOR: Equipment that compresses Freon after it has expanded and cooled the coil. It recycles the Freon.
CONCRETE BLOCK: A building block unit of concrete 8 inches high by 18 inches wide.
CONCRETE CURE AND SEAL: A coating applied to concrete after finishing to prevent evaporation of moisture within the slab, resulting in harder cured concrete.
Allard Commercial Brokerage –Glossary of Terms Page 15 of 15 CONCRETE FINISH: The process that includes floating, waiting for concrete to set and fine troweling to produce a hard, dense and wearable surface.
CONCRETE TILT-UP: Method of construction whereby concrete walls of a structure are poured in forms on surface of floor, allowed to set, then elevated to position by means of a crane.
CONDEMNATION: The judicial or administrative act of taking private property, through the exercise of the power of eminent domain, for public use, upon the payment of a fair compensation.
CONDENSING UNIT: Air-cooled outdoor air conditioning equipment that holds the compressor.
CONDITION OR CONDITIONS: A provision in a deed or a will. It guarantees that, upon the occurrence or nonoccurrence of a certain event, the title of the purchaser or devisee will be limited, enlarged or terminated. A condition in a deed is a restriction that is coupled with a reverter clause.
CONDITION PRECEDENT: A condition which requires something to occur before a transaction becomes absolute and enforceable; for example, a sale that is contingent on the buyer obtaining financing.
CONDITION SUBSEQUENT: A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor; for example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence.
CONDITIONAL SALES CONTRACT: A contract for the sale of real or personal property in which possession is delivered to the buyer, title to remain vested in the seller until all the conditions of the contract have been fulfilled.
CONDITIONAL USE PERMIT (CUP): Written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area.
CONDOMINIUM: An estate in real property consisting of an undivided interest in common in a portion of a parcel of real property, together with separate interest in space in a residential, industrial, or commercial building.
CONDUIT DROP: Fixed steep tubing that holds electrical wiring connected to equipment.
CONSIDERATION: Anything of value to induce another to enter into a contract; may be money, services or a promise.
CONSTRUCTION COST: Total expense, plus normal overhead and profit that must be paid for the job in question.
CONSTRUCTION COST ESTIMATE: A figure submitted in advance of construction, not binding unless submitted as a bid. It is used to help arrive at a decision concerning the feasibility of a proposed project.
CONSTRUCTION JOINT: The joint between adjacent concrete sections as each is poured.
CONSTRUCTIVE NOTICE: Notice given to the world by the recording of documents with a public official. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them.
CONSUMER PRICE INDEX: Available from the Bureau of Labor Statistics. An index used as a basis for calculating rental increase adjustments. Several forms of the index are published.
CONTIGUOUS: Adjoining or touching upon, such as parcels of land next to each other.
CONTINGENCY: A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding.
CONTRACT: A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy.
CONTRACT DOCUMENTS: In construction contracts, the documents consisting of the agreement and the conditions of the contract (general, supplementary and other conditions).
They include the drawings, the specifications, all addenda issued prior to execution of the contract, and all modification thereto. A modification is (1) a written amendment to the contract signed by both parties; (2) a written interpretation issued by the architect in the form of a drawing or otherwise; (3) a change order; or (4) a written order issued by the architect for a minor change in the work.