Real Estate Glossary

From 'Air Rights' to 'Variable Interest Rate', real estate terms explained.
Choose a letter from the list below, Browse alphabetically.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z - New York City Building Types

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 The property rights an owner has to the air space above their property or ground; these rights are determined by city ordinances and necessity.
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. If it is large enough, it can convert to an extra bedroom.

Alcove Studio

This is similar to a typical studio, except that the sleeping area is put in its own L-shaped corner of the room. This kind of apartment may be one and one half rooms 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 An elevator that has an attendant, some of these elevators may still be manually operated, while others may not. It is common for full services buildings to have the elevator attendant work as security for the lobby as well.

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B
Term Description
Balcony An area outside of 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 that a building offers its tenants. Common amenities are garages, pools, fitness areas, laundry facilities, doormen and lobby attendants.
Built The exterior dimensions of a building or house. Currently there are city-zoning laws in place to regulate how large a building may be built on a piece of property.

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C
Term Description
Capital Improvemen Any improvements made on a piece of property that will increase the value of the property such as a new roof, new windows or a garage.
Certificate of Occupancy Some times called COO. A document issued by the local government stating that a piece of real estate is up to all proper health and building codes and is able to be occupied by the public.
Co-borrower An individual that is also financially responsible for a loan as well as being on the property title.
Co-broke When the real estate firm representing the seller states they will split the commision of the sale 50/50 with the real estate firm representing the buyer.
Commission The payment a real estate broker receives from selling a property. The commission is set by the owner selling the property and is usually 6% of the value of the property. In some cases, as if the property is difficult to sell or is very valuable, the commission rate may be adjusted up or down.
Common Area The general area in a building, which as more than one tenant, that all the tenants share. It could be the hallways, a lounge area or a lobby.
Complimentary A property listing made by a real estate firm to the real estate community. This is done under the understanding that the buyer/tenants firm can collect any commission made from the purchase.
Concierge A concierge is a person situated inside the lobby of a building who acts as a receptionist. This individual is responsible for receiving packages or alerting tenants of visitors. In some buildings, the concierge may work as security in the lobby as well. 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 own unit. While a condo is often referred to a type of development, it actually means a type of ownership. More: NYC Condos
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 co-operative property ownership.
Convertible A large one or two bedroom that has an “L” shaped room. This room could be converted into another bedroom with the addition of 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 actually own shares in the property, giving each tenant the right to live in a specific unit. More: Co-ops
Courtyard Generally refers to an enclosed garden area of a building on the interior of the property. When a listing refers to a “courtyard view”, it generally means there is a window facing the courtyard and a little natural light.

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D
Term Description
Deed A legal document stating title of a property.
Dual Sinks Two sinks in a, usually side-by-side, in a bathroom. Some people enjoy this as a “his and hers” arrangement.
Dual Vanity See Dual Sinks.
Duplex

This is what would be called a town home in other areas of the country. This is an apartment with more than one level.

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E
Term Description
EIK Abbreviation for Eat In Kitchen.
En-suite Bathroom A bathroom directly connected to the bedroom. Generally, this type of bathroom is for 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 real, a person has at the time of death.
Exclusive Listing A contract giving a real estate agent exclusive rights to sell a property.

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F
Term Description
Facade Generally one side of the exterior of a building. Typically, this refers to the front, but can at times 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 co-operative buildings. Co-op’s 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 co-operative. The fee may be paid by the buyer, the seller or shared by both transactors.
Floor-thru An apartment occupying an entire level of a building, which runs from the front of a building to the back wall of a building. This is seen often in townhouses.
Foreclosure A legal process that takes place when the borrower of monies is in default on a mortgage. This usually involves an auction of their property to pay back their mortgage.
Service Building A building that employs a doorman and a Concierge. At some buildings, both of these positions are staffed 24 hours.

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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.

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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 that protects property when damages are incurred by fire, natural disasters, vandalism. All insurance policies are written differently, 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 historic districts.

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I
Term Description
In contract Refers to the time period after a buyer and seller both sign a contract.
Interest Rate A fee that is charged to a one who is borrowing money from a lender. The rate it self can vary and is ultimately set by The Federal Reserve board.

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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. Similar to 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 and a kitchen, along with an alcove that can be converted into another room.

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K
Term Description
Keyed Elevator An elevator that usually opens directly to an apartment or the foyer of an apartment. These elevators are usually seen in lofts or penthouses, or any large apartment that covers the entire floor of an apartment.

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L
Term Description
Lease Assignment A tenant (lessee) can do this to transfer all their rights of the leased property to a third party. Not the same as subleasing.
Lease A written agreement between a property owner and a tenant defining the responsibilities and agreements of each party.
Liabilities A persons financial responsibilities; this encompasses any debts owed also.
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, loft buildings were originally 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. More about: New York City Lofts

Loft Space This usually refers to property that has been converted from commercial use to residential use. The loft usually covers 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 divided out for identification purposes by New York City.

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M
Term Description
Maintenance This is another fee that is unique to co-op’s. It’s comprised of: 1) The daily cost to operate the building. 2) A share of the buildings underlying mortgage 3) A share of the buildings 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 usually in a co-op that has a separate street entrance than the rest of the building. Apartments like this give the tenants the feel of a townhouse in a co-op environment.
Mansard Roof A roof that is flat 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 are responsible for things such as collecting rent or dues, property maintenance or enforcing building policies.
Market Value The estimated amount that would be paid for property if it were offered on the open market.
Mortgage A contract between a lending institution and a borrower to insure repayment of a loan. The components of a mortgage are the amount being lent, the time period of repayment and the interest rate set for the borrowed money.
Murphy Bed A bed that is attached and built into a wall and can be pulled down or out of the wall. You will usually find Murphy beds in small apartments.

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N
Term Description
Negative Pledgea Also knows as “negative pledge”. A negative pledge loan is a loan that exceeds the financing limit set by a co-operative.
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 perspective purchaser of a co-op unit does not have to be reviewed by the co-op board. Or 2) When a perspective 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 of time.
Notice of Default A written notice to a borrower formally informing them of their default on their account.

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O
Term Description
Oblique Views This term refers to an apartment that has some what panoramic views of either Central Park or both of either of the two rivers.
Offer Accepted This is the point at which a renter accepts the terms of an apartment listing.
On-site Broker or Contact Person This is a person hired by a building owner to show the apartments, answer any questions about the units or take care of any transactions at a building.
Open House A sales tactic that is used my a real estate broker to advertise an available listing. At an open house perspective buyers are able to look around the property and question the broker about the property. In the Sunday edition of the New York Times there is usually a section listing open houses.
Open Kitchen A kitchen that is not separated from the other living areas of the apartment; this 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 being 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 refer to ceiling moldings, trim around fire places or chair rails.
Original Room Count This term applies to pre-war apartments that originally had a large number of 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 different levels of ownership these are: Condominiums, Co-operatives and Cond-ops.

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P
Term Description
Parlor Floor The second floor of a townhouse. Typically this room is the room in the townhouse that has the highest ceilings and because of this it was traditionally used for entertaining.
Partial Views This terms refers to units that offer partial views of either Central Park or one of the two rivers.
Pass-through Kitchen A kitchen one is able to walk through to enter into another room, usually a dining area or the living room.
Penthouse An apartment located on the top floor of a building, often quiet 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 Literally 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 kept often by business travelers that need to be in the city for business monthly or weekly. At times these apartments are kept by the well to do so they can have a location in the City with out the bother of traveling frequently from their home to enjoy the City life.
Possession The time at which a new purchaser or tenant can take possession of a property.
Post-War Refers to buildings built after the World War II, or after about 1945. The style of these buildings and the apartments in them are drastically different than the pre-war apartments. Generally the interior and exterior are less ornate with less trim, moldings and exterior decor.
Powder Room The same as 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 that is typically used for office space. This term is usually used referring to medical office space.
Property Value The value of a piece of property that a buyer will pay at a given time.
Pullman Kitchen A small kitchen situated against one wall, consists of room for a fridge, oven and a sink. These kitchens are often found in pre-war apartments or pre-war 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 defining the terms under which a property will be sold.

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Q
Term Description
Quadraplex An apartment that covers four levels.
Qualifying Ratios: A rate computed by lenders to determine how much a buyer can borrow.

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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 located set into the ceiling and not hanging from a light fixture. This style of lighting offers continuation of clean lines in a building.
Reno A terms used to say an apartment was recently renovated.
Rental Building Buildings owned by an individual or a company that offers units for rent only.
Rental Commission Refers to the commission a real estate broker earns from the renal of an apartment. It is typical for a renter to pay the commission and the rate is about 10-15 percent of a years rent.
Reserve Fund A fund set a side by a co-op or condo’s board to pay for monthly expenses 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.

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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 usually into the kitchen from the rear of a building or a secondary hallway. In the past this entrance was typically by servants, and still may be used the same today.
Service Level The level of front door service at a particular building.
Shares This is something unique to a co-op building in real estate world. Each apartment owner in a co-op owns a share in the building, like a publicly traded company. The share represents the amount of the building that is owned by a shareholder, and the amount is determined by the size of the apartment, which floor it’s on and if there are any special features associated with the apartment.
Short-Term Apartments renting specifically for short periods of time, usually not more than six months. Often these apartments are furnished.
Shortfall This is what happens when a building brings in less that what it needs to cover it’s operating expenses.
Square Footage The amount of livable space, in square feet, in a apartment or building. Some times the amount of square footage is approximated, while at condo’s the measurements are often more accurate.
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.

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T
Term Description
Tax Abatement Tax breaks offered to developers for developing residential properties in certain areas.
Tax Deductible The percentage a shareholder at a co-op is able to deduct from their annual taxes.
Term The period of time that a lease is for.
Terrace The roof or part of a roof on a building. Often the terrace in real estate terms 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 2 or more floors. The kitchen is usually set in an English-style basement, as 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 common in the City from the 1900’s through about 1930.
Triplex An apartment covering three levels.

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U
Term Description
Unsold Shares These are shares or apartments in a co-op that have not been purchased outright. It is common when a rental property is converted in to a co-op that some renters would prefer to continue paying rent on their unit for a period of time as opposed to buying it.
Use The specific purpose for which a building is intended to be used for or for which it has been designed for.
Utilities Included This refers to charges for some of an apartments utilities to be included in the monthly rent price. Often the utilities will be water, electric, gas and sometimes cable.

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V
Term Description
Vacancy Rate The amount of unoccupied units or apartments in a building compared to all units in the building. This rate is usually expressed as a percentage.
Vacation Home A second home used for recreational purposes. When the home isn’t in use some owners choose to rent it out.
Variable Interest Rate An interest rate the fluctuates with the current cost of borrowing and lending money.

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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. An individual would actually be able to enter the kitchen 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. This can refer to blinds, shades or curtains.

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