Acceptance means agreement to the terms of an offer or counter-offer. For example, an owner advertises sell of a residential building for $150,000. A prospective buyer calls and offers $140,000 to buy the building and the owner of the building agrees. The owner has accepted the offer.
Breach of contract occurs when a party to a contract fails to perform one or more duties agreed.
Capital expenditures are costs paid to acquire, upgrade, and maintain physical assets that are expected to have a life of at least 5 years.
Civil liability refers to an actual or potential negligent act for which a person may be responsible for damages or other court imposed sanction. Civil lawsuits are distinguished from criminal lawsuits in that criminal lawsuits relate to potential criminal act.
Claim is a request to be made whole for injury or loss. Examples include claim for breach of contract, property insurance claim, or claim for overpaid taxes.
Commercial property is income producing real estate such as hotels, office buildings, restaurants, shopping centers, industrial parks, warehouses, and factories. Generally, commercial property must be zoned for business use.
Consideration means giving something of value in exchange for goods or services. For example, a buyer offers to buy a residential building and a seller agrees to sell the same residential building to the buyer – the buyer gives $150,000 as consideration and the seller gives the building as consideration.
Counter offer is a reply of or rejection or replacement to an initial offer. The counteroffer gives the person making the original offer the option to accept or reject the counteroffer or make another offer.
Credit risk means a financial chance as to whether a debt will be paid or there will be a loss on the debt extended.
Criminal liability refers to the actual or potential responsibility for conduct that causes harm or damage to someone or something which the government imposes a penalty.
Damages means injury to someone or something that results in a loss. The damaged person prove damages – courts do not automatically award money because a person shows they were injured. For example, agreeing to buy a residential building then failing to pay the agreed price at closing 30-days later. The seller may have damages based on the missed offers from other prospective buyers.
Defense is a contest or argument to an accusation of a civil or criminal act (charge or lawsuit).
Escrow is property held in an account that is managed by a third party according to the terms of the related agreement (escrow agreement). For example, a mortgage company can set up a mortgage escrow to set aside a portion of the monthly mortgage payment to pay insurance and real estate taxes on the property twice a year.
Financing means extending credit. For example, a bank extends $100,000 to a customer to buy a residential building.
Industrial real estate is land and buildings that is used or suitable and zoned for manufacturing, assembling, warehousing, researching, light storage, distribution, and similar
Insurance is the transfer of risk from one person to another – one person pays a certain amount of money to another person (called a premium) to cover the cost of possible injury or loss to persons and/or property and the other person pays all or a portion of the cost of the actual injury or loss.
Interest rate means the rate charged for the cost of extending credit or using money.
Land is the earth’s surface that is not covered by water or air. Land is separate from physical property that sits on top or is affixed to land.
Lease is an agreement for the temporary use of property.
Lessee (similar to a tenant) is the person who has the right to use property described in a lease.
Lessor (similar to a renter or landlord) is the person who agrees to give a person the right to temporarily use property described in a lease.
Liability means a responsibility or obligation between one party to another which may be resolved by the transfer of economic benefits.
Modification is the process of making something different from the original. An example could be, on April 1 a seller agrees to sale a residential building for $150,000 to buyer on May 15 and the buyer agrees. On May 10, buyer contacts the seller and asks to change the date from May 15 to June 1. The parties may then enter into a discussion or additional negotiations so that the seller is confident that the sale will take place on June 1 or whether the original agreement will be canceled after May 15.
Offer is an invitation to enter into a contract. An offer is different than a counter-offer. For example, I will pay you $140,000 for your residential building is an offer. No, I will pay you $130,000 is a counter-offer.
Property Manager is the person who agrees to oversee the day-to-day operations of a piece of property. There is or should be a contract that spells out the rights, duties, and responsibilities of the property manager and the rights, duties, and responsibilities of the owner of the property.
Purchase Agreement is an agreement that contains the date, identity of the parties, description of the property being bought or sold, and terms of the purchase or sale.
Remedy refers to the means by which a person subjected to actual or potential damage or harm is compensated.
Rental expense are costs that arise from owning and operating space rented to another person. Common rental expenses include utility and appliance repair; exterior maintenance such as lawn care and snow removal; property insurance; and real estate taxes.
Rental income is the amount charged a renter for use of space.
Repairs and maintenance is costs to restore an asset to its intended or needed use.
Residential real estate is property or an area zoned for people to live or dwell in.
Responsibility is having a duty to deal with or be accountable to someone or something. A person can have a legal, moral, social, ethical duty to act or not act.
Rights are claims that are recognizable and enforceable by law.
Term means a fixed or limited period for which something lasts or is intended to last.
Zoned means to be designated for a particular use or development.