Summit County real estate glossary
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Summit County Real Estate Glossary A
From Abatement, Appraisal to Average Occupancy

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Abandonment - The voluntary relinquishment of an interest, claim, privilege or possession of property.

Abatement - A period of time when a renter takes possession of property prior to or outside the time period of the primary term of the lease, also referred to as free rent or early occupancy.

Above building standard - Necessary specialized designs or upgraded finishes required by a tenant.

Absorption rate - Used by lenders and developers to describe the rate at which rentable space is filled.

Accessions - Items which are a part of another item, but are identified and tracked separately. For example, the heating plant of an apartment building.

Acreage - A dimensional measure of land equaling 160 square rods, 10 square chains or 4,840 square yards.

Ad valorem - From the Latin "according to value." A tax imposed on a property as a percentage of the property's value, usually based on the valuation of the property by the local government.

Adjusted Gross Income - Gross income of a building if fully rented, minus a percentage for estimated vacancies.

Adviser - An owner's representative in a real estate transaction. An adviser may be a real estate broker, consultant or investment banker. Advisers may be paid a retainer and/or a performance fee upon the close of a financing or sales transaction.

Alternative or specialty investment - Unconventional property type that is not considered a standard institutional-grade real estate investment, such as self-storage units, mobile home parks, agricultural land, and parking lots.

Amenity -

  1. A natural or man-made feature that enhances the desireability of a property, such as a view, swimming pool or access to water, but that is not necessary to its use.
  2. In the law of easement, a restraint upon the owner of property from doing on his property something he would have done, except for a grant or covenant. For example, in covenanted communities a portion of the property may be in a road easement and therefore not buildable land.

Annual membership or participation feeAn amount that is charged annually for having the line of credit available. It is charged regardless of whether or not you use the line.

Apartment Conversion - When an apartment building is converted to individually owned units, such as a condominium.

Apartment Rehabilitation - The extensive renovation of an aging apartment building.

Application - The first step in the official loan approval process; the form used to record the potential borrower's information needed for the underwriting process.

Appraisal - A written statement or estimate of the fair market value of a property based on replacement cost, discounted cash flow analysis and/or comparable sales price. A complete appraisal is defined by Federal appraisal regulations as an appraisal that meets five specific standards.

Appreciation - An asset's increase in market value due to market changes, currency devaluation, or other economic factors.

As-is condition - A tenant's acceptance of a property's existing condition, including and regardless of any physical defects, at the time a lease is contracted.

Assessment -

  1. A fee imposed on property owners, usually to pay for public improvements such as water, sewers, streets, or curb and sidewalk installations.
  2. A real estate property's estimated value.

Assessor - A county or state government official who is responsible for determining the value of a property for the purpose of taxation.

Asset - Items of value owned by individuals or businesses, such as real property, cash, personal property. Assets that can quickly be converted to cash are called "liquid assets".

Asset management - The various disciplines involved with managing real property assets from the time of investment through the time of disposition. Asset management includes appraising, acquisition, and financing; managing and leasing; operational and financial reporting; audits, market review and, ultimately, asset disposition. AKA Property Management.

Asset management fee - Fee charged for the management of a real estate investment, based on the amount invested into real estate assets for the fund or account, to the investors.

Assets under management - The total market value of real estate assets for which an asset manager has investment and asset management responsibility.

Assignee name - Party or legal entity to which an asset, including any obligations attached to it such as leases, mortgages or other contracts, has been transferred.

Assignment - Transfer of the lessee's entire stake in a property, including all of its obligations, as opposed to a sublease where the lessee transfers less than the lessee's entire interest to the subletting party.

Attorn - Agreement to recognize a new property owner and to transfer payment of debts or obligations to the new owner.

Average common equity - Calculation of total equity of a property by adding five most recent quarters and dividing by five.

Average free rent - The average monthly rent abatement allowed to a tenant as part of a lease incentive due to current market conditions. An incentive used in hard-to-rent areas or as a concession for tenant improvements.

Average occupancy - The percentage of a property occupied over the preceding twelve months divided by twelve. High occupancy rates are desired.

colorado mountain homes - ski condos
Barrie Stimson
LIV Sotheby's International Realty
101 S. Main Street
P.O. Box 2619
Breckenridge, CO 80424


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