Term
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Definition
| valuation of property for the purposes of taxes. |
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Term
| Business Improvement Districts |
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Definition
| used to fund public space improvements (new streetscapes/graffiti removal) with the intention that it will enhance an area’s appeal. All business owners in district who would benefit pay increased taxes. |
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Term
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Definition
| Method cities use to issue bonds to pay for civic improvements (sewers/streets) with the intention that it will stimulate development in that area. During redevelopment, taxes are based on the pre-improved assessed value of the property. After redevelopment, taxes (and assessed value) increase due to the improvements. The difference in tax increment is used to repay the bonds. |
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Term
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Definition
| Used to fund a civic project (library, police/fire station) and require voter approval. All taxpayers in jurisdiction help pay off bond through property tax. |
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Term
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Definition
| used to fund infrastructure needed to support new developments. Paid by developers...who generally look to develop areas with lowest fee. |
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Term
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Definition
| An additional, long term cost to the owner, to pay off the construction loan for a project. Typically not included in the original project cost. |
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Term
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Definition
| Tax based on the value of the property |
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Term
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Definition
| decreasing or accounting for an amount over a period of time. |
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Term
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Definition
| power of the state to take private property without owner’s consent, but with fair market value of the land compensation. Must be used government or public development (highways, railroads, civic center), economic development, or to mandate an easement for access (public utilities, right of way). |
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Term
| Deeds - Deed Restrictions |
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Definition
| place limitations on the use of the property, typically by original developers, who determined what land would be used for (live, work, or play) and can’t be changed by future owners. |
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Term
| Deeds - Restrictive covenants |
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Definition
| limitations and stipulations used in residential settings. Can be aesthetic (allowable color pallets, vegetation types/pruning, fencing materials) pet control (how many and/or living conditions), or storage related (visibility of parked cars/boats/ campers). |
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Term
| Deeds - Affirmative Covenant: |
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Definition
| commits a buyer to performing duties in the future (e.g. will make payments for common charges in a condo) |
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Term
| Deeds - Conditional Covenant |
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Definition
| If restriction is violated or disregared, the land will rever back to original owners/heirs. |
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Term
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Definition
| right to use part of a site without ownership (typically for utilities) |
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Term
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Definition
| right for people to cross land of another (pathways/cattle drives) |
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Term
| Deeds - Party Wall Agreement |
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Definition
| an agreement on if and how to carry out building work on a wall that is shared by two people who each own their respective property. (typically whoever originally builds first “owns” the party wall). |
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Term
| Assessments - Income Approach |
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Definition
| used by appraisers to value properties that earn income (offices, warehouses, apartments, malls) using reliable financial data that is available for recent sales of similar income properties in a given market. |
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Term
| Assessments - Market Approach |
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Definition
| used to determine the true underlying value of a property based on the estimated amount for which a property would trade in a competitive auction setting. |
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Term
| Assessments - Cost Approach |
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Definition
| used to determine the value of the property by estimating the land value and the depreciated value of any improvements. Typically applied to special use buildings (eg: marinas) |
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Term
| Types of Owners - Joint Tenancy |
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Definition
| each tenant has a share in the whole development which passes to survivors after death |
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Term
| Types of Owners - Partnership |
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Definition
| a business built on the shares of partners. After the death of one, the partnership may be dissolved and asses are distributed to remaining partners/estate of deceased. |
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Term
| Types of Owners - Corporation |
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Definition
| business independent of shareholders. After the death of one, thier shares pass on and do not affect the business. |
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Term
| Types of Owners - Trustee |
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Definition
| a person or company who hold holds property or authority for the benefit of another (eg: 401(k), will, charity, etc). |
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Term
| Types of Ownership - Fee Simple/Fee Absolute |
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Definition
| the most common form of real estate title in which the owner has “absolute ownership” (taxes, easements, deed/covenant restrictions apply) and can do whatever they want with their property. |
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Term
| Types of Ownership - Condo |
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Definition
| sole ownership of property, and shared ownership of common elements (hallways, lobbies, meeting rooms, pools, etc). |
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Term
| Types of Ownership - Co-Op |
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Definition
| ownership of a number of shares of stock of a corporation that owns land |
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Term
| Types of Ownership - Leasehold |
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Definition
| aka rental agreement, where a person owns a temporary right to land or property for a determined period of time. Sometime sublet is allowed. |
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Term
| Types of Ownership - Sale and Leaseback |
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Definition
| owner sells property and then leases it back long-term at a fixed rate, in order to raise money by offloading a property to someone who wants to make a long term investment. Typically done for tax purposes. |
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Term
| Loan Types - Blanket loan |
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Definition
| used by a developer to purchase land that they intend to subdivide and resell. When it’s sold, the lot is released from from the loan, and debt is repaid as part of the selling price. |
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Term
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Definition
| quickly granted and used to close on a property/start construction while waiting for the official (long term) loan to be approved. |
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Term
| Loan Types - Mezzanine loan |
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Definition
| used by a developer pay a variable amount of interest during project development (starts low and gets really a high % rate at the end). Is considered a gamble, the stock in the company is collateral if revenue isn’t produced by sale or lease at the end to repay the loan. |
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Term
| Loan Types - Conventional mortgage |
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Definition
| borrow money at a fixed or adjustable interest rate, and when it’s paid off, the borrower has clear title to what was purchased. |
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Term
| Loan Types - Deed of Trust |
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Definition
| title is held by a trustee, foreclosure can happen under power of sale |
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