Capitalization Rate (Cap Rate)
The value of a property that is figured by dividing the Net Operating Income (NOI) and the current market value/sales price. The Capitalization Rate can be used as an estimate of how quick an investment will pay for itself.
The value of income stream discluding income tax that is generated annually after the deduction of Capital Expenditures and Debt Service from the Net Operating Income (NOI).
Central Business District (CBD)
The central core in a metropolitan downtown area with a concentration of different types of uses (retail, residential, commercial, etc).
Certificate of Occupancy (CO)
A official government insured form stating the completion of a building and indication that it is ready for occupation. Chattel Household goods such as couches, desks, chairs, etc. This includes personal property.
Common Area Maintenance (CAM)
The amount of additional rent charged to the tenant on top of the base rent in order to maintain the common areas of the property shared by the tenants and from which all tenants benefit. Examples of this includes parking lot sweeping, snow removal, insurance, etc.
A division of commissions agreed between a sales agent and a sponsoring broker, or between a sales broker and a listing broker.
Touching upon or along a point in a boundary.
A contract requirement that must be entered into before the contract can be concluded.
A legal agreement between entities requiring each person to carry out certain activities (or to refrain from doing so). This document gives each party a right that the judicial system can enforce.
Court Appointed Sale
An involuntary sale of a property compelled by court action in order to dispose and/or maintain the property.
Wording found in deeds limiting / restricting the use of a property (e.g., no bars, or not for retail use, etc.)