Real Estate Property Management

Front 1

abandonment

Back 1

A unilateral termination of a tenancy by forfeiture, delivered by the landlord based on notices from the landlord.

Front 2

accommodation party

Back 2

An individual who signs a note to include liability for a debt evidenced by the note and receives no direct benefit from the debt.

Front 3

ad valorem

Back 3

Real estate taxes imposed on property based on its assessed value.

Front 4

addendum

Back 4

An attachment to a contract, rental or lease agreement for incorporating any provision agreed to but not included in the boilerplate provisions of the agreement.

Front 5

agency duty

Back 5

The fiduciary duty a broker owes a client to use diligence in attaining the client's real estate goals.

Front 6

agent-for-service clause

Back 6

A section in the property management agreement which appoints the owner's agent-for-service.

Front 7

agent-for-service process

Back 7

An individual who acts on behalf of the owner, accepting service of legal documents and notices initiated by tenants.

Front 8

Annual Property Operating Data sheet (APOD)

Back 8

A worksheet used when gathering income and expenses on the operation of an income producing property, to analyze its suitability for investment.

Front 9

anti-competition clause

Back 9

A provision in the nonresidential lease agreement stating the landlord will not lease space in a commercial complex to competitors of the tenant.

Front 10

applicant screening fee

Back 10

A nonrefundable fee charged to the tenant to reimburse the landlord for the cost to obtain the tenant's credit report.

Front 11

appreciation-adjusted rent provision

Back 11

A rent provision found in a nonresidential lease agreement which adjusts rent every several years to reflect an increase in the rental value of a property exceeding the rate of inflation brought about by local demographics.

Front 12

appurtenance

Back 12

A right belonging to real estate owned by the landlord to use property located outside the leased premises for purposes such as parking or access.

Front 13

assignment

Back 13

A tenant’s sublease of a portion of the leased premises.

Front 14

assumption

Back 14

The promise by a successor tenant to fully perform all obligations under the lease agreement they are taking over by assignment from the previous tenant.

Front 15

attorney fee provision

Back 15

A provision in an agreement permitting the prevailing party to a dispute to receive attorney fees when litigation arises due to the agreement.

Front 16

attornment clause

Back 16

A lease agreement provision which allows an owner-by-foreclosure to unilaterally avoid the automatic elimination of a junior leasehold interest by a foreclosure sale and become a substitute landlord under the tenant's lease agreement.

Front 17

balance sheet

Back 17

An itemized, dollar-value presentation for setting an individual's net worth by subtracting debt obligations (liabilities) from asset values.

Front 18

base rent

Back 18

The minimum monthly rent due under a nonresidential lease agreement.

Front 19

blockbusting

Back 19

The prohibited practice of a residential landlord inducing or attempting to induce a person to offer, or abstain from offering a dwelling to prevent the entry of certain classes of people into a neighborhood.

Front 20

bona fide lease agreement

Back 20

A lease agreement with a fair market rent held by a residential tenant when ownership of the property is transferred by a foreclosure sale.

Front 21

bona fide purchaser (BFP)

Back 21

A buyer of leased real estate who lacks knowledge that a lease agreement exists and purchases the property for valuable consideration or accepts the real estate as security for a debt.

Front 22

business goodwill

Back 22

The earning power of a business.

Front 23

California Fair Employment and Housing Act (FEHA)

Back 23

Legislation which prohibits landlords from using discriminatory rental policies to avoid renting to a tenant based on familial status.

Front 24

call

Back 24

A lender's demand for the balance of the loan to be immediately paid in full.

Front 25

call option

Back 25

An agreement giving a buyer the right to buy property within a specified time or upon an event at a specified price with terms for payment.

Front 26

cancellation provision

Back 26

A lease agreement provision permitting the tenant to terminate their occupancy and rent obligation by paying a set sum of money.

Front 27

certified CID manager

Back 27

A non-required professional designation certifying an individual has met legislated educationalrequirements specific to managing common interest developments.

Front 28

choice-of-law provision

Back 28

A clause which sets the state law applicable in the event of a dispute.

Front 29

Civil Rights Act

Back 29

A federal law which provides broad protections to numerous classes of individuals in the United States against discriminatory activities.

Front 30

commingling

Back 30

The mixing of personal funds with client or third-party funds held in trust.

Front 31

common area maintenance charge

Back 31

Property operating expenses incurred by a commercial landlord and paid by the tenant as rent in additonal to the base rent, adjustments and percentages.

Front 32

common interest development (CID)

Back 32

Condominium projects, cooperatives or single family residences in a planned unit development.

Front 33

comparative cost analysis

Back 33

A comparison of the costs a tenant will incur to occupy and operate in a particular space against the costs to operate in other available space.

Front 34

comparative negligence

Back 34

An injured person's share of the negligence causing their injury when the injured person's lack of care for themselves contributes to the injury.

Front 35

compliance-with-laws clause

Back 35

A provision in a nonresidential lease agreement controlling the conduct of tenant activities on the property to conform with public laws, building ordinances or tenant association rules.

Front 36

compounded base rent

Back 36

Rent that adjusts yearly by a certain percentage of the prior year's rent.

Front 37

constructive eviction

Back 37

A termination of the tenant's right of possession and cancellation of the lease agreement on vacating due to the landlord's failure to maintain the premises as stated in the lease.

Front 38

constructive notice

Back 38

To be charged with the knowledge observable or recorded conditions exist on the property. When a tenant occupies a property under a lease agreement, a buyer is charged with constructive notice of the tenant’s leasehold interest by the occupancy.

Front 39

consultation fee

Back 39

A fee the broker charges for the time spent locating rental property if the tenant decides not to lease space during the exclusive authorization period.

Front 40

Consumer Price Index (CPI)

Back 40

The CPI measures and tracks the rate of consumer inflation. This is presented as an index of fluctuations in the general price of a wide selection of consumable products -- goods and services.

Front 41

contingency fee

Back 41

An incentive bonus paid upon successfully completing or hitting certain benchmarks, or received as compensation on the occurrence of an event.

Front 42

contingency fee clause

Back 42

A provision in an offer-to-lease which states the broker's fee is payable on the transfer of possession to the tenant.

Front 43

corporate resolution

Back 43

A document from a corporation's board of directors which gives the officers of a corporation theauthority to sign and bind the corporation to a lease.

Front 44

covenant of quiet enjoyment

Back 44

An implied lease provision which prohibits the landlord from interfering with the tenant's agreed use and possession of a property.

Front 45

credit application

Back 45

A document prepared by a prospective tenant which includes a provision authorizing the investigation and receipt of information on the applicant's creditworthiness.

Front 46

credit reporting agency

Back 46

A private agency which collects and reports information regarding an individual's credit history.

Front 47

curable breach

Back 47

A breach of the lease agreement which can be remedied by action from the tenant.

Front 48

declaration of forfeiture provision

Back 48

A lease or rental agreement provision declaring a tenant's failure to cure a breach of the agreement constitutes a forfeiture of the tenant's right of possession.

Front 49

default remedies provision

Back 49

A lease agreement provision authorizing the landlord on termination of the tenant's lease due to the tenant's default to collect rents for the remaining unexpired lease term.

Front 50

delinquency

Back 50

A tenant or borrower's failure to pay the agreed amounts on or before the due date or expiration of anygrace period.

Front 51

destruction provision

Back 51

A provision in a lease agreement in which a tenant agrees to pay for any destruction to the premises caused by the tenant, covered by the tenant's insurance or required by other lease provisions.

Front 52

disabled person

Back 52

Anyone who has a physical or mental impairment which significantly limits major life activities, has a record of disability, or is regarded as being disabled.

Front 53

dominant tenement

Back 53

The property benefitting from an easement on a servient tenement.

Front 54

dual agency

Back 54

The agency relationship that results when a broker represents both the buyer and the seller in a real estate transaction.

Front 55

due date

Back 55

The date provided in the rental or lease agreement on which rental payments are due.

Front 56

due-on clause

Back 56

A trust deed provision used by lenders to call the loan immediately due and payable, a right triggered by the owner's transfer of any interest in the real estate, with exceptions for intra-family transfers of their home.

Front 57

dwelling

Back 57

A building occupied or designed to be occupied as a residence by one or more families.

Front 58

early termination clause

Back 58

A provision which assures payment of the broker's fee if the owner withdraws the property fromthe market during the listing period.

Front 59

early-termination fee

Back 59

A fee paid to the landlord by the tenant to cancel the lease agreement in exchange for returning possession.

Front 60

eminent domain

Back 60

The right of the government to take private property for public use on payment to the owner of the property’s fair market value.

Front 61

entire agreement clause

Back 61

A clause in a lease agreement which limits the tenant's ability to imply terms into the lease based on oral statements made before entering into the lease.

Front 62

estate

Back 62

The ownership interest a person may hold in real estate.

Front 63

eviction

Back 63

An unlawful detainer action filed to physically remove a tenant from actual possession.

Front 64

exclusive authorization to lease

Back 64

A written agreement between a broker and client employing the broker to render services in exchange for a fee on the leasing the property to a tenant located by anyone. Also known as a listing.

Front 65

exclusive authorization to locate space

Back 65

An employment agreement by a broker and a prospective tenant which authorizes the broker to act as the tenant's leasing agent to locate suitable space and negotiate a lease agreement.

Front 66

exclusive right-to-collect clause

Back 66

A provision which assures payment of the broker's fee if anyone procures a tenant on the terms in the listing, or on terms the landlord accepts.

Front 67

familial status

Back 67

A status which indicates a household includes individuals under the age of 18.

Front 68

Federal Fair Housing Act (FFHA)

Back 68

A collection of policies designed to prevent discrimination in the access to housing based on an occupant's inclusion in a protected class.

Front 69

fee estate

Back 69

An indefinite, exclusive and absolute legal ownership interest in a parcel of real estate.

Front 70

final inspection

Back 70

An inspection of the premises conducted by the landlord within 21 days after a residential tenant vacates the property.

Front 71

fixed-rent lease

Back 71

A lease agreement with monthly rent payments set at a specific dollar amount for the life of the lease.

Front 72

fixed-term tenancy

Back 72

A leasehold interest which lasts for the specific lease period set forth in a lease agreement. A fixed term tenancy automatically terminates at the end of the lease period.

Front 73

floor rent

Back 73

A minimum rent rate the landlord receives throughout the lease term.

Front 74

forcible entry

Back 74

The unlawful entry of any individual into a rented property without permission, prior notice or justification.

Front 75

forfeiture of possession

Back 75

The termination of the tenant's right of possession triggered by a declaration of forfeiture in a notice to quit.

Front 76

full listing offer

Back 76

A buyer's or tenant's offer to buy or lease on terms substantially identical to the employment terms in the owner's listing agreement with the broker.

Front 77

full-service gross lease

Back 77

A commercial lease specifying that the landlord retains the responsibility for payment of all costs of care and maintenance, unless modified, including the tenant's utilities and janitorial services.

Front 78

further-approval contingency provision

Back 78

A provision in an offer to rent property which allows the tenant time to investigate and confirm the property information disclosed by the landlord.

Front 79

further-improvements provision

Back 79

A commercial lease provision which allows a landlord to retain tenant improvements or require the restoration of the property to its original condition upon expiration of the lease.

Front 80

future subordination clause

Back 80

A lease agreement provision in which the tenant agrees to subordinate their leasehold interest in property to a trust deed to be recorded in the future.

Front 81

general adjustment

Back 81

A type of rent adjustment under rent control which uniformly adjusts rents for all rental units.

Front 82

general duty

Back 82

The duty a licensee owes to non-client individuals to act honestly and in good faith with up-front disclosures of known conditions which adversely affect a property's value.

Front 83

grace period

Back 83

The time period following the due date for a payment during which payment received by the lender or landlord is not delinquent and a late charge is not due.

Front 84

graduated rent provision

Back 84

A rent provision in a nonresidential lease agreement which periodically increases the initial monthly rent in pre-set increments over the term of the lease.

Front 85

gross lease

Back 85

A nonresidential lease specifying that the tenant pays for their utilities and janitorial fees, but unless modified is not responsible for any other care, maintenance or carrying costs of the property.

Front 86

ground lease

Back 86

A leasehold interest for which rent is based on the rental value of the land, whether the parcel is improved or unimproved.

Front 87

habitability defense

Back 87

A residential tenant's pursuit of a legal remedy due to a landlord's failure to maintain habitable conditions on the rented premises.

Front 88

habitable condition

Back 88

The minimum acceptable level of safety, utility and sanitation permitted in a residential rental.

Front 89

heirs, assigns and successors clause

Back 89

A clause in a lease agreement which binds those who later take the position of landlord or tenantto the existing agreement.

Front 90

hold harmless clause

Back 90

A provision in a lease agreement that shifts responsibility from the landlord to the tenant for injuries occurring on the premises caused by the tenant’s negligence.

Front 91

holdover rent

Back 91

Rent owed by a holdover tenant for the tenant's unlawful detainer of the rented premises as a tenant-at-sufferance.

Front 92

holdover rent provision

Back 92

A rental or lease agreement provision which sets the rent rate during a tenant holdover period.

Front 93

holdover tenant

Back 93

A tenant who retains possession of the rented premises after their right of possession has been terminated, called a tenant-at-sufferance.

Front 94

impairment

Back 94

The act of injuring or diminishing the value of a fee interest.

Front 95

impasse notice

Back 95

A notice advising the tenant the lease will expire and no modification of the lease will be entered into.

Front 96

implied warranty of habitability

Back 96

An unwritten provision, included by statute, in all residential lease agreements requiring the landlord to provide safe and sanitary conditions in the rental unit.

Front 97

incurable breach

Back 97

Nonmonetary defaults in leases or mortgages that cannot be cured or undone.

Front 98

individual adjustment

Back 98

A type of rent adjustment sought by a landlord when the general adjustment established by local rent control ordinances fails to provide a fair return on their residential property.

Front 99

inflation

Back 99

The price change in consumer goods and services, stated in the consumer price index (CPI) as a figure which is reported as a percentage change over one year ago.

Front 100

inflation-adjusted rent provision

Back 100

A rent provision in a nonresidential lease which calls for periodic rent increases based on changes in inflation index figures during the period.

Front 101

irrevocable license

Back 101

The right to enter and use property when the specific activity granted by the license is maintained by the licensee's on-going expenditure of money or equivalent labor, and remains feasible.

Front 102

itemized statement of deduction

Back 102

A document accounting for the tenant's security deposit, delivered by the landlord to a residential tenant after the tenant vacates.

Front 103

joint pre-expiration inspection

Back 103

An inspection conducted by a residential landlord or the property manager to advise a tenant of the repairs the tenant needs to perform to avoid deductions from their security deposit.

Front 104

landlord-initiated disposition procedure

Back 104

The process of a landlord mailing a notice of the right to reclaim personal property to a tenant who vacated and left personal property on the premises.

Front 105

late charge notice

Back 105

A landlord's written notice demanding payment of a late charge on a delinquent rent payment.

Front 106

late charge provision

Back 106

A provision in the lease agreement which imposes an additional administrative charge if rent payments are not received when due or within a grace period for payment.

Front 107

late payment clause

Back 107

A provision in a rental or lease agreement establishing the landlord's right to demand and receive a late charge when a rent payment becomes delinquent.

Front 108

lead-based paint

Back 108

Any surface coating containing at least 1.0 milligram per square centimeter of lead, or 0.5% lead by weight.

Front 109

lead-based paint hazard

Back 109

Any condition that causes exposure to lead from lead-contaminated dust, soil or paint which has deteriorated to the point of causing adverse human health effects.

Front 110

lease agreement

Back 110

The written document which sets the terms of a fixed-term tenancy.

Front 111

lease guarantee

Back 111

An agreement committing a person other than the tenant to pay all monies due the landlord under the lease agreement.

Front 112

leasehold estate

Back 112

The right to possess a parcel of land, conveyed by a fee owner (landlord) to a tenant.

Front 113

leasing agent

Back 113

A broker who markets the availability of space to rent and locates and negotiates the terms of a lease with suitable tenants.

Front 114

legal description

Back 114

The description used to locate and set boundaries for a parcel of real estate.

Front 115

lender subordination clause

Back 115

A lease agreement provision which gives a lender with a trust deed interest senior to the tenant's leasehold interest the right to unilaterally subordinate the lender's trust deed to the tenant's leasehold by written notice to the tenant.

Front 116

letter of intent

Back 116

A non-binding proposal signed and submitted to a property owner to start negotiations to rent or buy a property.

Front 117

liability

Back 117

A financial debt or obligation owed to others.

Front 118

license

Back 118

The personal, unassignable right held by an individual to the non-exclusive use of property owned by another.

Front 119

life estate

Back 119

An interest in a parcel of real estate lasting the lifetime of the life tenant.

Front 120

liquidated damages provision

Back 120

A rental agreement provision which acts as a penalty payment for returning possession before a set date.

Front 121

loss mitigation

Back 121

The good-faith effort a landlord who seeks to recover future rents makes to reduce their loss of rent after a tenant vacates or is evicted.

Front 122

managing agent

Back 122

A broker who manages membership, common areas and accounting for a common interest development.

Front 123

mandatory improvement

Back 123

An improvement required to be made by the tenant under the terms of the rental or lease agreement.

Front 124

master lease

Back 124

A leasehold interest granted to a master tenant with the right to sublease the property in exchange for rent paid to the fee owner.

Front 125

material breach

Back 125

Failure to pay rent or perform other significant obligations called for in the rental or lease agreement.

Front 126

mechanic's lien

Back 126

A lien entitling a contractor or subcontractor to foreclose on a job site property to recover the amount due and unpaid for labor and materials they used.

Front 127

minor breach

Back 127

Failure to pay late charges, interest penalties, bad check charges or security deposits.

Front 128

monetary breach

Back 128

A tenant's failure to timely pay rent or other money obligation due.

Front 129

money action

Back 129

Litigation which seeks to recover future rents and any previously unpaid rent earned but not included in an unlawful detainer judgment.

Front 130

negligence

Back 130

The failure to behave with the level of care that someone of ordinary prudence would have exercised under the same conditions.

Front 131

net lease

Back 131

A commercial lease which transfers to the tenant the obligation, unless modified, to pay all of the costs of ownership in addition to utilities and janitorial services.

Front 132

net operating income (NOI)

Back 132

1) The net revenue generated by an investment property before mortgage payments. It is calculated as the sum of a property’s gross operating income less the property’s total operating expenses. 2) The net revenue generated by an agent's employment, calculated by subtracting business operating costs from the expected income from fees generated from sales, leasing or financing transactions.

Front 133

nondelegable duty

Back 133

A duty which cannot be transferred or assumed by another person. In the case of a landlord, a nondelegable duty cannot be assumed by a property manager or contractor.

Front 134

nondisturbance agreement

Back 134

An agreement with mortgage lender providing for the tenant's lease agreement to remain in effect for its full term after the leasehold is subordinated to a new mortgage.

Front 135

nondisturbance clause

Back 135

A lease agreement provision which is coupled with the future subordination clause to allow a tenant's junior leasehold interest to remain unaffected by a lender's foreclosure under a senior trust deed.

Front 136

nonmonetary breach

Back 136

A tenant's breach of any obligation other than an obligation to pay money.

Front 137

nonrecurring deposits or charges

Back 137

One-time costs for which the tenant is responsible.

Front 138

nonwaiver of rights provision

Back 138

A nonresidential rental or lease agreement provision containing the landlord's reservation of rights.

Front 139

nonwaiver provision

Back 139

A provision in the lease agreement that states a landlord's waiver of a tenant's breach is not a waiver of similar or future breach.

Front 140

note

Back 140

A document, often secured by a trust deed on real estate, evidencing an obligation to pay money to a creditor, usually a lender or carryback seller.

Front 141

notice of change in rental terms

Back 141

Written notice served on the tenant noting changes in the terms or conditions of a month-to-month rental agreement.

Front 142

notice of entry

Back 142

A document served on a tenant giving them advance notice of a landlord's intent to enter a tenant's unit to perform maintenance, make repairs or inspect.

Front 143

notice of intent to vacate

Back 143

A tenant's notice to the landlord signifying their intent to vacate the leased property.

Front 144

notice of nonresponsibility

Back 144

A notice used by an owner to declare they are not responsible for any claim arising out of the improvements their tenant is constructing on their property.

Front 145

notice of right to reclaim personal property

Back 145

A landlord's notice mailed to a former tenant informing the tenant of their right to reclaim or abandon personal property remaining on the premises.

Front 146

notice to landlord to surrender personal property

Back 146

A written request submitted by a former tenant to a landlord for the return of personal property left in the vacated unit.

Front 147

notice to pay rent or quit

Back 147

A notice served on a tenant by the landlord which states the amount of delinquent rent and any other delinquent amounts owed the landlord under a rental or lease agreement.

Front 148

notice to perform or quit

Back 148

A notice requiring a tenant to perform an action to remedy a curable nonmonetary breach of the lease agreement.

Front 149

notice to quit

Back 149

A notice to vacate served on a tenant for an incurable breach of a rental or lease agreement or due to a statutory breach of the tenancy.

Front 150

notice to vacate

Back 150

A written document used by a tenant or a landlord to terminate a periodic tenancy.

Front 151

novation

Back 151

An agreement entered into by a landlord and tenant shifting responsibility for obligations owed the landlord under a lease agreement to another tenant, releasing the original tenant from liability.

Front 152

nuisance

Back 152

An action which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property.

Front 153

offer to lease

Back 153

A document which sets forth all crucial elements typically negotiated to bring the landlord and tenant together in final leasing arrangements.

Front 154

open listing

Back 154

An employment entered into by a broker to render real estate services on a best-efforts basis under which a fee is due to the broker if they achieve the client's objective of the employment before the client or another broker separately first meet the objective, such as the sale or locating of a property.

Front 155

operating costs

Back 155

The itemized list of total annual costs projected to maintain and operate a property for one year.

Front 156

operating expenses

Back 156

The total annual cost incurred to maintain and operate a property for one year.

Front 157

option period

Back 157

The time period during which an optionee/buyer may exercise their right to buy under an option agreement.

Front 158

option to buy

Back 158

An agreement granting an irrevocable right to buy property within a specific time period.

Front 159

option to extend

Back 159

An agreement granting a tenant the right to extend possession under their lease agreement on terms set out in the option to extend.

Front 160

option to renew

Back 160

An agreement granting a tenant the right to continue in possession upon expiration of the existing lease under a new lease agreement on the same conditions as the expiring lease agreement on terms for payment of rent set out in the option to renew.

Front 161

overriding rent

Back 161

The amount the current market rent rates exceed the rents set in the lease agreement, attainable by the tenant on a sublease to a successor tenant.

Front 162

owner-by-foreclosure

Back 162

The winning bidder at a trustee's sale who takes title to the property sold by a trustee's deed.

Front 163

parcel

Back 163

A three-dimensional portion of real estate identified by a legal description.

Front 164

partial payment agreement

Back 164

An agreement for receipt of partial rent, specifying the amount of deferred rent remaining unpaid and the date for its payment.

Front 165

percentage lease

Back 165

A commercial lease agreement for a retail operation that sets the total amount of rent the tenant will pay as a percentage of the tenant's gross sales.

Front 166

periodic tenancy

Back 166

A leasehold interest which lasts for automatic successive rental periods of the same length of time, terminating upon notice from either party.

Front 167

permissive improvement

Back 167

A nonmandatory improvement the tenant is authorized to complete without further landlord consent.

Front 168

police power

Back 168

The basis for enacting local ordinances such as zoning, traffic, health and safety regulations and rent control.

Front 169

power of attorney

Back 169

A temporary authority granted to an individual to perform activities during a period of the owner's incapacity or travel.

Front 170

present value

Back 170

Unearned rent that is discounted at the time of the court’s money award at the annual rate of 1% over the Federal Reserve Bank of San Francisco’s discount rate.

Front 171

pro rata rent

Back 171

Rental payment amount due for the portion of the rental period remaining after a change in the rent amount due.

Front 172

profit a prendre

Back 172

The right to remove minerals from another’s real estate.

Front 173

profit and loss statement

Back 173

A type of financial statement which discloses the tenant's business income, expenses and net operating income.

Front 174

property expense profile

Back 174

An itemized analysis of the costs a tenant or landlord will incur to operate and maintain a particular property.

Front 175

property management agreement

Back 175

An employment agreement setting the rights, responsibilities and expectations of both the property manager and the landlord.

Front 176

property operating data

Back 176

The actual costs of operating a property for its intended use.

Front 177

property profile

Back 177

A report from a title company providing information about a property's ownership, encumbrances, use restrictions and comparable sales data.

Front 178

prudent investor standard

Back 178

A property management standard reflecting the expectations of a well-informed investor for efficient and effective management of rental income and expenses.

Front 179

public policy

Back 179

A system of laws maintained by local, state or federal government for the conduct of its people.

Front 180

punitive damages

Back 180

Monies awarded in excess of actual money losses in order to deter unlawful actions.

Front 181

pure-net lease

Back 181

A commercial lease in which a tenant assumes absolutely all the obligations of ownership.

Front 182

real estate fixture

Back 182

Personal property attached to the real estate as an improvement, which becomes part of the conveyable real estate.

Front 183

reasonable belief

Back 183

The actual knowledge a landlord has of the ownership of personal property without investigating.

Front 184

reasonable certainty

Back 184

The degree of certainty expected from a reasonable person.

Front 185

reasonable person test

Back 185

A judicial test used to determine reasonable behavior between two parties.

Front 186

reasonably foreseeable

Back 186

The possibility a crime or danger may occur due to a previous crime on the premises. A landlord has a duty to take reasonable measures to prevent harm to persons on the property or warning tenants of the prior criminal activity.

Front 187

recast

Back 187

A mortgage holder's demand to modify the note terms and receive payment of additional fees in exchange for waiving the due-on clause in their mortgage.

Front 188

recurring operating expenses

Back 188

The regular and continuing costs of using and maintaining a property.

Front 189

reformation action

Back 189

A court action by a tenant seeking to reform the terms of a lease agreement to include prior agreements, oral or written, intended to be part of the lease agreement.

Front 190

reinstatement period

Back 190

The period of time during which the tenant may reinstate their right of possession if they meet the terms set by the unlawful detainer judgment.

Front 191

remedies provision

Back 191

A provision in a nonresidential lease agreement stating the nonbreaching party's available actions upon a breach of the lease agreement.

Front 192

rent

Back 192

Compensation received by a landlord in exchange for the tenant's use, possession and enjoyment of the property.

Front 193

rent control

Back 193

Local ordinances that are reasonably related to the prevention of excessive rents and maintaining the availability of existing housing.

Front 194

rent provision

Back 194

A provision contained in a lease agreement establishing the tenant's obligations to pay rents for occupancy and use of the premises leased.

Front 195

rental agreement

Back 195

The written document which sets the terms and conditions of a periodic tenancy.

Front 196

rental market

Back 196

The market environment in which landlords seek tenants and tenants seek landlords for the occupancy of property. The rental market sets the amount of rent a property will command on any given day.

Front 197

repair-and-deduct remedy

Back 197

An option available to a residential tenant when the landlord fails to repair leased property allowing the tenant makes the repairs and deducts their cost from the next month's rent payment.

Front 198

reservation agreement

Back 198

The written document which sets the terms of a transient occupancy.

Front 199

reservation of rights clause

Back 199

A clause in the nonwaiver of rights provision in nonresidential rental and lease agreements stating acceptance of late rent does not waive the landlord's right to enforce remedies for any remaining breach of the lease agreement by the tenant.

Front 200

resident manager

Back 200

An individual employed by the property manager or landlord to live onsite at the managed property and handle its daily operations.

Front 201

resident manager agreement

Back 201

An employment agreement which establishes the rights and duties of a resident manager and the obligations of the property manager and landlord.

Front 202

restitution

Back 202

1) The return of possession of the rented premises to a wrongfully removed tenant. 2) A refund to the buyer by the seller on a rescission of a transaction in exchange for the restoration of the property to the seller.

Front 203

restriction-on-transfer provision

Back 203

A provision in a lease agreement calling for either the landlord's consent to any transfer of the tenant's leasehold interest or the prohibition of any transfer of that interest.

Front 204

retaliatory eviction

Back 204

A tenant whose tenancy is sought to be terminated for lawfully exercising any rights.

Front 205

retroactive interest differential (RID)

Back 205

The mortgage holder's losses, calculated based on the interest differential between the note rate and the market rate on the date of a third party's unlawful interference with the mortgage holder's right to call a mortgage.

Front 206

reversion

Back 206

The conveyance of real estate fixtures from a tenant to landlord on expiration of a lease.

Front 207

reversionary interest

Back 207

A landlord’s temporarily suspended right to occupy property leased to a tenant during a lease term.

Front 208

right of first refusal

Back 208

A pre-emptive right held by another person to buy a property if the owner decides to sell.

Front 209

right of rescission

Back 209

The right to cancel a completed transaction such as a sale or letting of property, including restoration, after the transaction has been closed.

Front 210

right-to-enter provision

Back 210

A provision contained in a lease agreement which reserves to the landlord the right to enter the leased premises to make necessary repairs, alterations or inspections.

Front 211

safety clause

Back 211

A provision in an exclusive listing agreement earning the broker a fee during an agreed safety period after expiration of the employment for marketing efforts with identified buyers, tenants or property, if the client sells the listed property to an identified buyer or purchases or leases an identified property during the safety period.

Front 212

Section 8 housing

Back 212

A government housing program for low income households which provides qualifying tenants with rent subsidies and minimum habitability standards.

Front 213

security deposit

Back 213

A source of funds to pay tenant obligations owed the landlord on the tenant's default in the rental or lease agreement.

Front 214

self-help

Back 214

A landlord’s own method of recovering possession from a tenant outside the legal eviction process.

Front 215

senior citizen housing

Back 215

Housing intended for persons 55 or 62 years of age or older.

Front 216

servient tenement

Back 216

A property burdened by a license or easement.

Front 217

signage provision

Back 217

A provision in a nonresidential lease agreement which gives the landlord control over the size, style, content and location of signs constructed or installed on the leased premises.

Front 218

start-up fee

Back 218

A flat, one-time fee charged by a property manager for the time and effort taken to become sufficiently familiar with the operations of the property to commence management.

Front 219

statement of deficiencies

Back 219

A document a residential landlord presents to a vacating tenant specifying any repairs or cleaning to be completed by the tenant to avoid deductions from the security deposit.

Front 220

statutory breach

Back 220

A breach of the lease agreement which automatically forfeits the tenant's right of possession.

Front 221

stay-or-pay clause

Back 221

An unenforceable provision calling for the residential tenant to forego a return of their security deposit if they move before a set date.

Front 222

steering

Back 222

The discriminatory practice of restricting the rental or ownership of a property to a specific class of people to perpetuate segregated housing.

Front 223

strict liability

Back 223

To be liable for another's injuries without concern for fault.

Front 224

strict rent control

Back 224

A type of rent control ordinance that limits rent increases on all rental units.

Front 225

sublease

Back 225

A leasehold interest subject to the terms of a master lease.

Front 226

substituted service

Back 226

In place of personally serving the tenant, the notice is personally delivered to a person of suitable age at the tenant's residence or place of business and is mailed to the leased premises, or posted on and mailed to the premises.

Front 227

successor tenant

Back 227

On a transfer, the new tenant who acquires by assignment the original tenant's entire leasehold interest in the property.

Front 228

surrender

Back 228

A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises.

Front 229

tenancy-at-sufferance

Back 229

A leasehold condition created when a tenant retains possession of the rented premises after the tenancy has terminated.

Front 230

tenancy-at-will

Back 230

A leasehold interest granted to a tenant, with no fixed duration or rent owed. A tenancy-at-will can be terminated at any time by an advance notice from either party.

Front 231

Tenant Estoppel Certificate (TEC)

Back 231

A statement which summarizes the monetary and possessory terms of a lease agreement, and whether the landlord and tenant have fully performed their obligations.

Front 232

tenant improvements

Back 232

Improvements made to a leased property to meet the needs of the occupying tenant.

Front 233

tenant improvements and alterations clause

Back 233

A clause in a nonresidential lease agreement which specifies the tenant's right to make alterations or further improve the premises during the tenancy.

Front 234

tenant lease worksheet

Back 234

A document the leasing agent uses to analyze the tenant's current financial condition and needs for leased space.

Front 235

tenant-initiated recovery procedure

Back 235

The recovery process initiated by a tenant to retrieve personal property from a landlord within 18 days after vacating rental property.

Front 236

tenant-mitigation provision

Back 236

A provision in a nonresidential lease agreement allowing the landlord to leave the tenant's leasehold and the lease agreement intact on the tenant's breach, and then recover rent from the tenant for the life of the lease without the landlord first taking steps to mitigate losses.

Front 237

termination-of-agency clause

Back 237

A provision in an exclusive listing agreement which calls for a broker fee to be earned and payable when the client cancels the employment without cause.

Front 238

trade fixture

Back 238

A fixture used to render services or make products in the trade or business of a tenant.

Front 239

transfer

Back 239

Any assignment, sublease or further encumbrance of the leasehold by the tenant.

Front 240

transient occupancy

Back 240

The occupancy of a vacation property, hotel, motel, inn, boarding house, lodging house, tourist home or similar sleeping accommodation for a period of 30 days or less.

Front 241

trespasser

Back 241

A person who occupies a property without the owner's transfer of the right to occupy.

Front 242

triple net lease

Back 242

A commercial lease which passes the responsibility for all costs and maintenance of the property to the tenant.

Front 243

trust account

Back 243

An account separate and apart and physically segregated from a broker's own funds, in which the broker is required by law to deposit all funds received for clients.

Front 244

trust deed

Back 244

A security device which attaches a money obligation as an encumbrance on a marketable interest in real estate.

Front 245

trust funds

Back 245

Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.

Front 246

unlawful detainer (UD)

Back 246

The unlawful possession of a property.

Front 247

Unruh Civil Rights Act

Back 247

A California law which prohibits discrimination by a business establishment based on sex, race, color, religion, ancestry, national origin, disability or medical condition. A real estate practice is a business establishment.

Front 248

use-maintenance provision

Back 248

A provision in a commercial lease agreement which establishes the landlord's and tenant's responsibility for the care and maintenance of the premises during the lease term.

Front 249

use-of-premises provision

Back 249

A provision contained in a nonresidential lease agreement which establishes the single specified purpose for the tenant's use of the leased premises.

Front 250

vacancy decontrol

Back 250

A type of rent control ordinance that applies rent ceilings only to existing tenants.

Front 251

waste

Back 251

The intentional destruction or neglect of property which diminishes its value.

Front 252

waste provision

Back 252

A provision in a lease agreement in which the tenant agrees not to destroy, damage or remove any part of the leased premises.

Front 253

waterbed addendum

Back 253

An addendum to a rental or lease agreement setting the additional security deposit and insurance coverage the tenant will provide the landlord to keep a waterbed on the premises.