Q: I’ve been working with my bank for over four years trying to modify a loan on an investment property. This has been an incredibly painful process. I have had

ZMA – A Real Estate Developers A to Z | Part 4: E-Z

“ZMA – A Real Estate Developers A to Z | Part 4: E-Z” is the fourth and final installment in a four-part series. This piece is preceded by “ZMA – A Real Estate Developers A to Z,” “ZMA – A Real Estate Developers A to Z | Part 2: C-E,” and “ZMA – A Real Estate Developers A to Z | Part 3: E-F.” Please continue to visit Real Estate Developer, Builder, Broker and Consultant to learn other terms that all real estate professional should have in their vocabulary.

  1. Furniture Layout: A furniture layout shows the dimensions, architectural features, and suggestions for furniture placement, as well as doors, windows, and outlets rough-ins.
  2. Gas: Forced-air gas heating systems are used in central air heating/cooling systems for houses. Sometimes the system is referred to as “Forced hot air”.
  3. Grade: In real estate, above grade means the portion of a home that is above the ground. The term is usually used to describe a room or square footage.
  4. Handicap: The Fair Housing Act uses the term “handicap” instead of “disability.” Under the Act, “handicap” means, with respect to a person, or mental impairment which substantially limits one or more major life activities; a record of such an impairment; or being regarded as having such an impairment.
  5. High-rise: High-rise is a building with many stories.
  6. Highest And Best Use: The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.
  7. Hinges: A hinge is a movable joint or mechanism on which a door, gate, or lid swings as it opens and closes, or that connects linked objects.
  8. HVAC: HVAC is short for heating, ventilation, and air conditioning. The system is used to provide heating and cooling services to buildings. HVAC systems have become the required industry standard for construction of new buildings.
  9. I-EPA: The Environmental Protection Agency (EPA) was established in December 1970 under United States President Richard Nixon. The EPA is an agency of the United States federal government whose mission is to protect human and environmental health.
  10. Industrial: Industrial property is one of the three main asset classes of commercial property. Most of us are familiar with residential real estate, and what it means to invest in it, but not everyone knows a lot about commercial property. Commercial property is built and used solely for business purposes.
  11. Insurance: Real estate insurance provides coverage for property owners who lease or rent building space used for offices, service businesses, or retail stores.Real estate insurance policies often include replacement insurance terms for reconstruction costs of repairing or rebuilding real estate that is subsequently damaged.
  12. Insurance – Casualty: Casualty insurance is a problematically defined term which broadly encompasses insurance not directly concerned with life insurance, health insurance, or property insurance. Casualty insurance is mainly liability coverage of an individual or organization for negligent acts or omissions.
  13. Insurance – Errors and Omissions: Errors and omissions insurance (E&O) is a type of professional liability insurance that protects companies and their workers or individuals against claims made by clients for inadequate work or negligent actions.
  14. Interior Design: Interior designers help Investors and house flippers see big returns. They know how to transform neglected and distressed properties.
  15. IRR: Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. IRR calculations rely on the same formula as NPV does.
  16. Job-costing: Job costing is defined as a method of recording the costs of a manufacturing job, rather than process. With job costing systems, a project manager or accountant can keep track of the cost of each job, maintaining data which is often more relevant to the operations of the business.
  17. Kitchen Design: A kitchen is a room or part of a room used for cooking and food preparation in a dwelling or in a commercial establishment.
  18. Knobs: A knob is a rounded lump or ball, especially at the end or on the surface of something.
  19. Land Trust: There are two distinct definitions of a land trust: a private, nonprofit organization that, as all or part of its mission, actively works to conserve land by undertaking or assisting in land or conservation easement acquisition, or by its stewardship of such land or easements.
  20. Layout – Site: The act or an instance of laying out. An arrangement or plan, especially the schematic arrangement of parts or areas: the layout of a factory; the layout of a printed circuit. Printing. a. The art or process of arranging printed or graphic matter on a page.
  21. Leaks – Exterior: Leak from a of a container or covering) accidentally lose or admit contents, especially liquid or gas, through a hole or crack, (of secret in.
  22. Leaks – interior
  23. Leases: A written agreement entered into between a landlord and tenant, through which the tenant is granted the right to exclusive use and occupation of the landlord’s residential property for a specified amount of time, and in exchange for an agreed-upon sum of money. Also called a “rental agreement.”
  24. Leasing: A lease is a contract renting land, buildings, etc., to another; a contract or instrument conveying property to another for a specified period or for a period determinable at the will of either lessor or lessee in consideration of rent or other compensation.
  25. Leasing – Commercial: An agreement between a landlord and a business outlining terms and conditions of property rental. A commercial lease is specific to renters using the property for business or other commercial purposes versus residential use.
  26. Leasing – Residential: A Residential Lease Agreement, also known as a House Lease Agreement, or Residential Rental Contract is a form used by landlords to rent out real estate based on the fact that someone will be living there. Any agreement, involving a piece of property should always be in writing.
  27. Leasing Brokers: Real estate brokers or agents are hired to transact the buying and selling, lease, or rental of real property on a commission basis. They can also be involved with the purchase and sale of lands, and the acquisition of mortgages for others.
  28. Lenders: A true Mortgage Banker is a lender that is large enough to originate loans and create pools of loans which they sell directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others.
  29. Liability: A liability is an obligation and it is reported on a company’s balance sheet. A common example of a liability is accounts payable. Accounts payable arise when a company purchases goods or services on credit from a supplier. When the company pays the supplier, the company’s accounts payable is reduced.
  30. Lien Waivers: A document from a contractor, subcontractor, supplier or other party holding a mechanic’s lien stating that they have been paid in full and waiving future lien rights to the disputed property. … An “Unconditional Waiver and Release Upon Final Payment” extinguishes all claimant rights upon receipt of payment.
  31. Liens: A property lien is a legal claim on a tract of real estate granting the holder a specified amount of money upon the sale of the property. Such liens are often used to ensure the payment of a debt, with the property acting as collateral against the amount owed. A mortgage is the best example of a property lien.
  32. Litigation: The practice of commercial real estate litigation concerns income-producing real estate properties and projects of a wide variety, including office buildings, retail centers, apartment buildings and condominium developments, hotels, and industrial and specialty properties.
  33. Loan – Personal Guarantee: A personal guarantee is an unsecured written promise from a business owner and or business executive guaranteeing payment on an equipment lease or loan in the event the business does not pay. Since it is unsecured, a personal guarantee is not tied to a specific asset.
  34. Loan Commitment: A loan commitment letter is a letter provided by a mortgage lender that indicates a borrower has passed their underwriting guidelines and that they are willing to offer the borrower a home loan. A loan commitment letter is an indication that the buyer’s home loan has been approved.
  35. Loan To Value: The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property.
  36. Loans – Acquisition: An acquisition loan is money borrowed specifically to purchase a company or asset.
  37. Loans – Construction: A loan given to a company in order to pay for building construction. Construction loans are relatively short term and the lender takes an ownership interest in the building. At the end of construction, the loan is repaid from the proceeds of a mortgage obtained on the finished building.
  38. Loans – Land: Raw land loans are meant to facilitate the purchase of wholly undeveloped pieces of property. They do differ from vacant land loans on a number of points. A Closer Look at Raw Land Loans. Raw land is generally defined as property that does not have any improvements on it whatsoever.
  39. Loans – Permanent: ‘Permanent Loan’ is a form of loan agreement in which an individual, trust, or company loans artwork or other objects to a museum for an extended period of time.
  40. Lot Area Ratio: The floor area ratio (FAR) is the relationship between the total amount of usable floor area that a building has, or has been permitted for the building, and the total area of the lot on which the building stands.
  41. Lot density: Low-density residential zoning ordinances are implemented to limit the density of dwellings per unit of property, such as an acre.
  42. Low-rise: A low-rise is a building that is only a few stories tall or any building that is shorter than a high-rise, though others include the classification of mid-rise. Emporis defines a low-rise as “an enclosed structure below 35 metres [115 feet] which is divided into regular floor levels.”
  43. Low-voltage: Electrical safety codes define “low voltage” circuits that are exempt from the protection required at higher voltages.
  44. Mailboxes: A mailbox is a private box into which mail is delivered, especially one mounted on a post at the entrance to a person’s property.
  45. Market: Real estate is “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general.
  46. Marketing
  47. Mechanic’s Liens: A guarantee of payment to builders, contractors and construction firms that build or repair structures. Mechanic’s liens also extend to suppliers of materials and subcontractors and cover building repairs as well.
  48. Mediation: Traditionally, real estate industry disputes rely on negotiation for solutions. If negotiation fails, litigation is often initiated. Mediation involves the skillful intervention of a third-party professional to help resolve disputes that arise between two or more parties.
  49. Mid-rise: Mid-rise of a building) having a moderately large number of stories, usually five to ten, and equipped with elevators. See more.
  50. Mix-Use: Mixed-use development is a type of urban development that blends residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
  51. MLS: A multiple listing service (MLS, also multiple listing system or multiple listings service) is a suite of services that real estate brokers use to establish contractual offers of compensation (among brokers) and accumulate and disseminate information to enable appraisals.
  52. Mortgages: A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.
  53. Multi-Family: Multifamily residential (also known as multidwelling unit or MDU) is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. A common form is an apartment building.
  54. NFR Letter: A No Further Remediation (NFR) letter, issued by the Illinois EPA’s Bureau of Land (BOL), acknowledges that a site owner or operator has satisfied the respective BOL laws and regulations. A site qualifies to receive an NFR letter once the owner or operator meets all program requirements and the applicable TACO remediation objectives.
  55. NPV: Understanding the difference between the net present value (NPV) versus the internal rate of return (IRR) is critical for anyone making investment decisions using a discounted cash flow analysis. Yet, this is one of the most commonly misunderstood concepts in finance and real estate.
  56. Open Space: Open space is any open piece of land that is undeveloped (has no buildings or other built structures) and is accessible to the public. Open space can include: Green space (land that is partly or completely covered with grass, trees, shrubs, or other vegetation).
  57. Options: Real Estate Option to Purchase Law and Legal Definition. An option is a contract to purchase the right for a certain time, by election, to purchase property at a stated price. … A “lease-option” contract provides for a lease of property with the right to purchase the property during or upon expiration of the lease.
  58. OSHA: The Occupational Safety and Health Administration (OSHA) guarantees this right by holding businesses accountable for the safety of their employees. Each year, the lives of thousands of employees are saved by businesses following OSHA regulations.
  59. Penetration: Market penetration is a measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service.
  60. Prorations: Prorate derives from the term “pro rata,” which means proportionally. It is used to describe the division of real estate expenses according to the proportion of ownership or rental.
  61. Personal Undertaking: Undertaking in general means an agreement to be responsible for something. In a legal context, it typically refers to a party agreeing to a surety arrangement, under which they will pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so.
  62. Phase 1 Environmental: A phase I ESA inspection is often required by lending institutions and is an integral part to many industrial and commercial real estate transactions.
  63. Phase 2 Environmental: Phase 2 Environmental Assessments or Studies, also known as: Phase 2 Environmental Surveys or Audits, are usually done when they are recommended in a Phase I Environmental Site Assessment report.
  64. Pitch:
  65. Plans – Electrical: An electrical plan or drawing, is a type of technical drawing that shows information about power, lighting, and communication for an engineering or architectural project.
  66. Plans – Elevator: A two- or three-story home with an elevator provides the same access. This collection of house plans includes designs calling for elevators. Some of the plans reserve space for later installation of an elevator; until the elevator is installed, that space can be used for storage.
  67. Plans – HVAC: Air handler- HVAC plan. This HVAC plan sample shows the air handler layout on the floor plan. “An air handler, or air handling unit (often abbreviated to AHU), is a device used to condition and circulate air as part of a heating, ventilating, and air-conditioning (HVAC) system.
  68. Plans – Mechanical: Mechanical systems drawing is a type of technical drawing that shows information about heating, ventilating, and air conditioning.
  69. Plans – Steel
  70. Plans – Structural: A structural drawing, a type of Engineering drawing, is a plan or set of plans for how a building or other structure will be built. Structural drawings are generally prepared by registered professional structural engineers, and informed by architectural drawings.
  71. Plumbing: Plumbing is the system of pipes, tanks, fittings, and other apparatus required for the water supply, heating, and sanitation in a building.
  72. Price per Sq. Ft.: Price per square foot is a calculation of the value of each square foot of area of a house, condo or any building. It is a simple, but useful calculation that is mostly used to compare similar properties. The price per square foot can be calculated on the list price or the selling price.
  73. Pricing: The goal of price adjustments is to account for the differences in between the comparable home and the subject home. Real estate agents and appraisers use price adjustments to more accurately find the current market value of a home.
  74. Project Manager: The role of a project manager on real estate and construction projects can vary from one project to another. … The role of a project manager during real estate and construction projects is to ensure the successful completion of the project is on time and within budget.
  75. Property Management: Property management is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition.
  76. PUD – Planned Unit Development: Property management is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition.
  77. Punch List: A punch list is a document prepared near the end of a construction project listing work not conforming to contract specifications that the contractor must complete prior to final payment. The work may include incomplete or incorrect installations or incidental damage to existing finishes, material, and structures.
  78. Raze: Raze means to tear an object down to the ground. Before a real estate developer can raze a family’s home to build another skyscraper, he’s going to have to cut them a big check. Raze is most often used to refer to knocking buildings down for construction projects, but it can also describe tearing down other objects.
  79. Re-hab: A major restoration project on an old house or other building, ripping out plaster walls back to the studs and rafters and replacing them along with some or all of the trim, windows and doors, plumbing and electrical systems, exterior siding, roof, etc.
  80. Real Estate Agents: Real estate agents are licensed professionals who represent buyers and sellers in real estate transactions. Most agents work for a real estate broker or Realtor who has additional training and extra certifications.
  81. Realtors: Realtors include agents that work as residential and commercial real estate brokers, salespeople, property managers, appraisers, counselors and other real estate professionals. More than 1 million real estate agents are realtors, and the term is a registered trademark.
  82. Recycling: Repurposing is essentially a form of recycling.
  83. Remediation: The act or process of remedying something that is undesirable or deficient: remediation of the pollution from the factories. 2. The act or process of providing remedial education: remediation of poor writing skills in college students.
  84. Renderings: Architectural rendering, or architectural illustration, is the art of creating two-dimensional images or animations showing the attributes of a proposed architectural design.
  85. Residential: A residential area is a land use in which housing predominates, as opposed to industrial and commercial areas. Housing may vary significantly between, and through, residential areas. These include single-family housing, multi-family residential, or mobile homes.
  86. Retail: First things first, what actually is retail real estate? Put simply, retail properties are used exclusively to market and sell consumer goods and services. They range from shopping centres, individual stores and pop-up shops to ‘big box’ stores like Bunnings and Masters.
  87. Roofing: The cover of a building.
  88. Sale Contracts: A contract of sale is a legal contract. It is a contract for the exchange of goods, services or property that are the subject of exchange from seller (or vendor) to buyer (or purchaser) for an agreed upon value in money (or money equivalent) paid or the promise to pay same.
  89. Sales: A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.
  90. Scheduling
  91. Security – Site
  92. Security – Systems: A security alarm is a system designed to detect intrusion – unauthorized entry – into a building.
  93. Service – Customer: Customer service is the provision of service to customers before, during and after a purchase. The perception of success of such interactions is dependent on employees “who can adjust themselves to the personality of the guest”.
  94. Service – Electrical: In electric power distribution, a service drop is an overhead electrical line running from a utility pole, to a customer’s building or other premises. … The customer connection to an underground distribution system is usually called a “service lateral”.
  95. Service call: Calls for service generally refers to assignments that are typically distributed to public safety professionals that require their presence to resolve, correct or assist a particular situation.
  96. Sewer: Sewer is an underground conduit for carrying off drainage water and waste matter.
  97. Shelving: Shelving is a set of shelves, or material which is used for making shelves.
  98. Shop Drawings: A shop drawing is a drawing or set of drawings produced by the contractor, supplier, manufacturer, subcontractor, or fabricator. Shop drawings are typically required for prefabricated components.
  99. Signage – Exterior: Real estate signs refer to images that are made and printed on a suitable media for providing all the necessary information about the real estate, realtor, or a real estate agent, broker etc
  100. Single Family: A stand alone house also called a single-detached dwelling, detached residence or separate house is a free-standing residential building. Sometimes referred to as a single family home as opposed to a multi-family residential dwelling.
  101. Site line: Siteline is a line extending from an observer’s eye to a viewed object or area (such as a stage)
  102. Site Plans: A site plan is an architectural plan, landscape architecture document, and a detailed engineering drawing of proposed improvements to a given lot. … A site plan is a “set of construction drawings that a builder or contractor uses to make improvements to a property.
  103. Site Superintendent: On large construction projects, the superintendent’s job is to run the day-to-day operations on the construction site and control the short-term schedule. The role of the superintendent also includes important quality control and subcontractor coordination responsibilities.
  104. Soffits: Soffit is the underside of an architectural structure such as an arch, a balcony, or overhanging eaves.
  105. Soil conditions: A re-engineering process that attempts to restore an area of land back to its natural state after it … toxins and other dangerous substances, improving the soil conditions and adding new flora.
  106. Solar Energy: Solar energy is radiant energy emitted by the sun.
  107. Space Design: In web design the term refers to space on a page rather than real-world properties.
  108. Square Foot: The square foot is an imperial unit and U.S. customary unit (non-SI, non-metric) of area.
  109. Staging: Home staging is the act of preparing a private residence for sale in the real estate marketplace. The goal of staging is to make a home appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money.
  110. Stair dimensions
  111. Standards: RETS is a framework used in Canada & the United States by the real estate industry to facilitate the exchange of data. RETS was launched in 1999 by the National Association of Realtors and related groups
  112. Structural Plans: Off-plan property is a property before a structure has been constructed upon it. Pre-constructions are usually marketed to real estate developers and to early adopters as developments so that the purchaser can secure much better finance terms from their lenders.
  113. Supply: Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers.
  114. Survey – ALTA: A land survey is made for the Title Company and/or Lender with the survey and location data needed for the issuing of title or mortgage insurance. For this purpose a map is drawn to “ALTA” specifications. “ALTA” stands for American Land Title Association.
  115. Survey – Staked: Staking Property lines is a service provided by a land surveyor that involves placing survey monuments or markers at property corners with additional markers along the property lines (set at predefined intervals).
  116. Title: In property law, a title is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document, such as a deed, that serves as evidence of ownership.
  117. Title – Endorsements: Endorsements are used to expand or otherwise modify the coverage of a title insurance policy on real property.
  118. Title – Extended Coverage: The Owner’s Policy of Title Insurance can be issued with Owner’s Extended coverage which provides additional protections for the Insured. This ties into the similar sections of the Real Estate Commission approved contract forms which deal with the type of policy requested by the Buyer.
  119. Title claims: In the case of real estate, the legal instrument used to transfer title is the deed.
  120. Title Exceptions: Title to real property represents ownership of the bundle of rights in the land.
  121. Title Insurance: Title insurance is an insurance policy that covers the loss of ownership interest in a property due to legal defects and is required if the property is under mortgage.
  122. Tools (All Types): A tool is a device or implement, especially one held in the hand, used to carry out a particular function.
  123. Utilities: Utilities mean useful features, or something useful to the home such as electricity, gas, water, cable and telephone. Examples of utilities are brakes, gas caps and a steering wheel in a car.
  124. Vents: A vent is an opening that allows air, gas, or liquid to pass out of or into a confined space.
  125. Warranty: A warranty is a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.
  126. Website Design: Web design is the process of creating websites. It encompasses several different aspects, including webpage layout, content production, and graphic design.
  127. Windows: A window is an opening in the wall or roof of a building or vehicle that is fitted with glass or other transparent material in a frame to admit light or air and allow people to see out.
  128. Zoning: Land use and zoning law is the regulation of the use and development of public and private real estate. Zoning is the most common form of land-use regulation, used by municipalities to control local property development. Other legal issues pertaining to land use include easements, trespassing, and eminent domain.
  129. Zoning – Exceptions: Spot zoning is the placing of a small area of land in a different zone from that of neighboring property
  130. Zoning – Non-Conforming: Nonconforming Use. Continuing use of real property, permitted by Zoning ordinances, in a manner in which other similar plots of land in the same area cannot ordinarily be used.
  131. Zoning – Permitted Use: Zoning is used to regulate land use by dividing the area into different districts such as a residential, commercial, and industrial zone.
  132. Zoning – Re-Zoning: Zoning laws limit commercial use of land in order to prevent oil, manufacturing or other types of businesses from building in residential neighborhoods.
  133. Zoning Attorney: Land use and zoning law is the regulation of the use and development of public and private real estate. Zoning is the most common form of land-use regulation, used by municipalities to control local property development.