Real Estate Terms - Part 3 of 4

Conveyance

The transfer of an interest in land from one person to another. Also includes assignments, leases and mortgages.

Common Area

The area of a commercial building or residential complex that is used by the tenants and their guests or customers. Common areas can include the lobby and hallways, and the cost of maintaining parking areas, sidewalks, landscaped areas, public washrooms, and loading facilities.

Deed

A document used to transfer an interest inland from one person to another.

Dual Agent

A real estate broker or salesperson who acts as agent for both the seller and the buyer in the same transaction. Both buyer and seller are the agent's clients.

Debt Service

The repayment of a mortgage including the interest, principal, and any other additional charges.

Encumbrance

A judgment, lien or mortgage, or other claim registered against the title to land.

Equity

The difference between the value of the property and the amount owing (if any) on the mortgage.

Easement

The right of use over the property by another as allowed through an agreement or necessary implication. Common examples include easement for the purposes of access to adjoining land and access to public utility services/equipment.

Foreclosure

A legal procedure in which the lender/creditor obtains ownership of the property if the borrower defaults on the mortgage loan.

Interest

The cost of borrowing money for a specified period of time. Interest is typically paid to the lender in installments along with repayment of the principal loan amount.

Industrial Space

A type of real estate best suited to the needs of a manufacturing, assembly, warehousing or distribution type of business.

Lessee

The tenant, as it pertains to a lease agreement.

Lessor

The landlord or property owner, as it pertains to a lease agreement.

Mortgagor

The property owner borrowing the money, secured by a mortgage.

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