Abandonment: This refers to when the actions of a tenant indicate that he or she intends to relinquish the right to live in a rental property without informing the landlord, or receiving permission to do so. For example, if a tenant brings a moving van and removes all of his or her belongs and is not seen or heard from for several weeks, the landlord can assume that the tenant has abandoned the premises. 

Build-Out: Many commercial real estate properties, be it an office or a retail building, begin with only an unfinished room with the understanding that it will be modified to meet the needs of the tenant. The process of doing this, of finishing the space to meet the tenant’s needs, is called the built out. This can be a source of considerable negotiation before an agreement is made between landlord and tenant regarding the specific improvements to be made, the party that will pay for them, the person in charge of ensuring that the work is completed, and what the tenant will need to remove at the conclusion of the lease.

Constructive Eviction: This refers to when the actions or, more commonly, the failure to act on the part of the landlord render a rental property no longer reasonably inhabitable for a tenant. 

Contingencies: These are ways of getting out of a contract. They provide you with a penalty-free way of leaving a deal that is not working out, if the other party fails to meet certain conditions. For example, you might make your purchase of a building contingent upon clauses, such as:

 

1) Being about to get a mortgage loan that covers a specific amount of the price of the building.

2) Receiving a satisfactory report concerning the condition of the building from a contractor of your choosing.

3) If it is possible to renovate the building to fit your needs.

4) A satisfactory report with regard to possible environmental hazards.

 

Deed of Trust: This is like a mortgage, and in some states, deeds of trust are used instead of mortgages. There is, in a practical sense, only a very slight difference between these two methods of providing the lender with security interest. With a mortgage, the buyer holds the full legal title, but may give the lender a lien. Failure to make mortgages payments gives the lender the legal right to foreclose. A deed of trust, on the other hand, provides the lender with the deed. However, the lender cannot use or sell the property unless the buyer fails to meet the terms of the loan. 

Eminent Domain: This is another term for condemnation, that is, the government’s right to take and use private property for a necessary public purpose (the creation or extension of a road, power/sewer/communication lines, or some other needed expansion of government infrastructure). Just or Fair Compensation is required, due to the Fifth Amendment, for the government’s seizure of private property.

Escrow: This is an arrangement by which a third party, commonly a title insurance company or a lawyer, holds money and/or documents, and allocates them as directed by both parties involved. They make sure that commercial real estate transactions proceed in a smooth and reliable fashion. For example, the escrow agent may be given funds and documents from buyer, seller, and lender. Then, when all the details have been sorted out and the transaction is set to proceed, they make sure that the funds and documents are given to the right people.

 

Eviction: This process is also called "unlawful detainer." It refers to when, by means of a court process, a landlord forces a tenant out of a real estate unit, based upon some valid reason (failure to pay, violation of lease, breaking the law, etc). It is governed by very clear and specific guidelines which must be carried out to the letter of the law in order for the eviction to be valid.  

Fixture: Personal property, which is owned by the tenant in a residential rental unit but has become a permanent part of the rental unit is referred to as a fixture. It must be permanent in the sense that removal is not possible, would be highly impractical, or would damage the property and/or unit. An example of this might be a custom, double paned window, installed by the tenant. In most cases, fixtures remain in the rental property when the lease or rental agreement concludes. However, landlord and tenant may reach an agreement that provides the tenant with compensation for the fixture, or deals with this situation in some other mutually satisfactory manner.

 

Landlord: This is the owner of real property who has, by means of a lease or rental agreement, agreed to rent the property (or part of it) to another person (the tenant), for the tenant’s sole use, for an established period of time, in return for a specified amount of money.

 

Lease: This may also be referred to as the rental agreement. It is a written contract between landlord and tenant, which provides the tenant with sole use of and right to occupy the landlord’s rental property for an established period of time in return for a specified amount of money. 

 

Option:This is a period of time to buy real estate, provided by the seller to the buyer. A buyer may find property that he or she is interested in purchasing, but wish to examine comparable options, ensure the presence of capital to buy, and/or calculate the property’s potential profitability. The buyer could then offer the owner an option fee, in order to obtain the right to purchase the property and prevent the owner from selling the property to anyone else in the meantime. If the owner agrees, he or she grants the right to buy to the potential buyer for a specified period of time (for example, six months) at the established price. In the event that the buyer agrees to go through with the purchase, owner and buyer may agree that all or a portion of the option fee go toward the purchase. Failure to exercise the option to buy results in the forfeiture of the option fee.

 

Nuisance: In terms of real estate, this is some aspect of your property (be it a condition or particular use) that interferes with or inhibits a neighbor’s right to the enjoyment of his or her property. Nuiscances could be the significant presence or odor of smoke, loud noises, etc. In the event of a complaint, a judge may order you to eliminate the nuisance and possibly to compensate the neighbor for any losses.

"Property":  When discussed in a lease or rental agreement, all aspects of the property should be included and described. Aspects that should definitely be found in the description include but are by no means limited to the complete street address (with city, state, and zip code), the number of square feet in the space and the means by which the square footage is measured, and if it is in a flood zone, etc.

 

Pro-Rations: These are the distribution of taxes and bills that occur both before and after closing, between the buyer and seller. The contract should discuss the way these expenses will be dealt with in order to eliminate problems at closing.

Quiet Enjoyment: This refers to an implied right of the tenant to use and enjoy the rental property without impingement by other residents, landlord, or other persons.

Renewal: At the conclusion of a lease or rental agreement, this is the option provided by the owner to the tenant to renew, within a specified period of time. 

Rent:  Typically done paid in monthly increments, the rent is the payment of an established amount of money, from tenant to landlord, in return for the sole right to use and enjoyment of a rental property. Residential leases should clearly specify the amount of rent, when it should be paid, and how it should be paid. 

Rent control: The laws limiting the cost and raising of renting are referred to as rent control. Rent control is not governed by state or federal law, but is rather determined by cities. Among other things, they put a cap on the amount that landlords can charge tenants. Most allow for annual increases of rent by a certain percentage

Right of entry: This is the considerably limited right of a landlord to enter premises that have been rented to a tenant. Typically, the right of entry is restricted to emergency situations, to show prospective tenants the unit, and to do repairs. It should be noted that the landlord usually needs to give notice to the tenant in the latter two instances. 

Security deposit: This is money, paid by tenant to landlord at or before moving in to a rental unit, as a guarantee that the tenant will comply with the agreements of the lease. That is, that property will not be unreasonably damaged (wear and tear is acceptable) and that rent will be paid. It is refundable at the conclusion of the period of tenancy. States typically limit the amount a landlord can require as a security deposit. The lease or rental agreement should state the amount required for the security deposit, as well as the state laws governing the use of the money and whether it will earn interest. 

"Subletting or assignment": This right, when given to the tenant, allows him or her to sublease or assign the property, in the event that the tenant cannot meet the terms of the lease or wishes to rent a portion of the space to another party. When in the lease, this clause specifies the exact circumstances in which the tenant can utilize this right. Even in cases of subletting, the original tenant retains responsibility for adhering to the conditions of the lease. In cases of assignment, the original tenant has no further liability or responsibilities concerning the unit. 

Tenant: This is the person who, by means of a lease or rental agreement, has been given the right to use and occupy a rental property by the owner (landlord) in return for an established amount of money, typically paid in monthly increments. The tenant is usually given sole right to the use and enjoyment of the property for a set amount of time, specified in the lease. 

"Tenant improvements": This specifies if the tenant has the right to make improvements to the rental unit and to what extent these will be permitted by the landlord. 

"Termination": This requires the tenant to return the rental unit to a condition specified by the landlord upon the conclusion of the lease.

"Termination date of lease": This gives the date upon which the lease concludes.

"Term of the lease":  These specifies, in terms of months or years, the length of the lease agreement, as well as when the tenant is entitled to possession.

Title Insurance: This provides a guarantee that the buyer is receiving complete legal ownership of the property that is being purchased. If, for instance, a lien shows up at some later date, or it later comes to light that someone has the rights to a portion of the property purchased (like the parking lot), the buyer can sue the title insurance company to recover any losses. By getting title insurance, the buyer eliminates much of the legal risk of purchasing property.  Title insurance is usually paid by the seller, but in some cases the buyer pays it, and it could even be shared by both parties.

"Use of premises": This provides a list of the uses of the premises that are not permitted.

Warranty of habitability: This is the duty of the residential landlord to ensure that the tenant’s rental unit meets the basic requirements for human habitation and that repairs are done in a timely manner. The specifics of this vary from place to place, as conditions vary. Requirements in Montana are obviously much more concerned with protection from the cold weather than those in Florida.