Question 1

Abstract of Title

Accepted Answer

A chronological summary of the recorded instruments and proceedings on the title of a property

Question 2

Alcove

Accepted Answer

An alcove is the small area off the main living space in an apartment. Alcoves are generally used as sleeping or dining areas. In one or two-bedroom apartments, alcoves are sometimes converted into an additional smaller bedroom, forming a junior two or junior three bed room apartment.

Question 3

Air Rights

Accepted Answer

The right to build above or add square footage to a structure. These buildable rights are determined by city zoning regulations and public need. Air rights can be sold to adjoining structures for a negotiated price between land owners. Many of the city’s taller structures have risen to their final height as a result of purchasing additional air rights from neighboring structures.

Question 4

Assignment

Accepted Answer

The right to transfer a contract or a lease from one party to another. The term is often used to describe the process of assigning one’s primary lease to that of a second party until the end of the term.

Question 5

Balcony

Accepted Answer

An outdoor space that protrudes from a building. Can often be very small and might be called a juliet balcony.

Question 6

Brownstone

Accepted Answer

A dwelling faced with brownstone, a native New York State stone. Also, a colloquial term for townhouse. Three to five floors. No doorman. Built in the late 1800s and early 1900s as single-family homes. Many were converted during World War II to create multiple apartments (3-10 units per building). Brownstones often have “charm”, high ceilings, architectural details, and often wood-burning fireplaces. Square footage is generally less than a similar room count would provide in a doorman building. Closet space and storage is usually sparse.

Question 7

Built Size

Accepted Answer

Refers to the actual exterior dimensions of a building on a lot. For instance, a townhouse might be built 20′ x 70′ on a 20′ x 100′ lot. Today, city zoning regulations impose tough restrictions on how large a new building may be built on a lot.

Question 8

California Closet

Accepted Answer

A walk-in closet with drawers and built-in compartments.

Question 9

Capital Improvement

Accepted Answer

Often means you have an extra monthly fee for a set number of months! An improvement on a piece of property which is going to increase the value of the property. Such an improvement may include a new roof, new windows or a new elevator.

Question 10

Classic 6, 7 or 8"

Accepted Answer

The term “Classic” followed by a number refers to the number of rooms in an apartment. It is most often used with pre-war apartments. For example, a classic-six would be normally be configured as a two bedroom with a living room, dining room, kitchen and maid’s room or office.

Question 11

Certificate of Occupancy (“C of O”)

Accepted Answer

Each building in New York City possesses a Certificate of Occupancy which outlines the legal uses of that piece of property. The Certificate of Occupancy may allow a building owner to enjoy certain uses not allowed by the particular zoning in which the property falls.

Question 12

Classic 6

Accepted Answer

The number '6' refers to three full bedrooms, plus a dining room, living room, and separate kitchen. Typically pre-war apartments fall into this category.

Question 13

Co-Broke

Accepted Answer

Perhaps one of the most important terms used in the residential real estate market and the foundation for working with other brokers in the community. When a broker sends out listings to the brokerage community at large, on a co-broke basis. This means that the brokerage firm representing the owner of the property will split the commission on a 50/50 basis with the brokerage firm that brings the buyer or tenant to the property and is able to conclude a transaction.

Question 14

Common charges

Accepted Answer

Monthly fees paid by condo owners to cover the common services and amenities shared by other condo residents, including management fees and operating expenses.

Question 15

Concession

Accepted Answer

Is generally when a seller gives somenthing to help sweeten the deal. Maybe they cut you a check at closing for 1 year of common charges or taxes. 
 
For renting a concession can be paying the broker fee and/or an advertised temporary rent reduction, like when a building offers one or two months free upon lease signing. These types of listings usually also include the phrase net effective rent, which is what the rent comes out to after the concession and only for the duration of the lease.

Question 16

Condo

Accepted Answer

In a condominium, buyers own their apartments individually as "real property" and jointly own common areas (which is part of the monthly comon charges). There is still a condo "board", but unlike a co-op, they can not deny you for just any reason (there is a "right of first refusal" but is incredibly rare to ever be used).

Question 17

Contract

Accepted Answer

A legally binding agreement between a buyer and seller that outlines the terms of purchase or transfer for a given property.

Question 18

Contract Out

Accepted Answer

Refers to the moment in time when a buyer and seller have agreed to a price on an apartment and the parties’ attorneys have drafted a contract of sale and have sent it to the purchaser for signature.

Question 19

Convertible

Accepted Answer

An apartment where a large living room was divided in two, making an additional bedroom while still retaining some of the living room space. The magic formula is a large 1 bedroom converted into a 3 bedroom. Also called a "flex" apartment, both often can not have walls that touch the cieling because of fire code.

Question 20

Co-op

Accepted Answer

Short for 'cooperative,' a co-op runs like a corporation. Genearlly alower priced than a condo. Want in? Be prepared for a tough selection process almost every time—you'll need approval from the co-op board to close the deal. Except sometimes when it is a "sponsor unit". You'll actually be renting company shares from a coporation who then assign you the "apartment". All co-ops are different, some crazy strict, some not, talk to your broker to see what is best for you.

Question 21

Co-op Board

Accepted Answer

A group of residents elected to represent all shareholders within a co-op building. The board determines the rules of the building, addresses building issues and reviews applications for new buyers.

Question 22

Courtyard

Accepted Answer

This term most often refers to the interior outside grounds of a building, usually it is useable, sometimes it is not.

Question 23

Cozy

Accepted Answer

Almost always means small in size but cute and "cozy".

Question 24

Debt-to-Income (DTI) Ratio

Accepted Answer

The amount of debt you have compared to your overall income. Lenders use this formula to assess your credit-worthiness and whether to extend you a loan. It is expressed as a percentage (i.e., 33%)

Question 25

Down Payment

Accepted Answer

A for a condo is almost never lower than 10% of the sale price. For co-ops, the down payment is usually at least 20% and can often can go much higher.

Question 26

Earnest Money Deposit

Accepted Answer

Small deposit a prospective buyer makes to a seller to prove their offer is made in good faith. It is held in escrow and is usually non-refundable if the buyer backs out of the contract.

Question 27

Elevator Building

Accepted Answer

Usually six to nine stories; and many are found on side streets. Non-doorman building; many with intercom security and live-in superintendents.

Question 28

Escrow

Accepted Answer

The procedure of placing money in an account where neither buyer nor seller can access the money without the consent of an escrow agent.

Question 29

Exclusive Listing

Accepted Answer

A real estate listing promoted by a single broker for which they have been hired by an owner to market the property. In an exclusive right-to-sell arrangement, the individual broker has the right to earn a commission in the event that the property sells during the term of the exclusive. This type of arrangement precludes the owner of the apartment from selling the property on their own. Under the terms of an exclusive, the broker has the fiduciary responsibility to market the property to other brokers. The exclusive broker is accountable to the owner of the property and is responsible for seeing the transaction to its conclusion. The other type of exclusive is an exclusive agency. The only difference between an exclusive right-to-sell and an exclusive agency is that in an exclusive agency arrangement, the owner can sell the property on their own and exclude the broker from any commission.

Question 30

Facade

Accepted Answer

The face of a building often consisting of limestone, brownstone, cement, glass, granite or marble.

Question 31

Fee apartment

Accepted Answer

If you rent a fee apartment, the amount is gennerally 15% of your annual rent. A broker fee goes to the real estate brokerage (not all to your agent), who then gives a portion to the agents involved. Totally a normal part of the NYC rental market, but used in just a handful of other major US cities. While you might think "no fee" is better, generally the broker fee is just broken up over 1 years rent, so if you stay longer than 1 year, you pay a lot more rent! The upfront broker fee can save you a lot of money over time.

Question 32

Final Walk-Through

Accepted Answer

A few days before closing, the buyer “walks through the property” to make sure it’s in the condition the contract specifies.

Question 33

Fixed Rate

Accepted Answer

One of two types of rates offered by lending institutions. In a fixed rate scenario, the lender offers an interest rate which remains constant over the term of the loan.

Question 34

Flex

Accepted Answer

An apartment where a large living room was divided in two, making an additional bedroom while still retaining some of the living room space. The magic formula is a large 1 bedroom converted or "flexed" into a 3 bedroom. Often the fles walls do not touch the cieling because of fire code.

Question 35

Floor-thru

Accepted Answer

An apartment that extends from a building’s facade to its rear wall, so that the unit occupies an entire floor.

Question 36

Guarantor (or co-signer)

Accepted Answer

A guarantor is a person who assumes financial responsibility of a lease for a tenant or tenants who otherwise would not meet the Landlord’s financial qualifications. For example, a student who may not have an income may need a guarantor.  This person is often a family member but does always not need to be.  The guarantor guarantees payment of the rent in the event of non-payment by the tenants.  Guarantors generally need to make 80 times the monthly rent in annual income to qualify.

Question 37

High Ceilings

Accepted Answer

Ceilings above nine feet. Pre-war buildings are known for high ceilings, often with moldings. You will also find high ceilings in most modern condo/co-op developments.

Question 38

In Contract

Accepted Answer

An offer has been made and accepted on a property. The buyer has paid a deposit and both seller and buyer have signed the offer. The listing is no longer available unless the deal falls through.

Question 39

Junior 4

Accepted Answer

A “junior 4″ would be a potential 4- room apartment: living room, bedroom, kitchen, and alcove area (bathroom is not counted as a room).

Question 40

Keyed Elevator or Private Elevator

Accepted Answer

This terminology refers to a situation when an apartment occupies an entire floor in a building and the elevator opens up right into the apartment.

Question 41

Landmark Designation

Accepted Answer

A specfic building or entire zone recognized for having special historical, cultural or aesthetic value. The Landmarks Preservation Committee must approve any alterations inside, outside or both. This apporval is ontop of standard zoning.

Question 42

Lease

Accepted Answer

A legal document which outlines the responsibilities and parameters between a landlord and a tenant.

Question 43

Lease Break

Accepted Answer

The landlord allows the tenant to find a replacement tenant. Unlike a sublet or lease assignment, in a lease break the original lease agreement is terminated. The landlord and replacement tenant sign a completely new lease agreement, for a full term and possibly at a higher rent.

Question 44

Loan-to-Value (LTV) Ratio

Accepted Answer

Comparison between the mortgage amount and the appraised value of property. Buyers with an LTV ratio under 75% are more likely to be approved for a loan since there is more equity in the home.

Question 45

Loft

Accepted Answer

Generally refers to space which has been converted from commercial usage to residential usage. This can include the conversion of office space, factory space or warehouse space. The conversation of downtown space from commercial office building space to residential loft or loft-like space has brought record prices over the years. Some of the attributes of loft space may include high ceilings, open space, raw space, large windows, etc.

Question 46

Lot

Accepted Answer

Each New York City parcel of land is divided into lots for the purpose of identification.

Question 47

Luxury Doorman Building

Accepted Answer

These tend to be postwar buildings with usually twenty or more floors, and a twenty-four hour doorman. The more luxurious buildings also have a concierge who provides services such as receiving laundry and packages. Some of these buildings have a health club and/or swimming pool, bowling alleys, dog parks, gardens, parking garages and more.

Question 48

Maintenance Fees

Accepted Answer

Monthly fee co-op owners pay to cover operating expenses of the building, including taxes, insurance, etc. Amount is based on number of shares owned in the co-op. A condo has seperate common charges and real estate taxes.

Question 49

Managing Agent

Accepted Answer

Most cooperative and condominium buildings will hire an independent company to manage the property. These firms are responsible for managing the daily maintenance, rent rolls, collection of rents, monthly or maintenance charges and enforcing overall building policies.

Question 50

Mezzanine or Loft Area

Accepted Answer

Is an additional space created in apartments with very high ceilings. The loft area is usually constructed above the living room, accessible by a staircase or ladder. Depending on the height of the ceiling, this space can be used for sleeping, storage or as a den.

Question 51

Mortgage

Question 52

Mortgage Points

Question 53

Murphy Bed

Question 54

Oblique Views

Question 55

Offer Accepted

Question 56

Original Detail

Question 57

Parlor Floor

Question 58

Partial Views

Question 59

Pass-through Kitchen

Question 60

Penthouse

Question 61

Pied-à-terre

Question 62

Possession

Question 63

Post-War

Question 64

Powder Room

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Ever wonder what all the words mean in listing descriptions or real estate websites? Here is a handy guide.