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

Question 1

Abstract of Title

Answer

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

Question 2

Air Rights

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 3

Convertible

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 4

Classic 6, 7 or 8

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 5

Studio

Answer

An apartment where the living room and sleeping area are combined into one space. Usually studios have a walk-in or a Pullman-kitchen.

Question 6

Penthouse

Answer

A luxury unit in high-rise buildings, usually on one of the top floors with best views. Often with outdoor space as part of the apartment.

Question 7

Alcove

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 8

Mezzanine or Loft Area

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 9

High Ceilings

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 10

Pullman or Petite Kitchen

Answer

Typically found in prewar buildings abnd often found in small apartments and studios. A Pullman kitchen is situated against a single wall, and consists of a full or half refrigerator, oven (or sometimes only a stovetop) and a sink. This type of kitchen does not count as a room when calculating room counts.

Question 11

Murphy Bed

Answer

A bed that is built into a wall and that can be pulled out when needed. A great space- saver for small apartments.

Question 12

California Closet

Answer

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

Question 13

WBFP - Fire Place

Answer

“Wood-burning fireplace” – can be functional , or decorative (NWFP = “non-working fireplace”)

Question 14

Original Detail

Answer

This term usually refers to the detailing in pre-war buildings, like molding on the ceilings, decorated fireplace mantels, etc

Question 15

Partial Views

Answer

Generally refers to a partial views of something worth looking at like Central park, landmarks, one of the river or some city skyline.

Question 16

Assignment

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 17

Balcony

Answer

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

Question 18

Brownstone

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 19

Built Size

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 20

Capital Improvement

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 21

Certificate of Occupancy (“C of O”)

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 22

Co-Broke

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 23

Contract Out

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 24

Courtyard

Answer

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

Question 25

Elevator Building

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 26

Escrow

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 27

Exclusive Listing

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 28

Fixed Rate

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 29

Flex

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 30

Floor-thru

Answer

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

Question 31

Junior 4

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 32

Keyed Elevator or Private Elevator

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 33

Lease Break

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 34

Lease

Answer

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

Question 35

Loft

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 36

Lot

Answer

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

Question 37

Luxury Doorman Building

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 38

Mortgage Points

Answer

A point is a fee equal to 1 percent of the loan amount. There are two kinds of points: discount points (which are prepaid interest on the mortgage loan) and origination points (fees the lender charges to cover the costs of making the loan). Points are paid at the closing.

Question 39

Mortgage

Answer

When a lender provides a borrower with a loan for the purpose of purchasing a property, that property is used as security for the loan. There are several components to a mortgage, including the interest rate (amount and whether it is fixed or floating), the term (often 7, 15, or 30 years), and the percentage of the purchase that is being financed.

Question 40

Oblique Views

Answer

This term is used to describe views from an apartment when one has a rather ‘turn of your head’ view of a park or river.

Question 41

Cozy

Answer

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

Question 42

Offer Accepted

Answer

This is the stage of the purchase process when an owner accepts the terms of an offer for a property. The terms can include the price, closing period, and any contingencies the parties may agree upon.

Question 43

Parlor Floor

Answer

This is the second floor in a townhouse. In its original form, the building’s front steps accessed the parlor floor. The parlor is traditionally the grandest floor and typically has the building’s highest ceilings. Historically, these floors were primarily used for entertaining and housed Living Rooms, Libraries or Formal Dining Rooms.

Question 44

Pass-through Kitchen

Answer

A kitchen that is between of two rooms (usually a living room and a dining room) with either a 2nd door way or a cut out to pass food throught to the other room.

Question 45

Pied-à-terre

Answer

Translated literally from the French, pied-à-terre means foot on the ground. In English, we would call it a “landing pad.” A pied-à-terre is a small, comfortable apartment maintained by someone who resides in another city. Usually, the owner has a career that requires them to be in New York several days per month, or even per week. The pied-à-terre allows its owner to avoid the daily commute, or to spend occasional late nights in the city. However, these apartments can also be kept by the well-heeled who simply enjoy having access to the exciting culture and glamorous society found in major cities.

Question 46

Possession

Answer

This term refers to the time (month and day) that a new purchaser or a new tenant can actually take possession of an apartment.

Question 47

Post-War

Answer

Refers to buildings built after World War II. Post-war needs and modern building techniques dramatically altered the composition of the middle and upper-class apartment house. Apartment houses were built in a “plain vanilla” style with lower ceilings, fewer moldings and details, an absence of fireplaces and reduced room proportions. The exterior of the New York apartment house also saw dramatic change. Plain red and white brick exteriors replaced the ornate limestone detailing of the pre-war apartment house.

Question 48

Powder Room

Answer

Refers to a bathroom with no bath or shower. A powder room is also commonly referred to as half-bath.

Question 49

Pre-War

Answer

Refers to buildings built prior to the start of World War II. Some common elements of these structures include hardwood floors, moldings, high ceilings and fireplaces.

Question 50

Quadruplex

Answer

An apartment that is spread out over four levels.

Question 51

Room Count

Answer

Every apartment has a room count. Living rooms, formal dining rooms, bedrooms, and kitchens count as one room, and alcoves count as ½ room. Bathrooms and Pullman kitchens are not included in room counts. For example a “Junior 4” is a 3.5 room apartment: living room, bedroom, kitchen, alcove (which can be converted to a 4th room). A “Classic Six” is a six room apartment found in prewar doorman buildings. It consists of a formal dining room, living room, kitchen, 2 bedrooms, and a “maid’s room”. These days, the maid’s room is commonly used as a smaller bedroom or office.

Question 52

Security Deposit

Answer

A rental tenant submits a security deposit upon lease signing to his/her landlord. The security deposit is intended to cover any potential damage to the property beyond normal wear and tear. The security deposit cannot be used to pay the last month’s rent.

Question 53

Service Entrance

Answer

This term refers to a second entrance to a kitchen from either the main or rear hallway. This entrance was orginally built for deliveries and as a means of egress for servants.

Question 54

Shortfall

Answer

A situation in which a building owner is unable to meet the operating expenses of a building because the expenses exceed the building's income.

Question 55

Tax Abatement

Answer

New York City often offers developers tax incentives in the form of abatements in order to encourage development in a particular neighborhood. The most recent wave of development in the downtown Manhattan has been spurred on by tax incentives offered for the conversion of commercial space to residential housing.

Question 56

Sublet

Answer

The landlord allows the tenant to find a replacement tenant for the remainder of his/her lease. Unlike a lease assignment, in a sublet situation the original tenant is still responsible for the remaining rent payments and any damage to the property. This could be a condo/coop owner or someone who is the lease holder and then "sublets" the aparmtnet to you.

Question 57

Terrace

Answer

By definition, a terrace is a roof or part of a roof in a building. In NYC, terraces can be found when there is a setback on a high-rise. A terrace and balcony are often confused and the terms are used interchangeably.

Question 58

Townhouse

Answer

Townhouses were primarily built as single family homes, and were the dominant housing structure from 1840’s through the 1930’s. They were usually built in groups and were sometimes referred to as row houses. Townhouses were built four to five stories high and shared many common design elements. Typically there was an English basement level (slightly below street grade) which housed the kitchen and a dining room leading to the private garden. This level was accessed through a service entrance beneath the stoop. The second level, commonly referred to as the Parlor floor, was used for entertaining . Visitors entered the townhouse via the steps leading to the Parlor floor. The floors above housed the family’s bedrooms.

Question 59

Triple-Mint

Answer

This term refers to the condition of an apartment. In this case the ‘triple’ refers to the general condition of the apartment, the condition of the kitchen, and the condition of the bathroom.

Question 60

Walk-through Kitchen

Answer

A Kitchen with two means of egress. An individual can actually walk through the Kitchen by entering through one room and exiting into another room.

Question 61

Walk-up Building

Answer

A building without an elevator with a max of 6 floors.

Question 62

Fee apartment

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 63

Co-op

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 64

Condo

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).

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.

Accepted Answer

Railroad apartments sound more fun than they actually are: The rooms are all connected with no hallway, which means you'll have to walk through one person's "bedroom" to get to the 2nd or 3rd bedroom.

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.

Accepted Answer

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

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.

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%)

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.

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.

Accepted Answer

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

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.

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.

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.

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.

Accepted Answer

Written statement from lender stating a buyer can qualify for a particular loan amount based on that lender’s guidelines. Having a pre approval BEFORE looking for an apartment is a very importaint part of the process in NYC. There are fee's, taxes and other expenses that are specfic to or higher for NYC. It will also prove to a seller that you are serious before you go to see a property which help build a foundation when you make an offer.

Accepted Answer

This is a type of insurance used with conventional home loans. Borrowers who don’t have a down payment of at least 20 percent are typically required to purchase PMI.

Accepted Answer

A lender guarantees a borrower a certain interest rate at a certain price over a set period of time – perhaps 30, 45, 60 or 90 days.

Accepted Answer

Essentially, it means the condo board has the right to become the purchaser of an apartment being sold in the building. This is extremely rare and if the borad decides to do it, they have to buy it at the same terms you would have. Generally only happens when the board needs the space for a building renovation, upgrade or something similar.

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.

Accepted Answer

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

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.

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.