2.8: Vocabulary Terms - Module 2
- Page ID
- 35896
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Vocabulary Term |
Definition (and Link as applicable) |
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1031 Exchange |
When an investor sells one property and purchases another one of higher value by using a 1031 accommodator, allowing the capital gains taxes to be deferred, according to IRS Section 1031. |
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Acquisition |
The purchase or otherwise acquiring of real estate, typically by a business, investor, or corporation. |
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Asset Manager |
In commercial real estate, the property manager who handles the financial aspects on behalf of the investor/owner. |
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Assets |
Items of value owed; for example, real estate. |
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California Department of Real Estate (DRE) |
State agency that regulates real estate salesperson and broker licenses in California. www.DRE.ca.gov |
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Commercial real estate (CRE) |
Any type of real property that is not residential. |
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Disposition |
The selling or otherwise divesting of real estate, typically by a business, investor, or corporation. |
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Foreclose |
When a mortgage lender, bank, or other entity takes the property back due to default by the borrowers. |
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Improvements |
In real estate, an improvement refers to a physical building (or other items) built on the land. |
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Leasing Manager |
In commercial real estate, the property manager who handles showing properties for lease on behalf of the investor/owner. Required to be licensed as a salesperson or broker. |
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Lessee |
A tenant that rents or leases a property. |
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Lessor |
A landlord that owns a property and rents or leases it out to tenants. |
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Mortgage Banker |
Works for a bank or lending institution, typically as an employee. They sell only their bank’s loan products to borrowers. Must be licensed as an MLO. |
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Mortgage Broker |
An independent lender who does not work for any specific bank. They wholesale mortgage loan products from many different banks and investors. They can shop around and compare various loan products for their borrowers. Must be licensed as an MLO. |
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Mortgage Loan Originator (MLO) |
Real estate mortgage lender licensed through the NMLS registry system. |
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Multi-Family Property |
An apartment complex owned by a single investor (or investment firm) and each of the multiple units is occupied by different renters. |
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Nationwide Multistate Licensing System and Registry (NMLS) |
National registry for licensing real estate mortgage lenders as MLOs. Link: https://mortgage.nationwidelicensingsystem.org |
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Place-Based Property |
Commercial property that cannot be physically moved, including: colleges, public parks, sports stadiums, museums, and amusement parks. |
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Real Estate Owned (REO) |
Assets (real property) owned by the bank or mortgage lender, which they acquired through foreclosure. |
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Real Estate Settlement Procedures Act (RESPA) |
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Secure And Fair Enforcement of mortgage licensing (SAFE Act) |
SAFE Act link: https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/secure-fair-enforcement-for-mortgage-licensing-act |
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Truth In Lending Act (TILA), also known as Regulation Z (Reg Z) |
TILA link: https://www.consumerfinance.gov/rules-policy/regulations/1026 |
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Zoning |
Government regulatory system of property types allowed to be built in various neighborhoods, identified by a system of codes. |