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First right of refusal - an option written in a lease provided to a tenant in a lease contract
It means simply the first right to occupy space or match an incoming offer on adjacent space that may be required for the tenant’s future expansion.
It gives a potentially interested party—say, you—the right to buy or lease a property before the seller negotiates any other offers.
Escalation clause—A clause in a lease providing for an increase in rent at a future time.
This could be a fixed or pre-determined rate increase, a cost-of-living increase that ties the rent to a cost-of-living index, or direct expense—the rent is adjusted according to changes in the expenses of the property such as a tax increase.
Also known as a stop clause or participation clause.
Abandonment—A person or entity that leaves a demised premises before the end of a lease term.
To be more precise:
Abandonment is a unilateral act by the tenant to relinquish their tenancy and give up possession of the rental unit without properly giving notice of the termination to the landlord.
Zoning—The rules of a municipality that detail the allowable uses for the real property in specific areas, and only then on specified conditions.
To be more precise:
A zoning bylaw implements the objectives and policies of a municipality's official plan.
It provides a legal and precise way of managing land use and future development.
In addition to the official plan, protects you from conflicting and possibly dangerous land uses in your community.
OPTION—The right to purchase or lease a property at a certain price within a designated period for which a consideration is paid.
More practically: By signing the option agreement for this sum, you are agreeing to sell your home for this price to the potential buyer within an agreed-upon timeframe, regardless of what the market does.
Letter of intent—A formal method of stating there’s interest in a property, but it’s not an offer and creates no obligation.
To be more precise: A letter of intent (LOI) is a written, nonbinding document that outlines an agreement in principle between two or more parties before a legal agreement is finalized.
It is often used in business transactions, such as mergers and acquisitions, joint ventures, and real estate leases.
Interest-only mortgage—A non-amortizing loan where the lender receives only interest during the term of the loan and recovers the principal in a lump sum at the end of the term.
Interest-only mortgages can be structured in various ways. Interest-only payments may be made for a specified period, may be given as an option, or may last throughout the loan.
With some lenders, paying the interest exclusively may be a provision that is only available for certain borrowers.
Contingent offer (Conditional)—An offer to purchase property subject to certain conditions, including the buyer’s approval of income and expense statements, title commitment, physical condition of the property, loan commitment, etc. being met.
The specific amount of time allowed to clear (waive) these provisions (conditions) is called a contingency period.
The conditions are protecting both sides of the negotiations.
Comparables—this term refers to area rents or competitive rental properties or area sales that have sold, implying “rent comps” and “sales comps” are comparable in size, location, condition, amenities, etc., to the subject property.
This info is imperative to a proper assessment of real estate values in selected local markets.
Clear title - A title is one of the two most important documents for the purchase of a commercial property.
It grants the owner rights to the property.
A deed is the transfer of ownership.
A clear title is any property free of any competing claims, mortgages, liens, and encumbrances.
In simpler words, a clear title means that the property is owned outright by the seller and there are no outstanding claims or issues that could potentially complicate the transfer of ownership to the buyer.