New York
City Glossary of Terms
TYPES OF
BUILDINGS
Brownstones
or Townhouses: These are typically
4 to 6 story buildings built in the 1800's through the early 1900's. They are
either single family houses or have been converted over the years into multiple
apartments. As a single family home, a townhouse or brownstone offers buyers
privacy and the ability to purchase without the cooperative board process. Some
apartments in townhouses can have grand living spaces and, therefore, will be
quite expensive. Generally, these buildings afford more "charm", with
features such as gardens, fireplaces, beautiful floors and ornamental wood moldings.
In almost all cases these buildings will not have a doorman. One can also
purchase a coop or condo unit in a townhouse building. The term
"brownstone" refers to the type of material used as facing on the
front of the structure.
Pre-War
Buildings: Prewar buildings are
those built before World War II. These buildings are usually ten to twenty
stories high, provide spacious apartment lay-outs, gracious architectural
amenities with features such as larger rooms, fireplaces, hardwood parquet
floors and higher ceilings. These can be doorman or non-doorman buildings.
Post War
Buildings: These buildings were
built between the late 1940's through the 1970's. They are generally hi-rise
and are constructed of white, red or brown brick. Most will have doormen.
Postwar apartments may actually afford more living space than their prewar
counterparts in studio, one and two bedroom sizes. They have ample closets,
live-in superintendent and laundry facilities.
Hi Rise
Full Service: Buildings These are
generally associated with new construction or are apartment buildings that were
built from the 1980's through the present. They are typically condominiums,
twenty to forty or more stories with doorman and concierge services. Other
amenities often include: health clubs and swimming pools, valet services and
parking garages
Elevator
Buildings: This description is
usually reserved for a non-doorman building that is six to twenty stories tall.
There is usually an intercom security system, and some may have video security.
These buildings could fall into either the pre-war or the post-war category.
Loft
Buildings: These buildings either
were previously built for commercial or manufacturing purposes and are now used
for residential living spaces or are newly constructed as loft buildings. The
spaces typically offer higher ceilings (9 feet-20 feet), open spaces and
original details such as supporting columns, tin ceilings, etc. They are
usually found in Greenwich Village, SoHo, TriBeCa, Chelsea, Flatiron, Nolita,
and lower Manhattan and often do not have the services of a doorman.
Walk-Up
Buildings: This is the least
expensive type of housing, and the quality can vary widely. Usually these are 4
to 5 story buildings with no elevator, hence the term "walk-up." They
were originally constructed as multi-family housing and lack the charm and
elegance of traditional brownstones or townhouses.
NEW YORK
CITY TERMINOLOGY
Familiarize yourself with the following
terminology. It's almost all unique to New York City. It's also important to
know that we speak in "number of rooms," as well as using the
definitions below. A room in Manhattan must be at least 100 square feet and
have a window...except in the case of a kitchen. Most kitchens are considered
rooms, unless they are Pullman types, which would be found as part of the
living room. And we don't count baths as rooms. So, a Three Room Apartment
would be comprised of a Living Room, a Kitchen and a Bedroom. A Four Room
Apartment would have a Living Room, a Kitchen, Two Bedrooms, or One Bedroom and
a Dining Room. You'll hear the term "Half of a Room", e.g., "Three
and a Half Rooms." This means that the Living Room has an alcove adjacent
to it which is not quite the size of a true room, or in some cases it may mean
a foyer large enough for dining. Review the list below, and check with your
agent for further clarification.
STUDIO: One or two rooms with combined living and
sleeping area. If the studio is one room, the kitchen will be of the Pullman
variety. If it is two rooms, the kitchen will be separate.
ALCOVE: Alcove is an area adjoining the living room
space of an apartment. It is generally less than 100 square feet and is not
considered a full room, but often called a half room. It can be used as a
"dining alcove" or "sleeping alcove". Depending upon size,
it may actually be "walled off" to create an additional bedroom.
ALCOVE
STUDIO: This is either a one and a
half or two room apartment with a separate alcove, often L-shaped, which can be
used as a sleeping area.
JUNIOR OR
CONVERTIBLE: This is an apartment
with an alcove off of the living room which can be converted into a bedroom or
used for dining. A Junior 4, for instance, would be a three room apartment
(living room, kitchen and bedroom) which has the potential to be four rooms by
using the alcove space to create an additional room.
DUPLEX: In New York this means an apartment with two
floors or levels, not two apartment units.
LOFT AREA:
This is an additional space created
in apartments with very high ceilings. The loft area is constructed above the
traditional living area, accessed by a staircase or ladder, and used for extra
storage, sleeping or living space (e.g., a mezzanine).
CLASSIC: The word "classic" is usually
followed by a number indicating the number of rooms in an apartment. It is
generally associated with pre-war apartments that meet criteria of room numbers
and design for buildings of that period. However, a "classic" can
exist in a post-war building, assuming it follows the same guidelines. As an
example, a "classic six" is comprised of a living room, dining room,
kitchen, two bedrooms, and a maid's room.
GLOSSARY
OF REAL ESTATE TERMS
Abstract
of Title: A historical summary of the recorded instruments and proceedings
on the title of a property.
Air
Rights: The right to use or control the space above a property. Air
Rights can also be sold, rented or leased to another party.
Amenities:
The benefits from home ownership, such as a feature that enhances value.
Appraisal: An
estimate of the value of the property. One may have an appraisal to determine
the offering price during a sale.
Assignment: The
process by which a right or contract is transferred from one party to another.
Assigned contracts include mortgages, leases and deeds of trust.
Broker: A
state licensed sales agent who acts for property owners and prospective
purchasers in Real Estate transactions.
Brownstone: A
19th century house which shares a common wall with the neighboring property.
Building
Amenities: The assets that buildings offer its owners or tenants.
These can include a doorman, health club, club, garage etc.
Building
Restrictions: Requirements in building codes that affect the size and
appearance of the building.
Capital
Expenditure: an improvement that will have a life of one year or more
and will increase the value of the property.
Certificate
of Occupancy: In New York City, each building is required to have a
Certificate of Occupancy which permits the structure to be occupied by members
of the public. This means that the building is in compliance to health and
building codes.
Closing: The
transfer of ownership of a property from the seller to the buyer according to
the sales contract.
Co-Broke: This
is the term used when a broker sends out their listing to other brokers and
other firms. The brokerage community then receives the listings and the
commission will now be split evenly between the seller's broker and the firm
that provides the buyer of the property.
Combination: Refers
to when an owner combines two adjoining apartments into one to enhance the
value and the space.
Commission: Payment
to the broker for his or her efforts on marketing and selling the property it
is usually a percentage of the total purchase price.
Commission
Split: the sharing of commissions between the listing agent and the
broker of the buyer.
Common
Area: The area on the property or in the building that is available
for use to all owners and tenants.
Comparables: Used
in assessing or establishing the fair market value of a property, a property
which has been sold recently that is similar in size, condition, location and
amenities.
Condominium: A
building where individuals own individual units but share common areas with the
other unit owners of the building. A more liberal type of ownership than Coops,
Condominium ownership also has more lenient policies regarding subletting and
pets.
Contract: A
legally binding agreement between two parties. To have a valid contract for the
sale of Real Estate there must be:
- an offer
- an acceptance
- competent parties
- consideration
- legal purpose
- written documentation
- description of the property
- signatures of the principals
Conversion: Property
changing to a different form of ownership, such as a condominium to a
cooperative or a commercial building to a residential building.
Convertible: A
one or two bedroom apartment that has space to make another bedroom. The other
bedroom can be made with the construction of a wall; however, the new bedroom
must have a window in order for it to be legal.
Deed: a
written document by which title of property is expressed from one party to
another.
Duplex
Apartment: An apartment that has two levels.
Escrow: A
state where consideration, benefits, legal rights, money, documents or other
valuables are transferred to another party in advance of that party's legal
claim to them, on the basis that the legal claim will arise at a given point in
the future. It is a form of trust.
Estate: The
word used to describe the collection of all assets of a deceased person. Also,
the extent of interest a person has in real property.
Estate
for Life: The interest of real property that ends with the death of a
person.
Excellent
Condition: This is used to describe the condition of the apartment;
mint is another word for excellent meaning the apartment is in great shape.
Exclusive
Listing: A contract whereby the owner of a property grants a single broker
the right to market the property for sale.
Façade:
The exterior front wall of a building.
Financing: Borrowing
money to purchase a property.
Firm Price:
An asking price for a property that is not open for negotiation.
Fixed-Rate
Mortgage: A loan where the interest rate remains constant over the
entire term of the loan.
Flip Tax: Tax
imposed on the cooperative apartment by the cooperative, this tax can either be
paid by the seller or purchaser and is usually a percentage of the purchase
price.
Floating
Rate: A loan where the interest rate is not fixed over the term but is
allowed to vary according to the change in a specified index.
Floor
Plan: A scale diagram of the arrangement of rooms and their sizes
drawn by an architect.
Foreclosure: An
enforcement process in which the lender under a defaulted mortgage takes title
to the property for the purposes of selling it to recoup moneys owed under the
mortgage.
Full
Bath: A bathroom with a bath or a shower.
Grandfather
Clause: If a new law is passed or an old is changed those people whose
activity was legal under the previous law are allowed to continue because of
this condition. This law is common with pets; some buildings that do not allow
pets now, did in past, therefore, those owners are allowed to keep their pets.
Half
Bath: A bathroom without a bath or a shower.
Interest
Rates: The cost of borrowing money from a lender. Rates change over
time and are set by the Federal Reserve.
Lease: A
written agreement to rent a property or part of a property from the owner.
Lien: A
legal claim against property for money owed.
Listing:
The agreement that allows a real estate professional to market a property.
Available apartments are also referred to as listings.
Loft: A
loft refers to open living space that was converted from commercial space to
residential space. Lofts contain very high ceilings, large windows and open
space. In New York City, most lofts and converted commercial space is located
downtown.
Lot: A
measured section of land.
Maintenance: Monthly charges
paid by the owner or tenant of a cooperative building for that person's share
of costs of keeping the common-use portions of the building in good condition.
This includes the daily cost to operate the building and it is calculated based
on each individual unit.
Managing
Agent: An independent company that is hired to manage a property. In
New York City, most of the cooperative and condominium buildings are managed by
a company which is responsible for the building operations. Brown Harris
Stevens manages over 160 buildings in Manhattan.
Market
Value: An estimation of the price for a property in relation to the
current real estate market.
Mortgage: Money
borrowed from a lender in order to purchase a piece of property. Mortgages vary
in terms of length as well interest rates.
Negotiation: The
process of discussing an issue between two parties who are working towards the
same goal. Successful negotiation usually leads to a contract and then a sale.
Notarize: To
verify the authenticity of a signature by a certified Notary Public.
Offer: An
expression of the desire to purchase a property at a specific price. Once an
offer is made and then accepted it leads to the purchase of the property.
Offer
Accepted: The term refers to when the owner of the property agrees and
accepts the offer and terms of the purchaser.
Open
House: A specified time when a property that is for sale is advertised
by opening its doors to prospective buyers. A broker advertises an open house
to help the sale of the property.
Open
Listing: A listing where the owner of the property hires more than one
broker and only pays commission to the one that provides the purchaser.
Ordinance: A
law enacted by the local government.
Penthouse: A
luxury apartment in a high rise building.
Pied a
Terre: A French term that refers to an apartment that is not the
primary residence of the owner. A Pied a Terre is used when a person lives in
another location and comes to New York several times a month or a few weeks a
year to either work or enjoy this great city.
Post War: A
post war building is one that was built after World War II.
Pre War: A
prewar building is one that was built before World War II. Common
characteristics of a prewar apartment are fireplaces, moldings and hardwood
floors.
Property Tax:
The tax issued on the ownership of property.
Points: A
charge levied by the lender on the borrower for the mortgage for prepaid
interest. Each point is equal to 1% of the principal of the mortgage.
Powder
Room: Also known as a half bath. A powder room is a bathroom without a
shower or a bath.
Quadraplex:
An apartment that has four levels.
Referral: A
recommendation made to a client about the services of a particular agent or
firm.
Rental
Building: A building where the apartments are only rented and not
sold.
Rent
Control: Laws that regulate the amount of money that is charged to
rent out space.
Reserve Fund:
An account reserved to provide funds for future expenses in order to maintain
the cooperative or condominium building.
Sale
Price: The amount of money paid by the purchaser to the seller. Also
known as the purchase price.
Security
Deposit: A payment required by a landlord to guarantee that the tenant
meets his or her obligations under the lease and to guard against any potential
damages that may be incurred during the term of the lease.
Shares: When
one purchases an apartment in a cooperative building he or she is actually
purchasing the shares in the cooperative. They represent the proportion of the
building owned by the unit owner based on the size and value of the apartment.
Square
Footage: The area measured in square feet of a certain property.
Square footage can be measured in different ways and is usually considered
approximate. Condominium apartments have specific laws that determine the way
which the apartment is measured therefore condominium measurements are more
accurate.
Sublet: The
term used when an owner of an apartment decides to rent the apartment to a
tenant.
Tax
Deductible: An expense that reduces taxable income. Each year,
shareholders in cooperatives apartments are able to deduct a certain amount
from their personal taxes. The amount is determined by the amount of shares
that are owned.
Term: A
specified period of time.
Term,
Amortization: The term in which the interest and principal payments of
a loan must be made.
Title: The
legal term for the evidence that the owner is in lawful possession of the land
and property.
Townhouse: A
townhouse is a private residence where at least one wall is shared with another
residence. In New York City, townhouses are a very popular and a more private
way of living.
Triple Mint:
Refers to the condition of the residence. Triple mint condition means that the
residence is in immaculate condition.
Triplex: An
apartment that has three levels.
Unit: A
single residence within a building.
Utilities: Services
such as water, gas, electricity, telephone and television. Utilities in some
buildings throughout the city are included in the maintenance charges.
Vacate: To
move out and leave the property.
Walk Up Building:
A building that does not have an elevator. Most walk up buildings are four to
six floors.
Walk
Through Inspection: The inspection of a property immediately before
the closing to ensure that the property does not have any new damages.
Zone: An
area set by local law for specific use with certain rules and regulations.
By George L. Rosario
George L. Rosario
Real Estate
Salesperson
Coldwell
Banker Kueber
917-945-4211
– CELL
347-671-SOLD
–Direct
