Real Estate Terminology

Real Estate TerminologyAddendum - ANSWER something added, as an attachment to a contract or lease. The part of the lease document that contains custom features of the lease agreement. Synonymous with Rider Amortization - ANSWER a gradual payoff of a debt by periodic installments over a specified period of time. Loan Amendment - ANSWER a change made to a contract or lease Anchor Tenant - ANSWER the largest tenant in an office building or strip center. Synonymous with cornerstone tenant Appurtenance - ANSWER something that is outside the property itself but is considered a part of the property and adds to its greater enjoyment (i.e. easement or right-of-way) Assignment of Lease - ANSWER the transfer of rights to use leased property. The assignee acquires the same rights and privileges as the assignor. The assignor remains liable unless released by the landlord. Attornment - ANSWER a tenant's formal agreement to be a tenant of a new landlord Base Rent - ANSWER the minimum rent due under a lease that has a percentage or participation requirement. Base rent does not include CAM, Real Estate Taxes, Insurance or other related charges Base Year - ANSWER a method of measuring when the owner's expenses for operating the building stop and the tenant's expenses begin. The following year is compared to the base year to determine if there is in an increase in operating costs, which would be passed on to the tenant