Real Estate Glossary

From Jargon to Confidence: Buy, Sell and Rent Smarter.

Understanding real estate terminology can make all the difference when buying or selling a home in Brooklyn.

A

  • Abstract of Title

    Historical summary of a property’s ownership and legal status, confirming there are no outstanding claims or liens

  • Adjustable-Rate Mortgage (ARM)

    Mortgage with an interest rate that changes periodically based on market conditions, often after an initial fixed period

  • Air Rights

    The rights to develop or use the empty space above a property to follow NYC zoning regulations, a key factor in Brooklyn real estate development

  • Alcove

    A recessed section of a room, often used for a dining or sleeping area in a studio apartment, or in a larger Brooklyn home an alcove might be where you find a reading nook or work-for-home space—sometimes just big enough for a desk and chair

  • Amenities

    Building features that enhance the living experience. Common available amenities might include a doorman, shared roof access, a community garden, gym, parking, laundry room, bicycle storage, and pet-friendly amenities like a dog run or pet washing station

  • Amortization Term

    Length of time over which a mortgage loan is scheduled to be repaid

  • Amortize

    Process of gradually paying off a loan through regular payments covering both principal and interest

  • Appraisal

    Evaluation by a licensed professional to determine a property’s market value, often required for mortgage approval

  • As-Is Sale

    Property sold in its current condition, with no repairs or concessions from the seller

  • Assessment/Assessed Value

    The valuation of a property for tax purposes, determined by the local municipality

B

  • Board Approval/Board Package

    Process by which a co-op board reviews and approves a buyer’s financials and background before allowing the purchase of a unit. Learn more in our Co-ops, Condos and Cond-Ops blog post

  • Bridge Loan

    Short-term loan that helps a buyer cover costs while transitioning from one property to another

  • Broker

    Licensed real estate professional or firm who facilitates transactions between buyers and sellers or landlords and tenants for a fee

  • Broker’s Fee

    Commission paid to a licensed real estate broker for overseeing the buying, selling or leasing of properties

  • Brownstone

    A classic Brooklyn townhouse (often made from brick) with a distinctive brown sandstone façade, common in Park Slope, Fort Greene, Cobble Hill and surrounding neighborhoods

  • Built

    The year a property was constructed, which often influences architectural style and structural considerations

  • Buyer’s Agent

    Real estate agent who represents the interests of the buyer in a transaction

  • By-Laws

    A formal set of co-op or condo rules and regulations that govern a co-op or condo building, outlining the number of board members, process and frequency of board elections and guidelines for meetings and decision-making

C

  • Can Lights (aka High Hats or Recessed Lighting)

    Lighting fixture installed into a ceiling or wall, creating a streamlined appearance

  • Capital Contribution

    A one-time fee paid by buyers in some condos or co-ops at closing to fund building reserves or improvements

  • Capital Improvement

    Major property upgrade that increases its value, such as a new roof or kitchen renovation

  • Capitalization Rate (Cap Rate)

    A metric used by real estate investors to assess the profitability of an income-producing property, calculated as the net operating income divided by the current market value

  • Certificate of Deposit (CD)

    Financial product that earns interest over a fixed term, sometimes used as proof of funds in real estate transactions

  • Certificate of Occupancy (C of O)

    Document issued by the city confirming a building’s compliance with codes and legal use and that it is safe for occupancy

  • Classic Six

    Term used to describe a home with six rooms—kitchen, formal dining room, living room, two bedrooms and maid’s quarters—often in pre-war buildings with distinguished architectural features including high ceilings and original period details

  • Closing

    Final step in a real estate transaction where ownership officially transfers to the buyer

  • Closing Costs

    Fees associated with finalizing a real estate transaction, including attorney fees, title insurance, transfer taxes and NYC mansion tax

  • Co-Broke

    Agreement between two brokers, typically representing the buyer and seller, to collaborate on a real estate transaction to share the commission

  • Common Charges

    Monthly fees paid by condo owners for building maintenance, amenities, staff salaries and utilities

  • Comparables (Comps)

    Recent sales of similar properties used to determine a home’s value

  • Comparative Market Analysis (CMA)

    Report analyzing recent comparable home sales to determine a property’s market value. This report evaluates factors including location and neighborhood demand, amenities and unique property features, property condition and zoning considerations, and current local market competition

  • Concierge

    Building staff member providing services such as package handling and guest assistance

  • Cond-Op

    Hybrid ownership structure combining elements of a condo and a co-op in which the ground floor (often commercial space) has been converted into a separate condo. Learn more in our Co-ops, Condos and Cond-Ops blog post

  • Condo Declarations

    Governing documents that outline a condominium’s rules and regulations including owners’ rights and responsibilities as well as those of the condo associations

  • Condominium (Condo)

    Property in which each unit is individually owned while common areas are shared; each condo comes with its own deed and tax lot. Read more in our Co-ops, Condos and Cond-Ops blog post

  • Contingency

    Condition in a real estate contract that must be met before closing, such as a financing or inspection contingency

  • Contract Out

    When a seller accepts an offer, and the contract is delivered to the buyer for signing, there is a due diligence period in which the contract is out for signature. Buyers can still bid on a property as long as there is no signed contract yet

  • Convertible Apartment (Flex Apartment)

    An apartment that can be easily reconfigured to add an extra bedroom or living space

  • Conveyance

    Legal process of transferring property ownership from one party to another

  • Cooperative (Co-op)

    Building where residents own shares in a corporation that owns the property, rather than owning their unit outright. Co-ops make up about 80% of all properties on the market in Brooklyn and Manhattan. Check out our Co-ops, Condos and Cond-Ops blog post for more details

  • Counteroffer

    Response to an initial offer with revised terms, often involving price or conditions

D

  • Debt-to-Income Ratio

    Calculation comparing a buyer’s monthly debt payments to their gross income, used to assess mortgage and co-op eligibility. Calculate by dividing total monthly debt by monthly gross income. A good rule of thumb is to keep a ratio of less than 30% for co-op board approval in Brooklyn

  • Deed

    Legal document that transfers property ownership from one party to another; titles are transferred by using deeds

  • Deposit

    A percentage of the purchase price (typically 10%) paid by the buyer upon signing the contract to secure the transaction

  • Disclosure

    Statement detailing known issues or conditions of a property that may affect its value. Disclosure examples include a roof leak, pest control problem, foundation issue, water and sewage system problem, and whether the property is subject to environmental hazards

  • Discount Points (aka Mortgage Points)

    Fees paid upfront to lower the interest rate on a mortgage

  • Distressed Property/Distressed Sale

    A property about to fall into foreclosure or already in foreclosure

  • Doorman

    Staff member who provides security and assistance at a residential building entrance. A doorman may hold the lobby door for you, greet and vet guests, accept packages on your behalf and inform you of a guest’s arrival

  • Due Diligence

    Process where a buyer and their attorney review financials, building history and legal documents before signing a contract

  • Duplex Apartment

    Two-level apartment unit, often featuring an internal staircase

E

  • En Suite Bathroom

    Bathroom directly attached to a bedroom

  • Equity

    Value of ownership in a property, calculated as market value minus outstanding mortgage balance

  • Escrow

    Designed to safeguard all parties in a real estate transaction, an escrow account is managed by a neutral third party who holds funds or documents until all conditions are met. Additionally, an escrow account may be established at the time of mortgage closing to cover future homeowners’ insurance and property tax payments

  • Exclusive Listing

    Property listing where only one brokerage has the right to sell a home

F

  • Façade

    Exterior front of a building, often a key architectural feature

  • Fair Housing Act

    Law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status or national origin. View the official NY State Housing and Anti-Discrimination Notice for more details

  • Fixed Rate

    Mortgage with an interest rate that remains constant throughout the loan term

  • Flex Apartment (Convertible Apartment)

    Apartment layout that allows for the creation of an additional room by adding a temporary wall

  • Flex Space

    Flex space refers to a bonus room or large area within a home that can be used however you see fit (eg, as work-from-home space, a home gym, library or craft/hobby room)

  • Flip Tax

    Fee imposed by a co-op or condo board typically on the seller when an apartment is sold, which is used to fund building reserves. Flip taxes are much more common in co-ops but found in some condos too

  • Flipped Property

    Home that has been purchased, renovated and resold quickly for a profit, often seen in Brooklyn’s competitive housing market

  • Floating Rate

    Mortgage with an interest rate that adjusts periodically based on market conditions

  • Floor Area Ratio (FAR)

    Zoning regulation that determines how much floor space a building can have relative to the size of its lot

  • Floor Plan

    Drawing or diagram that shows the layout of a property, including room sizes and configurations

  • Floor-Though/Floor-Thru

    Apartment that spans the entire width of a building, typically providing both front and rear exposures

  • Forbearance Agreement

    Agreement between lender and borrower that temporarily suspends or reduces mortgage payments due to financial hardship

  • Foreclosure

    Legal process in which a lender takes possession of a property due to the owner’s failure to make mortgage payments

  • Full-Service Building

    Residential building that offers amenities such as a full-time doorman, concierge and maintenance person/team—and often a superintendent, porter or additional staff

G

  • Guarantor

    Person who agrees to be responsible for a lease if the primary tenant fails to meet financial obligations

H

  • Half-Bath (Powder Room)

    Bathroom with a sink and toilet, but no shower/tub

  • Hard Costs

    The cost for tangible things like paying construction workers, purchasing materials and building

  • High Ceilings

    Architectural feature where ceilings are higher than the standard height of around 8 feet, often providing a sense of spaciousness. In Brooklyn real estate this term often means 9 feet or more

  • High Hats (aka Can Lights or Recessed Lighting)

    Lighting fixture installed into a ceiling or wall, creating a streamlined appearance

  • Highest and Best Offer

    Term used in competitive bidding where a buyer submits their strongest offer reflecting the highest price and best terms they are willing to offer

  • House Rules

    Set of regulations governing behavior and procedures within a co-op or condo building, typically more casual than formal by-laws

  • Housing Lottery

    Through NYC Housing Connect, you can apply to be considered in affordable rental and homeownership lotteries if you meet certain household income and size requirements

I

  • In Contract

    Stage in a real estate transaction where a signed contract exists but the deal has not yet closed

  • Inspection

    Assessment of a property by a buyer, real estate agent, title insurance company or other interested party to find potential issues. Inspections help assess property condition and may influence negotiations or contingencies in a sales contract

  • Interest Rate

    Percentage charged by a lender for borrowing money, typically expressed as an annual percentage

J

  • Jack-and-Jill Bathroom

    Bathroom with two doors that is typically accessible from two separate bedrooms

  • Juliet Balcony

    Small, decorative balcony with a railing that is accessible through large windows or glass doors, often found in pre-war buildings and classic brownstones

  • Junior

    Term used to describe a smaller version of a standard apartment type, such as a junior one-bedroom which typically has a small separate sleeping area

K

  • Keyed Elevator Access

    Security feature where an elevator requires a key or fob to access certain floors and often opens directly to the unit, typically found in luxury or boutique buildings

L

  • Lease Assignment

    Transfer of an existing lease from one tenant to another, often requiring landlord approval

  • Lease Break

    When a tenant ends a lease early, which may involve penalties or obligations to find a replacement tenant

  • Lien

    Legal claim against a property that must be paid off before the property can be sold

  • Lien Waiver

    Document from a contractor, subcontractor, or supplier stating they have received payment and waive any future lien rights on the property

  • Listing Agreement

    Contract between a property owner and a real estate agent that grants the agent the right to market and sell the property

  • Loft

    Spacious, open-concept apartment, often with high ceilings and large windows, originally converted from industrial buildings. In Brooklyn, lofts can typically be found in neighborhoods like Bushwick, Williamsburg, Dumbo and Greenpoint

M

  • Maintenance Fees

    Monthly fees paid by co-op owners for building upkeep, property taxes and utilities

  • Maisonette

    Maisonette translates to “little house” in French and it’s a ground-floor apartment with a private entrance, often featuring duplex-style living

  • Mansion Tax

    New York state transfer tax imposed on residential properties sold for $1 million or more

  • Market Value

    Estimated price a property would sell for under current market conditions

  • Median Sale Price

    A key market indicator representing the middle price point of all home sales in a given area, often used in real estate market reports

  • Mortgage

    Loan used to finance the purchase of a property, secured by the property itself. Mortgages vary in both term length and interest rates

  • Mortgage Insurance

    Insurance that protects a lender in case the borrower defaults on a loan, often required for loans with low down payments

  • Mortgage Points (aka Discount Points)

    Fees paid upfront to lower the interest rate on a mortgage

N

  • No-Fee

    Rental listing where the tenant does not pay a broker’s fee, typically covered by the landlord

  • Notarize

    Process of having a document certified by a notary public to verify its authenticity

  • Notice of Default

    Formal notice sent to a borrower indicating they have failed to make mortgage payments and are at risk of foreclosure

O

  • Offer

    Buyer’s proposed purchase price for a property, often negotiated before a contract is signed

  • Offer Accepted

    Stage in a transaction where the seller has agreed to a buyer’s offer, but no contract has been signed yet

  • Office-to-Residential Conversion

    To address housing shortages, NYC has encouraged converting underutilized office spaces into residential units, including Single Room Occupancy (SRO)-style accommodations

  • Open Floor Plan (Open Concept)

    Layout where living, dining and kitchen areas are combined into one shared open space

  • Open House

    Scheduled period during which a property is available for potential buyers to tour, often without an appointment. If it’s your first time dealing with an open house, check out our Buyer’s Guide to Open House Etiquette and Questions to Consider Asking blog posts

  • Owner of Record

    Official owner of a property as listed in public records

P

  • Parlor Floor (Parlor Level)

    Main level of a brownstone or townhouse, typically featuring high ceilings and grand living spaces

  • Penthouse

    Top-floor unit of a building, often with exclusive outdoor space, privacy, views and more rights than lower-level units to install fireplace, stove vents or other HVAC equipment. On occasion a building may have multiple levels of penthouses, and some penthouses are merely top-floor units but otherwise identical to their lower-level counterparts

  • Pied-à-Terre

    Secondary residence, often used for part-time living

  • Porter

    Building staff member responsible for cleaning and light maintenance

  • Possession

    Date when a buyer or renter officially takes control of a property

  • Post-War

    Buildings constructed after World War II but before the 1990s, often characterized by simpler, more homogeneous designs and larger windows

  • Powder Room (Half-Bath)

    Bathroom with sink and toilet, but no shower/tub

  • Pre-War

    Built before WWII; often recognizable by a building’s spaciousness, hardwood floors, period moldings, carved woodwork and fireplaces. You will likely see Brooklyn real estate listings mention “pre-war charm” which means the home embodies some of these characteristics

  • Principal

    Amount of money borrowed for a mortgage loan, excluding interest

  • Proprietary Lease

    Lease given to a co-op shareholder, granting the right to occupy a specific unit

Q

  • Quiet Enjoyment

    Tenant’s right to use and enjoy a rental property without disturbances from the landlord or other parties

R

  • Recessed Lighting (aka High Hats or Can Lights)

    Lighting fixture installed into a ceiling or wall, creating a streamlined appearance

  • Refinance

    Process of replacing an existing mortgage with a new loan, typically to secure a lower interest rate or better loan terms

  • Rent Controlled/Rent Stabilized

    Types of rent regulations in NYC that limit rent increases and provide tenant protections. Learn more about at the NYC Rent Guidelines Board site

  • Rescission Period

    Legally designated time frame in which a buyer can cancel a real estate contract without penalties, often applicable to new condo purchases

S

  • Section 8 (aka Voucher Program)

    A federal program that provides vouchers to low-income families, people with disabilities and elderly people so subsidize a rental of their choice. Visit the NYC Housing Authority site for more info

  • Security Deposit

    Sum of money paid by a tenant before moving in, held by the landlord to cover potential damages or unpaid rent

  • Seller’s Agent

    Real estate agent who represents the seller in a transaction, working to secure the best terms and price for the property

  • Service Elevator

    Elevator designated for use by building staff, deliveries and maintenance, separate from the main passenger elevators; oftentimes buildings will advise occupants to use the service elevator on moving day or for large deliveries

  • Service Entrance

    Secondary entrance to a building or apartment, often used by staff, for deliveries or for practical access

  • Short Refinance

    Refinancing option where a lender agrees to refinance a borrower’s home for current market value, to help a borrower avoid foreclosure

  • Short Sale

    Property sale where the proceeds are less than the outstanding mortgage balance, requiring lender approval

  • Shortfall

    Difference between the amount owed on a property and its market value, typically in the case of a distressed sale

  • Single-Room Occupancy (SRO)

    Type of housing where individual tenants rent single rooms within a building, often with shared kitchens or bathrooms. Common in older NYC buildings, SROs are highly regulated and typically not available for new development due to zoning and housing laws

  • Soft Costs

    Non-physical expenses related to real estate development, such as legal fees, permits, appraisals, accounting and architectural planning

  • South-Facing (Southern Exposure)

    A home whose windows face south; rooms with south-facing exposure get an abundance of natural light

  • Stock and Lease

    A co-op shareholder receives a stock certificate representing their stake in the building and a proprietary lease granting the right to occupy a specific unit

  • Studio

    One-room apartment that combines living, dining and sleeping areas, typically with a separate bathroom and kitchenette

  • Sublet

    Process of a tenant renting out their leased Brooklyn property to another person while remaining responsible for the lease agreement; also applies to a shareholder renting out their co-op unit, subject to board approval and building policies

  • Superintendent (Super)

    Manager responsible for overseeing residential building repair, maintenance, support staff and day-to-day residential issues. A super’s responsibilities can vary depending on the building but they typically are in charge of trash removal, cleaning common areas and overall building maintenance on behalf of an owner. Some supers live on site, some off

T

  • Tax Abatement

    Reduction or exemption from property taxes for a set period, often as an incentive for new developments or renovations

  • Term

    Length of time agreed upon for a mortgage or lease

  • Terrace

    Private outdoor space attached to an apartment, typically larger than a balcony

  • Title

    Legal document proving ownership of a property

  • Townhouse

    Multi-story, single-family (unless otherwise noted) home that shares walls with adjacent properties but has its own private entrance

  • Transfer Tax

    Tax imposed on the transfer of real estate ownership, typically paid by the seller in NYC

  • Triplex

    Residential unit spanning three levels within a building

U

  • Underwriting

    Process by which a lender assesses the risk of issuing a mortgage loan based on the borrower’s financial history and the property’s value

V

  • Voucher Program (aka Section 8)

    A federal program that provides vouchers to low-income families, people with disabilities and elderly people so subsidize a rental of their choice. Visit the NYC Housing Authority site for more info

W

  • Walk-Up

    Building without an elevator, requiring residents to use stairs to access their apartments

  • Warranty of Habitability

    Legal requirement that a rental property must be safe, livable and maintained in good condition

  • Wood-Burning Fireplace (WBFP)

    Traditional fireplace that burns wood logs, often found in pre-war buildings and brownstones

Z

  • Zoning Variance

    Special permit that allows property use or development outside of existing zoning laws

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