Have you ever walked into a room of people and felt that you are on another planet? You hear them saying words that resemble English and in fact it is, but they are using it a strange way? Well then you are not alone. Many different groups of people will have their own language and way of speaking to each other.
To help you understand this when in the real estate world, you will need to know commercial real estate terms. When you learn these terms and how to use them properly, then you can communicate with a relator and get a better deal.
Lien – This is used to describe a lien. It is a legal claim on property by a creditor in order to be repaid for money owed.
Escrow – This is when an escrow company takes possession of some or all of the parties’ monies, documents and other items during the course of business between two separate persons or entities. The main purpose of this is to protect both parties from fraud or loss.
This includes the protection against fraud by a party that is selling something, and also from any outside influences such as bank charges and other legal things.
Insurance – This normally covers everything in your real estate contract including the property you are buying, the property that you are selling and even the buyer and sellers in case of personal injury.
Title – The legal documents that proves ownership over a property. Not having good title means you do not have as much protection against fraud or loss.
Non-recourse financing – This loans are generally given by lenders who want to be sure they are protected from any losses, which is why they do not give out any full recourse financing loans. They want to be able to get their money back if there are any losses, and for that reason they will insist on being given non-recourse financing.
Building permit – This is the official permission from the government to use a certain area for a certain type of building activity. This is a good thing to have because any government inspector can come and check if you are doing what you say.
There are just a few of the terms that you will want to know. Make sure that you are educated and kept up to speed on these terms. They can help you in the long run.