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Lease Definitions & Terms

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Adjoining

In actual contact with another object (i.e., attached). Same as "Contiguous".


Agent.

One who acts or who has power to act for another. A licensed real estate broker authorized to act under a listing or management agreement executed by a property owner (the Principal); this creates a fiduciary relationship under the law of agency.


Air-handling light fixture.

A light fixture into which air is introduced by means of an air diffuser for quiet, draft-free air distribution.


Amortization.

The process of paying off a debt together with interest, usually with equal payments at regular intervals over a period of time.


Amortized mortgage

A mortgage loan in which the principal, as well as the interest, is payable in monthly or periodic installments during the term of the loan.


Annual loan constant.

The principal and interest of a loan expressed as the constant annual payment required to retire a debt at a certain rate of interest over a certain period of time.


Appraisal

An estimate of quantity, quality or value. The process through which conclusions of property value are obtained; also refers to the report setting forth the estimate and conclusion of value.


Approaches to value.

Used by an appraiser to estimate the value of real estate. The three approaches are: cost approach, income approach and market data approach.


Architect.

A person who normally functions as a creator, coordinator, author of the drawings and specifications and the general administrator of construction.


Architectural drawing.

Includes all architectural contracts and drawings such as plot plans, floor plans, elevations, sections, details, schedules, etc., and any architectural drawing that forms a part of the contract documents. Exceptions include mechanical, electrical and structural drawings, as well as specialized data that are normally handled by specialists in those fields.


Assessed value.

The value placed on land and buildings by a township or a county assessor for use in levying annual real estate taxes.


Assignment.

The transfer in writing of an interest in a lease, mortgage or other instrument. The assignor, or lessee, transfers the entire remainder of the term created by the lease, and the assignee becomes liable to the original lessor for rent. Assignor may or may not retain secondary liability for performance under the lease, depending upon the terms of the lease pertaining to assignment.