Attorney Review to Axial Growth Theory

 

Attorney Review

Most real estate purchase contracts allow an attorney review period of at least five business days from the time of acceptance and signing, so that the buyer’s attorney may have an opportunity to review the sales contract and request any necessary revisions and amendments.

Attorney’s Opinion of Title

See the Abstract of Title with Attorney’s Opinion entry.

Attornment

A legal term referring to a formal agreement by a tenant to accept a new landlord, usually under the terms of the existing lease agreement. In some cases, the new landlord may be a lender who foreclosed on the mortgage; but it is usually a new owner who has purchase the property from the previous landlord.

Attractive Nuisance

A type of nuisance that is otherwise appealing and not offensive, except that in some situations they can create a hazard. For example, swimming pools, discarded refrigerators, junk piles and open pits can be attractive nuisances in that they attract children, but they also pose a potential hazard to those same children. The attractive nuisance doctrines holds that the property owner has a reasonable duty to protect children, by safeguarding those nuisances.

Auction

A method of selling the property that solicits purchase bids from an open forum of potential buyers. The subject property is sold to the highest qualified bidder. Auction sellers usually enter into an auction listing or sale agreement with the auctioneer. The agreement will stipulate whether it will be an absolute auction, an auction with reserve, or an absolute auction with a seller to buy out.

Auction Listing

A contract or agreement to sell real estate through an auction or auctioneer.

Auction With Reserve

A type of auction listing that allows the seller to reject a high bid. This seller option usually comes with a minimum bid level. If the current high bid does not reach the minimum bid, the seller can reject the current high bid. Compare with Absolute Auction entry.

Automated Underwriting

Perhaps the biggest impact of the technology age on the mortgage industry is the widespread application of automated underwriting. These proprietary programs allow lenders to underwrite loan applications with complete objectivity, as well as provide immediate (preliminary) approvals for consumers. Along the way, automated underwriting also allows lenders to lower operating costs, increase efficiency and streamline loan sales to the secondary mortgage market.

Automatic Renewal Clause

A clause found in some leases that automatically extends or renews the lease, unless either the owner or tenant provides a formal termination notice.

Average Daily Rate (ADR)

A calculation of average hotel rental rates, that takes into account vacancies and including high and low seasons. It is the total room revenue divided by the number of units actually occupied.

Average Downtime

The number of months (or portions of months) that units remain vacant in a rental property. Property managers calculate the average downtime by calculating the months between the lease expiration and the start of a new lease, and then averaging it by the number of units.

Average Free Rent

During down markets, when vacancy factors are high, rent concessions are very common to successfully lease units. Property managers must track the number of months of abated rent required by the current market.

Average Life

A term used with loans and bonds to calculate the average period in which the loan’s principal balance will be paid in full. With fully amortized loans, in which a portion of the principal is paid down each month, the average life will be some time short of the full maturity. With a fully interest-only balloon loan, the average life is typically the maturity. For example, a 5-year interest-only balloon loan will require full payment of the principal at the end of the fifth year; so the average life for such a loan would be five years. However, a 15-year fixed-rate loan would have an average life of about ten years.

Average Occupancy

Usually expressed as a trailing-12-month calculation, this occupancy rate is an average of the monthly occupancy rates. This measurement is usually the sum of all the monthly averages for the preceding 12 months, divided by 12.

Avigation Easement

A type of easement that limits the height of buildings in the vicinity of airports, especially within established flight paths. Private airports would need to negotiate such easements with the appropriate property owners, while public airports typically establish such easements through legal statutes or eminent domain action.

Avulsion

Any sudden removal of land by forces of nature. Avulsion differs from erosion in its quickness. Erosion happens over a period of time; avulsion is sudden.

Award Letter

The notification by the Social Security Administration to individual recipients of the terms and current amount of the person’s social security benefits. For most lenders, this is acceptable documentation of benefits income.

Awning Window

A type of window in which the sash is hinged at the top while the bottom swings outward. It can provide good ventilation and rain protection, while still offering some privacy. It is most often used for bathrooms and bedroom.

Axial Growth Theory

A theory or investing principle employed by many real estate developers and speculators; it proposes that development usually follows transportation systems. For example, many speculators eagerly snap up land near major highways and Interstates, especially along the access ramps. Soon home builders will be turning the farms into residential subdivisions and commercial developers will be building commercial spaces to service those homeowners. Train and bus lines may also have similar effects.