Evidence of Title to Executive Suites

 

Evidence of Title

The evidence of title is documented proof of valid ownership interest and right to convey title.  Evidence is not a guarantee, but they offer proof acceptable in most transactions.  The four most common types of evidence of title are abstract of title with attorney’s opinion, Torrens certificate, certificate of title and title insurance.

Exaction

In real estate development, exactions are concessions from land developers that are negotiated or required by local governments in order to get approval for the project. Exactions are basically contributions to the community, which must absorb the cost produced by the development on the area. Exactions may be a combination of impact fees, easements for utilities and public use, land set-asides (for parks and schools) and improved access into the project. Exactions must be reasonable and consistent.

Excavation

The excavation is usually the first step in building on land.  The excavation stage prepares the ground by removing earth and ensuring that it is sufficiently flat and firm. However, excavation often also includes the clearing of trees, debris and brush.

Exchange

A property exchange is a tax-free exchange of similar properties, permitted under Section 1031 of the Internal Revenue Code.

Exchange Period

With a tax-deferred real estate exchanges, the exchange period refers to the amount of days that an exchanger has to fully consummate the delayed exchange.  In most cases, the exchanger must close the acquisition of the new property within 180 days of the sale or transfer of the old property.  By doing so, investors avoid paying taxes on their investment’s capital gains. However, this 180-day period is reduced if the exchanger must file tax returns.  For example, if Anthony sells his commercial property on January 1, but puts all the proceeds into a 1031 exchange account, he has 180 days, or basically until July 1, to close on the purchase of another piece of real estate (like-kind) property.  However, because he has to file his personal tax returns in April, his 180-day exchange period is cut short, unless, of course, he files an extension, which is what most savvy investors do. He can actually use the exchange proceeds to buy up to three buildings.  But even though he has 180 days to complete the exchange, he only has the first 45 days to identify the properties he intends to purchase with the exchange proceeds.

Exchanger

With a tax-deferred real estate exchanges, the exchanger is the property owner who intends to avoid paying capital gain taxes by using the IRS-approved tax-deferred real estate exchange.

Excluded Capital Gain

The excluded capital gain is any capital gain, or portion thereof, that does not have to pay capital gain taxes.  With a tax-deferred real estate exchanges, all capital gain taxes is normally excluded except for any boot received by the seller.

Exclusionary Zoning

The exclusionary zoning approach is any type of zoning that specifically prohibits certain types of uses.  Most zoning ordinances are exclusionary or have exclusionary elements. For example, basic R1 zoning typically prohibits commercial activities and buildings-unless the use or structure was grandfathered.

Exclusive Buyer’s Agency

Also called an exclusive authorization to acquire, the exclusive buyer’s agency is a real estate agreement by which a buyer agrees to work with only one real estate broker.  That broker will actively seek real property for the buyer. If the buyer purchases real property identified in the contract, without the exclusive broker’s participation, the broker may still be entitled to compensation. Usually, however, most buyers are free to use any and all real estate agents they choose.

Exclusive Listing

The exclusive listing is a type of listing agreement between sellers and real estate agents that gives the listing agent exclusivity among all other real estate agents.  However, the seller can avoid paying any commissions if the seller finds the buyer without assistance from the seller.  If the property is sold through any other real estate agent, the listing agent receives a commission from the seller.  Compare this to open listing (non-exclusive) and exclusive right of sale (totally exclusive).

Exclusive Right to Sell

See the Exclusive Right of Sale entry.

Exclusive Right of Sale

The exclusive right of sale type of listing agreement between sellers and real estate agents that commits the buyer to pay commission to the listing agent when the property is sold, regardless if the property is sold through the listing or without any agents.  Compare this to open listing (non-exclusive) and exclusive listing (somewhat exclusive).

Exculpatory Clause

The exculpatory clause is a provision in a mortgage, lease agreement or contract holding harmless the lender or landlord for losses suffered by the borrower or tenant in relation to the subject property or agreement.  Most states prohibit or limit such clauses in leases. It is meant to give blanket or limited liability protection for one party.

Execution

With regards to contracts, the execution refers to the act of acknowledging, finalizing, witnessing and legal recording of a legal instrument.  At the real estate or mortgage closing, the borrower, seller and closing agent executes all necessary legal documents to complete the sale and mortgage financing.

Executive Suites

The executive suites development is a type of short-term full-service lease of office space, designed for short-term tenants and businesses that do not need a full office. Office suites operate much like full-service hotels in that the property owner or master lessee subdivides a larger space into individual “executive” office units which are then leased out to small businesses, start-up entrepreneurs or traveling businesspersons who need office space for the short term.  The master lessee or landlord typically provides receptionist service, conference rooms, phones and equipment typical of a large office operation.  The sublessee or individual unit tenant pays a much higher per-square-foot rate for such office suites, but they do not have to worry about payroll, overhead and long-term lease commitments.  Many of these office suites are also in high-demand areas, allowing smaller companies to maintain a high-end address with low investment.