Glossary of New York City Real Estate Terms

A

Alcove studio: An apartment in which the main living area is usually L-shaped, forming an alcove in which you one can place a bed or a dinning table.  Alcoves vary in size but some are large enough to be walled off, creating a 1-bedroom apartment.

Assessment: A charge imposed by a co-operative or condominiums in addition to the regular monthly charges; it is used to make improvements or upgrades to the building. Common reasons for charging assessments are the replacement or repairing of the roof, elevators or lobby.  The cost of the improvement is shared by all owners, each paying an amount based upon the number of shares held (coop)or percentage of the common charges paid (condo) by an apartment owner.

Attended Elevator: An elevator that is operated by an attendant on a full time basis.

B

Balcony: A reinforced slab that projects from the wall of a building.  It is typically small, compared to a terrace.

Brownstone (aka Townhouse): Late 19th and early 20th century buildings, originally built as private homes, often located on some of New York’s most beautiful tree-lined blocks.  Many have now been converted into multifamily apartments, ranging from studios to 2-floor units. The most sought after buildings still have many of their period details intact – wood moldings, intricate fireplace surrounds, and wooden floors.  They also offer outdoor space in the form of backyard gardens, and some buildings have converted the roofs into outdoor space.

Building Amenities: Various features or benefits that enhance a property’s desirability – and therefore its value, e.g., a doorman, a laundry room or a gym.

C

Cancellation Clause: A provision in a contract (or lease) that confers on one or all parties to the contract the right to terminate the parties’ obligations, if the occurrence of the condition or contingency set forth in the clause happens.

Capital Improvement: A renovation or remodeling of some aspect of an apartment or a building which increases its value.  An improvement to an apartment building could be new windows; for an individual apartment, it could be redoing the kitchen with new appliances and/or cabinetry.

Classic Six or Seven: Phrase describing the total number of rooms in certain types of pre-war apartments (although, technically some postwar apartments could fit the definition).  A "classic six" has a living room, formal dining room, a kitchen, a maid's room and 2 bedrooms.  A "classic seven" has all those rooms, plus an additional bedroom.  The apartments generally offer a gracious layout, with a formal foyer or grand hall and have rooms that are well proportioned.  Unlike most modern buildings, the kitchens do not open onto the living room.

Closing Date: Date on which the buyer becomes the official owner of the property.

Closing Statement: A detailed written accounting of all monies paid and received during a real estate transaction.  The Buyer and Seller will receive separate statements, reflecting their specific payments and receipts.

Cloud on the Title: An outstanding claim or encumbrance that can affect or impair the owner's title.

Common Areas: Places within a building that are shared by all of the shareholders (coop) or unit owners (condo), e.g. the lobby, hallways, etc.

Comparables: Often abbreviated as “comps” they are recent sales of similar properties in nearby areas that are used to help determine the current market value of a property.

Condominium: A form of ownership in which an individual: a) owns a specific unit in a multi-unit building; b) shares ownership of common areas with other unit owners; and c) pays common charges for the maintenance of those common areas.  Condos don’t have the restrictive rules on subletting, requirements for minimum US-based assets and other rules that coops have.  Therefore, many people – like investors or foreign buyers who have few if any US-based assets – choose condos.  The high demand and relatively low supply, means that, historically, condos have sold at a premium to coops.

Condop: Many people mistakenly think this is a coop that operates under relatively relaxed condo rules.  In fact, it is simply a mixed use building subdivided into two or more condominium units, one of which is a co-operative.  It really has no bearing for the average person.

Convertible (aka Junior Four): Most 1-bedroom apartments are considered to be a 3-room apartment.  A convertible has L-shaped living dinning, creating an alcove (with a window) that can be “converted” to a second bedroom or an office.

Co-operative: A form of “property” ownership in which the residents of a building comprise a corporation that owns the building and issues shares in the corporation.  Technically, anyone who purchases a coop is actually purchasing a percentage of shares in the corporation and is called a shareholder.  The percentage of ownership is proportionate to the size of the apartment, relative to others in the building.  The shareholder is given a long term proprietary lease, giving him or her the right to occupy the apartment.  Shareholders pay a monthly maintenance fee to cover shared expenses and shared areas of the building.  A portion of the monthly maintenance fees is tax deductible because the building has as an underlying mortgage which includes interest payments.  Shareholders can deduct their portion of the building's real estate taxes.  Coops can approve or deny any potential buyer, and almost all require at least a 20% down payment, with 25 – 35% not being uncommon.  Coops also usually prohibit subletting for long periods of time.

D

Duplex: In Manhattan this refers to an apartment with 2 floors or levels and not to 2 apartment units.  In other parts of the city, it can refer to a building with two units

E

EIK: Eat-In-Kitchen.

Elevator buildings: Usually a building with six or more stories.  These buildings don’t have doormen.

Equity: the difference between the current market value of a property, less any debts (mortgage, home equity loans) due on it.

Escrow: the deposit of monies with a disinterested third party for safekeeping until the pre-specified terms of an escrow agreement have been met.

F

Financing Allowed: Refers to the amount of the purchase price that a coop allows to be financed.  The rest has to be in cash.  “70% Financing Allowed,” means that a buyer would have to pay cash for at least 30% of the purchase price.  Most coops allow 20% to 25% financing, but many of the more exclusive buildings prohibit any financing and require all cash purchases.

Fixtures: Personal property attached to the land or improvements that become part of the real property.  For example, a chandelier hanging from the dinning room ceiling is a fixture and would be sold as part of the apartment, unless the seller specified in the contract of sale that it was not to be included in the sale of the home.

Flip Tax (aka Transfer Fee): A fee imposed by a cooperative upon the sale of an apartment in building.  The method of calculating this fee varies and is determined by each board.  It can be based on a percentage of the sale or the number of shares held by the seller or it can be a set number.  Who pays the tax also varies; sometimes it’s paid by the purchaser, other times by the seller.

Full Service Building: This term is used to describe a building that employs a full time doorman and concierge.

G

H

Half-Bath (aka Powder Room): A bathroom that only has a sink and a toilet - no bathtub or shower.

I

J

Junior One: Essentially another name for an alcove studio, this is a one- or two-room apartment where the living area has an alcove that can be converted into a bedroom.

K

Keyed Elevator: very common in loft buildings, this refers to an apartment that occupies the entire floor of a building.  Because the elevator opens directly into the foyer of the apartment, one must use a key to operate the elevator and access that floor.  The elevator key is in effect the front door key.

L

Loft apartment: Apartments characterized by wide open, flexible spaces with few – if any – interior walls, and very high ceilings.  They are most commonly found in neighborhoods that once formed the city’s warehouse and industrial districts.

Loft area: Refers to an area that has been built above an apartment’s living area.  This is most typically found in apartments with ceiling heights of at least 12 feet.  Some lofts can function as fully functional additional space, but if the ceiling height is restrictive, the space can only be used as storage or for sleeping.

M

Maisonette: A ground floor apartment that is accessible via a street entrance that is separate from the rest of the building and very often has a second entrance inside the building's lobby.  This can be an ideal setup for those who desire privacy and the feel of a brownstone, but want the amenities often associated with a larger building.

Maintenance Fee: Monthly charges paid by an individual cooperative shareholder, covering his or her proportionate share of the building’s expenses. Unlike the common charges that condo owners pay, the maintenance fee also includes the shareholders proportionate share of the building's underlying mortgage and real estate taxes.

Managing Agent: An independent company hired by a cooperative or a condominium board to manage the day to day affairs of the building.  Operating at the behest of the board, they generally oversee the hiring and management of the all the building staff – doormen, porters, engineers, etc.; collect monthly maintenance/common fees, pay the buildings bills; hire contractors; and work as necessary with the building’s attorney, accountant and other professional services providers. 

Murphy Bed: A bed hidden in an enclosed frame that is attached to a wall.  The bed is pulled down when needed, and raised back into place behind closed doors when not.  They are most commonly found in studio apartments which are short on space

N

No Board Approval: This phrase means that a prospective purchaser will not have to pass muster with a coop Board in order to purchase that coop apartment.  This usually happens when the sponsor of the coop – in effect, the developer of the coop – is selling a unit.

O

P

Parlor Floor: This refers to the “second” floor of a brownstone, really a high first floor that was originally accessed by ascending the building’s stoop.  Traditionally, this was the most lavishly appointed floor as it held the parlors where the original occupants received and entertained guests.

Post-war buildings: A phrase sometimes used to refer to any building that was built any time after WWII, but more generally used when referring to buildings built between the late 1940s and the late 1970s.  Once derided as lacking character, they have recently come into vogue again as buyers have grown to appreciate the “blank canvas” that they offer.

Powder Room (aka Half-Bath): A bathroom that only has a sink and a toilet - no bathtub or shower.

Power of Attorney: A written instrument duly signed and executed by an owner of property, which authorizes an agent to act on behalf of the owner to the extent indicated in the instrument.

Pre-war buildings: Refers to buildings that were built prior to World War II. These mid-rise buildings (around 20 stories tall or less) feature details like beautiful moldings, wood burning fireplaces, high ceilings and generously proportioned apartments.  In some instances, however, the original apartments have been divided into two or more smaller apartments.  Some pre-war buildings have doormen, some don’t.

Proprietary Lease: A long term written lease, held by the shareholder in a cooperative apartment building, giving him or her the right to occupy a particular unit.

Prospectus: A printed statement disclosing all material aspects of a real estate project.

Q

R

Reserve Fund: A fund maintained by all cooperative and condominium buildings to pay for the overall maintenance of the building.  Buildings with low reserve funds, relative to their maintenance costs, may have to assess the owners an additional charge to pay for certain expenses improvements.

S

Shares: Shares represent an individual shareholders portion of ownership of the coop corporation that owns the coop building.  Each apartment has a certain number of shares associated with it, determined largely by the apartment’s size, the floor on which it is located and whether or not it has private outdoor space.

Sponsor: The developer or owner organizing and offering for sale a condominium or cooperative development.  Sponsors typically are afforded certain special rights.  For example, in coops, they can often sell units without receiving Board approval of the buyer.

Square Footage: The size of a space determined by multiplying the length of the space by its width.   A living room that is 20 feet long by 12 feet wide is 240 square feet.  Different people can come up with different square foot measurements for the same apartment, because some people include all the space – closets, etc. and others don’t.  Therefore, it is usually stated as an estimate.  The measurements of condominium units, however, are usually more accurate because the law requires that the offering terms reflect the actual size of the unit.

Studio: A 1- or 2-room apartment (depending on whether or not the kitchen is in a separate room).  These are referred to as efficiency apartments in some other parts of the country.

T

Tax Abatement: Tax break offered by the city as an incentive for development in a particular area.

Tax Deductibility: Each cooperative has an annual number that reflects the amount that each individual shareholder will be allowed to deduct off of his/her individual income tax. The number also reflects the shareholders proportionate share of the buildings underlying mortgage and the real estate taxes imposed for that year.

Terrace: An outdoor area created when the upper floors of an apartment building are set further back from the lower floors. Sometimes these areas can be quite large.  They are highly valued, more so than balconies, in part because they feel more solid.

Title Search: An examination of the public records to determine the ownership and encumbrances affecting real property.

Townhouse: (aka Brownstone): Late 19th and early 20th century buildings, originally built as private homes, often located on some of New York’s most beautiful tree-lined blocks.  Many have now been converted into multifamily apartments, ranging from studios to 2-floor units. The most sought after buildings still have many of their period details intact – wood moldings, intricate fireplace surrounds, and wooden floors.  They also offer outdoor space in the form of backyard gardens, and some buildings have converted the roofs into outdoor space.

Transfer Tax: State and City taxes payable upon the conveyance of real property when certain conditions are met.

U

V

W

Walk-up buildings: Ubiquitous, relatively inexpensive buildings, up to 5 stories tall, no elevator, no doorman.

X

Y

Z

Information contained herein is deemed accurate and correct, but no warranty is implied or given.

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