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Could You Repeat That, Please?

Just starting out in the Real Estate field? A basic knowledge of the terms of art is key to impressing your client or managing partner with your ability to handle Real Estate matters competently. Read on for a quick primer!
 
Condemnation/Eminent Domain: These terms refer to the process by federal, state, and local governments to take private property for public use and pay “just compensation” to the property owners.
 
Green Buildings: “Green buildings” are buildings that meet construction, design, or renovation/retrofitting standards (such as the U.S. Green Building Council’s LEED program) intended to promote energy efficiency and other environmentally sustainable practices.
 
Mortgage Fraud: There are two types of mortgage fraud: “fraud for profit,” the more common type, involves identity theft, property flipping, equity skimming, or similar activities by industry insiders; and “fraud for housing” involves actions by a borrower to acquire and maintain a home under false pretenses (e.g., by making misrepresentations regarding income or employment history to obtain a loan).
 
Predatory Lending: This is generally a subset within the subprime lending sector, and describes a range of abusive and aggressive lending practices, including deception or fraud, charging excessive fees and interest rates, making loans without regard to a borrower’s ability to repay, or refinancing loans repeatedly over a short period of time to incur additional fees without any economic gain to the borrower.
 
Subprime Lending: Subprime lending is the extension of credit to persons who are considered to be higher-risk borrowers (e.g., borrowers with lower credit scores). Subprime borrowers are charged a higher rate of interest and higher loan fees to compensate the lender for the higher risk associated with the loan.