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Real Estate Dictionary

What is a Safety Clause in a Real Estate Listing?

A safety clause, also known as a protection clause or broker protection clause, in a real estate listing agreement is a provision that protects the listing broker's commission if the property is sold to a buyer who was introduced to the property during the listing period, even after the listing agreement expires.

August 5, 2025

What is Real Estate Structured Finance?

Real estate structured finance refers to complex financial arrangements that pool, repackage, and customize capital for large or risky real estate transactions, often using layers of debt and equity—such as mezzanine loans, preferred equity, or CMBS—to optimize risk and return for different investors.

August 5, 2025

What Does Restitution of Premises Mean in Real Estate?

Restitution of premises in real estate refers to the legal process or obligation for a tenant to return a leased property to the landlord—typically at the end of a lease term—in its original or agreed-upon condition, often including removal of personal items and repairs for any tenant-caused damage.

August 5, 2025

What is Flooring Depreciation Life in Commercial Real Estate?

In commercial real estate, flooring depreciation life refers to the number of years over which flooring costs can be written off for tax purposes—typically 5, 7, or 39 years—depending on whether the flooring is classified as personal property or part of the building structure.

August 5, 2025

What is Pro Rata Basis in Real Estate?

In real estate, pro rata basis refers to the proportional division of costs, expenses, or benefits among parties based on their ownership share, time of ownership, or leased space, ensuring fair allocation.

August 4, 2025

What is PML in Real Estate?

In real estate, PML stands for Probable Maximum Loss. It is an estimate of the maximum expected damage or loss to a property from an earthquake, expressed as a percentage of the property's total replacement cost.

July 16, 2025

What is an SPE in Real Estate?

A Special Purpose Entity (SPE) in real estate is a separate legal entity created to own a single property or project, isolating financial risk and protecting other assets from liability.

July 16, 2025

What is Net Lettable Area in Real Estate?

Net Lettable Area (NLA) is the portion of a building’s floor space that can be leased to tenants, excluding shared areas like lobbies, restrooms, and hallways.

July 16, 2025

What is Hypothecated Real Estate?

Hypothecated real estate is property used as collateral for a loan where the borrower retains ownership and possession, but the lender can seize it if the loan is defaulted.

July 16, 2025

What is a Digital Lease?

A Digital Lease is an electronic version of a traditional lease agreement that is created, executed, and managed entirely online, typically through a property management platform, leasing portal, or digital document service.

July 16, 2025
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