Definitive Real Estate Terms and Words
A Resulting Trust arises by operation of law to give effect to the original and implied intention of the parties. In particular, a trust that arises when money is paid for property by one person, but the property is conveyed to another under circumstances that give rise to an implication that the property is to be held, partly or wholly, for the … [Read more...]
What is Consideration in contract Consideration. A reward or payment. A benefit given by one party or a detriment suffered by the other party to a contract. It is the legal motive, cause or reason for a contract; the quid pro quo. The common law requires that a contract should comprise more than an undertaking by one party to another; a bargain … [Read more...]
Continuous Operation Clause/Keep Open Clause 1. Continuous Operation Clause. A clause in a lease of retail premises that specifies that the tenant is required to keep the premises open for business during normal business hours or during hours specified in the lease. As a rule, there is no implied covenant in a lease of retail property that the … [Read more...]
Procuring Cause Explained (Also called the effective cause, especially in the UK). The act or process by which an agent or broker finds a party who carries a transaction through to the stage required by the principal. In order to be the procuring or “effective cause” of a transaction, the agent or broker must be the party that is responsible … [Read more...]
What is the meaning of Estoppel? derived from Norman French estoupail, ‘conclusion’. “‘Estoppe’, commeth of the French word estoupe, from whence the English word stopped: and it is called estoppel or conclusion, because a man’s owne act or acceptance stoppeth or closeth up his mouth to allege or plead the truth”, 2 Co Litt 352a … [Read more...]
Power of Sale is: 1. The power of sale is the right of a mortgagee to sell property, secured by a mortgage, upon default of the mortgagor. The power of a person who has a right to the proceeds of sale of property held as security for a debt to substitute money for property sold. In particular, the means by which a mortgagee exercises his power as … [Read more...]
Force majeure and an act of God are similar Force majeure and an act of God are similar as they both can bring a contract or obligation (including in rare cases a lease) to an end. Force majeure literally means a ‘superior force’. A term that is used more in civil or French law, as well as in insurance, to refer to a physical or material … [Read more...]
Tenancy Deposit Scheme (Eng) A Tenancy Deposit Scheme is one of the most important requirements for anyone letting a residential property and it comes with stiff penalties for non-compliance; including the fact that a landlord may be unable to recover possession at the end of the tenancy. Although it applies to an assured tenancy or an assured … [Read more...]
Warranty of Habitability (US) An implied condition of a lease of residential property whereby the landlord ensures that the premises are fit for habitation at the start of the lease and are maintained as such throughout the term. A requirement that the premises are “free from any latent defect or conditions rendering the premises uninhabitable … [Read more...]
Equity of Redemption is: The right of a mortgagor (the borrower) to have his property released to him by performing his obligations under the mortgage (usually by repaying the outstanding debt, including principal, interest and costs to the mortgagee). The equity of redemption—or 'equitable right of redemption'—represents the right of the … [Read more...]
