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PROPERTY REPORT A disclosure document required under the federal interstate land sales act where applicable to the interstate sale of subdivided lots. NET LEASE A lease, usually commercial, whereby the lessee pays not only the rent for occupancy, but also pays maintenance and operating expenses such as tax, insurance, utilities and repairs. Thus the rent paid is "net" to the lessor. PROSPECT A person or corporation who may be interested in buying or selling real property. The prospect does not become a client until the parties establish a fiduciary relationship, such as upon signing a listing contract or upon executing a DROA. DISTRAINT The right of a landlord, pursuant to a court order, to seize a tenants belongings for rents in arrears. MORTGAGE A legal document used to secure the performance of an obligation. In effect, the mortgage states that the lender can look to the property in the event the borrower defaults in payment of the note. |
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