Commercial Terms

Operating Expenses: Just as it sounds, operating expenses are those costs associated with operating a commercial property. Contract and state law typically govern the exact nature of the operating expenses.

Partition Wall: A wall built in the internal area of a suite to divide the general space. For instance, offices built during a tenant improvement project with have partition walls separating them.

Punch List: A punch list runs part and parcel with a walk through of completed construction work. The construction company and client will walk through the area and complete a punch list of items that need to be fixed or modified. .

Shell Space: The interior of a commercial building that has been completed, but does not yet have any tenant build outs. The shell space generally refers to this gross square footage regardless of whether tenant improvements have occurred or not.

Substantial Completion: Notice given by a contractor to the client indicating the property has been completed to the point where a walk through and punch list review are appropriate.

Usable Square Feet: The square feet in a building, suite, warehouse and so on that can actually be used by tenants. Due to building regulations and design issues, certain amounts of a space in a tenant suite may not be usable and such footage is excluded from this calculation

Unlike residential real estate, commercial real estate is primarily considered a business transaction. Learn the terms and you’re well on your way to moving smoothly through the process.

As a consequence, although the real estate agent cannot be charged with technical-juridical investigations concerning the property that might have an impact on the transaction (legal due diligence), he is nevertheless charged with duties of information according to the principles of the normal professional diligence.The real estate agent is therefore obliged to give information on each circumstance in his knowledge or that simply he should have known according to the principle of normal professional diligence.
Wrong or non verified information would not be acceptable according to the law. Lack of respect of such principle could cause contractual responsibility and the right of the consumer to request the repayment of the commission.
Under special circumstances the consumer could also be entitled to request compensation for damages.

If the guilty silence of the real estate agent induced the consumer to finalize the contract under different conditions than he would have had if he was properly informed, the real estate agent could be responsible to pay for the difference.
According to article 1755 Civil Code, if the deal is closed thanks to his intervention, the real estate agent is entitled to a commission from both parties. Such right could arise already at the signature of the preliminary contract, assuming that such contract is complete in all the essential elements.In order to be entitled to the commission the real estate agent must have a decisive role in the transaction.Simply generating the lead of a potential buyer without accomplishing any other task, is not enough to be entitled to such right.The law does not provide the cost of the commission; therefore this can always be freely agreed by the parties. It is always advisable to agree the commission in writing.

Real estate also entails about owning real property. What is owning real property about? Owning real property allows you the right to do with the land as you please aside from those subject to restrictions imposed by real estate law.

Landlords have some rights concerning their rental property but they must follow the proper procedure to get rid of a problem tenant, no matter what the problem is. Landlords have a right to expect the rent to be paid on time, for the tenants to keep the property clean and not cause damage besides normal wear and tear, for tenants to exist peacefully in the area and not bother neighbors with loud or illegal behavior, for the rental unit to be occupied by only those persons listed on the lease unless permission has been given, and that all of the lease conditions are followed. There are other various rights that vary from state to state so finding out your specific rights besides these listed is a wise investment idea.

Tenants also have some basic rights under landlord tenant laws in almost all of the states as well. They have the right to expect their rented property to be maintained in a safe and reasonable manner, to have privacy in the property that they rent, to have at least twenty four hour notice before allowing the landlord in to inspect or make repairs unless the tenant agrees to less notice, and in most states forty eight hour notice must be given to allow the tenant time to arrange to be in the rental property when the landlord is there. A landlord does not have the right to enter the property when the tenant is not present or is not aware of the visit. In some states a landlord who enters the property without the required notice to the tenant can be arrested for illegal trespass. A tenant also has the right to expect the premises to be repaired if needed at no cost to the tenant if the problem was due to normal wear and tear or age. It is illegal for a landlord to turn off basic services to a tenant like water, heat, electricity, or gas.

The best way for you to protect your rental real estate investment is to learn the landlord tenant laws in your area. Understand and follow your rights and responsibilities as a landlord when dealing with your tenants. Follow the proper procedures when dealing with a problem, a tenant, or a problem tenant. Document problems so that if you do wind up in court, you can provide proof and documentation of the problem.