Glossary of Terms for Buyers Apartments in Resource Centers

Alcove Studio: See the Urban Edge Apartment Types guide.
Amortization: The word itself simply refers to the process of increasing, or accounting for, an amount over a specific period of time. When buying an apartment with a mortgage, an amortization table details the periodic payments that must be made on the loan--both the amount and the frequency of payments, to repay both principle and interest—often generated by an amortization calculator. There are many amortization calculators available online (here, and here, and here, for example) to help you when planning to buy an apartment in New York City.
Appraisal: An estimate of the market value of, in this case, a New York City apartment for sale. Many factors go into an appraisal, from the size and condition of the apartment for sale, to the building's amenities and services, to how the neighborhood itself is trending.
Assessment: A legally-binding determination of the value of a piece of property, calculated by an officially-appointed assessor. The assessment value is used as the basis for the amount of tax or special payment due by the owner to a city, state or municipality. In New York City condos and co-ops, the amount of an assessment can have a big impact upon the individual apartment owner or co-op share holder's monthly expenses
Board/Board of Directors: Both New York City condominiums and co-op buildings can have what's referred to as a Board of Directors, essentially a governing body of fellow condo tenants or co-op shareholders, elected by the other tenants or shareholders. In both case, the Boards duties would include overseeing the maintenance, financing, and staffing of, as well as improvements to, such common areas as hallways, storage and laundry facilities, elevators, heating systems, stairwells, lobbies, and the building's exterior. The big difference between the two is that, in a co-op building, the duties of the Board of Directors includes screening all prospective shareholders (or, future tenants), and deciding whether to approve or reject their membership into the co-op.
Board Package: If you're looking at New York City co-ops for sale, you will have to submit a Board Package to the building's Board of Directors, in addition to your personal interview. A Board Package details your complete financial history and current worth and earnings, with supporting documentation, and includes your job and salary history, investment portfolios, personal and professional recommendations, tax returns and credit reports.
Building Codes: The minimum acceptable level of safety and structural integrity for structures of all kinds are established by local government and set down in Building Codes. For a NYC condo or co-op building to be considered "up to code," it must meet all of the minimum requirements, in its foundation and roofing; its exterior, both structural and decorative; its electrical and plumbing systems, as well as other areas of safety and santitation.
Certificate of Occupancy (C of O): A Certificate of Occupancy--or, a "C of O"--is simply a document issued by the appropriate government agency or local buildings department that certifies a structure's compliance with all applicable Building Codes, and that the building is suitable for immediate occupancy. For New York City co-ops and condos, a C of O is basically required whenever a new building is constructed, or when a building intended for one use is to used for another (for example, when a warehouse or industrial building is converted to condos), or when the ownership of a commercial, industrial, or residential building changes.
Classic 6 or Classic 7 Apartment: See the Urban Edge Apartment Types guide.
Clear Title: Clear Title legally means that the owner of a piece of property—in this case, a New York City condo apartment, or shares in a NYC building co-op—owns it "free and clear of encumbrances," usually a mortgage. Often, however, it is used whenever is it within the power of person to an apartment free and clear: in other words, the moment owners finish paying off their mortgages, the mortgage holders must grant them Clear Title of the property at hand.
Closing Costs: The moment at which a real estate contract is executed and the title to a piece of property is transferred from the seller to the buyer is called "the closing." When you buy a NYC apartment, whether a condo or shares in a co-op, there are costs associated with this transaction--the closing costs.; The list of potential closing costs is long, but usually include lawyer's fees, title service costs, appraisal fees, pro-rata property insurance and taxes, mortgage application fees and brokerage commissions.
Condo or Condominium Apartment: Some apartments for rent in NYC are available in condominium buildings, which usually allow owners of condos to sublet their apartment to anyone they want. Because Condo Apartments in NYC are discreet pieces of property that, though they are physically part of the building, come with their own deed, are taxed individually, and are wholly owned by an individual, there is no need to go before a Board of Directors to get approval. New York City Condo apartments for sublet can be found in newly constructed or gut-renovated buildings, including many of those gorgeous contemporary, luxury buildings that popped up all over this past decade. For more information on NYC Condos, and as compared to NYC Co-ops, see the Urban Edge Condo versus Co-op Guide.
Co-op/Cooperative: New York City apartments for rent are occasionally in Co-op, or Cooperative buildings, which sometimes allow residents to sublet their homes, but not without Board approval. Co-ops dominate the Manhattan apartments-for-sale market; as many as 85% of non-rental homes are found in Co-op buildings. If you rent a NYC Co-op, your landlord, or the sub-lessor, doesn't actually own the apartment itself, but rather a certain numbers of shares in a corporation that in turn owns the building. Usually the number of shares is determined by the size of the NYC Co-op. For more information on NYC Co-ops, and as compared to NYC Condos, see the Urban Edge Co-Op versus Condo Guide.
Common Charges: Common charges are the monthly fees expected from each apartment owner within a condominium building. Common charges are separate from and in addition to a condo owner's taxes and mortgage payments, and are used by the Condo Association or Condo Board for all expenses incurred by the building as a whole. Common charges usually cover such things as the maintenance and/or renovation of common areas, like the lobby, hallways, stairwells, parking lots, and the building's exterior, including the roof. Condominium common charges may also be used to pay the salaries of a building's staff.
Condop: The legal definition of a "condop" is not, as many people assume, simply a co-op that operates under the looser rules of a typical condo (no board interview; owners can sublet without restriction). Rather, a condop refers to a building that is part residential and part commercial, and in which the residential apartments are part of a cooperative (with all of the usual pros and cons of co-op ownership), and the commercial units are sold outright to developers, similar to how a condo works.
Counter Offer: There is often a negotiation stage to buying a NYC condo or co-op. When an offer to buy or sell an apartment at a certain price is rejected, the party doing the rejecting usually simultaneously submits a counter offer, either lower or higher, depending.
Deed: A written document, usually signed and passed over during closing, that legally transfers ownership of real property—in this case, a New York City apartment for sale--from the previous owner (called the "grantor", which can be an individual or a company), to the new owner (or the "grantee"… and, hopefully, you!)
Efficiency Apartment: See Studio Apartment in the Urban Edge Apartment Types guide.
Encumbrance: Any outside claim on or interest in a piece of real property—whether land or an apartment—that affects its value and/or limits the rights of the property's owner. Encumbrances can include creditor's liens, deed restrictions, unpaid taxes, overdue mortgage payments, third-party leases, or government restrictions.
Equity: The market value of a piece of real property, minus any and all encumbrances. The equity of an New York City apartment is illiquid—that is, you can't spend it—but can be and often is used as collateral for a home equity loan or a home equity line of credit.
Grantee: In the transference of a NYC apartment for sale, or any other piece of real property, from one owner to another, the grantee is the new owner, or the recipient of the deed from the grantor.
Grantor: In the transference of a NYC apartment for sale, or any other piece of real property, from one owner to another, the grantor is the previous owner, or the conveyor of the deed to the grantee.
"Green" Building: A green building, one that is LEED-certified, is a structure that is designed, constructed and maintained in an environmentally responsible manner. Some of the considerations that go into making a building certified "green", and therefore reducing its impact upon the environment, include the efficient use of energy, water, and other resources; waste reduction,; the use of sustainable, recycled, and/or local construction materials; and the emphasis on the health and well-being of the building's occupants.
Junior 1 Bedroom: See the Urban Edge Apartment Types guide.
Junior 4 Apartment: See the Urban Edge Apartment Types guide.
LEED Certified: For a building to be officially declared LEED certified—and therefore also referred to as a green building--it must be designed, constructed sand maintained in accordance with the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. The LEED standards, which are far tougher to meet than New York City's standard building code for safety, engineering soundness and energy efficiency, were developed by the United States Green Building Council, and have since been adopted by more than 14,000 construction projects, including a handful of New York City Green Buildings, in the U.S. and 30 other countries worldwide.
Lien: A form of security placed upon an item of real property, to enforce the payment of debt, judgment, taxes, or the some other non-financial obligation. A lien can be voluntary or involuntary, can be placed either on a specific property or upon all properties owned by a lienor, and is considered an encumbrance.
Listing: In New York City real estate, a listing is a written contract between the seller of a piece of real property—whether a single apartment or an entire building—a parcel of land, or a business, and the company or individual who will be representing the seller.
Luxury Apartment: While not a legal term, a New York City luxury apartment generally refers to a home within a building that either offers an unusually opulent array of amenities and services--health club, swimming pool, playroom, parking garage, roof deck, etc.—and/or, especially in luxury pre-war co-ops, a 24-hour staff and grand individual apartments.
Maintenance (Charges): Residents of both New York City condos and co-op buildings are charged a monthly maintenance fee to cover such building expenses as heat, hot water, the salaries of the building's staff--including custodians, doormen, superintendents, elevator operators--insurance fees and real estate taxes as well as the such as the upkeep, repairs and improvement of a building's common areas such as hallways, storage and laundry facilities, elevators, heating systems, stairwells, lobbies, and the building's exterior.
Mansion Tax: Enacted in 1989, the New York State "Mansion Tax" is a 1% tax paid by the purchaser of a one, two, or three family home or an individual condo or co-op apartment valued at $1 million or more. For the purposes of calculating the seller's capital gains tax, the sellers reduces his taxable gain by y the amount of the mansion tax.
Offering Plan: Prior to construction, a developer must file a Condominium Offering Plan with the New York State attorney general's office, which includes all of a building's specifications, from number of stories and square footage to tenant amenities such as a gym, or swimming pool, or roof deck. If you're prospective buyer of a New York City apartment for sale—especially in building that is not yet fully constructed--it's a good idea to check the services advertised in the building's brochure against what's listed—and must be delivered—in the offering plan.
Points: Points, or "discount points" are sometimes paid by a borrower to a lender in order to receive a mortgage. In a sense, points are a form of pre-paid interest: one point equals one percent of the mortgage amount to be paid up-front, in exchange reducing the interest rate on the loan by one-eighth of a percent (0.125%), and so reducing a borrower's monthly payment. Buying points can be useful for both parties in certain circumstances, including the cases in which borrowers wouldn't otherwise qualify for a loan because; their monthly earnings aren't enough to make the loan's required monthly payment. Lower the monthly payment by enough by purchasing points, and the mortgage could be approved.
Pre-qualified: Prospective buyers of New York City apartments can become "pre-qualified" (and thus be more attractive to sellers) by, essentially, getting approval for a mortgage before actually getting a mortgage, through providing a lender with income level, debt and credit information. A lender then "pre-approves" a mortgage, which the apartment buyer can include with a bid on an apartment, reassuring the seller than it is a serious, actionable offer.
Pre-war: New York City apartments for sale are often divided into two categories, those that are in "pre-war" buildings (which are also always co-ops) and those that are not. At its most basic level, a building that is called pre-war was built prior to the Second World War, but the label also implies a certain style: made from brick and stone with decorative details on the outside, and high ceilings, solid walls (not sheet rock), sunken living rooms and arched doorways, among other touches, within.
Pressurized Wall: The interior layouts of New York City apartments for sale are commonly reconfigured using pressurized walls. These temporary walls can be erected within an apartment using only sheet rock screws attaching a pressurized wall to floor, ceiling, and permanent wall studs, maximizing stability while minimizing structural or architectural damage.
Purchase and Sale Agreement: A legal step before a deed is signed and transferred from grantor to grantee, a purchase and sale agreement—also called "offer and acceptance", "earnest money contract" and "contract of sale"--signifies intent to enter into a contract on both the buyer's and seller's part.
Railroad Apartment: See the Urban Edge Apartment Types guide.
Studio Apartment: See the Urban Edge Apartment Types guide.
Super/Superintendent: A New York City's building superintendent—most commonly known as the building's super—is the first point of contact for a tenant needing or requesting any sort of maintenance or repairs, either within an individual apartment or in a building's common areas. In larger buildings, the super manages a staff of individuals, and is expected to handle minor issues on the spot, and to contract and supervise the work of outside vendors for larger or more specialized repairs or services.
Title: Title, referring both to a formal document as well as a legal concept, confers upon the owner of real property legal and sufficient evidence of said ownership, as opposed to simple possession of a piece of property.
Title Search: A title search is a comprehensive examination of the public record to determine and confirm true ownership of and any and all encumbrances placed upon a piece of real property. Anyone may conduct a title search, however, most prospective buyers hire an exert to check for any easements or legal modifications that may not be immediately apparent to the untrained eye.
Unrecorded Deed: Like a deed, an unrecorded deed legally transfers title on a piece of real property from a grantor to a grantee, but without submitting the agreement to the New York City recorder of deeds, and so offering public notice of the transaction.
Walk-up: A New York City apartment for sale in a "walk-up" simply means that building doesn't have an elevator, and so you'll have to walk up stairs to get to your home. The vast majority of NYC walk-ups are buildings that are five stories high or (most often) less.
Zoning: Zoning is the legal instrument used by local governments to regulate the usage of privately-owned property within its jurisdiction. Zoning is often used to preserve and protect the character of a given neighborhood: for example, you can't buy land and build a factory in a community zoned as residential; nor can you build a high-density apartment complex in an area zoned for low-density, single-family homes. Zoning laws can also determine the maximum height of a building in a neighborhood (thereby preventing you from adding a floor or two to your brownstone), as well as the type of business you're allowed to open, say, within 200 feet of a school.

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