Covenants vs. Conditions

Covenants vs. Conditions A covenant is a promise to do something (as in a covenant of quiet enjoyment in a deed), whereas a condition is a contingency that must be met, otherwise a particular property right could be gained or lost. A covenant is an agreement or...

Adverse possession vs. Trespass

Adverse possession vs. Trespass Adverse possession is the acquiring of title to real property owned by someone else by means of open, notorious, hostile and continuous possession for a statutory period of time; whereas trespass is any wrongful, unauthorized invasion...

Capitalization rate vs. Recapture rate

Capitalization rate vs. Recapture rate The capitalization (cap) rate is the rate of return the investor wants on a property; it consists of the return on the investment plus the recapture (through depreciation) of the investment. Capitalization (CAP) rate — The...

Using the Right Word

Mark Twain once said: The difference between the right word and the almost right word is the  difference between lightning and a lightning bug. Here’s a few words we commonly see misused in real estate parlance: Selling agent vs. Seller’s agent — The...