Language of Real Estate

Assemblage vs. Plottage

Assemblage vs. Plottage Assemblage is the process of joining several parcels to form a larger parcel; the resulting increase in value is called plottage. Assemblage -- The combining of two or more adjoining lots into one large tract. This is usually done to increase...

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Eminent Domain vs Police Power

 Eminent Domain vs Police Power When property is taken under eminent domain, there must be payment of just compensation, whereas a taking under the police power (such as zoning) does not require compensation. Eminent Domain - The right of government (both state and...

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Variance vs Nonconforming Use

Mistaken Identity -- Variance vs. Nonconforming Use A variance is an exception to the existing zoning, whereas a nonconforming use (also known as a grandfather clause) arises when there is a change to the zoning but an existing use is still permitted to continue....

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Void vs. Voidable

Void vs Voidable A void contract lacks the essential elements to be valid, whereas a voidable contract is valid, except one of the parties has the ability to void it because of some wrongdoing. Void -- Having no legal force or binding effect; a nullity; not...

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Encroachment vs. Encumbrance

Note: This is the 9th post in our series of real estate words that are sometimes misunderstood, what we call cases of "Mistaken Identity."  Encroachment vs. Encumbrance An encroachment is an unauthorized intrusion of one property onto another, and it is an ...

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Gross Lease vs. Net Lease

Gross Lease vs. Net Lease In a gross lease, the tenant pays a single amount and the landlord pays the expenses, whereas in a net lease the tenant pays a net amount to the landlord and the tenant pays the expenses. Gross Lease A lease of property under which the lessee...

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Option vs. Right of First Refusal

Option vs. Right of First Refusal An option is a right to purchase property at a set price for a fixed period of time, whereas a right of first refusal is a right to purchase property only if it is offered for sale in the future. Option -- An agreement to keep open,...

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