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GAAP (generally accepted accounting principles)
The term “generally accepted accounting principles” has a specific meaning for accountants and auditors. It identifies that the financial statements utilize accounting principles established by a body designated by the AICPA Council to establish such principles.
gap
A defect in the chain of title of a particular parcel of real estate; a missing document or conveyance that raises doubt as to the present ownership of the land.
Garden City movement
The Garden City Movement proposed public green belts and agricultural areas surrounding self-supporting, satellite communities surrounding a central garden city with maximum populations to prevent sprawl.
Garn-St. Germain Bill
Or the Depository Institutions Deregulation and Monetary Control Act of 1980 which authorized the deregulation of banks and savings institutions. Allowed savings and loan associations to offer checking-type accounts; to issue credit cards; and established loan loss reserve requirements. A follow-on bill, The Depository Institutions Act of 1982 (also sponsored by Senators Garn and St. Germain), allowed savings and loan associations to have up to 50% of assets in real estate development; 30% of assets in consumer loans and corporate debt; own real estate development companies; and offer money market deposit accounts. Garn-St. Germain—Full Text
gateway
A computer system that transfers data between normally incompatible applications or networks. A gateway reformats data so that it is acceptable for the new network or application before passing it on. For example, “gateways” between e-mail systems allow users on different e-mail systems to exchange messages.
general agent
Someone authorized to transact every kind of business for the principal. (See agent)
general contractor
A licensed construction specialist who enters into a construction contract with a developer or property owner to construct a building or real estate project. The general contractor often negotiates individual contracts with sub-contractors who specialize in various aspects of the building process, such as electricity, drywall and plumbing.
general index
A county recorder’s office index used by title company examiners when searching the chain of title of a property. The examiner uses the index to research all the grantors and grantees in the chain of title. The index lists all the things that apply to a person by name, including liens, judgments and power of attorneys. (See chain of title)
general lien
The right of a creditor to have all of a debtor’s property — both real and personal — sold to satisfy a debt. (See lien)
general objectives
General objectives are an organization’s priorities during a specific time frame. The number of objectives is typically a function of the size and complexity of the organization and the capacity of its human and financial resources. For a fairly small organization, two general objectives are likely most feasible. Larger organizations typically don’t choose more than four. Although, even a very large, complex organization may choose only one or two competencies so that all efforts are mobilized in a highly focused direction.
general partner
In a limited partnership, the individual or company aquiring, organizing and managing the investment. (See limited partnership)
general partnership
In a general partnership, all the partners participate in the operation and management of the business and share full liability for business losses and obligations. (See partnership)
Uniform Partnership Act – Full Text
general plan
A general plan, also known as a comprehensive plan or a master plan, is a long-term policy document that serves as a blueprint for the future growth and development of a community, city, or region. The plan outlines a vision for the community’s future and sets goals, objectives, and policies to guide land use, infrastructure, and resource allocation decisions.(See comprehensive zoning, master plan, regional planning)
general power of attorney
Authority to act on behalf of someone else for financial purposes. (See power of attorney
general real estate tax
General real estate taxes are levied to fund the operation of the governmental agency that imposes the taxes.
general warranty deed
A deed in which the grantor fully warrants good clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers the greatest protection of any deed.
generation x
The generation born after the baby boomers (roughly from the early 1960s to mid 1970s), often perceived to be disaffected and directionless.
generation y
The generation born in the 1980s and 1990s, comprising primarily the children of the baby boomers and typically perceived as increasingly familiar with digital and electronic technology. Also referred to as “millennials.”
gentrification
Gentrification or urban gentrification, is the physical renovation of low-cost, physically deteriorated neighborhoods, leading to an increase in property values, along with an influx of wealthier residents who may displace the prior residents.
geographic farming
Farming/prospecting an area defined by specific “geographic” boundaries. The best geographic farms are particular subdivisions with similar demographics, such as: the price of homes, the ages of residents, family composition, etc. (See farming, nongeographic farming)
Georgia Fair Lending Act (GAFLA)
The Georgia Fair Lending Act (GAFLA) provides certain limitations on lending practices related to residential mortgage lending, impacting lenders, brokers, servicers and assignees and purchasers of mortgage loans.
get rich quick schemes
These are real estate pitches for your money that come with tag lines like “no money down, no risk, no work, use other people’s money” etc., that promise riches in short periods of time. Many people fall into these traps, 99.5% of which end up being too good to be true and leave a bamboozled investor with less wealth than when they undertook that investment. GRQS rarely earn wealth for people.
get rich slowly schemes
This is earning money the old fashioned way. This is doing the hard work for years, educating oneself, doing the proper due diligence on purchases, managing one’s property’s well, and earning long term wealth from real estate – or other assets, businesses, etc. – ownership. There is a high probability of success of wealth building with long term ownership of real estate if an individual did the proper due diligence and made smart purchase decisions.
gift
Voluntary transfer by an individual of any type of property for less than full consideration. (See gift tax)
gift deed
A deed in which the consideration is “love and affection.” Because the deed is not supported by valuable consideration, the donee (recipient of the gift) may not be able to enforce against the donor certain promises or agreements contained in the deed. (See deed, donee, donor)
gift tax
A federal tax applied to an individual giving anything of value to another person. For something to be considered a gift, the receiving party cannot pay the giver full value for the gift, but may pay an amount less than its full value. It is the giver of the gift who is required to pay the gift tax. The receiver of the gift may pay the gift tax, or a percentage of it, on the giver’s behalf in the event that the giver has exceeded his/her annual personal gift tax deduction limit. California’s gift tax was repealed by voters on June 8, 1982. (See gift)
Ginnie Mae
Government National Mortgage Association is a federal agency created in 1968 when the Federal National Mortgage Association (FNMA) was partitioned into two separate corporations. “Ginnie Mae Online,” as it is commonly called, is a corporation without capital stock and is a division of HUD. The GNMA operates the special assistance aspects of federally aided housing programs and has the management and liquidating functions of the old FNMA. The FNMA is authorized to issue and sell securities backed by a portion of its mortgage portfolio, with the GNMA guaranteeing payment on such securities.
girders
Girders are the beams that span foundation walls and footings to provide support for the floor of a structure.
glucose
A simple sugar that is the main source of energy for the body. (See lipids, protein)
goal setting
A planning tool where agents establish, in writing, exact short-term, intermediate-term and long-term goals. Goals should be reasonably attainable and progress should be periodically evaluated.
gold standard
A monetary system in which a government allows its currency to be freely converted into fixed amounts of gold and vice versa. The exchange rate under the gold standard monetary system is determined by the economic difference for an ounce of gold between two currencies.
good faith
1. A term describing an individual’s legitimate and honest efforts to meet his or her obligations in a given situation. 2. An act performed on the basis of trust and with no intent to misrepresent or defraud.
good faith and honesty
Obligation of real estate agent to act in the client’s best interests while acting fairly to all parties in the transaction. (See fiduciary
good faith estimate or GFE
An estimate of settlement charges a borrower is likely to incur, as a dollar amount, and related loan information based upon common practice and experience in the locality of the mortgaged property, as provided on the form prescribed.
good funds
Cash, cashier’s checks and personal checks that have cleared the bank.
good-faith estimate
A preliminary accounting of expected closing costs. The Real Estate Settlement Procedures Act (RESPA) requires the lender to promptly give loan applicants a good-faith estimate of closing costs. (See Real Estate Settlement Procedures Act (RESPA))
goods
Material things perceived to have monetary or exchange value. (See services)
goodwill
An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage; including other intangible assets like trade name and going concern value. When a business is sold, the sales price often reflects its goodwill value.
government check
The 24-mile-square parcels composed of 16 townships in the rectangular (government) survey system of legal description.
government controls
Governments sometimes implement price or production controls when prices on essential items, such as food or oil, are rising or falling rapidly.
government lot
Fractional sections in the rectangular (government) survey system that are less than one quarter-section in area. Areas smaller than full quarter-sections were numbered and designated as government lots by surveyors. These lots can be created by the curvature of the earth; by land bordering or surrounding large bodies of water; or by artificial state borders. (See rectangular (government) survey system
Government National Mortgage Association (GNMA)
A federal agency created in 1968 when the Federal National Mortgage association (FNMA) was partitioned into two separate corporations. “Ginnie Mae,” as it is commonly called, is a corporation without capital stock and is a division of HUD. The GNMA operates the special assistance aspects of federally aided housing programs and has the management and liquidating functions of the old FNMA. The FNMA is authorized to issue and sell securities backed by a portion of its mortgage portfolio, with the GNMA guaranteeing payment on such securities.
Ginnie Mae Online
government sponsored enterprise (GSE)
One of the organizations comprising the secondary mortgage market, such as Fannie Mae, that is supervised by the federal government through the Office of Federal Housing Enterprise Oversight (OFHEO)
government survey system
The government survey system is a system of land description that applies to much of the land in the United States, particularly in the western states; also called the geodetic or rectangular survey system. It is based on pairs of principal meridians and base lines, with each pair governing the surveys in a designated area. (See baselines, meridians)
grace period
An agreed upon time after an obligation is past due when a party can perform without being considered in default.
graduated commission splits
Other companies have graduated commission splits based on a salesperson’s achieving specified production goals. For instance, a broker might agree to split commissions 50/50 up to a $25,000 salesperson’s share; 60/40 for shares from $25,000 to $30,000; and so on. Commission splits as generous as 80/20 or 90/10 are possible, however, particularly for high producers.
graduated payment adjustable-rate mortgage
Financing instrument that carries an interest rate that is subject to change based on a specified index, with loan payments limited to increases permitted at specified intervals.
graduated-payment mortgage (GPM)
A loan in which the monthly principal and interest payments increase by a certain percentage each year for a certain number of years and then level off for the remaining loan term. (See mortgage)
grandfather clause
An expression that conveys the concept that something that was once permissible continues to be so, despite changes in the law.
grant
A conveyance of real estate. (See grant deed
grant
A conveyance of real estate.
grant deed
A type of deed in which the grantor warrants to the grantee, that he has not previously conveyed the estate, that he has not encumbered the property (except as noted in the deed) and that he will convey any title to the property he may later acquire.
grantee
The person who receives a conveyance of real property from a grantor. The grantee must be a person, either natural or otherwise (e.g. corporation, public agency, partnership, etc.) existing at the time of the conveyance and is capable of taking title. (See grant deed
granting clause
Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as “convey and warrant,” “grant,” “grant, bargain and sell” or the like.
grantor
The person transferring title, or an interest in real property. A grantor must be competent to convey title. A corporate grantor must have legal existence and be authorized to hold and convey title to real property. The grantor must be clearly identified in the deed.
graphical user interface (GUI)
An computer user interface that uses onscreen objects such as menus and icons to allows a user to access information from the computer.
gravity
The quality of having weight; weight used chiefly in the phrase “center of gravity”; the gravitational attraction of the mass of the Earth, Moon, or planet for bodies at or near its surface; acceleration of gravity. (See acceleration of gravity)
green belt
A belt of parks or rural land surrounding a town or city.
green building
A building that takes maximum advantage of environmentally friendly building design and components.
green card test
A person fulfills the requirements of green card test if he/she is a lawful permanent resident of the United States at any time during the calendar year. This is known as the “green card” test. A lawful permanent resident is a person who has been issued an alien registration card (Form I-551)(also known as a “green card”) by the office of U.S. Citizenship and Immigration Services (USCIS).
gross collectible rental income
Gross collectible rental income refers to the total amount of rental income that a property owner or landlord expects to collect from all leased units or properties before any deductions for vacancies, credit losses, or operating expenses. This figure represents the maximum potential revenue from rent over a specific period, assuming 100% occupancy and full payment from all tenants.
gross domestic product
The total market value of the goods and service produced domestically in a country in a given period of time (monthly, yearly).
gross income multiplier
A figure used as a multiplier of the gross annual income of a property to produce an estimate of the property’s value.
gross lease
A lease of property where a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance and operating expenses. Most residential leases are gross leases. (See lease)
gross living area (GLA)
The total finished, habitable, above-grade space, measured along the building’s outside perimeter.
gross national product (GNP)
The dollar value of all goods and services produced by a nation’s economy in a year. Technically, this means the market value of newly produced final goods and services. The value of intermediate goods and services is assumed to be incorporated in the final value.
gross operating income
The result when other income is added to rental income. (See other income, rental income)
gross rent multiplier (GRM)
The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property’s value.
gross scheduled income
The maximum amount of rent if the property were 100 percent occupied.
grossed-up income
Grossed-up income is income that is not taxable by the federal government and has been increased to reflect the amount of tax savings attributed to this type of income. The maximum amount of grossed-up income allowable is 25 percent, it but could be less based on the tax savings of the borrower. For example, if nontaxable income is $1,000 per month, and assuming a tax savings of 25 percent, the allowable grossed-up income would be $1,250 per month.
ground lease
A lease of land alone, sometimes secured by improvements placed on the land. Also called a land lease, the ground lease is a means used to separate the ownership of the land from the ownership of the buildings and improvements constructed on the land. (See lease)
ground rents
A perpetual lease where the landowner retains title and the lessee recieves the right of possession and use. Used predominantly in Maryland and Pennsylvania prior to 1885.
groundwater
Water under the earth’s surface, regardless of the geological structure in which the water is standing or flowing. It does not include water in underground streams that have identifiable banks and beds.
group effectiveness skills
Skills that are effective in groups; such as interpersonal skills, teamwork, and negotiation.
Group-think bias
This happens when humans try too hard to fit into a particular group by holding back their own opinions or expressing perspectives that vary from the consensus of the group.
growing equity mortgage (GEM)
A loan in which the monthly payments increase annually, with the increased amount being used to reduce directly the principal balance outstanding and thus shorten the overall term of the loan.
growth
A period of the life cycle of a neighborhood in which property development is ongoing.
growth control
Also called growth management. Since the late 1960s, many communities have developed a variety of growth control measures to address environmental, social, and economic problems. Growth controls are intended to protect the aesthetic and environmental quality of communities, providing adequate water, sewer, and infrastructure, and preserving community identity.
guarantee
A pledge to investors that the issuing company will bear the default risk on the collateral pool of loans, thereby ensuring the timely payment of principal and interest owed to investors.
guarantee of title
Guarantee of title as determined from examination of the public records and described in the guarantee document.
guarantor
A person or entity that agrees to be responsible for another’s debt or performance under a contract, if the other fails to pay or perform.
guardian
A person, appointed by court or by will, given the lawful custody and care of the person or property of another (called a ward). The ward might be a minor, an insane person or even a spendthrift. The guardian may, upon court approval and without necessity of obtaining a real estate license, sell the ward’s property if it is in the best interest of the ward.
guide meridian
A guide meridian is a line, marked by monuments, running North and South through a section of country between other more carefully established meridians called principal meridians, used for reference in surveying. (See meridians, monuments)
guide meridian
A guide meridian is a line, marked by monuments, running North and South through a section of country between other more carefully established meridians called principal meridians, used for reference in surveying.
guide meridian
A guide meridian is a line, marked by monuments, running North and South through a section of country between other more carefully established meridians called principal meridians, used for reference in surveying.
gutter
A gutter is the trough along the roof line of a structure that collects rainfall, which is diverted to a drainage pipe that carries the water to the ground and away from the structure.