Glossary of Terms
An “arm’s length” real estate transaction means that both parties to the transaction act independently and are not related in any way to each other, either by blood or business relationship.
A person/company or entity who/that receives the transfer of a property under contract. The assignee receives that transfer from the assignor. In real estate, an assignee may receive the title to a piece of real estate from an assignor, a person who transfers or assigns property.
As it relates to real estate, Due Diligence refers to the thorough and painstaking inspection and investigation of real property, personal property or a business entity that must be conducted before the buyer decides to complete a purchase.
In real estate liquidation parlance, a CRO stands for the Chief Restructuring Officer.
Liquidating (Court-Appointed) Trustee
A Liquidation Court Trustee is entrusted with the responsibility of safeguarding a real estate asset until it can be sold off as soon as circumstances permit.
Liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed.
Property Condition Assessment (PCA)
Property Condition Assessments include all site improvement and building system evaluations (mechanical, plumbing, electrical, etc.) designed to assess capital expenditures, the physical condition, capacities/adequacies, general code compliance, repair and maintenance issues, recommended replacements, and associated correction and repair costs.
A Receiver is a court-appointed custodian who holds property pending the final disposition of the matter before the court. The job of the receiver, who answers to the judge, is to protect and operate the property during a liquidation or a foreclosure process.
A Receivership is a court order whereby all the property subject to dispute in a legal action is placed under the dominion and control of an independent person known as a Receiver.
A Site Inspection provides details of a commercial property necessary to make financial decisions or serve as a tool in evaluating a property.
A person or firm that holds or administers property or assets for the benefit of a third party. They are trusted to make decisions in the beneficiary’s best interests.