UNDER CONSTRUCTION:  Planned buildings for which construction has started but has not yet been granted a Certificate of Occupancy.  Planned buildings are not included.

UNDER CONTRACT:  A property for which a purchase offer has been accepted by the seller is said to be under contract.  Generally, the prospective buyer is given a certain period of time in which to perform feasibility studies and finalize financing arrangements.  During the time, the seller cannot entertain offers from other buyers unless the purchase contract is allowed to expire without going to closing.

UNENCUMBERED:  Describes title to property that is free of liens and any other encumbrances.  Free and clear.

UNIMPROVED LAND:  Most commonly refers to land without buildings; it can also mean land in its natural state.  (See also Raw Land.)

USE:  Specific purpose for which a parcel of land or a building, or a portion thereof, is designed, arranged, intended, occupied or maintained.

VACANCY FACTOR:  The amount of gross revenue lost because of vacant space; an allowance item on pro forma income statements usually calculated as a percentage of gross revenue.

VACANCY RATE:  A measurement expressed as a percentage of the total amount of available space compared to the total inventory of space.  Computed by multiplying vacant space times 100 and divided by total inventory.  May be based on past records of the property or a professional guess if a new project.  Surrounding area buildings, if similar, may be used for comparison.

VACANT SPACE:  Existing space which is currently being marketed for sale or lease, excluding sublet space.

VARIANCE:  A permit that grants a property owner relief from certain provisions of a zoning ordinance when, because of the particular physical surroundings, shape, or topographical condition of the property, compliance would result in a particular hardship or practical difficulty which would deprive the owner of the reasonable use of the land or building involved.

VENDEE:  Purchaser or buyer, generally used in real property context.

VENDOR:  The person who transfers property by sale.  A synonym for seller, and is commonly used in land contract sales.

WARRANTY:  A legal binding promise made at the time of a sale whereby the seller gives the buyer certain assurances as to the condition of the property being sold.

WEAR AND TEAR:  The deterioration or loss in value caused by the tenant’s normal and reasonable use of the property.  In many leases the tenant is not responsible for normal wear and tear.

WEIGHTED AVERAGE RENTAL RATES:  Rental rates averaged to the amount of space available in each building per market area.

WORKLETTER:  The standard building items that the landlord contributes as part of the tenant improvements, as traditionally listed in an addendum or workletter attached to the lease.  Examples of standard building items are:  doors, partitions, lights, floor covering, telephone outlets, etc.  The Workletter may specify the quantity and quality of the materials to be used and often carries a dollar value.

The set of plans for a project that, in combination with a set of specifications, comprise the contract documents indicating the exact manner in which a project should be built.  (See also Contract Documents.)

WORKOUT:  The process by which a borrower attempts to negotiate with a lender to restructure the borrower’s non-performing and overdue debt rather than go through foreclosure proceedings.

ZONING:  A method of regulating use of real estate by dividing a city or other area into zones and designating which uses may be permitted for land in each zone.

ZONING ORDINANCE:  The set of laws and regulations, generally at the city or county level, that control the use of land and construction of improvements in a given area or zone.

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