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Real Estate Glossary – A
Abstract of Judgment – A summary of a court judgement filed with the County Recorder. Abstract of Title – A summary of all recorded proceedings and investments that affect a property’s title. Accelerated Cost Recovery System – A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal [...]
Real Estate Glossary – B
Backup Contract – a real estate contract that takes effect in the event that a previous agreement is not fulfilled. Balance – See Principal Balance. Balance Sheet – A financial statement that shows assets, liabilities, and net worth as of a specific date. Balloon Loan – A mortgage loan that requires the remaining principal balance [...]
Real Estate Glossary – C
Call Option -Ă‚ A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason.. Cancellation Clause – A stipulation in a contract that gives one or both parties the right to terminate its obligations if a specific condition [...]
Real Estate Glossary – D
Dealer – A person who holds real property with the primary purpose of selling it to customers. A dealer treats his or her profit from a sale as ordinary income. Debt – An amount owed to another. Debt Coverage Ratio (DCR) – A ratio that is used to underwrite loans for income producing property. To [...]
Real Estate Glossary – F
401(k)/403(b) -An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations. 401(k)/403(b) loan -Some administrators of 401(k)/403(b) plans allow for loans against the monies you have [...]
