Category: REAL ESTATE TERM OF THE DAY

INCIDENTS OF OWNERSHIP RETOTD Episode 00221

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INCIDENTS OF OWNERSHIP Any control over property. If you give away property but keep an incident of ownership–for example, you give away an apartment building but retain the right to receive rent–then legally, no gift has been made. This distinction…

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HELP RETOTD Episode 00218

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HELP Home buyer Education Learning Program; an educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the…

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HARD MONEY LOAN RETOTD Episode 00217

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HARD MONEY LOAN A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan…

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GROSS OPERATING INCOME RETOTD Episode 00216

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GROSS OPERATING INCOME The total income generated by the operations of a property before payment of operating expenses. It is calculated from potential rental income, plus other income affected by vacancy, less vacancy and credit losses, plus other income not…

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GROSS INCOME RETOTD Episode 00215

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GROSS INCOME Money earned before taxes and other deductions. Sometimes it may include income from self-employment, rental property, alimony, child support, public assistance payments, and retirement benefits.

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EARNEST MONEY AGREEMENT RETOTD Episode 00212

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EARNEST MONEY AGREEMENT A document that lists the price, conditions and terms under which the buyer is willing to purchase the property. (Each of these means the same thing: offer to purchase, or purchase offer, or earnest money agreement, or…

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DEDUCTIBLE RETOTD Episode 00210

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DEDUCTIBLE The amount of cash payment that is made by the insured (the homeowner) to cover a portion of a damage or loss. Sometimes also called “out-of-pocket expenses.” For example, out of a total damage claim of $1,000, the homeowner…

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CAPITAL IMPROVEMENTS RETOTD Episode 00208

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CAPITAL IMPROVEMENTS Expenditures that arrest deterioration of property or add new improvements and appreciably prolong its life. A structural addition or betterment  to real property that increases its useful life or productivity or extends the life of a building or…

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