Category: REAL ESTATE TERM OF THE DAY

AFFORDABILITY ANALYSIS RETOTD Episode 00316

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AFFORDABILITY ANALYSIS A calculation used to determine an individual’s likelihood of being able to meet the obligations of a mortgage for a particular property. Takes into account the down payment, closing costs and on-going mortgage payments.

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ADVISER RETOTD Episode 00315

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ADVISER A broker, consultant or investment banker who represents an investor in a transaction. Advisers may be paid a retainer and/or a performance fee upon the close of a financing or sales transaction.

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TAG-ALONG RIGHTS RETOTD Episode 00311

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TAG-ALONG RIGHTS A contractual obligation used to protect a minority shareholder. If a majority shareholder sells his or her stake, then the minority shareholder has the right to join the transaction and sell his or her minority stake in the…

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REAL ESTATE FLUCTUATIONS RETOTD Episode 00304

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REAL ESTATE FLUCTUATIONS Short-term variations in real estate prices or rents (usually lasting anywhere from one day to a few months) caused by natural hazards (such as tornadoes, hurricanes, floods, earthquakes, and wildfires) or boosts or shocks to the local…

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REAL ESTATE BROKER RETOTD Episode 00303

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REAL ESTATE BROKER A real estate professional licensed to negotiate the purchase and sale of real estate for a commission or fee. In most states, a broker is one step up from a real estate agent, having more training and…

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RANGE RETOTD Episode 00301

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RANGE The maximum distance consumers are willing to travel to purchase a good or service from a given establishment or location. Hence, the boundary or outer limits of the market area circumscribed about a location at which a good or…

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QUALIFIED PLAN RETOTD Episode 00300

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QUALIFIED PLAN Any employee benefit plan that is qualified by the IRS as a tax-exempt plan. Among other requirements, the plan’s assets must be placed in trust for the sole benefit of the employees covered by the plan.

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