Home Seller Home Buyer

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.Read more →

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.Read more →

ADJUSTABLE-RATE MORTGAGE (ARM) A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator — such as the weekly average of one-year U.S. Treasury Bills — over the life of the loan. To avoid constant…Read more →

TECHNICAL COMPONENTS Factors that determine whether a location or site is suitable or able to support a given use.Read more →

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…Read more →

SECOND MORTGAGE A loan secured by the equity in a home, when a primary mortgage already exists and has a lien position subordinate to the first mortgage.Read more →

SALES POTENTIAL The possible or expected revenue of a retail outlet as defined by conditions within the market or trade area and the forces of competition.Read more →

SALES PROCEEDS BEFORE TAX The sale price minus the sale costs and the mortgage loan balance.Read more →

SALES PROCEEDS AFTER TAX The sale proceeds before tax minus the tax liability on the sale.Read more →

REAL ESTATE PROPERTY TAX DEDUCTION A tax deductible expense reducing a taxpayer’s taxable income.Read more →