Archives: Glossary Terms

The condition which exists when a buyer is in a better position as to price and terms because the real property for sale is in greater supply in relation to demand.

Phrase meaning no personal liability is assumed in regard to a mortgage debt which exists against real estate at the time of purchase.

Undertaking and promising to pay the seller’s personal liability for a debt at the time of purchase.

An arrangement by an owner of a building agreeing to take on the liability for the remaining lease term of a tenant in a different building which releases the tenant from the old lease obligation and permits him/her to negotiate a lease in the owner’s building.

A clause in a loan that gives the lender the right to accelerate the debt upon the occurrence of a specific event which is normally an attempt to sell. See Acceleration clause and Alienation clause.

A loan that is due and payable at the demand of the lender usually as a result of an acceleration or alienation clause becoming effective. See Acceleration clause and Alienation clause.

A provision in a contract that gives a party the right to terminate his or her obligations upon the occurrence of specified conditions or events.

A limit placed on the adjustments in an adjustable rate mortgage to protect the borrower from large increases in the interest rate or the payment level. See Annual cap and Payment cap.

See Capitalization rate.

The legal ability of a person or entity to enter into a contract that is legally binding and to perform certain other civil acts such as making a will.