Archives: Glossary Terms

The tangible property such as buildings, furniture and fixtures and equipment that are used in a business operation that is not for sale and is shown on the financial statement of the company.

The regular recurring costs required in owning a property or business such as taxes and fire insurance

A mortgage secured by real property featuring periodic principal and interest payments that are constant over the term of the loan. All fixed payment mortgages are Fixed rate loans but some may have variable payments such as a Graduated payment loans.

A mortgage secured by real property featuring a constant interest rate for the term of the loan. See Adjustable rate loan. Example: A fixed-rate mortgage is originated with an interest of 10% for a term of 30 years. the rate will remain at 10% until loan is retired or the due-on-sale clause is exercised at resale of the property.

The movable items such as toilets and built in store showcases that are attached to land or its improvements which become appurtenances and which under normal circumstances cannot be removed without a prior agreement because the affixing converts them to real property.

1. A one-level apartment. 2. A level payment (flat) mortgage or (flat) lease requirement. Example: A 2-room flat is an apartment having 2 rooms. Example: A flat lease is one that requires level payments each month or other specified period.

A real estate broker who charges a fixed or flat fee for brokerage services instead of a commission based on a percentage of the sales price of the property. See Discount broker. Example: Kramden., a flat fee looker, charges $5,000 to arrange the sale of a home, no matter what price is agreed upon by the buyer and seller. If a sale is not consummated within the listing contract, no fee is paid..

A lease in which the rent is a fixed (flat) sum paid periodically throughout the entire lease term..

A loan in which the repayment schedule is based on the borrower’s financial position to pay so payments are usually lower in the earlier years and increase as the borrower’s ability to repay increases.

An interest rate that is not fixed over the term of a loan, bond, or other fixed-income security, but is allowed to vary according to the change in a specified index. See adjustable Mortgage. Example: Financial Securities Company created a floating mutual fund based on a portfolio of adjustable-rate mortgages yield on the fund varies from year to year depending on the in rates charged on the ARMS in portfolio.