A loan concept whereby the lender provides the cash for for the seller to be paid. Example: When a loan is approved, the lender issues a commitment to make the loan at certain specified terms. At closing, the lender funds the loan by forwarding sufficient cash..
The cash or other resource having value which may be sold in order to buy another asset.
(FF&E) A term frequently found in the ownership of a hotel or motel that wears out much more rapidly than other the components so an owner or prospective buyer needs to establish the condition, cost, and frequency of replacement of the FF&E. Example: In measuring the profitability of a hotel, a real estate appraiser subtracted 3% of total revenues to provide for the eventual replacement of FF&E. The useful life of FF&E in a hotel was estimated at 7 years..
A loan that fills the difference between the first loan and the full amount of the permanent loan. See Bridge loan and Swing loan. Example: A developer arranges a permanent mortgage R fund $1,000,000 when the apartments she is building are 80% pied. From completion of construction until 80% occupa reached, the mortgage is only $700,000. The developer arrange loan of $300.000 for the RENT-UP PERIOD
A slang term to describe the practice of reneging on an oral commitment to buy or sell a property because a better offer or opportunity was presented after the oral commitment was made but before a legal sales contract was consummated. Example: Gazumping can be a big problem in areas where a formal sales contract is signed only after the buyer has thoroughly investigated the property. The buyer may have invested much time and money in the due diligence process, yet lose out if the seller gets a better offer It can also work in reverse. The buyer may renege after the seller has held the property off the market. The seller may valuable exposure time during the peak marketing season. .
A party who has been authorized by a principal to represent the principal in a broad range of matters such as a property manager..
A party who constructs buildings or other improvements for an owner or developer and who might employ a construction labor force or use subcontractors. See Contractor. Example: Collins. a landowner, has architectural plans and specifications for an office building. She enters into a contract with Baker, a general contractor, to build the structure. Baker hires subcontractors who put up the foundation, walls, roof, electrical and plumbing systems, etc. .
A lien on all of the property of a debtor..
A document representing an obligation secured by a mortgage.
A tax levied by governmental agencies and municipalities on real estate to operate the government.
