Flashcards in O Terms Deck (21):
Market value as opposed to subjective value, which is use value.
observed condition method
The method of determining the effective age of a property by its condition.
Loss in value due to reduced desirability because of built-in design (functional obsolescence) or forces outside the property itself (external obsolescence).
Permit issued by a building inspector when a new structure has been completed in accordance with codes.
A statement by a lender as to the current status of a loan (balance due). See beneficiary statement.
"or more" clause
A provision that allows prepayment without penalty.
A brokerage firm that handles financing and closing functions. See controlled business arrangement.
A nonexclusive agency whereby the owner agrees to a fee only if the broker is the first to procure a buyer under the exact terms of the listing or any other terms to which the owner agrees.
An improvement that cannot be recaptured by increased income or sale value.
An agency that is implied by the actions of the parties.
Fees charged by mortgage brokers for services.
The way a structure is placed on a site.
The owner who gives the option.
A note payable to a named person or order that allows it to be negotiated by endorsement.
open market transaction
Federal Reserve action in buying and selling federal securities on the open market.
The party who purchased the option, and has the right to exercise it.
A noncancelable right given by an owner to another to buy or lease a property at an agreed-on price within a stated period. To be valid, consideration must have been given to keep the offer open.
(1) A loan that can be prepaid without penalty. (2) A mortgage in default before the foreclosure sale.
Adjustable rate loan with borrower's option to make a minimum payment.
The loss of other opportunities by making an investment; for example, a long-term, low-yield investment could result in illiquidity whereby the investor would have to forgo a later, more attractive investment opportunity.