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Ability to Pay - Agreement of Sale
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Alienation Clause - Average Annual...
Ability to Pay
Abstract of Title
Accelerated Depreciation
Acceleration Clause
Accretion
Accrued Interest
Acknowledgment
Acre Foot
Acre
Active Income
Actual Age
Ad Valorem Tax
Add-On Interest
Addendum
Additional Principal Payment
Adjustable Rate Mortgage (ARM)
Adjusted Cost Basis
Adjusted Gross Income (AGI)
Adjustment Cap
Adjustment Date
Adjustment Period
Adverse Possession
Adverse Use
Agency
Agreement of Sale |
Ability to Pay
This term refers to taxes. The amount of tax due is calculated based on an individual's gross income. This concept is based on the idea that those who earn more income are able to pay more taxes, thus measuring their "ability to pay."
Abstract of Title
A record of any and all transactions that have to do with the title or ownership of a specific piece of land or property.
Accelerated Depreciation
This allows the owner of an investment property to deduct a greater portion of its calculated depreciation the immediate years after buying the property.
Acceleration Clause
A section of a loan contract allowing the lender to speed up the repayment of the loan -- making the entire principal amount due at once. This occurs when there is a default on the loan or a violation of contract terms.
Accretion
The increase of land area due to natural forces like wind or water.
Accrued Interest
The interest on a bond, a note, a mortgage, or a loan which has been earned or has accumulated but has not yet been distributed or paid.
Acknowledgment
A formal declaration, usually by notarization, that one has signed a document.
Acre Foot
A form of measurement based on the amount of liquid used to cover an acre of land one foot deep. It equals 325,851 gallons.
Acre
A method of measurement of land or area. It equals 43,560 square feet.
Active Income
(aka nonpassive income) Income generated through activities in which an individual participates directly including: employment salary, tips, and investments.
Actual Age
The amount of years since a structure was built.
Ad Valorem Tax
A tax calculated off of the reasonable and fair market value of an item.
Add-On Interest
The interest calculated and added on in the very beginning of obtaining a loan. The entire amount, principal, plus this "add-on" interest, must be repaid whether or not the loan itself is paid off earlier than the loan term indicates.
Addendum
A change made to a contract.
Additional Principal Payment
Any additional amount of money a borrower pays above the required monthly payment. This additional payment shortens the life of the loan which also lessens the amount of interest paid in the end.
Adjustable Rate Mortgage (ARM)
A loan program where the interest rate adjusts periodically based on the terms of the mortgage. This type of loan can be fixed from 1 month to 10 years. For example: If a borrower has a five (5) year ARM, after the first five years have expired the interest rate will adjust according to the current market rate at the time.
Adjusted Cost Basis
The amount of profit or loss from a sale or exchange of a property. To calculate this amount combine the initial purchase and amounts paid for property improvements or additions. Then subtract deductions and any depreciation already claimed. Take that number and subtract that from the final sales price. For example: An investor buys a house for $100,000. She puts in $20,000 worth of improvements. She then sells the property for $200,000, making an adjusted cost basis of +$80,000.
Adjusted Gross Income (AGI)
(aka gross income) Includes everything an individual receives in a year including money, personal property, and real estate before tax or other adjustments.
Adjustment Cap
Limits the degree of how much interest rates can change during a certain period of time.
Adjustment Date
The date when the interest rate in an adjustable rate mortgage (ARM) changes.
Adjustment Period
The period of time between interest rate changes in an adjustable rate mortgage (ARM).
Adverse Possession
A method of ownership for land or property obtained by using it for a fixed period of time with the knowledge of the true owner without their objection. In California this time period is five (5) years.
Adverse Use
The use of someone else's property without their permission.
Agency
The relationship between two parties. For example: The relationship between a client and a Realtor, who negotiates transactions with third parties for the client.
Agreement of Sale
(aka contract or purchase agreement) A document signed by both seller and buyer of a property which approves the sales price, the addendums, and any other terms for the property sale. |
