Definition: the notebook of written rules and regulations that set desired standards and procedures in an office Pronunciation: Used in a Sentence: It is important that a broker has a policy manual in the office so that agents know what is expecte..
Category : P
Definition: when the benefits from borrowing funds exceed the costs of borrowing them Pronunciation: \ˈpä-zə-tiv, ˈpäz-tiv\ \ˈle-və-rij\ Used in a Sentence: An investor wants an investment property that will produce a cash flow in excess of the cost of borrowing the funds, or a positive..
Definition: the total annual income a property would produce with 100% occupancy and no collection or vacancy losses Pronunciation: \pə-ˈten(t)-shəl\ \ˈgrōs\\ˈin-ˌkəm\ Used in a Sentence: Because the apartment building had a high PGI we decided to pu..
Definition: a written instrument authorizing a person to act as the agent on behalf of another who may not be present Pronunciation: \ˈpau̇(-ə)r\ \ə-ˈtər-nē\ Used in a Sentence: When my husband could not be at the closing he designated me as his power of attorney to sign the ..
Definition: a final walk-through with the sales associate to verify that any repairs have been completed and the property is in good condition Pronunciation: \in-ˈspek-shən\ Used in a Sentence: We had the pre-closing inspection before going to the bank for th..
Definition: a provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of time without penalty Pronunciation: \(ˌ)prē-ˈpā-mənt\ \ˈklȯz\ Used in a Sentence: Since we had a prepayment clause in our mortgage we were able to pay off our mortgage early without an..
Definition: the amount set by the creditor as a penalty to the debtor for paying off the debt before it matures Pronunciation: \(ˌ)prē-ˈpā-mənt\\ˈpe-nəl-tē\ Used in a Sentence: A prepayment penalty is charged by a lender to recoup a portion of interest the lender planned to earn when the loan..
Definition: the worth of all future benefits of an investment in terms of today’s dollars Pronunciation: Used in a Sentence: When comparing the two properties we reviewed the present value of both to determine which would be the better i..
Definition: the amount of money actually paid for an item in a transaction Pronunciation: Used in a Sentence: The actual sale price of the house was..
Definition: the illegal practice of conspiring to establish fixed prices or fees for services rendered or goods sold; brokers conspiring to establish a standard commission rate Pronunciation: Used in a Sentence: Brokers setting a fixed commission rate is an example of pri..