Ancillary charges refer to additional rents incurred under a Triple-Net Lease to cover expenses such as Common Area Maintenance (CAM), real estate taxes, and insurance.
An annuity is a series of equal, or nearly equal, periodic payments or receipts. These payments could be for loans, investments, or pensions, providing a predictable stream of income over a specified period.
An appraisal is a professional opinion or estimate of the value of a property, which is conducted by a trained and certified appraiser.
In real estate and other facets of financial planning, a 'Beneficiary' is a person or entity designated to receive benefits or assets, such as proceeds from a life insurance policy, trusts, or estates.
Casualty insurance provides protection against the financial impacts arising from accidents, injuries, and legal liabilities, safeguarding both personal and business interests from unexpected losses.
A 'Claim' is a request for reimbursement for a loss covered by an insurance policy or a demand for something believed to be owed.
An escrow payment is part of a borrower's monthly mortgage payment that is set aside in an account to cover property taxes and insurance when they become due.
The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that provides deposit insurance to depositors in American commercial banks and savings institutions, ensuring the stability and public confidence in the nation's financial system.
Holding costs, also known as carrying costs, are the expenses incurred by owning and maintaining a property over a period of time until it is sold or put to productive use.
Indemnification refers to a contractual obligation typically found in insurance agreements where one party agrees to compensate the other for any potential loss or damage incurred. This concept is widely used to manage risk, particularly in real estate transactions.
Indemnify refers to the act of protecting another party against loss or damage, typically through compensation. This term is commonly used in insurance and real estate transactions to ensure that financial loss is mitigated.
Insurance provides protection against loss resulting from hazards such as fire and wind over a specified period. The property owner's risk is assumed by the insurer in return for the payment of a policy premium. It is a crucial element in real estate transactions and property management.
The intended use of an appraisal is a key element in the appraisal process, defining the purpose and context in which a property's market value assessment will be used.
A Net Lease is a type of lease agreement where the tenant agrees to pay not only the base rent but also additional costs associated with the property, such as taxes, insurance, and maintenance. This arrangement ensures that the landlord's rent receipt is 'net' of these expenses.
Principal, Interest, Taxes, and Insurance (PITI) are the four components typically included in a single monthly mortgage payment on an amortizing loan.
Prorate refers to the process of dividing or distributing an amount proportionately between parties, commonly used in real estate for allocating property taxes, insurance, or other periodic charges between the seller and buyer.
A rider is an amendment or attachment to an existing contract, often used to customize and modify the original terms of agreements in various domains, including insurance and real estate.
In real estate, risk refers to the potential for an investment to achieve lower or higher returns than expected. Effective risk management strategies, such as diversification and insurance, can mitigate associated uncertainties.
A Triple-Net Lease (NNN) is a commercial real estate lease agreement where the tenant is responsible for covering property taxes, insurance, and maintenance costs, in addition to the rent.
A Triple-Net Lease (NNN) is a type of lease agreement where the tenant agrees to pay all the operating expenses of the property, including property taxes, insurance, and maintenance, in addition to the rent.
An underwriter inspects and evaluates the level of risk associated with insuring loans, securities, and other types of investments, making decisions that can significantly influence lending practices, policy formulation, investment strategies, and risk management.
