Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
In real estate deals, it is an agent who represents and owes allegiance and fiduciary obligations to the buyer.
A type of property in which owners hold title to the space they occupy in a multi-unit dwelling. The property is divided between living units and common areas such as parking lots, driveways, elevators, and recreation areas such as playgrounds and swimming pools. Common areas are collectively owned by all owners.
The process of converting rental apartments, which are leased by the occupants, into condominium units, which are owned by the occupants.
A situation in which an employer transfers an employee and pays moving expenses.
Repairs or maintenance that a buyer requests be done on a house before closing.
A tax deduction is an amount that the IRS allows you to subtract from your income before computing your income tax. If you have taxable income of $30,000 and deductions of $3,000, then you would figure how much tax you owe on the difference -- $27,000. People may take a standard deduction on federal income taxes, an amount established each year by the IRS for each filing status. Or, if they have a greater amount of deductions than the standard amount, they can deduct them by itemizing expenses on Schedule A. Typical itemized deductions include mortgage interest, some loan points, property taxes and state income taxes. Some other items -- such as alimony payments, moving expenses, deductible IRA and Keogh contributions -- may be deducted directly on the long Form 1040.
Your agent continues to represent you while another agent in the same firm represents the seller. Keep in mind that information can leak easily within an office.
Dual agent, multiple agent
A situation in which an agent shows prospective buyers a home listed by the real estate firm he works for. In most states it is illegal to represent both buyer and seller in a real-estate transaction unless both the buyer and seller give their written consent.
A relationship in which one person places confidence in another in regard to a particular transaction or one's general affairs or business. The relationship is not necessarily formally or legally established as in a declaration of trust but can be one of moral or personal responsibility.