Business Glossary-Term List

The capitalized cost of an asset, less depreciation taken for accounting purposes, based on the method used for the computing of depreciation over the useful life of the asset. The actual value of an asset after deducting depreciation and all liabilities is the "net book value."

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

See DEBT-TO-INCOME RATIO.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

The figure at which occupancy income is equal to all required expenses and debt service. Used to determine the amount of cash flow necessary to operate a residential or commercial property.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

In a retail lease, the point specified in absolute sales dollars or sales dollars per square foot, above which the tenant has agreed to pay percentage rent in addition to base rent. For example, in addition to base rent, a tenant may agree to pay 2% of annual gross sales above $2 million. In this case, $2 million is the breakpoint.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Certification Revoking List: If a certificate is no longer trustworthy (for example, because of a change in the status of the certificate holder, departure of the certificate holder from the company, or compromise of the holder�s private key), it can be revoked prior to its expiration date.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

In the cash or futures market, the specific rate security that can be purchased for the lowest total price and in sufficient quantity to meet the delivery requirements of a particular contract.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

The right of one agent to be the only one, other than the owner, who may sell the property during a period of time.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

The interval of time under a mortgage during which the loan cannot be prepaid.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

The costs which are incurred in order to purchase real estate. These may include points, taxes, settlement agent fees and more.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

The principal balance of all mortgages on the property (including second and third trusts) divided by the value of the property.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Office buildings, shopping centers, apartment buildings and other property which is utilized for the production of income rather than as residences. If residential real estate has more than four units it is considered commercial real estate.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

An agent�s compensation for negotiating a real estate or loan transaction, often expressed as a percentage of the selling price.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Any fee paid by a potential borrower to a potential lender for the lender�s promise to loan money at a specified date in the future. The lender may or may not expect to fund the commitment. In secondary marketing, a fee paid by the loan seller to the investor in return for the investor�s promise to purchase a loan or package of loans at a future date.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Expenses associated with the maintenance of the common areas.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

A shopping center with a gross leasable area of 100,000 to 300,000 square feet and classified between the smaller neighborhood center and the larger regional center.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Properties used for comparative purposes in the appraisal process that have similar characteristics to the subject property. Also called "comps."

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

A non-interest paying bank deposit maintained by the borrower that induces the bank to make credit available to the borrower on more favorable terms than would otherwise be available.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

A positive characteristic of a mortgage applicant which may offset a negative factor.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Interest computed on both the original principal and accrued interest.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

See COMPARABLES.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary