In real estate finance, the Effective Interest Rate is the true percentage of interest a borrower pays for the use of borrowed money. It reflects the actual cost of the loan after considering factors such as discount points, fees, loan structure, and the timing of...

In real estate, Effective Age refers to the age of a structure as indicated by its physical condition and utility rather than by the actual number of years since it was built. A well maintained building with modern updates may have an effective age that is lower than...

In real estate, Economic Rent refers to the rental income a property could command in the open market at a given time, based on current supply and demand conditions. It represents the fair market rental value of the property, regardless of the rent actually being...

In real estate, Economic Obsolescence refers to a loss in a property’s value caused by external economic or environmental factors rather than by physical deterioration or defects within the property itself. These factors are typically outside the property owner’s...

In real estate, Economic Life refers to the period during which an improvement on a property contributes value and can be operated profitably. It represents the time span in which the structure adds more value to the property than the cost of maintaining or operating...

In real estate, an Easement is a legal right to use or access the land of another for a specific purpose, without possessing or owning that land. Easements may be created by grant, reservation, agreement, prescription, or by necessary implication, and they allow...

In real estate, Earnest Money is a deposit made by a buyer at the time an agreement of sale is signed to demonstrate good faith and serious intent to purchase the property. The funds are typically placed into an escrow account held by a neutral third party until the...

In real estate and contract law, Duress refers to unlawful pressure or constraint placed on a person that forces them to act against their free will. This pressure may involve threats, intimidation, or other improper conduct that deprives the person of the ability to...

In real estate finance, a Due on Sale Clause is a provision in a mortgage or deed of trust that allows the lender to require immediate payment of the remaining loan balance if the property is sold or transferred. This clause prevents a borrower from transferring the...

In real estate, Dual Agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. In this situation, the agent works with opposing principals at the same time and owes fiduciary duties to both parties....