Real Estate Glossary Terms

• Percentage-of Completion Method

  Recognizes profit on a long-term construction contract as it is earned gradually during the construction period. This approach is preferred over the completed contract method because it does a better job of matching revenue and expense in the period of benefit. It should be used when reliable estima ...

• Charitable Remainder Annuity Trust

  Special type of charitable remainder trust (CRT) under which a designated beneficiary (cannot be a charitable beneficiary) receives an annual fixed income. The grantor of the trust is allowed an income tax deduction of the amount of the present value of the charity's remainder interest as of the dat ...

• Disability Income Rider

  Addition to a life insurance policy stating that when an insured becomes disabled for at least six months, premiums due are waived. Depending on the rider, the insured may begin to receive a monthly income (usually 1 % of the face value of the policy), or only the premium may be waived. The length o ...

• Income Replacement Ratio

  Percentage of income required by a retiree to maintain a desired standard of living during the retirement years. ...

• Indexed Securities (structured Notes)

  Bond derivatives of short-term duration whose principal or coupon value is determined by a market index. Market indexes that can be utilized include securities, commodity prices, and short-term bond rates. ...