Capital Lease
Rental in which the lessee obtains major property rights. Although not legally a purchase of property, theoretical substance governs over legal form and requires that the leased property be recorded as an asset on the lessees books. The asset equals present value of the minimum lease payments and the present value of the bargain purchase option. A capital lease exists if any one of the following four criteria is met: (1) the lease transfers ownership of the property to the lessee at the end of the lease term; (2) there is a bargain purchase option; (3) the lease term is 75% or more of the life of the property; and (4) the present value of minimum lease payments equals or exceeds 90% of the fair market value of the property.
Popular Real Estate Terms
Glass containing wire support to make it stronger. There is less chance of glass being broken into pieces and hurting people. ...
The United States has a law named “eminent domain” that grants local, state, or federal government the right to take ownership of a private property with or without the consent ...
Subdivided acreage with utilities usually situated within or adjacent to established communities. ...
A rule that the price of a house should not exceed about 2 to 2.5 times your family's gross annual earnings. Example : If annual gross income is $70,000, the highest price one could afford ...
Value that a speculator believes an investment will reach at some point in the future. ...
Owner of land allowing another to use space under the ground, such as to install a sewer or gas line. ...
Financing of a home based on how much equity the homeowner has in it. The interest rate is typically a variable one. ...
Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...
To obtain the right through authorization to act as a legal representative and agent for another. ...
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