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
Claim of a person or business to real property such as by exercising an option. ...
Combination of two or more real estate brokerages into one, with only one company retaining its identity. Typically, the larger of the two companies is the company whose identity is ...
See ordinary annuity. ...
A loan that is to be replaced by a permanent loan. ...
Principle stating that all joint tenants must acquire their interest from the same deed or will. ...
Founded in 1969 and located in West Palm Beach, FL, NACORE has 3,273 members. Its members consist of anyone managing, administering and/or operating regional real estate departments for ...
Accounting statement at the settlement of a real estate transaction that shows each item charged or credited, to whom, and for how much. ...
Legally proper instrument under seal that transfers title to real property from the seller to buyer. ...
Fund set aside for periodic payments, aimed at reducing a financial obligation taken out to buy real estate, or to accumulate enough funds to buy property or plant expansion. The principal ...
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