Cost-plus Contract
Agreement in which the contract price to build something is equal to the total costs incurred plus a predetermined profit. The profit may be based on a percentage of cost (e.g., 20% of cost) or a flat profit figure (e.g., $60,000). This type of contract is not good for the buyer because the contractor may intentionally overstate the construction costs to obtain a higher profit figure when profit is determined based on a percentage of total costs. If the construction costs are $100,000 and the percentage of profit is 25%, the total contract price will be $125,000.
Popular Real Estate Terms
A reassessment or a reappraising is a decision or strategy made by the owner or the state or local authorities. The reassessment definition is a revision of an earlier assessment. Property ...
A minimum amount a lender is willing to provide on a commercial loan for a building designed to be tenant occupied. A floor loan is progressively funded as the building moves from the ...
Fee charged by a public registry for the administrative costs of recording an instrument. For example, a municipal registry charges $30 to record a property mortgage. ...
Standard days when an organization is open and conducts business. Business days exclude weekends and holidays. ...
Regional area from which a particular product or service can expect its greatest demand. For example, a retail department store expects to attract shoppers from a market area having a ...
Bottom of a frame such as a window sill. ...
Undeniably, some terms can make your head spin if you dive into real estate for the first time. Today, we’re breaking down a key term: Realtor Associate. It sounds official, ...
Many homebuyers or real estate investors only think of mortgages when it comes to financial aid in real estate purchasing. Lately, with the increasing desire of homebuyers to not be ...
Spread between girders or heavy walls. ...
Have a question or comment?
We're here to help.