Progress Payments
In a construction loan, payments made to a contractor as the various construction stages are completed. The contractor uses progress payments to pay the various subcontractors and suppliers as construction proceeds. For example, a bank gives a contractor a $125,000 construction loan. It pays $30,000 to the contractor upon the purchase of a building lot, and then pays additional progress payments of $25,000 upon the completion of the foundation, and $20,000 upon the completion of the framing in process, another $20,000 upon the completion of the plumbing and wiring, $10,000 upon the completion of the roof and the final payment of $20,000 upon the completion of the structure.
Popular Real Estate Terms
Latin term meaning something in exchange for something else. For example, a person rushes through an order for another in return for having first choice in selecting a parcel of ...
Latin term meaning legal capacity to act on behalf of oneself. ...
Records maintained as evidence of ownership of the home and any of its contents. ...
An Act, passed by congress in order to prevent the practice of redlining and disinvestments in central city areas. Redlining is a practice in which lenders refuse to make loans in certain ...
Extended area of land commonly held for subdividing and development into residential units. ...
A provision not explicitly stated in an agreement, but considered as an important item. For example, the buyer of a home anticipates it to meet seller's claims as to condition and use. ...
Amount invested in property in cash. ...
Increase in the value of property caused by inflation. For example, John buys a home for $150,000. Because of inflation, the home is worth $200,000 five years later. The inflation equity in ...
Local zoning law or private limitation on how far in feet a structure might be situated from the curb or other appropriate marker. ...
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