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
Founded in 1947 and located in Washington, DC, the NAREB has 7,500 members with 15 regional groups and 6 state groups. It offers certification programs for members of the real estate ...
An interim or provisional court decree, which is not final and can be reversed or amended, normally issued to direct additional proceedings prior to issuing a final decree. For example, an ...
Supervisor of the operation of apartments while residing in one of the apartments. Some responsibilities include showing vacant apartment to prospective tenants and assuring that the ...
North-south lines that encircle the earth and used as references in mapping land. ...
Federal tax legislation notably establishing 10% withholding on interest and dividends. ...
Conversion of a rental apartment house to individual condominium ownership of a portion of the minimum ownership of a portion of the building. Often, the tenant is given an opportunity to ...
An offering of securities, stock and/or debt, directly to investors rather then through the public exchange markets. An advantage of a private placement to a real estate business is that ...
The term effective interest rate is the actual return from a savings account or any investment where you pay interest when considering the effects of compounding costs over time. Through an ...
Annual Percentage Rate (APR) is a measure of the cost of credit that must be reported by lenders under the Truth in Lending regulations. The Annual Percentage Rate (APR) takes into ...
Have a question or comment?
We're here to help.