Home
/
Learning Hub
/
Real Estate Dictionary

Real Estate Dictionary

What is AMI in Real Estate?

AMI (Area Median Income) in real estate is the median household income for a specific area, used by HUD to determine eligibility for affordable housing programs, rent limits, and homebuyer assistance based on income tiers (e.g., 30%, 50%, 80% of AMI).

February 2, 2025

What is an NNN Lease in Commercial Real Estate?

An NNN (Triple Net) Lease is a commercial lease where the tenant pays property taxes, insurance, and maintenance costs in addition to base rent, reducing the landlord’s financial responsibility while giving the tenant more control over expenses.

February 2, 2025

Can Real Estate Investors Have Keogh Plans?

Keogh plans can be used by real estate investors only if they have self-employed (active) income rather than passive rental income, although many choose simpler alternatives like SEP IRAs or Solo 401(k)s.

January 26, 2025

What is a Growing-Equity Mortgage (GEM)?

A Growing-Equity Mortgage is a home loan with a fixed interest rate whose payments increase at scheduled intervals, enabling faster principal reduction, quicker equity buildup, and potentially lower overall interest costs.

January 26, 2025

What is a Due-on-Sale Clause?

A due-on-sale clause (sometimes called an alienation clause) is a provision commonly found in mortgage or deed of trust contracts. It grants the lender the right to demand full repayment of the outstanding loan balance when the property is sold or transferred to another party.

January 26, 2025

What is the Equal Credit Opportunity Act (ECOA) as it Relates to Real Estate?

The Equal Credit Opportunity Act ensures fair lending in real estate by prohibiting creditors from discriminating on the basis of protected characteristics throughout the mortgage and financing process.

January 26, 2025

What is a HUD-1 Settlement Statement?

The HUD-1 Settlement Statement is a standardized form that itemizes all costs in a real estate closing for both buyer and seller, largely replaced by the Closing Disclosure except for reverse mortgages and certain exempt transactions.

January 26, 2025

What is a Change Order in Construction?

A change order in construction is a formal, written modification to the original contract between a project owner (client) and a contractor. It specifies adjustments to the scope of work, cost, schedule, or other contract terms that weren’t included or fully detailed in the initial agreement.

January 26, 2025

What is a Loan Assumption?

A loan assumption is when a new borrower, subject to lender approval, takes over an existing mortgage (with its current terms and interest rate), potentially saving on interest and closing costs but requiring careful consideration of liability release and any equity differences.

January 26, 2025

How to Determine if There's Asbestos in an Apartment Building

To determine if there’s asbestos in an apartment building, review the construction date and renovation history (especially if it predates the 1980s), look cautiously for aging or damaged materials, hire a certified inspector to safely test suspected areas, and if necessary, arrange for professional abatement or encapsulation.

January 26, 2025
Still have a question? Contact us
24×7 help from our support staff
Popular topics
What is a Drive-By Appraisal?
What is a Cloud on Title?
What is Accumulated Depreciation in Real Estate?
What is fancy apartments?
What are my rights if I rent a room in a house?
HelloData hand logo market surveys

Make real-time data your competitive advantage!

Schedule a demo below to see our multifamily analytics platform and APIs in action.

Schedule Demo7-Day Free Trial