An escrow agreement is a legal document that sets out the terms and conditions between the parties as well as the responsibilities of each of them.
Agreements typically involve an independent third party, called an escrow agent, who holds the asset until the terms of the contract are met.
Escrow agreements are commonly used in real estate transactions.
An escrow agreement will typically include, among other things, information about the identity of the escrow agent, the funds held in escrow, and the agent’s permitted use of the funds.
The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA).
A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
Effective gross income is calculated by adding the potential gross rental income to other income and subtracting the vacancy and loan costs of the rental property.
A land lease is a contract whereby the tenant can develop the property for the duration of the lease, after which it is transferred to the property owner.