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Turnkey Cost- Costs and
expenditures that must be covered before a product or service is ready to be
sold and used. A turnkey cost may be a direct cost, such as materials, or an
indirect cost, such as administrative expenses and product engineering. Turnkey
costs are often quoted by manufacturers and real estate developers to describe
the costs required to complete a particular project.
Real Estate Investment Trust -REIT-A security that sells like a stock
on the major exchanges and invests in real estate directly, either through
properties or mortgages. REITs receive special tax considerations and typically
offer investors high yields, as well as a highly liquid method of investing in
real estate.
Underwater
Mortgage -A home
purchase loan with a higher balance than the free-market value of the home.
This situation prevents the homeowner from selling the home unless s/he has
cash to pay the loss out of pocket. It also prevents the homeowner from
refinancing in most cases. Thus, if the homeowner wants to sell the home
because s/he can't afford the mortgage payments anymore, perhaps because of a
job loss, the home will fall into foreclosure unless the borrower is able to
renegotiate the loan.
Gazunder -A colloquial term used in the
United Kingdom for the practice of a buyer lowering his real estate purchase
offer below his previous offer when the transaction is already well under way.
A gazunder typically happens when the market is weak and/or when the seller is
coming from a position of weakness. "Gazundering" is not illegal, but
many people consider it unethical. The seller may be forced to accept the lower
price if it is a better option than continuing to pay the carrying costs on the
property or continuing to hold it in a declining market.
Tenants
By Entirety (TBE)
-A method in some states by which married couples can hold the title to a
property. In order for one spouse to modify his or her interest in the property
in any way, the consent of both spouses is required by tenants by entirety. It
also provides that when one spouse passes away, the surviving spouse gains full
ownership of the property.
