Real Estate Definitions
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Offline Debit Card A card with traits from both ATM cards and credit cards (usually VISA or MasterCard). Banks issue this type of card either instead of or in addition to an ATM card. The card can be used anywhere the VISA or MasterCard logo is displayed, but a line of credit is not accessed -- the customer's chequing account is debited. It is "offline" because the account is not directly accessed -- there is a delay of 24 to 72 hours before the debit is made in the account. If you sign a slip of paper to complete the transaction, it is offline. In the Canada, a Personal Identification Number (PIN) may be required to use an offline debit card. On-Us Item A payment that is deposited at the same financial institution in which it was drawn or written. For example, a cheque that is written by one bank customer and deposited by the recipient at another branch of the same bank. These items are not cleared between institutions and therefore are not represented in statistics of payments exchanged between financial institutions in the clearings. One-year Adjustable A mortgage where the annual rate changes from year to year. The rate is based on movements of a published index plus a specified margin, selected by the lender. Online Banking The access of banking information and accounts to complete transactions using a personal computer or terminal through a financial institution's web site on the Internet. Also known as Internet banking. Online Bill Payment Online bill payment systems allow people to pay their bills electronically through the Internet as opposed to writing cheques and mailing them to creditors, or actually going into the bank. Using online bill payment is simple because clients log into their bank's website, enter the names of the creditors they want to pay along with the account numbers, and they can virtually pay all bills from the comfort of their own homes. Online Debit Card A method of payment in the form of a card that immediately deducts funds from a person's bank account when used. The card may have a VISA or MasterCard logo on it, or just the name of the bank that issued the card, similar to an ATM card. Open-end Lease A type of lease that offers lowers payments, but more risk to the lessee because he or she must pay the difference between the residual value of the automobile as stated in the lease and the fair market value, if lower, at the end of the lease. The lessor pays for the appraisal that determines the automobile's the value. If the lessee does not agree with the value, he or she can pay for an independent appraisal by an impartial third party. All parties must agree to the selected appraiser. Also know as a finance lease. Open House A low-pressure sales approach used by realtors to advertise a property that is for sale. The realtor invites potential buyers to drop by and see the property without making a formal appointment. Open Listing A property that multiple brokers can market and compete to sell for a commission. Open Mortgage A type of loan that can be paid off prior to maturity without penalty. Operating Loan A loan that is intended for short-term financing. This type of loan is often used for cash flow support or to cover operating expenses from day to day. Option A legal contract that permits the owner, depending on the type of option, to purchase, sell, or lease an asset at a set price for a specific time period. Options Features (or add-ons) that are added to a vehicle, often by the dealer, which can include a high-quality stereo system, anti-theft devices, detailing, and undercoating. Some options are for aesthetic purposes only, known as "mop and glow," and do not increase the value of the vehicle. Oral Agreement A verbal or spoken agreement. This type of agreement is legal, but because it is unwritten it is harder to prove. Ordinary Dividends The distribution of a company's profits that are subject to full taxation. Ordinary Income Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business. Original Principal Balance The amount of money borrowed from a lender. Origination Date The date on which a loan is funded. Origination Fee A fee charged by the lender to the borrower for processing a loan. The fee includes the costs for preparting loan documents, checking the borrower's credit history, inspecting the property, and conducting an appraisal if applicable. CanEquity tries to use lenders who do not charge this fee, but we will cover the cost in full if using such a lender necessary. Over-the-limit Fee A fee charged to a credit card holder for exceeding the allowable credit limit on the card. Overdraft The act of overdrawing a bank account. This means that the account holder wrote a cheque or withdrew funds greater than the available balance in his or her bank account. Also known as insufficient funds. Overdraft Annual Cost A fee charged by the bank to cover the overdraft feature on a client's chequing account. The client pays the fee even if the overdraft protection is never activated. This fee may be charged in addition to the one-time fee. Overdraft Minimum Amount The minimum amount that will be transferred to the client's account if a potential NSF (not sufficient funds) occurs. Overdraft Protection A bank service that links a chequing account to either a savings account or line of credit to provide protection against insufficient funds or overdrafts. Owner Financing A real estate transaction where the person selling the property lends the buyer all or a portion of the money for the purchase. Owner Occupant A borrower who occupies or lives in the property used as security or collateral for the loan. |
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