Entries for April, 2011

What is Mutual Assent?

Mutual assent refers to an agreement that is indicated by an offer and accepted terms.  The parties must come to a meeting of the minds, meaning they must reach an agreement on all terms in the contract.   One party (the offeror) makes an offer, and the other party (the offeree) accepts that offer.  A complete [...]

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What is Consideration?

Consideration is a legal concept which means something of value that is given in exchange for something else.  People often think of consideration as the money exchanged by the parties.  Legally, however consideration is the obligation that each party makes to the other to make the contract enforceable.   Each party to the contract must obligate himself/herself by [...]

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What is Depreciation?

Depreciation is the loss in value caused by things such as wear and tear, poor design, or the structure’s surroundings.  Accrued depreciation is the total depreciation that has accumulated over the years. Depreciation can be curable or incurable.  Curable depreciation occurs when a building component has been added or repaired and the owners are able [...]

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What is Loan-to-value Ratio?

The loan-to-value (LTV) ratio is the relationship between the amount borrowed and the appraised value (or purchase price) of a property.  Lenders use this ratio as the measure of financial risk associated with lending and borrowing money.  The higher the LTV ratio, the lower the lender’s safety cushion, should the borrower default. The loan amount [...]

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What is an Elective Share?

In Florida, an elective share is defined as 30% of the decedent’s net estate consisting of real and personal property.

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What is Tenancy in Common?

When two or more persons wish to share the ownership of a single property, they may choose to do so as tenants in common.  Tenants in common may acquire title at different times or at the same time.  As tenants in common, each owns an “undivided interest” in the proeprty.  An undivided interest is interest [...]

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What is a Cooperative (Co-op)?

A cooperative, cooperative association, or co-op is normally organized as a corporation.   The corporation holds title to the land and improvements.  Authority and control of the corporation may be vested in an elected board of directors or trustees.  Some apartments may be more expensive than others, depending on size and location.  The owners puchase shares [...]

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What is an Estate In Severalty?

An estate in severalty is when title to property is held by one person or sole ownership.

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What is a Leasehold Estate?

A leasehold estate is an interest in real property that is measured in calendar time.  Leasehold estates are not freehold estates because they do not exist for an indefinite period of time.   Leasehold estates are considered nonfreehold or less-than-freehold estates. There are 3 times of leasehold estates: Estate for years:  An estate for years is [...]

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What is a Freehold Estate?

A freehold estate is an ownership interest for an indefinite period of time.

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