Alternate names: owner’s affidavit, seller’s affidavit, owner’s declaration, borrower’s affidavit In real estate sales, the affidavit of title is signed by the owner of the property. It is used to protect the buyer from legal issues over ownership by giving them assurance from the seller that the property is free and clear of other claims of ownership to the title. Title companies often require an affidavit of title before they will provide title insurance....
That amount is added as a borrower’s “other income” on their loan application and is considered when a lender determines how much mortgage the borrower can afford. Alternate name: asset-based mortgage, asset dissipation mortgage, asset depletion underwriting, asset amortization underwritingAcronym: ADU For example, say you are self-employed and don’t have enough verifiable income to get a qualified mortgage, but you do have $1 million in eligible net assets. You can use your $1 million in assets to get an asset depletion mortgage....
Learn more about the details of how an interpleader works, and about the pros and cons of using one. Definition and Examples of Interpleader An interpleader is a legal procedure that determines the rightful owner of money or property claimed by two or more parties. Custodians of such money and property use the procedure when they face, or may face, multiple lawsuits from the claimants. Let’s say a person dies and three surviving family members claim to be the rightful beneficiary of the deceased person’s life insurance death benefit....
Certification of new Opportunity Zones began in 2018, based on the 2017 TCJA. There are more than 8,760 designated Qualified Opportunity Zones (QOZs) across all states, Washington, D.C., and five U.S. territories, most in low-income areas. The U.S. Department of Housing and Urban Development maintains a map and list of all Opportunity Zones. How Do Opportunity Zones Work? Individuals and businesses that invest capital gains from the sale of another investment into projects in Qualified Opportunity Zones (QOZs) receive specific tax benefits....
Learn more about what an appraised value is and why it’s so important when you’re buying or selling a home, or making decisions about home improvements. Definition and Example of Appraised Value The appraised value is a professional opinion of the market value of a property or item. Appraised values are subject to change. For example, the appraised value of a home one year may be different the next year because appraised values are based on the factors that could affect market value at a particular time....
For example, good credit signals to lenders that you are “creditworthy” or likely to be able to repay money you borrow. It instills confidence in lenders that they will get the loan principal plus any interest back from you, which makes you more likely to get approved for new credit (for example, a loan) with favorable terms, such as low interest rates or higher limits. In contrast, if your credit history suggests to lenders that you cannot repay your debts, you are said to have poor credit, which can hurt you when you apply for a loan, because lenders will have less confidence that you can repay it....
Over millions of years, the remains of these plants and animals were crushed and heated between layers of rocks and sand until they became underground pools of oil. We call this oil “crude oil” because it is not yet refined for use. Crude oil is both a fuel and a base for products. Oil can fuel jets, cars, heaters, and generators. Crude oil can be used to create petroleum products like tar, asphalt, paraffin wax, and lubricating oils....
Alternate names: Digital currency Bitcoin is the best-known cryptocurrency and the first industrial-strength version of the blockchain implementation. It was first introduced in 2009 through a white paper authored by Satoshi Nakamoto. The concept of a digital, decentralized, and secured payment system that does not depend on banks and other financial institutions has caught on.As of August 2022, there are more than 20,000 cryptocurrencies, with a global market value of over $1 trillion being traded on 502 exchanges, according to CoinMarketCap....
While not everyone agrees on the usefulness of knowing your dividend YOC, some investors like to calculate this number. Learn more about finding your dividend YOC and how it works. Definition and Examples of Dividend Yield on Cost Dividend YOC is the relationship between what an investment—such as a single company’s stock or an exchange-traded fund (ETF)—initially cost an investor and what it pays back in dividend income. Here’s an example....
For example, when a company decides to go public, it can’t immediately offer stock to investors however it wishes. Instead, it needs to follow certain securities laws in order to avoid gun jumping. When undergoing an IPO, companies need to follow rules such as Section 5 of the Securities Act of 1933, which involves registering and getting approval for the IPO from the Securities and Exchange Commission (SEC). How Gun Jumping Works Gun jumping works by companies or investors getting an unapproved headstart on an activity such as investing in an IPO....
Money can be liquid cash, balances in accounts at commercial banks, and time deposits like a certificate of deposit (CD), among other things. How Does Money Work? Because money is based on a social agreement, the actual currency used can be anything. It can be any sort of physical item, or it could be entirely electronic. While there’s a wide range of possibilities for what currency can be, most forms of money are recognizable by a common set of traits....
Nelnet is probably your servicer if it’s contacting you about student loans, but check and verify your student loan servicer on the Federal Student Aid website to gain peace of mind that these communications are legitimate. Definition and Example of Nelnet Nelnet is primarily a student loan servicer. It works directly with borrowers to manage and repay their loans. These loans are owned by the federal government. Nelnet contracts with the U....
It’s important to note that there is no gaurantee that a company will distribute all or some of the available earnings. There might be other financial circumstances such as expansions or other large investments a firm might need to make that require leftover capital. The corporation might make it a policy not to pay dividends. Income statements will not always make it clear how much income is available. In that case, you could check the company’s annual filing with the Securities and Exchange Commission, called a “10-K....
Personal property tax is different from “real” property (or real estate) tax that applies to homes, buildings, or land. The main distinction is that personal property refers to movable property or assets like vehicles, boats, equipment, or furnishings. Whereas real property only includes fixed or immovable structures or property. Each state or locality may have a slightly different definition of what constitutes taxable personal property and what items are exempt....
Pet insurance is health insurance for your pet. It can help cover vet bills when your animal gets sick or hurt, and more comprehensive plans include preventive care. Pet insurance is geared toward dogs and cats, so coverage is less commonly available for other types of animals. How Does Pet Insurance Work? There are two types of coverage offered by pet insurance plans: accident only, or accident and illness. The majority of pet owners go for the latter....
The Formula The profitability index is calculated by dividing the present value of future cash flows by the initial cost (or initial investment) of the project. The initial costs include the cash flow required to get the team and project off the ground. The calculation of future cash flows does not include the initial investment amount. The present value of future cash flows is a method of discounting future cash to its current value, and requires the implementation of the time value of money calculation....
Fiordaliso / Getty Images RTGS systems are usually managed at the national level by a nation’s central bank. They are limited to transactions between participants within the central bank’s country. RTGS is usually reserved for larger transaction amounts where it’s important to transfer the funds quickly. Availability of the service for specific types of customers also depends on the country. An example of an RTGS system is the one offered through the Reserve Bank of India....
Tax relief is often achieved through new rules that reduce how much you owe in taxes, such as by providing a tax exemption or a tax credit. It may also be done through rules that reduce the difficulty of filing or paying taxes, including by extending filing and payment deadlines. Tax relief can also refer to programs that assist you in managing and resolving back tax debts that you owe....
Let’s take a look at tenancy at sufferance, how it works, and what it means for you. Definition and Examples of Tenancy at Sufferance Landlords and their tenants typically have a specified lease that dictates the period for tenancy. Time ranges vary from six months to multiple years; the important thing is that these leases give the tenant the legal right to occupy the property. Once the lease has expired, however, the tenant is required to either sign a new lease or leave the property unless the two parties agree to a month-to-month arrangement, known as “tenancy at will....
Buy-and-hold is a passive investing style. Put simply, those who buy and hold feel that “time in the market” is more important than “timing the market.” It’s not easy to time the market perfectly, but it’s easy to hold on to a stock. How Does the Buy-and-Hold Strategy Work? The buy-and-hold strategy is very simple. You simply pick a stock or exchange-traded fund (ETF), buy it, and hold onto it for years, or even decades....
