Bank Letter
Definition of "Bank letter"
(1) Provided by a commercial or savings bank to the real estate company itself or to another party for documentation purposes. Such a letter may be needed by a prospective condominium owner to document his/her bank balance for a condominium board deciding whether to accept him/her; also a prospective tenant in a forthcoming shopping mall may request the real estate developer to provide such a letter to confirm his/her assertions of financial stability complete the mall. (2) Letter of credit promising the future availability of financing under a line of credit.
Popular Real Estate Terms
Highest amount a property is worth equal to the amount that would have to be paid to buy equivalent property in the market place. ...
Maximum interest rates a borrower might pay for an adjustable rate mortgage. It controls the amount of change in the rate when it adjusts. The first number is the maximum increase allowed ...
An affiliate of the National Association of Real Estate Boards, engaged in educational programs and publications for its members. Its publications include Real Estate Perspectives and Real ...
Prepayment to a landlord for refurbishing the unit beyond what would be anticipated from customary wear and tear. It is like a damage deposit. The security deposit may be refunded at the ...
Fee a borrower is assessed for the right to make a loan payment before the due date. An example is the prepayment charge for paying-off a mortgage early. ...
Partially amortized and requiring a lump sum (balloon) payment at maturity. ...
The amount of rent a property could command in the open market. See also market rent. ...
Right to enter and start construction or furnishing property that is in the process of being purchased. ...
The definition of cooperative housing is well known by real estate agents because they are often involved in the selling process, in most cases. Cooperative housing is a form of ...
Have a question or comment?
We're here to help.