Category Archives: Term of the Day

Term of the Day: Debt Service

The debt service includes the interest payments on debt and principal payments to retire debt. For the purposes of accounting, interest payments are considered to be expenses while principal payments are considered to be capital expenditures.

Term of the Day: Closing

Closing refers to the act of transferring the ownership of the property from the seller to the buyer in accordance with their mutual contract. However, the period when the closing takes place is also known as closing. It is the final stage in the sale of a real estate property when representatives of the buyer…

Term of the Day: Carrying Cost

The carrying cost is related to the retention of an asset that is under development or construction. These costs include interest and realty taxes and are usually added to the capital of an asset.

Term of the Day: Building Codes

Building codes are regulations established by local authorities describing the minimum structural requirements for buildings and include foundation, roofing, plumbing, electrical and other specifications for safety and sanitation.

Term of the Day: Betterment

Betterment is the improvement of a real property that includes the sidewalk of a road which can increase the value of the property. The term is frequently applied to public improvements. However, in appraisal terminology, it is equally applicable to any fixed improvement which enhances value.