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Agent
Agent. A person legally authorized to act on the behalf of another.
Adjustable Rate Mortgage
Adjustable Rate Mortgage (ARM). A mortgage loan which allows the lender to adjust periodically the interest rate. Such changes generally come after some initial time period during which the rate is fixed, and are tied to an index such as the Treasury Bill rate or the six-month LIBOR.
Ad Valorem Tax
Ad Valorem Tax. A tax levied against real property based upon its assessed value.
Acceleration Clause
Acceleration Clause. A provision in a loan which, upon certain events such as a default or a transfer of the property in violation of the due-on-sale clause, allows the lender to demand all sums owed by the borrower to be immediately due and payable.
Assignment Fee
Assignment Fee. A fee paid when the rights under a purchase and sale agreement are transferred from one person to another. In practice, an assignment fee is paid when one investor gets a property under contract and then transfers that contract to another investor. The second investor then purchases the property pursuant to the terms of the assigned contract. The fee is either paid at the time of assignment or at closing. Assignment fees are typically only paid in investor-to-investor wholesale deals which are funded either by hard money or cash.