At Equity Real Estate we know that real estate terms can sometimes be confusing. We are going to share with you some common real estate terms and their meanings to help give you a greater understanding when you are trying to buy or sell a home.
*Liability 1. A debt or financial obligation. Contrast with asset.
Example: One who borrows $75,000 for a mortgage loan incurs a liability to repay that loan.
Example: A general partner in a partnership has a personal liability for debts of the partnership in the event the partnership cannot repay it's debt.
2. a potential loss.
Example: One should purchase sufficient liability insurance to protect against possible legal claims of someone who gets injured on ones property.
At Equity Real Estate we are here to help you navigate the home buying and selling process. Give us a call with any questions!
*Barron's Real Estate Guides; Dictionary of Real Estate Terms