Definition: The risk that arises from the constant change in the business environment and thus dynamic risk cannot be transferred to an insurer.
Pronunciation: \dī-ˈna-mik\ \ˈrisk\
Used in a Sentence: The slow down of the economy was a dynamic risk that affected the store’s sales volume.
Definition: An acceleration clause found in most mortgage loans, requiring the mortgagor to pay off the entire mortgage debt when the property is sold.
Used in a Sentence: When we sold the house the due-on-sale clause specified that the balance of the mortgage needed to be paid in full.
Definition: A situation where an agent (or agency) represents both principals in a transaction. (not a legal agency relationship in Florida).
Pronunciation: \ˈdü(-ə)l\ \ˈā-jən(t)\
Used in a Sentence: It is illegal for a real estate licensee to operate as a dual agent in Florida.
Definition: A portion of the purchase price paid prior to closing the transaction. Earnest money may be either part of or the entire down payment.
Pronunciation: \ˈdau̇n\ \ˈpā-mənt\
Used in a Sentence: By making a larger down payment, we were able to get a lower payment on our loan.
Definition: A window consisting of two sashes that move up and down in a pair of channels and are held open by tension springs.
Used in a Sentence: Because only half of a double-hung window can be opened at one time they provide less ventilation than other types of windows.
Definition: A window that is in a part of a building that sticks out from a slanted roof. Used to provide additional headroom, light and ventilation to an upstairs room.
Used in a Sentence: The builder added a dormer window to the upstairs bedroom so that there was more headroom.
Definition: The diversion of savings from accounts with low fixed interest rates to direct investment in high-yielding instruments, ie stocks, money market funds and other securities.
Used in a Sentence:
Definition: The amount of interest the Federal Reserve charges to lend money to its qualified banks.
Pronunciation: \ˈdis-ˌkau̇nt\ \ˈrāt\
Used in a Sentence: The discount rate was lowered by the Federal Reserve to help stimulate loans.