Monday, March 23, 2009

Definition For The Day

Here is a word that comes up from time to time, and buyers and sellers -- particularly investors involved in a 1031 tax-deferred exchange -- have wanted to better understand what it means.

The phrase is: "Subject To"

Here are two definitions:

a. The act of acquiring property with the existing financing and without formal assumption.

b. A term in a contract creating a condition which must be satisfied prior to the close of the transaction.

As an investor, be sure you are working with an experience agent who understands the intricacies of commercial/investment real estate.

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