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JOINT VENTURE The joining of two or more people in a specific business enterprise such as the development of a condominium project or a shopping center. OFFSITE COSTS Costs such as for sewers, streets, utilities, etc., which are incurred in the development of raw land, but are not connected with the actual construction of the buildings(onsite costs). OPTION An agreement to keep open, over a set period, an offer to sell or purchase property. NOTE A document signed by the borrower of a loan, stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay. The note is the evidence of the debt. When secured by a mortgage, it is called a mortgage note. PREPAYMENT PENALTY The amount set by the creditor as a penalty to the debtor for paying off the debt prior to its maturity. The prepayment penalty is charged by the lender to recoup a portion of interest that he had planned to earn when he made the loan. |
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