What does Liabilities mean?

Liabilities are debts or obligations that a person or entity owes to another party. In real estate, liabilities might include mortgages, property taxes, insurance, or repairs and maintenance. When evaluating a real estate investment, it is important to consider not only the potential income that the property can generate, but also the potential liabilities, in order to determine the overall risk and return of the investment.

Related Terms

High-Rise Cancellation Clause Additional Rent Conditional Commitment Property Line Rural Housing Service Commission Curable Defect Maximum Financing Offer Bankruptcy Pest-Control Inspection Letter of Intent Low-Down-Payment Loan Replacement Reserve Fund Loan Origination Fee Blue-Ribbon Condition Shared-Appreciation Mortgage