Categories: Real Estate

Value Date

In real estate, the term “value date” can refer to the date on which a financial transaction or exchange of funds is considered to have a specific value or effect. It is the date from which the financial calculation or adjustment is made.

Understanding value date in detail

The term value date can be significant in many areas of real estate. Given here is a brief discussion of the same.

Purchase and Sale Transactions – The value date in real estate can be the date when ownership of the property transfers from the seller to the buyer, marking the exchange of the property’s value.

Mortgage or Loan Disbursements – The value date is used as the date when loan funds are released to the borrower, initiating the interest accrual and repayment period.

Rental Payments – The value date can also be the due date for rental payments, indicating when the landlord considers the rent as received and applicable to the specific period.

Interest Calculation – The value date determines the starting point for accruing interest on real estate loans or obligations, influencing interest payment calculations.

Akshatha Sajumon

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Akshatha Sajumon

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