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Real Estate Glossary

What is Liabilities?

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.