The term realized value refers to the amount received by a lessor when disposing of leased property. It can be defined in three ways:
Realized value is primarily used in the context of consumer leasing agreements. It plays a crucial role in determining the financial outcomes for lessors when a lease ends. This term is relevant in areas such as:
Users can manage related forms and procedures using legal templates provided by US Legal Forms, which can help simplify the process of lease agreements and their termination.
Here are a couple of examples of abatement:
Here are two examples to illustrate realized value:
Realized value is defined under the 15 USCS Appx 12 CFR § 213.2 (m), which falls under the Consumer Leasing Act. This regulation outlines the obligations of lessors regarding disclosures and the treatment of realized value in lease agreements.
| State | Realized Value Considerations |
|---|---|
| California | Requires specific disclosures regarding realized value in lease agreements. |
| New York | May involve additional consumer protections related to realized value. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Fair Market Value | The price that property would sell for on the open market. | Realized value is the actual amount received, which may differ from fair market value. |
| Lease Termination Value | The value associated with ending a lease early. | Realized value pertains to the end of the lease, while termination value may apply at any point. |
If you are a lessor or involved in a lease agreement, consider the following steps:
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Realized value refers to the amount received by the lessor for leased property, including sale price and highest offers.