Common use of Net Appreciation Clause in Contracts

Net Appreciation. The amount of the Resale Price of a Workforce Housing Unit, less the total amount of: (i) the original principal amount of the first mortgage loan on the unit, (ii) the principal amount of the workforce housing deed of trust note on the unit, (iii) closing costs actually paid by the Eligible Buyer in connection with the purchase of the unit, (iv) the Eligible Buyer’s down payment, (v) the appraised value of any capital improvements approved by the Director of housing and Neighborhood Preservation, and (vi) the reasonable and customary sales commission paid by the Eligible Buyer.