What is the term used for the value of real property minus any mortgage owed?

The term that refers to the value of real property minus any mortgage owed is referred to as net consideration. This represents the equity a property owner holds in their real estate after accounting for any outstanding debts secured by the property, such as a mortgage.

In real estate, equity is an important concept because it reflects the owner's stake in the property; it is the portion of the property that they truly "own." For instance, if a home is valued at $300,000, and the owner has a mortgage of $200,000, the net consideration or equity in the property would be $100,000.

This term is specifically focused on the net worth that a property owner possesses in relationship to their property, making it distinctly different from terms like market value, which denotes the price that a property could fetch on the open market, or gross consideration, which encompasses all monetary aspects related to the property without deducting any liabilities. Thus, net consideration accurately captures the essence of property value in relation to indebtedness.