What is the term for an amount owed to another party?

The term for an amount owed to another party is "debt." In financial contexts, debt refers specifically to the sum of money that one party is obligated to pay to another, typically due to borrowing. This can arise from various financial transactions, including loans, mortgages, or credit extended by suppliers.

When discussing real estate, understanding the concept of debt is crucial, as it often pertains to mortgages that buyers take on when purchasing property. Individuals or businesses must manage their debts to maintain financial health and creditworthiness.

While "liability" often overlaps with the concept of debt, it specifically refers to any financial obligation or legal responsibility one party has to another, which can include debts but also encompasses other obligations that may not involve borrowing. Therefore, in this specific context, "debt" is the most precise term to describe an amount owed to another party.