Real Estate Glossary

  • Accepted Offer – An offer of terms to purchase property that was agreed upon by the seller and buyer regarding the price and conditions stated on the offer. At this time the property is now considered “under agreement”.
  • Agency Relationship – Law that requires the agents to inform the buyer and/or seller of proper relationship representation in a transaction.
  • Appraisal (Value) – An opinion of a property’s fair market value, based on a licensed appraiser’s knowledge, experience and analysis of the property.
  • Assessed value - The valuation placed on property by a public tax assessor for purposes of taxation.
  • Bill of Sale – A written document that transfers title to personal property.
  • Broker – A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.
  • Buyer’s Agent – A licensed real estate agent who represents the buyer in a transaction. In most cases a contractual Buyer’s Agreement has been signed by agent and buyer indicating what the agent will do for the buyer, the fee in which the agent will be paid for services, and the length of time that the agreement is valid and any other terms of the agreement.
  • Clear title – A title that is free of liens or legal questions as to ownership of the property.
  • Closing – A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called “settlement.” At this meeting, ownership of the property is transferred from the seller to the buyer.
  • Closing costs – Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney’s fee, taxes, an amount placed in escrow and charges for obtaining title insurance and a survey. Closing costs percentage will vary according to the area of the country; lenders or REALTORS® often provide estimates of closing costs to prospective homebuyers.
  • Commission – The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is generally a percentage of the price of the property or loan.
  • Commitment letter -A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. Also known as a loan commitment.
  • Condominium – A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project and sometimes the exclusive use of certain limited common areas.
  • Contingency – A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
  • Deed – The legal document conveying title to a property
  • Deposit – A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.
  • Designated Agency – When an agent specifically represents a buyer or seller in a transaction.
  • Down payment – The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
  • Commercial Property- Property that is zoned commercial (businesses) and Multi-families that consist of 4 or more units.
  • Earnest money deposit -A deposit made by the potential home buyer to show that he or she is serious about buying the house. Accompanied by Offer and signing of P&S.
  • Easement – A right of way giving persons other than the owner access to or over a property
  • Escrow – An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
  • Foreclosure – Procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default in payments or terms.
  • FSBO (For Sale By Owner) – A property owner who has their own property on the market for sale. The house is not listed with a real estate agency.
  • Home inspection - thorough inspection that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.
  • Homeowners’ association – A nonprofit association that manages the common areas of a development or condominium complex.
  • HUD-1 statement – A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller’s net proceeds and the buyer’s net payment at closing. The blank form for the statement is published by the Department of Housing and Urban Development (HUD). The HUD-1 statement is also known as the “closing statement” or “settlement sheet.”
  • Income (Investment) property -Real estate developed or improved to produce income.
  • Investment property – A property that is not occupied by the owner.
  • Listing- Property that is for sale.
  • Listing Agent – A licensed salesperson/broker who has a contractual agreement with the owners of a property to represent them in the process of selling their property. The contract consists of how the agent will promote the sale of the property, the fee in which the agent will be paid when the property closes, the length of time that the agreement is valid and any other terms of the agreement.
  • Listing Contract – A contractual agreement with the owners of a property to represent them in the process of selling their property. The contract consists of how the agent will promote the sale of the property, the fee in which the agent will be paid when the property closes, the length of time that the agreement is valid and any other terms of the agreement.
  • Loan – A sum of borrowed money (principal) that is generally repaid with interest.
  • MLS (Multiple Listing Service) – A network of listings which allows agents listings to be “advertised” to other agents who are MLS members. Strict rules and regulations must be followed which are administered by the Board of Realtors that is affiliated with that particular MLS system. (www.mlspin.com)
  • Mortgage – A legal document that pledges a property to the lender as security for payment of a debt.
  • Mortgagee – The lender in a mortgage agreement.
  • Mortgage Application – A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security. Lenders use the information on the loan application to evaluate whether or not they can give the loan, and if so, the amount of money they can lend
  • Mortgage banker – A company that originates mortgages exclusively for resale in the secondary mortgage market.
  • Mortgage broker – An individual or company that brings borrowers and lenders together for the purpose of loan origination. Mortgage brokers typically require a fee or a commission for their services.
  • Mortgagor – The borrower in a mortgage agreement.
  • Offer- A legal document in which a buyer offers a certain price for a property under the terms stated on the offer by the buyers.  Offers are presents with a monetary deposit to show the seller that you are serious about purchasing the property. (Also see accepted offer)
  • Open house – A marketing tool in which a listing agent opens a house for viewing to the public.
  • Point – A one-time charge by the lender for originating a loan. A point is 1 percent of the amount of the mortgage.
  • Pre-qualification – The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan.
  • Principal, interest, taxes and insurance (PITI) – The four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance
  • Private mortgage insurance (PMI) – Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
  • Purchase and sale agreement -A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. An additional deposit from the buyer is escrowed at this time (usually in the amount of the real estate commission fee)
  • Radon – A radioactive gas found in some homes that in sufficient concentrations can cause health problems.
  • Real estate agent (Salesperson)A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
  • Real property – Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals and the interest, benefits and inherent rights thereof.
  • REALTOR® – A real estate broker or an associate who holds active membership in a local real estate board that is affiliated with the NATIONAL ASSOCIATION of REALTORS®. A REALTOR® can be engaged in any aspect of the real estate profession including: selling, buying, exchanging, renting or leasing, appraising, counseling, financing, building, and developing.
  • Registry of Deeds – Houses all permanent public records of all properly drawn legal documents submitted by the public relative to real estate including deeds, mortgages, surveyor and architect plans, liens, Certificates of Title, and other records as mandated by statute.
  • REO (Real Estate Owned) – Real Estate Owned. Property which is in the possession of a lender as a result of foreclosure or forfeiture.
  • Right of first refusal – A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
  • Showing of a listing – When a potential buyer tours a property for sale.
  • Short Sale – A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
  • Subdivision – A housing development that is created by dividing a tract of land into individual lots for sale or lease.
  • Title- A legal document evidencing a person’s right to or ownership of a property.
  • Transaction – A listing is considered a transaction starting from when there is an accepted offer on it. The status of the listing now becomes under agreement.
  • Under Agreement – When a listing has an accepted offer on it the status becomes under agreement. The property is no longer marketable.

 

 

 

The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.

Terms Of Use | All Rights Reserved by Landmark | No use without prior written authorization
Web Design by Kristian Themstrup · Powered by WordPress and Genesis