Following is a list of common real estate terms that you might find useful as you go through the selling or buying process:
Agent: An person who represents a seller, a buyer (or both) in the sale or purchase of real estate.
Appraisal: An estimate of the value of a Real Estate property by a professional whose job it is to evaluate such things.
Assessment: The value of a property as calculated by the local tax jurisdiction. This assessment is then used to determine the amount of property taxes the property owner is due to pay.
Buyer's Agent: A Real Estate Agent who has made an agreement to represent the buyer exclusively, rather than representing the seller.
Closing: This is the process that results the final transfer of the deed from the seller to the buyer. Closing also finalize all aspects of the mortgage of the property.
Closing Costs: The funds required at the time of closing. Closing costs can include: loan origination fees, discount points, recording fees, pre-paids and Attorney fees.
Comparable Market Analysis (CMA): A comparable market analysis is a comparison of the prices of similar houses in the same general geographic area. A CMA is used to help determine the value of a property, either for a seller or a buyer.
Contingencies: Conditions written into Real Estate offers and contracts.
Deed: When recorded with your local government, the document that determines ownership of a property. A Deed is
transferred from seller to buyer at closing.
Earnest Money: Money given by a buyer to a seller as part of the purchase price, in order to bind a transaction or to assure payment.
Escrow: Funds held in reserve both prior to closing (for example the earnest money and deposit) by a third party and after closing by the mortgage company to pay future taxes and homeowners insurance.
Inspection: A whole house inspection of a home being considered for purchase which looks for defects in the property.
Listing: A property for sale by a Real Estate Brokerage and Agent.
MLS (Multiple Listing Service): A group of brokers joined together for the purpose of pooling their respective real estate listings. In exchange for a potentially larger audience of buyers, the brokers agree to share commissions.
Pre-paid expenses: Money necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Principal: The amount of debt, not counting interest, left on a loan.
Pre qualification: The first stage of a mortgage application where the lender will run a basic credit report and determine your debt to income ratio in order to see how much mortgage you qualify for.
Property Tax: An annual or semi-annual tax paid to one or more governmental jurisdictions based on the amount of the property value assessment.
Real Estate Attorney: A lawyer who specializes in real estate transactions.
Real Estate Broker: A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction. A real estate broker gets paid a commission.
Realtor: A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.
Recording: The act of entering deed and/or mortgage information into public record with your local government jurisdiction.
Recording fee: Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
Title: The actual legal document that gives evidence of an individual's ownership of property.
Title Company: Companies that ensure that the title to a piece of property is clear and provide title insurance.
Title Insurance: This is paid at closing and is to protect your ownership rights (title) from claims against it. Title insurance may be the responsibility of the buyer, the seller, or both.
Title Search: An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company.
Warranty: Covers either most of the house in a new home, or selected items (for example the heating and air conditioning system or the water heater) in a used home. Warranties can vary widely and are optional in used homes (paid for by either the buyer or the seller).
Zoning: Laws that govern specifically how a zoned area can be used. For example, an area may be zoned for single family residential, condominiums, commercial or retail, or a mix of two or more uses.
Zoning Variance: A one-time modification of existing zoning law.
