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- A -
Appraisal
A report made by a qualified professional (appraiser) as to the value of a property as of a given date.
Amenity
A feature of the property that increases the perceived value of the property while not essential to the property's use. Amenities can range from scenic views to swimming pools and tennis courts.
Appreciation
Increase in property value due to changes in market conditions. |
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| - B -
No Terms Listed |
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| - C -
Certificate of Title
A statement that shows ownership of property, stating that the seller has clear legal title.
Closing
The concluding day of the real estate transaction, when title and deed pass from seller to buyer, the buyer signs the mortgage and pays the purchase price and closing costs.
Closing Costs
Expenses incurred by the borrowers and sellers in transferring ownership of the property. These costs usually include such items as origination fees, discount fees, appraisal fees and credit report fees. When looking at mortgage options, consider that closing fees usually run from 3 percent to 6 percent of the loan amount. Also known as “settlement costs.”
Closing Statement
A document that provides an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account. This is required for the completion of every real estate transaction. Also called a HUD-1 or a settlement statement.
Commission
An agent's or broker's fee for bringing the principals together and helping to negotiate a transaction, often a percentage of the sales price or flat fee.
Condominium
Ownership of a single unit in a multi-unit building or complex of buildings along with a share of ownership of the common areas.
Contingency
A condition that must be met for a contract or a commitment to remain binding.
Contract Sale or Deed
A contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of installment sale.
Cooperative
Type of multiple ownership in which a corporation or business trust holds the title to a property and grants occupancy rights through leases and other arrangements. |
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- D -
Deed
A legal written document by which title to property is transferred. Also know as the Deed of Trust. |
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| - E -
Easement
Access given to a third party to use a portion of one's property for a specific purpose, such as for utilities or a driveway.
Encroachment
Any structure, such as a fence, that extends into a property owned by someone else.
Ernest Money
Money provided by a buyer as a deposit when an offer is made to purchase a property.
Escrow
Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specific event, after which the funds are released to a designated individual.
Escrow Closing
The deposit of funds or documents with an attorney or escrow agent to be disbursed upon closing of the real estate transaction. |
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| - F -
Fixture
Property, such as a hot water heater or plumbing fixture, that has become permanently attached to piece of real estate and goes with the property when it is sold.
Flood Certification
An independent agency report required by the lender to determine whether a property is located in a flood hazard zone, which would then require a federally mandated flood insurance policy.
Foreclosure
The legal process by which a borrower in default under a mortgage or deed of trust loses all rights to, and interest in, the mortgaged property. Also known as a repossession of property. |
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- G -
No Terms Listed |
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| - H -
Hazard Insurance
Insurance protection against damage to a property from fire, windstorms, and other common hazards.
HOA (Homeowner's Association)
A nonprofit association whose directors and officers are elected by the unit owners of a condominium of PUD project. Primary responsibilities are to manage the common areas, expenses, and services of the condominium or PUD project.
Homeowner's Insurance
An insurance policy that covers the dwelling and its contents in vase of fire or wind damage, theft, liability for property damage and personal liability. |
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Income Property
Real estate that is owned for investment purposes and not used as the owner's residence.
Investor
A money source for a lender. |
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Joint Tenancy
Where equal ownership of a property is held by two or more persons. Differs from Tenancy in Common as the ownership held by a decedent transfers to the remaining survivors. |
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No Terms Listed |
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Lien
A legal claim on a property to guarantee payment of a loan. |
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- M -
Market value
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.
Mortgage
A contract in which a borrower's property is pledged as security for a loan which is to be repaid on an installment basis. Also referred to as a Deed of Trust, Trust Deed, or Security Instrument. |
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- N -
No Terms Listed |
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- O -
No Terms Listed |
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| - P -
Point
A fee paid to the lender on closing day to increase the effective yield of the mortgage. A point is one percent of the amount of the mortgage loan. Also called a discount point. Also may be recognized as interest by the IRS.
Pre-Approval
A commitment by a lender to extend a certain amount of credit to a buyer for use in purchasing a home. Pre-approval allows the buyer to negotiate like a cash buyer. The pr-approval process is also used to assist the buyer in locating problems they need to resolve prior to securing a loan.
Pre-qualification
Providing financial information (credit ratings, employment status and income, and outstanding debts) to a lender in order to calculate a suitable mortgage for the buyer. This is not a guarantee or commitment by the lender to extend credit. It is helpful in showing how large a mortgage the potential buyer can handle and how much house they can afford.
PUD (Planned Unit Development)
A real estate project in which each unit has title to a residential lot and a nonexclusive easement on the common areas of the project. |
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No Terms Listed |
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Realtor
A real estate broker or sales associate holding active membership in a local board affiliated with the National Association of Realtors.
Recording Fee
Fees charged by a county recorder's office to record a mortgage or deed of trust, thereby making it public |
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Sales Concession
A cost that is normally paid by the buyer at closing that is being paid for by the seller.
Settlement or Settlement Costs
See closing/closing costs
SFR (Single-Family Residence)
A structure intended to house one family.
Survey
A report prepared by a registered land survey professional that shows the precise location of the property. |
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| - T -
Tenancy in Common
Joint ownership of property by two or persons with no right of survivorship.
Time-Share
A real estate development in which a buyer can purchase the exclusive right to occupy a unit for a specified period of time each year.
Title
A document that gives evidence of an individual's ownership of a property. A clear title is one without any outstanding liens or encumbrances. A cloud on title refers to any outstanding liens or encumbrances which could impair the title.
Title Insurance Policy
Protection against financial loss arising from defects in the title occurring before purchase.
Title Search
A process providing proof of legal ownership of a property by researching municipal record. Usually this service is performed by a title company.
Townhouse
An architectural type of construction; a row of houses on a small lot that has exterior limits common to other small units; title to the unit and its lot is vested in the individual owner with a fractional interest in common areas.
Two-to-Four Family Properties
A structure that provides dwelling units for two, three, or four families, although ownership is evidenced by a single deed. |
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- U -
No Terms Listed |
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No Terms Listed |
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| - W -
Walk Through
When a buyer performs a final inspection of the property prior to closing to sonfirm that all conditions in the purchase agreement have been met. |
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No Terms Listed |
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No Terms Listed |
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Zoning
The creation of districts by local governments in which specific types of property uses are authorized (e.g., commercial, industrial, residential, high density, mixed use). |
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