seller resources
Below is additional informtion for buyers. Buying a home is a important decision and the better prepared is a important step.
glossary of real estate terms
Abstract of Title
A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record, which may affect the marketability of the title.
Appraisal
An opinion of value based upon of factual analysis by a professional.
Appraisal Methods
Generally, there are three major methods - Cost approach, Income approach, and Market Value (comparables) approach.
Appreciation
An increase in value of real estate.
Assumption of Mortgage
The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property: becoming a co-guarantor for the payment of a mortgage, or note, secured by a deed of trust.
Closing
The final settlement (HUD-1) of the real estate transaction between the Buyer and Seller.
Condominium
A structure of individual fee ownership of units combined with joint ownership of common area of the structure and the land.
Contract for Deed
A contract ordinarily used in connection with the sale of property in cases when the seller does not wish to convey title until all or the buyer pays a certain part of the purchase price.
Conventional Loan
A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed.
Counter Offer
A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.
Deed
Written instrument which, when properly executed and delivered, conveys title.
Discount Points
Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent.
Earnest Money Deposit
Down payment made by a purchaser as evidence of good faith to bind the contract of purchase.
Easement
Created by grant or agreement for a specific purpose, or easement is the right, privilege or interest which one party has in the land of another. Example: right of way.
Equity
The interest or value which an owner has in real estate over and above the liens against the real property.
Escrow
The deposit of instruments and funds with instructions to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract: when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.
F.H.A. Loan
Federal Housing Administration - A loan which has been insured by the federal government guaranteeing its payment in case of default by the owner.
FMHA Loan
A loan by the federal government similar to FHA loan usually used for residential property in rural areas.
Impound Account
Account held by the lender for payment of taxes, insurance, or other periodic debts against real property.
Joint Tenancy
Joint ownership by two or more persons with right of survivorship; all joint tenants own equal interest and have equal rights in the property.
Lien
A form of encumbrance which usually makes property security for the payment of a debt of discharge of an obligation. Example: Judgments, taxes, mortgages, deeds of trust, etc.
Marketable Title
Merchantable title; title free and clear of objectionable liens or encumbrances.
Mortgage
An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation: procedure for foreclosure in event of default is established by state law. Mortgage Insurance
Insurance written by an Independent insurance company “protecting the mortgage lender” against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price; not to be confused with mortgage life insurance. .
Origination Fee
A fee charged by the lending institution.
Personal Property
Any property which is not real property, e.g., money, savings accounts, appliances, cars, boats, etc.
Purchase Agreement
An agreement between a buyer and seller for the purchase of real estate.
Quitclaim Deed
A deed transferring legal ownership of real property to another party.
Real Property
Land and whatever by nature or artificial annexation is a part of it.
Special Assessment
Legal charge against real estate by a public authority to pay cost of public improvements such as: street lights, sidewalks, street improvements, etc.
Sub-Division
A parcel of land that has been divided into smaller parts.
Term of Mortgage
The period of time during which a mortgage must be paid.
Trust Account
An account separate and apart and physically segregated from broker's own account, and in which broker is required by law to deposit all funds collected for clients.
V.A. Loan
A loan guaranteed by the Veterans Administration.
Warranty Deed
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor agrees to defend the premises against the lawful claims of third persons.
1031 Exchange
Also referred to as a "nontaxable sale", is a method enabling property owners to trade an investment property for another investment property (or properties) without paying capital gain taxes on the transaction.
