Addendum 
a form that explains a change or an addition to a purchase agreement

Affidavit
a statement a buyer or a seller signs to state that certain information is accurate such as the seller signing to ensure that he or she is the property owner

Appraisal Fee
the cost that an appraiser charges in order to provide an estimate of a property’s market value

Appreciation
an increase in a property’s value

Asking Price
the property’s price that is stated by the seller

Assessed Value
the value of the property that is decided by an assessor and/or public official

Asset
an item with a value that is measurable

Back on Market: when the real estate is put on the market again after it was removed for a temporary period of time
 

Balloon Loan
a loan with monthly payments and a leftover balance due in a lump sum payment at the end
 

Blanket Mortgage
one mortgage for more than one real estate property

Building Code
a regulation that covers a building’s design, construction, and materials with safety standards

Capital Expenditure
an improvement to a property that has a life of one year or more than one year and can increase the property’s value

Certificate of Occupancy
a document provided by an agency that indicate a property abides by local codes, ordinances, and regulations

Clear Title
a property title that lacks defects; it indicates a property can be marketed

 

Closing

the last portions of the process to transfer a property’s ownership; it is also considered a settlement

Closing Costs
the costs, including title insurance, legal fees, and a survey, to finish transferring a property’s ownership

 

Closing Date

the date for the property to officially be exchanged

Commission
the money that is given to a real estate agent for his or her association with selling the property

Commission Split
the percentage of the commission that is divided between a brokerage and the agent or broker for the transaction

Comparative Market Analysis / Comp's
a method to evaluate a property by comparing it to similar homes in the area that were recently sold or have been recently offered for sale

Counter Offer
a new offer based on factors like price and terms that is a response to an offer that was not accepted

 

Credit

an agreement that is to ensure the borrower will borrow money from a lender and then repay that money to a lender over time

 

Creditor

the lender who supplies a buyer with the loan or with credit

Days on Market
the total number of days a property has been available for sale on the market

Deed
the document that indicates the transfer of a property’s ownership

 

Default

a lack of ability to pay the mortgage payments that were agreed to

Depreciation
a decrease in a property’s value

 

Down Payment

the percentage of the total purchase price paid when an agreement of sale has been signed

Equity
the property owner’s interest in his or her property

Escrow
a process in which a third party takes care of funds and documents for a buyer and/or seller

Estate
a person’s ownership interest in a real property

Fair Market Value
a property’s price based on a buyer and seller both having an understanding of the real estate market and similar properties

Firm Price
an asking price that cannot be negotiated

 

Fixed Expenses

fees that will stay the same from one month to the next month

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Fixed-Rate Mortgage

a loan with a set interest rate and payment amount for the time period of the loan

 

Floor Plan

an architect’s diagram of a property’s rooms and the room sizes

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Foreclosure

a process in which a property can be sold to handle the losses when an owner defaulted on a loan

 

Grace Period

a time period when a mortgage payment can be made without a borrower being considered in default

Ground Lease
the lease of land is that vacant

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Holding Period

the time period in which a property is owned

Home Inspection
an inspection of the property to check for factors like the quality and safety of the property

 

Homeowner’s Insurance

the insurance that will protect a property from different hazards such as fires or storms

 

HVAC

the acronym for heating, ventilation, and air conditioning, which is a heating and cooling system for a home

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Infrastructure

Public services, such as highways and schools, that are needed to help residential development

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Inquiry

A request for a credit report

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Inspections

Checking and analyzing a property to see if there are any defects

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Interest Rate

The cost to borrow money from a lender

Lien
a legal claim of ownership on a home’s title and a security for money owed

List Price
a real estate property’s price that is made via a listing agreement

Listing Agent
an agent who is representing a seller for the transaction of property

Listing Appointment
a meeting in which a sales agent talks to the potential buyers of a proper to make a listing agreement

Market Value
an amount that a buyer would be willing to pay for the property and an estimated price based on the real estate market

Mitigation
alterations and improvements to a property

 

Mortgage

A legal document and term that indicates a loan; the property is officially pledged to a lender and is seen as security for the loan payment

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Mortgagee

The person who is the lender in a mortgage agreement

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Mortgagor

The person who is the borrower in a mortgage agreement

Offer
a proposal to buy a property with a certain price and on certain terms

Offer Accepted
when a property owner agrees to and accepts a purchaser’s offer and terms

 

Origination Fee

An expense that is paid to lender when he or she processes a loan application

Open House
the time in which a property is available for interested buyers to view

Ordinance
a law by a local government

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PITI

A house payment including principal, interest, taxes, and insurance and made on a monthly basis

 

Pre-Qualification

The way to determine if a borrower can qualify for a loan and the amount of money he or she would be allowed to receive

Preview Appointment
a time in which the agent alone checks the property to decide if it qualifies based on the buyer’s needs
 

Price-to-Income Ratio

An affordability measure for a property

Property Survey
a survey to understand a property’s boundaries

 

Property Tax

Local tax applied for municipal services including schools and streets

Purchase Offer
the document that indicates another’s offer to buy a property

 

Real Estate Agent

A licensed professional who assists in the selling of a property

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Real Estate Broker

A licensed professional or company that connects a buyer and a seller in the purchase of real estate

 

Real Estate Salesperson

A licensed professional who has similar tasks compared to a real estate broker’s tasks, is connected to a broker, and is supervised by a broker

 

Refinance

Receiving a new loan in order to pay off an existing loan

Sales Contract
a contract between the buyer and seller of a property that provides details such as what a purchase consists of and the closing costs for the property

 

Second Deposit

Another deposit that is paid when the purchase and sale agreement is being signed

Seller’s Market
a situation in which there are more buyers than there are sellers in the market

 

Shared Appreciation Mortgage

A loan that includes partners agreeing to share parts of a down payment, monthly payment, and appreciation

Staging
placing furniture and accessories within a house to prepare it for a sale

Temporarily off Market
a small time period in which a real estate property has been removed from the market

Title
the evidence that shows the legal right of a person to own a property

Title Defect
an outstanding claim on the property that is restricting its sale or the ability to be marketed

Transfer Taxes
the state and/or local taxes toward transferring a property
Under Contract: a real estate property that currently has been accepted in a contract by a seller and a buyer

Walk-through
the last property inspection to make sure items in a purchase agreement, like repairs and property electrical systems, are working properly

 

Zoning

The regulations created by local governments regarding a property’s features and use in a certain location

Zoning Laws
the local laws that regulate how a land is used in certain zones with factors that include the size of a lot and the way a building is used

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