Real Estate Glossary

An expert estimate of the value of a property, usually by a professional appraiser.

The dollar value assigned to a property by a public tax assessor for the purpose of measuring applicable taxes.

A real estate agent who represents the buyer in a real estate transaction.

The expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction.

An examination of the prices at which similar properties in the same area recently sold.

A type of ownership in real property where owners have full title to the individual apartment or unit and shared ownership in the common areas.

A condition that must be met before a contract is legally binding.

An offer made in response to another.

The portion of the home price the buyer pays upfront.

A deposit made to a seller indicating the buyer's good faith in an arrangement.

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a transaction.

A mortgage in which the interest rate does not change during the entire term of the loan.

An examination of a real estate property's condition, usually performed by a professional home inspector.

A private association often formed by a real estate developer for the purpose of marketing, managing, and selling homes in a residential subdivision.

A real estate agent who represents the seller in a real estate transaction.

A lender's offer to loan money to a potential borrower with certain terms such as interest rate, monthly payment, and term.

The most probable price a property would bring in an open and competitive market.

A loan to finance the purchase of real estate, usually with specified payment periods and interest rates.

A service used by a group of real estate brokers to view each other's listings of properties for sale.

A formal proposal to buy a product or service.

An evaluation of a potential borrower's ability to pay for a home, and an estimate of how much the borrower may be eligible to borrow.

Taxes assessed on real estate by the local government, usually based on the value of the property.

Insurance that protects the holder from loss sustained by defects in a title.

A term used to indicate that a property is under agreement to be sold but the sale has not yet closed.

The final inspection of a property being sold by the buyer to ensure that the property is as represented.

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

The initial price set by sellers for their property.

A person who buys and sells goods or assets for others.

An examination of the prices at which similar properties in the same area recently sold.

A form that provides final details about the mortgage loan, including projected monthly payments, fees, and closing costs.

An accounting of funds given to both buyer and seller before real estate transaction closes.

The compensation paid to a real estate agent (often a percentage of the property selling price).

A condition that must be met before a contract is legally binding.

An offer made in response to another.

A legal document that demonstrates ownership of a property.

The difference between the market value of a property and the homeowner's mortgage debt.

A method of selling property without the use of an agent or broker.

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser.

A type of loan in which the borrower uses the equity of his or her home as collateral.

An examination of a real estate property's condition, usually performed by a professional home inspector.

The act of preparing a private residence for sale in the real estate marketplace.

A contract in which a property owner provides a real estate broker the right to sell the property.

The most probable price a property would bring in an open and competitive market.

A service used by a group of real estate brokers to view each other's listings of properties for sale.

The amount the seller takes away from the sale of a property after all costs and expenses are deducted.

An evaluation of a potential borrower's ability to pay for a home, and an estimate of how much the borrower may be eligible to borrow.

A statement outlining any flaws that the property owner and real estate agent are aware of that could affect the property's value.

A legal document outlining the terms and details of a property sale.

A professional who represents buyers or sellers in real estate transactions.

A process that reviews public records to confirm the legal ownership of a property and determine whether there are any claims on the property.

The process of reducing debt through regular installment payments of principal and interest.

A type of loan that requires a borrower to pay off the full balance in a lump sum payment after a specified period.

The final step in a real estate transaction where ownership of a property is transferred from seller to buyer.

A type of mortgage loan that is not insured or guaranteed by the government.

A document used in some states instead of a mortgage; title is conveyed to a trustee.

The right to use the property of another for a specific purpose.

An account where money is held in trust whilst two or more parties complete a transaction.

A legal process in which a lender attempts to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan.

The value of a property beyond any liens against it or the difference of the market value of your home and the amount you owe on your loan.

A claim or charge on property for payment of some debt, obligation, or duty.

Insurance that compensates lenders or investors for losses due to the default of a mortgage loan.

The amount borrowed or the amount still owed on a loan, separate from interest.

The determination of the taxable value of a property.

The process of obtaining a new mortgage in an effort to reduce monthly payments, lower interest rates, take cash out of your home for large purchases, or change mortgage companies.

An agreement in which you rent a home for a certain amount of time, with the option to buy it before the lease expires.

A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.

A graphic description of a property, including dimensions and location of lot, and any encroachments.

A type of joint tenancy in a property where two or more purchasers own shares of a property.

A legal document evidencing a person's right to ownership of a property.

A company that specializes in examining and insuring titles to real estate.

Insurance that protects the holder from loss sustained by defects in a title.

A tax imposed by the government when title to a property is transferred from one owner to another.

A loan program backed by the United States Department of Agriculture for rural and suburban homebuyers.

A mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs.

Laws established by local governments regulating the size, type, structure, nature, and use of buildings.