Real Estate Glossary

A person who is given the authority to oversee or carry out business on behalf of another individual. Regulations concerning real estate, particularly regarding agents, differ significantly between states. Although there has been some level of standardization, it is advisable to verify the specific details in each state.

• Buyer Agent

  An individual who serves as an intermediary for the purchaser during a real estate deal. The buyer's agent has the potential to receive compensation from either the buyer themselves, the seller, or the listing agent at the time of the closing, as long as all parties involved provide their consent.

• Dual Agent

  An agent who acts on behalf of both the buyer and the seller in a transaction. Dual agency is considered illegal and unethical in nearly all states unless there is written consent from both parties involved.

• Listing Agent

  The agent who acts on behalf of the seller. The agent who stands for the seller.

• Selling Agent

  The individual responsible for securing a purchaser. A sales representative has the potential to act on behalf of the buyer or act as a subagent of the seller.

• Subagent

  An individual employed by a representative or agency specifically focusing on sales.

HTML Meta description: Features that add value or desirability to a property. HTML Body: Features that increase the worth or appeal of a real estate asset.

To fulfill a financial obligation by making regular payments until the entire balance, along with any accrued interest, is settled. To fulfill a financial obligation by making regular payments until the entire balance, along with any accrued interest, is settled.

An expert's evaluation of a property's worth, which may incorporate instances of comparable properties being sold. A professional's assessment of the value of a particular property, which might comprise illustrations of similar properties being sold.

An increase in value.

In the process of dispute resolution, conflicts are resolved by turning to a just and unbiased third party (an arbitrator), with the dispute parties beforehand agreeing to abide by the arbitrator's decision. A hearing is conducted where both sides are given the chance to present their case, and subsequently, the arbitrator renders a decision.

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An official assessment of a property's value for tax purposes. Payments made by owners of condominiums or cooperatives to cover their portion of the costs for maintaining the building.

A home loan featuring monthly installments calculated using a 30-year amortization plan, wherein the remaining balance must be reimbursed in a single payment at a predetermined time period's conclusion (typically 5 or 7 years). Furthermore, the mortgage contract may include provisions allowing for a potential interest rate adjustment to match the prevailing market rate and an extension of the repayment deadline under certain circumstances.

If you are officially deemed incapable of covering your debts, filing for bankruptcy may have a serious negative effect on your credit score and your capacity to obtain loans.

A self-employed entrepreneur responsible for establishing policies in a real estate office, recruiting and selecting employees, determining their remuneration, and overseeing their operations.

The option to start mortgage applications in their office is now available to agents through a computer network comprising prominent lenders. The Department of Housing and Urban Development (HUD) has sanctioned this process with certain requirements. Firstly, agents must fully disclose the fee to borrowers. Additionally, on the computer screen, multiple lenders must be displayed to facilitate borrower comparisons. Lastly, the fee imposed must be a specific dollar amount and not a percentage of the loan.

The moment when the transfer of property ownership is legally recognized is referred to as real estate closing. Closing costs cover various fees for services involved in the final stages of a home purchase, such as title insurance, surveying fees, recording fees, deeds, and affidavits.

One way to establish the worth of a property is by evaluating the prices that have been expended on comparable properties. This approach involves comparing the sale prices of similar properties to determine the value of the property in question.

The NATIONAL ASSOCIATION OF REALTORS® has adopted a written code of ethical behavior, which is followed by its trade organization comprising over 700,000 members from different sectors of the real estate industry.

The payment given to a real estate agent, typically by the seller, in return for their services provided in relation to the sale, trade, or rental of a property. This compensation is usually paid out in connection with the transaction of the property.

Each owner has their own portion of the building, and there are shared common areas for all owners. In order to keep, fix, or enhance the property, the owners pay maintenance fees, also known as "assessments," to the condominium association.

A loan with a fixed interest rate and a set duration that lacks government insurance.

An arrangement exists where a building is owned by a corporation comprised of residents. The purchaser holds a proprietary lease and possesses a proportional amount of shares in the corporation, instead of owning actual property.

A fresh proposal concerning the price, terms, and conditions is presented in reply to an earlier, unacceptable offer. A counter offer nullifies the original offer.

A professional designation awarded to experienced agents who successfully complete an advanced course of study in residential real estate and show competence in sales and production. CRS Designees are part of the Residential Sales Council, which is a non-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®.

An official contract transferring ownership of a real estate asset from one individual or entity to another party.

The act of a property owner or borrower willingly giving up their property to a lien holder, such as a bank, in order to avoid further foreclosure proceedings. In this situation, the lien holder has the option to reject the Deed in Lieu and submit a Notice of Non Acceptance to the County Recorder.

Exposing information that was previously undisclosed. Any declaration of truth that is mandated by legal provisions.

The buyer is required to make a payment in cash equivalent to a certain percentage of the total purchase price.

A purchaser's partial payment to the vendor as an indication of trustworthiness in finalizing the deal.

The disparity lies in the present market worth of a property and the encumbrances, such as the outstanding balance of a mortgage, that encircle it.

The conclusion of a real estate deal by means of an impartial intermediary who safeguards funds and/or documents until specific conditions are satisfied.

A written contract in which the seller designates a sole agent to promote the property for a predetermined duration. In the event that the owner personally sells the property, there is no obligation to pay a commission.

<p>An agreement in writing made between a property owner and an agent wherein the owner agrees to pay a commission to the agent in the event that the property is sold within a designated period of time, regardless of whether or not the agent is directly responsible for the sale.</p>

Fannie Mae, an entity operating in the housing finance industry, acquires residential mortgages which in turn provides mortgage lenders with a valuable source of funds. As a privately held corporation, its stocks are actively traded on the New York Stock Exchange. However, it is important to note that Fannie Mae operates under the close scrutiny and oversight of the Secretary of the U.S. Department of Housing and Urban Development (HUD).

Title VIII of the Civil Rights Act prohibits discrimination in the sale or rental of most dwellings based on race, color, sex, familial status, handicap, religion, or national origin. This provision ensures that anyone seeking to purchase or rent a property is protected from any form of discrimination.

The FHA is a governmental organization created with the purpose of enhancing housing standards and conditions. By offering mortgage insurance to authorized lending institutions, the FHA aims to ensure the stability and accessibility of housing options for the public.

A contract between a mortgage lender and a borrower which outlines a structured payment schedule and temporarily suspends foreclosure proceedings if the borrower fulfills the agreement's requirements and terms. The payment plan typically entails reimbursing the mortgage lender for all outstanding interest and fees, and may involve extending the duration of the mortgage beyond its initial term.

The procedure within the legal system through which a property that has been pledged as collateral for a loan can be liquidated in order to cover the outstanding debt of a borrower who has defaulted on their loan.

Freddie Mac, an organization established under federal charter, operates in the secondary market specifically for the purpose of purchasing mortgages. Its primary objective is to cater to the requirements of savings and loan associations. The activities and regulations of Freddie Mac are closely monitored by the U.S. Department of Housing and Urban Development (HUD).

An individual (referred to as the guarantor) makes a commitment to guarantee that someone else (known as the obligor) fulfills their obligation to a third party (referred to as the obligee).

A federal agency engaged in numerous national housing initiatives, such as urban revitalization and the provision of public housing. A federal department actively involved in diverse national housing programs, including urban reformation and the establishment of public accommodation.

Enhancements designed to boost the worth of a real estate. Modifications aimed at enhancing property value.

A thorough inspection conducted on a property by the purchaser, representative, title insurance firm, or any other relevant individual or entity.

A lien is a legal right or claim that one party has on the property of another party as a guarantee for the repayment of a debt.

An official contract between a property proprietor and a real estate agent, granting the agent the authority to search for a purchaser.

Banks and financial institutions aim to minimize losses from overdue home loans by collaborating with borrowers via a Loss Mitigation Department, typically managed by the bank or lender to address delinquent accounts. This specific department focuses on finding remedies for delinquent mortgages in order to reduce potential losses for the bank or lender.

The market value of a property that can be obtained on the open market. The market value of a property that can be obtained on the open market.

A mechanism through which agents receive information about the properties available for purchase from fellow agents. A mechanism through which agents receive information about the properties available for purchase from fellow agents.

A legal instrument providing assurance that an asset will be used as collateral to ensure repayment of a loan. A legal instrument providing assurance that an asset will be used as collateral to ensure repayment of a loan.

A loan protection plan exists to safeguard lenders in case borrowers fail to repay their loans. Mortgage insurance is a mandatory requirement for homebuyers who make a down payment of less than 20% during the purchase process. Private mortgage insurance (PMI) offers coverage for conventional loans with fixed-year and fixed-rate terms. Additionally, the Federal Housing Administration imposes a mortgage insurance premium (MIP) on FHA loans.

A trade association that caters to more than 700,000 members across various sectors of the real estate field. These members voluntarily adhere to a stringent Code of Ethics that effectively regulates their behavior.

Short form of Notice of Default. Short form of Notice of Default.

An official notification filed and registered by a designated trustee upon the lender's request, signifying the initiation of foreclosure proceedings. An official announcement submitted and documented by an appointed trustee following the lender's plea, indicating the commencement of foreclosure action.

A proposition for acquiring property at a designated cost and conditions.

The customary method in the real estate industry involves exposing "For Sale" properties to the public within designated time slots. The customary approach in the real estate industry involves presenting "For Sale" properties to the public within set hours.

A fee imposed by a lender to initiate and handle the proceedings of a fresh mortgage loan. The computation of this fee typically involves a percentage calculation based on the loan amount, and it may also qualify for tax deduction benefits.

The individual identified in the official documentation as the lawful proprietor of a property or mortgage.

An upfront fee is required by the lender when granting a loan. Each point represents one percent of the loan amount and serves as an additional source of income alongside the interest rate.

The sum of money that accrues interest. The sum of money that accrues interest.

A prospective homeowner who has displayed the necessary financial means to meet the requested price for a property. Prequalifying with a mortgage lender has the potential to accelerate the process of purchasing a home.

The NATIONAL ASSOCIATION OF REALTORS® is an organization comprising more than 700,000 members from various sectors of the real estate industry. Only members of this association have the privilege to use the registered trade name, REALTORS®. To maintain professionalism and integrity in their work, REALTORS® abide by a stringent Code of Ethics that governs their conduct.

Taking out a fresh loan in order to settle an outstanding loan. Refinancing becomes a widely favored approach during periods of declining interest rates.

An organization associated with the NATIONAL ASSOCIATION OF REALTORS® that operates on a non-profit basis. The Council recognizes and bestows the prestigious Certified Residential Specialist (CRS) Designation upon its seasoned members who have successfully completed an intensive curriculum focused on residential real estate.

A single-family mortgage that is 90 days or more overdue, or a multifamily mortgage that is two months or more overdue.

The process of short refinance involves a mortgage being replaced, typically with a lower amount, when the borrower has already defaulted on their payments. This serves as a means to help the borrower transition into a more manageable payment plan. While the lender is required to forgive the remaining balance between the original mortgage and the new one, in certain instances this may be a more favorable option compared to foreclosure.

To sell a property, one can negotiate with the bank or lender to accept a lower amount than the total debt owed in order to resolve the debt in a shorter period. These transactions, known as short sales, need to be approved by the bank and are commonly used as alternatives to foreclosure.

Lawful ownership of property.

An insurance policy that offers coverage for financial losses that result from issues with property titles, including the use of counterfeit or improperly recorded documents.

An assessment of the available public documentation aimed at establishing the clarity or potential shortcomings of the current ownership status. An exploration into the publicly accessible records aimed at ascertaining the integrity of the existing legal title.

A row house, also known as a townhouse, typically consists of two levels, with the main living area and kitchen located on the ground floor, while the bedrooms are situated on the upper floor. These types of dwellings share a common wall between each unit.

The housing market is a target for the federal agency dedicated to assisting veterans.

A loan that is backed by the U.S. Department of Veterans Affairs (VA). VA loans are specifically designed for honorably discharged veterans or their unremarried widows or widowers. These loans have the advantage of requiring a minimal or even no down payment and offer lower interest rates.

An ultimate assessment of a property prior to transferring its ownership.