Real Estate GLossary
- Appraisal:
- An estimate of a property's market value, performed by a licensed appraiser.
- Assessed Value:
- The value placed on property by a public tax assessor for taxation purposes.
- Closing Costs:
- Fees and expenses paid by the buyer and seller to finalize a real estate transaction.
- Contingency:
- A condition that must be met before a real estate contract becomes legally binding.
- Deed:
- A legal document that transfers ownership of real property from one party to another.
- Down Payment:
- The portion of the purchase price that a buyer pays upfront, typically in cash.
- Earnest Money:
- A deposit made by a buyer to show their serious intent to purchase a property.
- Equity:
- The difference between the market value of a property and the amount owed on the mortgage.
- Escrow:
- A neutral third party that holds funds and documents related to a real estate transaction.
- Foreclosure:
- A legal process where a lender takes possession of a property due to the borrower's failure to make mortgage payments.
- Homeowners Association (HOA):
- An organization of homeowners in a planned community that manages and maintains common areas.
- Inspection:
- A thorough examination of a property's condition, typically performed by a licensed inspector.
- Lien:
- A legal claim against an asset, most often a property.
- Listing:
- A property that is for sale, advertised by a real estate agent.
- Mortgage:
- A loan secured by real property, used to finance the purchase of a home.
- Principal:
- The original amount of a loan, excluding interest.
- Title Insurance:
- Insurance that protects a buyer from financial loss if there are problems with the property's title.
- Zoning:
- Local regulations that govern how land can be used.