- A fee charged by a broker to a seller to cover all
or a portion of the broker's costs of promoting the property.
- A loan that is completely paid off, interest and principal,
by a series of regular payments that are equal or nearly equal. Also
called a Level Payments Loan.
APPRAISAL - An estimate of value based upon a factual analysis of
a property or home.
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 deed of trust note.
CLOSING - The date on which a property legally changes hands from
seller to buyer.
CONVENTIONAL MORTGAGE - 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,
EARNEST MONEY DEPOSIT - Deposit made by a purchaser of real estate
as evidence of good faith.
EASEMENT - The right or privilege to use another individual's property.
ENCROACHMENT - A structure or portion of a structure built on another
EQUITY - The interest or value which an owner has in real estate
over and above the liens against real property.
ESCROW - The deposit of instruments and funds with instructions
to a third neutral party to carry out the provisions of an agreement
EXPOSURE - The degree to which a property for sale is made noticeable
to potential buyers, through advertising, multiple listing services,
FHA LOAN - A loan which has been insured by the federal government
guaranteeing its payment in case of default by the borrower.
FEE APPRAISAL - The act or process of estimating values of real
estate or any interest therein for a fee.
HOME INSPECTION - A review of the physical condition of a home by
an experienced individual.
LAND CONTRACT - A contract ordinarily used in connection with the
sale of property in cases where the seller does not wish to convey
title until all or a certain part of the purchase price is paid by
LIEN - A legal claim against a property used to secure the payment
of debt related to the property.
LOAN RATIO - The ratio, expressed as a percentage, of the amount
of a loan to the value or purchase price of real property.
MARKETABLE TITLE - Merchantable title; title free and clear of objectionable
liens or encumbrances.
MULTIPLE LISTING - Multiple Listing is the name given a service
performed by the Local Board of Realtors (Multiple Listing Service).
MLS provides necessary information to aid in the sale of listings.
It is a marketing tool used by members of the Service to expose properties
to a wider market base.
PERSONAL PROPERTY - Any property which is not real property (i.e.
money, savings accounts, appliances, boats, etc.).
PROMISSORY NOTE - Following a loan commitment from the lender, the
borrower signs a note promising to repay the loan under stipulated
terms. The promissory note establishes personal liability for its
PURCHASE AGREEMENT - An agreement between a buyer and seller for
the purchase of real estate.
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.
TRUST ACCOUNT - An account separate and apart and physically segregated
from broker's own funds, in which broker is required by law to deposit
all funds collected for clients.
VA LOAN - A loan guaranteed by the Veteran's Administration insuring
payment in case of default by the borrower. Available to qualified
VAPOR BARRIER - The material used to prevent moisture from penetrating
walls or floors.
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.