Adjustable-rate mortgage (ARM)
Also called variable or flexible rate mortgage. It is a mortgage loan with an
interest rate that can change throughout the loan’s lifetime.
Agent
A real estate professional that is licensed to buy and sell property on behalf of
their clients. An agent cannot operate independently, they must work under a
licensed broker.
Amortization
The process of gradually reducing mortgage loan debt over time by establishing
scheduled monthly payments. The interest payment of an amortized loan will
decrease as time goes on, while the principal payment will increase.
Appraisal
A real estate appraisal is the process of developing an opinion or value of a real
property (Usually market value). It is required to gather estimated value for a
piece of real-estate.
Assessed Value
this is the value assigned to a real estate property that is used to determine its
property tax rate.
Balloon Payment
Balloon payment is an oversized payment that is due at the end of a mortgage. It
is substantially greater than the previous installment payments.
Beneficiary
A person or corporate entity entitled to receive assets from a trust or an estate
under a will.
Breach of contract
It is any violation of a contractual term contained within a real-estate contract.
Broker
A real-estate professional who have completed additional training and licensing
requirements. They are licensed to own their own real estate firm or work
independently in their state.
Brokerage
A brokerage is a business, firm or company whose business is to act as a broker
Broker sales person
this is a real estate professional who works under the sponsorship and direction
of a broker
Building line
Building lines are a specified distance from the sides of a lot that denote where a
building or structure cannot be placed.
Buy down
Cash payment to a lender so as to lower the interest rate on a loan a borrower
must incur. The lower rate may apply for all or a part of the loan term
Buyer agency
it is the practice of real estate brokers and their agents representing a buyer in
real estate transaction.
Buyer representation agreement
It is a legal document that formalizes your working relationship with a particular
buyer’s representative, detailing what services you are entitled to and what your
buyer’s rep expects from you in return.
Capital gain
Capital gains are profits made from the sale of real estate, investments and
personal property. The Internal Revenue Service (IRS) classifies capital gains
according to the length of time the taxpayer owned the property.
Certificate of title
An attorney’s opinion of the status of a title which is attached to the abstract of
title
Client
Individual or entity who pays for the professional services of another person or
business
Cloud on title
A cloud title also known as a title defect is any claim or lien which, if valid may
impair the owners title to the property. This cloud does not hinder transfer of
ownership on the property but may reduce its market value
Commission
ownership on the property but may reduce its market value
20 Commission These are payments made directly to real estate brokers for services rendered in
the sale or purchase of property. A commission is usually a percentage of the
property’s selling price, although it can also be a flat fee.
Community property
A property owned and held jointly and equally shared by each spouse. It is
purchased during their marriage regardless of the wage-earning situation of
either spouse.
Comparative market analysis
A process used to determine the value of a home based on the sale prices of
similar properties in the area
Counter offer
Initial offer to buy or sell answered with a revised offer. For example, a buyer
offers $500,000 for a home put on the market. The owner rejects the offer but
submits a counteroffer for $525,000. Offers and counteroffers are not limited to
price but comprise such matters as financing arrangements and apportionment of
closing costs.
Debt
Real estate debt is a debt instrument that the borrower is obliged to pay back
with a predetermined set of payments. The debt instrument is secured by a
specified real estate property as collateral. Real estate debt typically takes the
form of a mortgage or deed of trust.
Deed
A written, legally enforceable document used to transfer title to real estate.
Deed restriction
A written statement in a dead limiting the number, type, size, and use of
property.
Default
To default on a loan means to intentionally or unintentionally miss several
consecutive monthly payments over the course of a few weeks or months
Delinquent tax
Property owners are required to pay their property taxes on time. If an owner
fails to pay on time, the unpaid portion will be considered delinquent and incur a
10% penalty charge and, in the case of second installment, a one-time
administrative fee.
Depreciation
Depreciation is the process used to deduct the costs of buying and improving a
rental property.
Developer
a person who buys and develops houses, buildings, and land in order to sell them
and make a profit from them
Earnest Money Deposit
A cash deposit paid by the buyer during a real estate contract to indicate they are
serious about purchasing the property. Sometimes called a good faith deposit
Easement
A legal right or privilege such as that arising from a contract to use land owned
by another person or business for a specific purpose.
Eminent Domain
The united states has a law named “Eminent domain” that grants local, state or
federal government the right to take ownership of a private property with or
without the consent of the owner. The property is used for the benefit of the
community as most often the property is changed into parks, hospitals etc.
Encroachment
Infringement on the property or rights of another individual or business.
Equity
A measure calculated by taking the market value of a property and deducting the
amount that is still owed on the mortgage, if any.
Escrow
An arrangement in which a neutral third-party provider holds the funds
associated with a real estate transaction until a specific condition is met.
Estate planning
Estate planning is the process of deciding how the assets of a person can be
managed and distributed in not just an orderly but profitable manner during
his/her lifetime and in the event of his/her death or incapacity
Estoppel certificate
Mortgagor’s signed statement that the stated remaining balance of a mortgage is
correct, and it is a property lien. This prevents a mortgagor from later stating the
facts were misrepresented, and the mortgage therefore is invalid.
Eviction
Legal action of a landlord to remove a tenant. The tenant may have violated the
lease agreement such as the tenant’s failure to pay the rent.
Exclusive agency
In an exclusive agency only one broker is specifically authorized to act as the
exclusive agent of the seller. That means one broker has the sole right to market,
show and sell the property and other brokers are excluded from trying to sell the
property while the agreement is active.
Exclusive right to sell
In an exclusive agency only one broker is specifically authorized to act as the
exclusive agent of the seller. That means one broker has the sole right to market,
show and sell the property and other brokers are excluded from trying to sell the
property while the agreement is active.
Executed contract
A contract is said to have been executed when both parties have completed their
obligations. In the case of an executed contract in real estate, that milestone
comes at closing, when the documents are signed by both parties. Until payment
and title change hands, the contract is merely “executory” – capable of being
executed at some point in the future.
FHA loan
A mortgage loan that is backed and administered by the Federal Housing
Administration
First Mortgage
Initial or senior mortgage on a property. It comes before all subsequent
mortgages, and the mortgage has precedence in payment if default occurs.
Fannie Mae
The Federal National Mortgage Association (FNMA), typically known as Fannie
Mae, is a government-sponsored enterprise (GSE) founded in 1938 by Congress
during the Great Depression as part of the New Deal. It was established to
stimulate the housing market by making more mortgages available to moderateto low-income borrowers.
Foreclosure
A foreclosure is the process of making a loan due immediately.
Grantee
The person named in a deed who acquires ownership of the property
Grantor
A grantor is a person who transfers ownership of real estate to another person or
entity. Grantors are named in both deeds and mortgage documents.
Heir
An individual who are legally to inherit money and property when someone dies
Holdover tenancy
An individual who are legally to inherit money and property when someone dies.
50 Holdover tenancy The situation when a tenant of real estate continues to occupy the premises
without the owner’s agreement after the original lease or rental agreement
between the owner (landlord) and the tenant has expired. The tenant is
responsible for payment of the monthly rental at the existing rate and terms,
which the landlord may accept without admitting the legality of the occupancy.
A holdover tenant is subject to a notice to quit (get out) and, if he/she does not
leave, to a lawsuit for unlawful detainer.
Homestead
Legal status conferred by certain states on a homeowner’s principal residence. In
certain states, homestead status may provide protection against creditor claims or
forced land sales providing the homeowner continues to maintain his or her
residence there. Homestead status may also qualify the homeowner for a
homestead exemption.
Interim Financing
Interim financing is the deployment of capital, typically accessed through a
private lender, for short- term development such as the acquisition and
renovation of single-family properties. It is generally repaid with long-term
financing, such as a 30-year fully amortizing permanent mortgage.
Intermediary Broker
An intermediary is a broker who negotiates a real estate transaction between two
parties when a broker, or a sales agent sponsored by the broker, has obtained
written consent from the parties to represent both the buyer and the seller.
Lease
A written agreement in which the lessee pays rent to the lessor for the use of real
property for a stated time period
Lessee
An individual paying a rental fee to the lessor for the right to use real property.
The two methods used to account for leases by the lessee are the capital lease
and the operating lease.
Lessor
A lessor is the owner of an asset that is leased or rented to another party, known
as the lessee
Lien
It is a legal claim on a parcel of real estate held by a creditor that secures
payment of a loan or other debt owed to the creditor.
Listing Agreement
A legally binding contract that allows a real estate agent to sell a property on
behalf of their client, the property owner.
Listing broker
A licensed real estate broker who has a listing of property for sale
Lot and Block Description
Method of referring to property which has been platted in a plat book in the
public records. The lot and block is referenced by the number of the plat map
and the lot and block within it. The plat map will give the boundaries of the
properties contained within it as well as any existing easements.
Master plan
It’s a plan describing both through narrative and maps the overall land use of a
designated urban area. It includes both present property usage as well as future
land development plans. Private developers can develop a master plan to guide
their overall development plans Governments create master plans to help guide
the development of property zoning use designations.
Mechanic’s Lien
Claim on property by an unpaid workman or contractor. The property may be
sold to recover the money owed. The legal justification of the mechanic’s lien is
that the labor and materials supplied increase the value of the property and
therefore the property should be security for payment. Further, the workman
should be compensated for his services. An example is an electrician or plumber
who has not been paid for his work by the homeowner
Metes and Bounds Description
Method of land description that identifies a parcel by specifying its shape and
boundaries.
Minority
means a U.S. citizen from one of the following ethnic groups: African American,
Asian-Indian American, Asian-Pacific American, Hispanic American, or Native
American
Month to month tenancy
A tenancy in which no written lease is involved, rent being paid monthly. It can
be renewed for each succeeding month or terminated at the option of either party
with sufficient notice
Mortgage
a long-term loan given by a lender to finance a real estate property. The property
is used as collateral in exchange for the money that is borrowed.
Mortgage Broker
An independent contractor who offers the loan products of multiple lenders,
called wholesalers. Mortgage brokers do not lend. They counsel borrowers on
any problems involved in qualifying for a loan, including credit problems.
MUD (Municipal utility district)
A Municipal Utility District (MUD) is one of several types of special districts
that function as independent, limited governments. The purpose of a MUD is to
provide a developer an alternate way to finance infrastructure, such as water,
sewer, drainage, and road facilities.
Option period
An option period is an agreed-upon period of time, after the buyer and seller
have signed the real estate contracts, during which the buyer can terminate the
contract for any reason without risking their earnest money
Origination Fee
It is an upfront fee charged by a lender to process a new loan application. The
fee is compensation for executing the loan. Loan origination fees are quoted as a
percentage of the total loan, and they are generally between 0.5% and 1% of a
mortgage loan in the United States.
Parcel
Parcel of Real Property means the smallest, separately segregated unit of land
having an owner. A parcel has boundaries and surface area and is documented
with a property number by the county.
PITI
Principal interest, taxes and insurance.
PMI (Private mortgage insurance)
An insurance policy that requires payment of additional premiums that protect
the lender in case the borrower goes into default.
Property manager
They handle the operations, maintenance, and administration of property rentals
for an owner. Their work, among many other tasks, includes marketing rentals
and finding renters, ensuring rental rates are competitive while covering taxes
and overhead, collecting rent, and complying with rental laws.
Quitclaim deed
A quitclaim deed is a way to relinquish any claim you have to a piece of
property; this is done in order to release it to someone else. These deeds are
common in transfers between family members, divorces, and other title clearing
actions
Real property
Real property means the land plus anything growing on it, attached to it or
erected on it, including man-made objects, such as buildings, structures, roads,
sewers, and fences, but excluding anything that may be removed from the land
without injury to the land.
Realtor
An individual who is a member of the National Association of Realtors (NAR), a
trade association for real estate professionals. By becoming a member, realtors
agree to abide by a strict Code of Ethics laid out by the NAR.
Sale and leaseback
A sale and leaseback is a transaction where the owner of an asset sells the asset
and then immediately turns around and leases the asset back from the person
who purchased it.
Sellers Broker
They are real estate professionals that are contracted by property owners to assist
with marketing property for sale or lease.
Special warranty deed
A special warranty deed is a deed to real estate where the seller of the property—
known as the grantor—warrants only against anything that occurred during their
physical ownership.
Subagent
A subagent is a real estate agent or broker who brings in the buyer to purchase a
property, but he is not the property’s listing agent. He/she usually earns a portion
of the commission. Subagents work for real estate agents who, in turn, work for
real estate brokers
Subdivision
A subdivision in real estate refers to the act of dividing large areas of land into
individual lands that are easier to sell or develop, usually via a plat
Survey
Accurate measurement of land for the purpose of determining the
boundaries of its perimeter, its contours, and area. Survey are
generally required by banks and other lending institutions as part
of making mortgage secured loans to individuals and other entities
Tax foreclosure
Tax foreclosure is the sale of a property resulting from the property owner’s
failure to pay their tax liabilities.
Title
Title refers to a document that lists the legal owner of a piece of property. Titles
can be issued to depict ownership of both personal and real property.
Title Insurance
It is a policy required of home buyers by lenders, to protect against losses arising
from problem and disputes over the ownership of a property. These policies are
issued by a title insurance company, and – because of the need to examine local
records – those companies usually operate exclusively in a specific geographic
area.
VA Loans
Home loans backed by the Veterans Administration. The veterans
Administration issues a 60% loan guaranty for a sum not to exceed $27,500. The
mortgaged home must be a principal residence. VA loans are granted with no
down payment to qualified veterans
Warranty Deed
A warranty deed assures that the title is free of any legal claims including
encumbrances.
Zero Lot Line
A zero lot line is a term in residential real estate that refers to houses that are
either very close to or at the edge of the property line.
Commercial Real Estate
Commercial real estate (CRE) is property that is used exclusively for businessrelated purposes or to provide a workspace rather than as a living space. It
includes apartments, office buildings, hotels and motels, grocery stores and other
public-facing businesses.
Residential Real Estate
Commercial real estate (CRE) is property that is used exclusivelyResidential real estate is broadly defined as real property (land and any buildings
on it) used for residential purposes. The most common example being singlefamily homes. for businessrelated purposes or to provide a workspace rather than as a living space. It
includes apartments, office buildings, hotels and motels, grocery stores and other
public-facing businesses.
International Real Estate
International real estate could be viewed as one of the most dynamic branches of
real estate. The term encompasses real property development, sales and leasing
transactions across national borders.
Square footage
Square footage or area is the size of a lot or the floor space of a building or any
other piece of real estate or property. It is calculated by multiplying the length by
the width of the structure or land being measured
Scope of work
A scope of work, or sometimes called a statement of work, is a concise, step-bystep document that outlines, in detail, the exact performance expected of a
contractor during a construction project.
Acre
An acre meaning “Open field” is defined as a land unit used to measure tracts of
land. an acre is recognized as a statute measure in the United Kingdom, most
countries of the former British Empire, and the United States. What should be
noted, however, is that, while the measurement can be legally used for trade and
measurements of tracts of land, it should only be given as secondary information
and should not be used for land registration.
Appraiser
A professional with knowledge of real estate markets and skilled in the practice of appraisal.
When a property is appraised in connection with a loan, the appraiser is selected by the lender,
but the appraisal fee is usually paid by the borrower.
Surveyor
A property surveyor takes precise measurements to identify the boundaries of a parcel of land
and prepares reports, maps, and plots that are used for construction, deeds, or other legal
documents.
Home inspectors
The home inspector usually is called upon action at the beginning of Closing to assess the
current situation of the house being sold. He/She checks every single detail of the house and
its structure. Roofing, plumbing, exteriors, structural elements, electrical, heating, air
conditioning etc and then makes a thorough home inspection report noting the problems the
house might pose, with pictures.
Title
Title refers to a document that lists the legal owner of a piece of property. Titles can be issued
to depict ownership of both personal and real property.
Attorney
A real estate attorney, also known as a real estate lawyer, is someone who is licensed to
practice real estate law, meaning they have the knowledge and experience to advise parties
involved in a real estate transaction, such as a home sale or short sale.
Insurance
Real estate insurance policies often include replacement insurance terms for reconstruction
costs of repairing or rebuilding real estate that is subsequently damaged. Real estate insurance
is insurance of property, land, and buildings.
Lender
A lender can be a private individual, a private or public group, or an institution that loans
funds to a person or business that the lendee would later repay with interest in most cases. In
real estate, a lender is most often the bank that provides the mortgage so that the buyer can
purchase the house.
Routine maintenance packages
It is any maintenance action taken to keep a property fully functional and
operating in its best condition. It may include cleaning, safety checks and repairs
throughout the property
Lawn Care
Lawn care is the process of Difference providing overall care to your lawn which
includes the health of turf and soil. Lawn care involves the treatment of your
lawn, including fertilization, weed control, soil health, and turf disease
management
Maid
A female servant employed in general domestic work in a home, especially to do
housework.
Pool Cleaning
Pool cleaning involves a lot more than just skimming debris out of the water. It
includes testing the chemical levels and adding chemicals as needed to prevent
bacteria growth. It includes cleaning out all baskets that are built to catch debris
Home warranty
Home warranty is a yearly service contract which covers the repair and
replacement of important household appliances and home system components
that inevitably break down overtime.
Home Car detail
The process of thoroughly cleaning the interior and exterior of a vehicle and
doing minor repairs to improve its appearance:
Property management
Property management is the daily oversight of residential, commercial, or
industrial real estate by a third-party contractor. Generally, property managers
take responsibility for day-to-day repairs and ongoing maintenance, security, and
upkeep of properties.
Property assessment
These assessments are done by an assessor, who evaluates the physical structure
of a property, its overall condition, land size, etc., and compares the property to
the sale prices of other comparable properties in the same area. This assessment
is then used to determine just how much tax is owed by the property owner.
Property assessment
These assessments are done by an assessor, who evaluates the physical structure
of a property, its overall condition, land size, etc., and compares the property to
the sale prices of other comparable properties in the same area. This assessment
is then used to determine just how much tax is owed by the property owner.
Maintenance
Property maintenance is best defined as any preventive or reactive maintenance
action taken to keep a property fully functional and operating in its best
condition.
Incentive
An incentive is anything that is advertised or offered by the brokerage for
attracting new business. So, this could be a brokerage is looking for new
business from previous clients or they could be looking for new clients or new
listings. Some examples of incentives are gifts itself.
Relocation checklist
A relocation checklist helps you make sure that everything goes as smoothly as
possible and there are no surprises when the relocation day finally comes.
Property needs assessment
checklist
A thorough assessment of a property you plan to buy can save you headaches
and unexpected expenses down the line after you move in. A Property needs
assessment checklist helps you organize key observations as you assess a
property’s condition. Hire specialists to professionally inspect the property, as
most buyers can’t identify serious issues even with the help of a checklist
Corporate Account Relocation
ManagementCorporate Account Relocation
Management
Corporate account relocation management refers to the act of providing
companies the resources, tools and services needed to ensure a smooth and
successful relocation process.