Real-Estate Transaction Coordinator Glossary
Real-estate transaction coordinators must be fluent in a wide array of terms spanning parties, documents, data, and legal concepts. This expanded glossary is organized by category (Parties & Roles, Key Milestones & Deadlines, Core Transaction Documents, MLS Data Terms, Legal Terminology, and Regional Variations). State-specific practices for Florida (FL), Texas (TX), and California (CA) are noted throughout.
Parties & Roles
| Term | Definition |
|---|---|
| Buyer (Purchaser) | Individual or entity acquiring the property. Also called the borrower once loan processes begin. |
| Seller (Homeowner) | Current owner transferring title. Must disclose known material facts (see Seller’s Disclosure). |
| Listing Agent (Seller’s Agent) | Represents the seller, markets the property, lists on MLS, and negotiates offers. Owes fiduciary duties to the seller. |
| Buyer’s Agent (Selling Agent) | Represents the buyer’s interests (confusingly called selling agent in industry jargon). |
| Broker | Licensed professional who may supervise agents and is ultimately responsible for transactions under the brokerage. |
| Transaction Coordinator (TC) | Manages administrative and logistical aspects: tracks deadlines, reviews paperwork, coordinates communication, and ensures compliance. |
| Escrow Officer / Closing Agent | Neutral third-party who holds funds/documents and facilitates closing. • CA: independent escrow or title company officer. • FL / TX: typically title company closer or attorney. |
| Title Company / Title Agent | Examines title, issues title insurance, prepares the Title Commitment and often acts as settlement agent. |
| Lender (Mortgagee) | Provides financing (loan officer, processor, underwriter). Requirements (appraisal, title insurance, etc.) must be met to fund the loan. |
| Home Inspector | Evaluates property condition during the inspection period. |
| Appraiser | Determines market value on behalf of lender; appraisal must meet or exceed purchase price for loan approval. |
| Insurance Agent | Provides hazard / homeowners (and flood or wind, if applicable) insurance required before closing. |
| Real-Estate Attorney | Advises or prepares legal documents; may conduct closings in some states (common in FL). |
| Homeowners Association (HOA / POA) | Governs community or condo; issues HOA documents and estoppel / resale certificates. • TX: formally Property Owners’ Association (POA). |
Key Milestones & Deadlines
| Milestone | Description |
|---|---|
| Listing Date | Property goes live on MLS (DOM counter starts). |
| Offer & Acceptance | Creation of binding contract; establishes the Effective Date. |
| Effective Date (Contract Date) | Day 0 for computing most deadlines. |
| Earnest Money Deposit (EMD) | Buyer’s good-faith deposit, due shortly after contract acceptance. |
| Option Period (TX only) | Paid right allowing buyer unrestricted termination for a few days after execution. |
| Inspection / Due-Diligence Period | Buyer investigates property and may cancel or renegotiate. |
| Contingencies | Financing, appraisal, inspection, sale-of-home, HOA review, etc. |
| Appraisal | Lender’s valuation; low value may trigger renegotiation or cancellation. |
| Loan Approval / Clear-to-Close | Underwriting complete; lender ready to fund. |
| Final Walk-Through | Buyer’s last inspection (24–48 h pre-closing). |
| Closing Date / Close of Escrow (CA) | Documents signed, funds disbursed. |
| Funding | Loan proceeds wired; TX: deal isn’t final until funding & recording. |
| Recording | Deed recorded in county records; legal transfer of title. |
| Possession | Buyer receives keys (usually at closing unless otherwise agreed). |
Core Transaction Documents
| Document | Purpose / Notes |
|---|---|
| Purchase & Sale Agreement | Binding contract (state-specific forms). |
| Addendum / Amendment / Counteroffer | Adds or changes terms before / after execution. |
| Seller’s Disclosure | Seller’s statement of known defects. |
| Lead-Based Paint Disclosure | Required for pre-1978 homes. |
| HOA Documents | CC&Rs, bylaws, budgets, etc. (plus Estoppel Letter (FL) / Resale Certificate (TX)). |
| Title Commitment / Preliminary Title Report | Lists title status, exceptions, and requirements. |
| Title Insurance Policy | Owner’s & Lender’s policies issued post-closing. |
| Survey | Shows boundaries & encroachments (new or existing + T-47 in TX). |
| Mortgage / Deed of Trust & Note | Borrower’s promise to repay and lien securing loan. |
| Closing Disclosure (CD) | Five-page loan-cost form (TRID) delivered ≥ 3 bdys pre-close. |
| Settlement Statement (HUD-1 / ALTA) | Full accounting of all funds. |
| Deed | Transfers ownership — Warranty (FL/TX), Grant (CA), etc. |
| Affidavits & Certifications | Seller’s, FIRPTA, T-47, No-Lien, etc. |
| Home Warranty Contract | Optional 1-year warranty provided per contract. |
MLS Data Terms
| Term | Definition |
|---|---|
| MLS (Multiple Listing Service) | Regional database of property listings. |
| MLS Number | Unique ID for each listing. |
| Active / Pending / Closed | Standard status codes (may vary by MLS). |
| DOM / CDOM | Days on Market (single or cumulative). |
| IDX | Internet Data Exchange — broker-to-broker public listing feed. |
| VOW | Virtual Office Website — gated site with full MLS data. |
| Syndication | Distribution of MLS data to portals (Zillow, etc.). |
| MLS Remarks | Public vs. Agent-only comment fields in listing. |
Legal Terminology
| Term | Definition |
|---|---|
| Encumbrance | Any claim or limitation on title (easement, lien, etc.). |
| Lien | Creditor’s legal claim (mortgage, tax, mechanic’s). |
| Cloud on Title | Unresolved claim casting doubt on ownership. |
| Clear / Marketable Title | Title free of significant defects. |
| Lis Pendens | Recorded notice of pending lawsuit affecting property. |
| Foreclosure | Lender enforces lien via sale (judicial FL / non-judicial CA & TX). |
| Short Sale | Sale for less than loan payoff with lender approval. |
| REO | Bank-owned property post-foreclosure. |
| Encroachment | Physical intrusion over property line. |
| Easement | Recorded right of use (utilities, access). |
| Restrictive Covenants | Deed-recorded use limitations. |
| Estoppel Certificate | HOA or tenant letter confirming dues or lease terms. |
| Homestead Exemption | Primary-residence tax break (and creditor protection in FL/TX). |
| Specific Performance | Court remedy forcing contract completion. |
| FIRPTA | Federal withholding on foreign seller’s proceeds. |
Regional Variations (FL · TX · CA)
| Topic | Florida (FL) | Texas (TX) | California (CA) |
|---|---|---|---|
| Inspection / Option | Free inspection contingency (“As-Is” contract common). | Option Period with fee grants unrestricted termination. | Default 17-day inspection contingency; buyer signs removal form. |
| HOA Letter | Estoppel Letter ordered by closer. | Resale Certificate supplied by seller/HOA. | HOA docs via third-party; review contingency. |
| Title Insurance | Seller usually pays; buyer chooses title co. | Seller usually pays; rates state-regulated. | Buyer (S. CA) or seller (N. CA) pays per county custom. |
| Closing Method | Title co. or attorney; meeting style. | Title company escrow; attorneys optional. | Escrow company; separate title & escrow divisions common. |
| Special Districts | CDD (Community Development District). | MUD / PID disclosures required. | Mello-Roos CFD taxes; disclosed via NHD. |
| Tax Caps | Save Our Homes 3 % cap. | 10 % annual homestead value cap. | Prop 13 2 % cap. |
| Termite / Pest | WDO inspection routine; often required by lenders. | Option-period inspection; VA loans require termite. | Section 1 termite clearance negotiable. |
📚 References & Further Reading
State Contracts & Forms
- Florida Realtors® Forms Library – https://www.floridarealtors.org
- TREC Forms (Texas) – https://www.trec.texas.gov/forms
- CAR Forms & Publications (California) – https://www.car.org
Legal & Title
- Florida HOA Statute Ch. 720 – https://www.leg.state.fl.us
- Texas Property Code § 207 (Resale Certificates) – https://statutes.capitol.texas.gov
- California Real-Property Transfer Laws – https://leginfo.legislature.ca.gov
- FIRPTA Overview (IRS) – https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
- Title Insurance Basics (ALTA) – https://www.alta.org/homeowner/
MLS & IDX
- NAR – MLS Basics – https://www.nar.realtor/mls
- IDX Explained – https://www.nar.realtor/ae/manage-your-association/mls-overview
- CRMLS Rules – https://go.crmls.org/rules-policies
Hazard & Disclosure
- Lead-Based Paint Disclosure (EPA) – https://www.epa.gov/lead/real-estate-disclosure
- California NHD Reports – https://www.nhd.com
Special Districts
- Florida CDDs – https://www.cdfa.net
- Texas MUDs – https://www.tceq.texas.gov/waterdistricts/
- California Mello-Roos – https://www.ftb.ca.gov/about-ftb/newsroom/mello-roos.html
Homestead & Tax Exemptions
- Florida Homestead – https://floridarevenue.com/property
- Texas Homestead – https://comptroller.texas.gov/taxes/property-tax/exemptions/
- California Homeowner Exemption – https://www.boe.ca.gov/proptaxes/homeowners_exemption.htm
TC Education & Certification
- CAR Certified TC Program – https://www.car.org/education/designations/TC-Certification
- CE Shop TC Courses – https://www.theceshop.com
- NAR Learning Library – https://www.nar.realtor/education
Keep this glossary handy as a quick-reference guide. Mastery of these terms—and the regional nuances—empowers Transaction Coordinators to deliver smooth, compliant closings in any market.
