Real Estate Glossary

A tax-deferred exchange that allows investors to defer capital gains taxes on the sale of investment property by reinvesting the proceeds into a "like-kind" property.

A tax exclusion that allows homeowners to exclude a certain amount of capital gains from the sale of their primary residence, provided certain conditions are met.

The rate at which available homes in a specific market are sold over a given period, typically expressed in months.

A summary of all recorded documents affecting a property's title, including deeds, mortgages, liens, and easements.

Unconditional agreement to the terms of an offer, creating a binding contract.

A unit of land area equal to 43,560 square feet.

The cost to replace damaged property with new property of similar kind and quality, minus depreciation.

A tax based on the assessed value of a property, such as property tax.

An additional document attached to a contract that modifies or adds to its terms.

A mortgage where the interest rate may change periodically, based on an index and a margin.

A sworn statement by the seller that provides assurance of ownership and discloses any known liens or encumbrances.

A change or modification made to an existing contract.

The process of paying off a debt over time through regular installments of principal and interest.

The yearly tax levied on real estate by local governments, typically used to fund public services.

A set of definitions and protocols for building and integrating application software, allowing different software systems to communicate with each other.

A professional opinion of a property's value conducted by a licensed appraiser.

The written document prepared by a licensed appraiser detailing their opinion of a property's value, along with supporting data and analysis.

A licensed professional who provides an independent, unbiased estimate of a property's market value.

An increase in the value of an asset over time.

A right or privilege that belongs to and passes with the land, though not necessarily part of the land itself.

The yearly cost of a loan including interest rate and additional fees, expressed as a percentage.

The estimated value of a property after renovations and improvements are completed.

A survey that shows the actual location of all improvements on a property, as they were built, compared to the original plans.

A property sold in its current condition, meaning the seller typically will not make repairs or offer credits for defects.

The value assigned to a property by a public tax assessor for the purpose of levying property taxes.

The transfer of contractual rights from one party (the assignor) to another party (the assignee).

A type of mortgage that can be transferred from the seller to the buyer, allowing the buyer to take over the seller's existing loan terms.

The person designated to act on behalf of another in a power of attorney agreement.

A mortgage that has low monthly payments for a set period, followed by a large lump-sum payment (the balloon payment) at the end of the term.

A large, lump-sum payment due at the end of a loan term, often after a period of lower, interest-only payments.

The party who benefits from a trust, typically the lender in a deed of trust arrangement.

A preliminary agreement or receipt for earnest money, serving as a temporary contract until a formal purchase agreement is drawn up.

Non-like-kind property received in a 1031 exchange, which is taxable.

Failure to fulfill any term of a contract without a legal excuse.

A licensed real estate professional who can work independently and hire other agents.

The principal broker designated by a real estate company to be responsible for all its real estate activities.

Local laws that specify standards for construction and safety of buildings.

Official authorization issued by a local government agency that allows a construction or renovation project to proceed.

A contract between a buyer and a real estate broker, outlining the terms of representation and compensation for the broker.

An estimate provided by a real estate agent to a buyer, detailing the approximate funds needed to close a transaction, including down payment and closing costs.

A real estate agent who represents the buyer in a real estate transaction.

Market conditions where supply exceeds demand, giving buyers more choices and negotiating power.

The termination of a contract by mutual agreement of the parties or due to the failure of a contingency.

A metric used to evaluate investment properties, calculated as net operating income divided by property value.

Money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, industrial buildings, or equipment.

A tax on the profit realized from the sale of a non-inventory asset, such as real estate.

Expenses incurred for holding a property over time, such as property taxes, insurance, and utilities, especially when it is vacant or under renovation.

The net amount of cash and cash equivalents moving into and out of an investment property over a period of time.

Legal documents that establish rules and restrictions for properties within a community or development.

A document issued by the VA that certifies a veteran's eligibility for a VA home loan.

A document that identifies the current officers of a corporation or authorized signers for an entity, typically used in commercial transactions.

A document issued by a local government agency certifying that a building is safe and fit for occupancy after construction or renovation.

A document issued by the VA that establishes the maximum value for a property secured by a VA loan.

The historical sequence of conveyances and encumbrances affecting a property's ownership, from the original grant to the present owner.

A person who investigates insurance claims to determine the extent of the insurer's liability.

A property title that is free from any liens, encumbrances, or other defects that could affect its marketability or transfer.

The final step in a real estate transaction where property ownership is transferred from seller to buyer, and all financial matters are settled.

Various fees and expenses incurred by both buyers and sellers in a real estate transaction, typically paid at closing.

A five-page document that provides final details about the mortgage loan, including terms, projected payments, and closing costs.

The delivery of on-demand computing services—from applications to storage and processing power—typically over the internet with a pay-as-you-go pricing model.

Any outstanding claim or encumbrance that might impair a property owner's title.

A method of storing digital data in logical pools, spread across multiple servers, rather than directly on a user's device.

An evaluation of similar properties that have recently sold to help determine a property's market value.

Real estate used for business activities, such as office buildings, retail spaces, warehouses, or industrial properties.

A fee paid to a real estate agent for services rendered, typically a percentage of the sale price.

An evaluation of similar properties that have recently sold to help determine a property's market value.

Properties that are similar in size, age, condition, and location to a subject property and have recently sold, used for valuation purposes.

An analysis of similar leased properties to determine appropriate rental rates for a subject property.

An individually owned unit within a multi-unit building or complex, with shared ownership of common areas.

A mortgage loan that meets the guidelines and limits set by Fannie Mae and Freddie Mac, making it eligible for purchase by these government-sponsored enterprises.

A condition in a purchase contract that must be met for the transaction to proceed.

The specified timeframe during which a buyer can exercise various contingencies outlined in the purchase agreement.

An offer to purchase real estate that includes specific conditions that must be met for the contract to become binding.

A mortgage loan that is not insured or guaranteed by a government agency (like FHA or VA).

A mortgage loan that is not insured or guaranteed by a government agency (like FHA or VA).

A period after signing a contract during which a party has the right to cancel the agreement without penalty.

A formal document recording a specific action or decision made by a corporation's board of directors or shareholders.

An appraisal method that estimates the value of a property by calculating the cost to build a new one of equal utility, less depreciation, plus the value of the land.

A new offer made in response to a previous offer, changing some of the original terms.

A promise or agreement in a legal document, such as a deed or lease, typically requiring a party to do or refrain from doing something.

Legal documents that establish rules and restrictions for properties within a community or development.

A numerical value representing a person's creditworthiness, used by lenders to assess risk.

Software used by real estate professionals to manage client interactions, track leads, and automate tasks.

Actions taken by a title company or attorney to resolve defects or issues found during a title search to ensure clear title can be transferred.

Monetary compensation awarded to an injured party in a lawsuit for loss or injury suffered.

The number of days a property has been listed for sale on the Multiple Listing Service (MLS).

Combining multiple debts into a single, larger loan, often with a lower interest rate or single monthly payment.

The cash required to cover the repayment of interest and principal on a debt.

A ratio used by commercial lenders to assess the risk of a loan, calculated as the Net Operating Income (NOI) divided by the loan amount, expressed as a percentage.

A percentage that compares a borrower's total monthly debt payments to their gross monthly income.

The amount of money you must pay out-of-pocket on an insurance claim before your insurance coverage begins to pay.

A legal document that transfers ownership of real property from one party to another.

A legal document that secures a loan with real property, involving three parties: borrower, lender, and a trustee.

Limitations or conditions placed on the use of a property by a previous owner through a clause in the deed.

Failure to fulfill the terms or conditions of a loan agreement, most commonly failing to make required payments.

The state of a borrower being behind on loan payments.

Statistical data relating to the population and particular groups within it.

A decrease in the value of an asset over time, or a tax deduction for the gradual loss of value of an investment property.

The portion of a gain on the sale of depreciated property that is taxed as ordinary income rather than capital gains.

A brokerage model where a broker appoints different agents within the same firm to represent the buyer and seller in a single transaction, avoiding dual agency.

In some states, the licensed broker responsible for a real estate firm's activities and its agents.

An appraisal where the appraiser does not physically inspect the property but relies on public records, MLS data, and other online sources.

A short-term loan used to finance the costs of developing raw land into buildable lots, including infrastructure and permits.

The act of paying out money from an escrow account at closing to the appropriate parties (seller, agents, lenders, etc.).

Instructions given to an escrow agent or closing attorney authorizing them to pay out funds at closing.

Information that must be provided to a party in a real estate transaction, often legally required, to ensure transparency.

Optional fees paid to a lender at closing to lower the interest rate on a mortgage.

The process of transmitting legal and contractual documents to all relevant parties in a real estate transaction.

Software used to store, manage, and track electronic documents and electronic images of paper-based information.

The initial payment made when purchasing a property, typically a percentage of the purchase price, that the buyer pays upfront.

A pre-determined plan outlining when and how funds will be disbursed from a construction loan as various stages of construction are completed.

An appraisal where the appraiser only inspects the exterior of the property from the street and relies on publicly available data.

A written statement signed by both buyer and seller acknowledging and consenting to an agent representing both parties in a transaction.

A real estate agent who represents both the buyer and the seller in the same transaction, requiring written consent from both parties.

The period when a buyer investigates all aspects of a property before finalizing the purchase.

A mortgage clause that requires the borrower to repay the entire loan balance upon the sale or transfer of the property.

A single building containing two separate dwelling units.

Threats, violence, constraints, or other action used to coerce someone into doing something against their will or better judgment.

The portion of a homeowners insurance policy that pays to repair or rebuild the physical structure of your home if it's damaged by a covered peril.

An electronic symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

A deposit made by a buyer to demonstrate serious intent to purchase a property.

A deposit made by a buyer to demonstrate serious intent to purchase a property, held in an escrow account.

A document signed by both buyer and seller, authorizing the disbursement of earnest money from escrow, typically upon contract termination.

A legal right to use another person's property for a specific purpose, such as utilities or access.

A legal document that formalizes an easement, specifying its terms, purpose, and parties involved.

A real estate closing conducted electronically, where documents are signed digitally, often remotely.

The date on which a contract becomes legally binding, usually after all parties have signed and delivered it.

The right of a government to take private property for public use, with just compensation to the owner.

An unauthorized intrusion of a building or other improvement onto a neighboring property or public land.

A legal document between property owners addressing an encroachment, either granting permission or requiring removal.

Any right or interest in property held by someone other than the owner, such as a lien, easement, or encroachment.

A condition or substance on or near a property that poses a risk to human health or the environment.

The portion of a property's value that the owner actually owns, calculated as the property's current market value minus the outstanding mortgage balance.

A revolving line of credit secured by the equity in a home, allowing the homeowner to borrow money as needed up to a certain limit.

A type of loan in which a borrower uses the equity of their home as collateral.

The electronic submission, recording, and return of documents from a submitter to a county recorder's office.

A neutral third party that holds funds and documents during a real estate transaction until all conditions are met.

An account held by the mortgage lender to pay property taxes and homeowner's insurance premiums on behalf of the borrower.

A contract outlining the terms and conditions under which a neutral third party (escrow agent) holds funds and documents.

A portion of the seller's proceeds held in escrow after closing to ensure specific conditions or repairs are completed.

Written directions from the buyer and seller to the escrow officer, outlining the steps to be taken and conditions to be met for closing the transaction.

A neutral third party who manages the escrow process, holding funds and documents until all conditions of a real estate transaction are met.

A document from a homeowners association or condo association verifying the current status of dues, assessments, and any violations.

A provision in a listing agreement that excludes certain individuals or groups from the agent's commission if they purchase the property.

A listing agreement where the seller grants the listing broker the exclusive right to sell the property and earn a commission, regardless of who sells it.

A concise overview of a commercial real estate property or investment opportunity, highlighting key features and financial projections.

An agency relationship created by an oral or written agreement between the agent and the principal.

An exact copy of a document, often transmitted via fax machine.

A federal law that prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, disability, familial status, or national origin.

The price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

A government-sponsored enterprise (GSE) that buys mortgages from lenders, creating liquidity in the mortgage market.

An analysis that assesses the practicality of a proposed project or investment, considering its financial, technical, and market viability.

A government-insured mortgage loan backed by the Federal Housing Administration, typically requiring a lower down payment.

A mandatory insurance premium required for FHA loans, protecting the lender against losses in case of borrower default.

A legal obligation of one party (the agent) to act in the best interest of another party (the client).

A final inspection of the property by the buyer, typically conducted 24-48 hours before closing.

A condition in a purchase contract that allows the buyer to cancel the agreement if they cannot obtain satisfactory financing.

A mortgage loan that holds the primary lien position on a property, meaning it gets paid first in case of foreclosure.

An investment strategy where an investor buys a property, renovates it, and then sells it quickly for a profit.

A mortgage where the interest rate remains the same for the entire loan term.

Items that were once personal property but have become permanently attached to real estate and are now considered part of it.

Items that were once personal property but have become permanently attached to real estate and are now considered part of it.

Insurance that protects against property loss due to flooding, typically separate from standard homeowners insurance.

The legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments.

The loss of earnest money (or other assets) due to a breach of contract or failure to meet contractual obligations.

A government-sponsored enterprise (GSE) that buys mortgages from lenders, creating liquidity in the mortgage market, similar to Fannie Mae.

The date when the loan funds are disbursed by the lender to the escrow or title company.

An agent authorized to perform all acts related to a particular business or activity of the principal.

A deed that offers the greatest protection to the buyer, guaranteeing clear title and defending against any defects, even those from before the seller's ownership.

A rough measure of the value of an income-producing property, calculated by dividing the property's price by its gross annual rental income.

The act of conveying or transferring an interest in real property by means of a deed.

The party who receives an interest in real property (the buyer).

The party who conveys an interest in real property (the seller).

The total income generated by a property before any expenses are deducted.

A commercial lease where the tenant pays a fixed rent, and the landlord is responsible for all operating expenses (property taxes, insurance, maintenance).

A simple ratio used to estimate the value of income-producing property by dividing the property's sale price by its gross annual rental income.

A lease of land only, on which the tenant is permitted to build or develop at their own expense.

A clause in a deed that defines the type of interest or estate being conveyed to the grantee.

An evaluation of potential environmental hazards on or near a property, such as lead, asbestos, or mold.

The part of homeowners insurance that protects against physical damage to the property from fire, wind, hail, and other specified perils.

A revolving line of credit secured by the borrower's home equity, allowing access to funds as needed up to a maximum amount.

The most profitable and legally permissible use of a property, considered by appraisers when determining value.

An organization that governs a community and enforces rules, typically collecting dues for maintenance and amenities.

The expenses incurred while owning a property, especially an investment property, that is not currently generating income or is undergoing renovation.

A lump-sum loan secured by the borrower's home equity, repaid over a fixed period with fixed interest rates.

A non-invasive, visual examination of the physical structure and systems of a home, conducted by a qualified home inspector.

A service contract that covers the repair or replacement of major home systems and appliances that break down due to normal wear and tear.

Insurance that protects the homeowner and lender against property damage, theft, and liability claims.

A rapid increase in real estate prices fueled by speculation, which eventually bursts, leading to a sharp decline in values.

A document outlining all charges and credits to the buyer and seller in a real estate transaction, used for loans closed before TRID took effect.

Acronym for Heating, Ventilation, and Air Conditioning, referring to the system that provides climate control in a building.

A data feed from the MLS that allows real estate agents to display MLS listings on their own websites.

An agency relationship created by the actions and conduct of the parties, rather than by an express agreement.

A legal principle that requires landlords to provide tenants with a safe and habitable living environment, even if not explicitly stated in the lease.

An appraisal method that estimates the value of an income-producing property based on its expected future income.

A benchmark interest rate, such as the prime rate or LIBOR, used to determine the interest rate on an adjustable-rate mortgage (ARM).

Real estate used for manufacturing, production, distribution, storage, and research and development.

A general increase in prices and fall in the purchasing value of money.

A detailed written document prepared by a home inspector, outlining the condition of a property and identifying any defects or concerns.

A professional who conducts a detailed examination of a property's condition, identifying potential issues.

The cost of borrowing money, expressed as a percentage of the loan amount.

Interest paid from the date of closing to the end of the month, covering the period before the first full mortgage payment is due.

The total number of homes available for sale in a specific market at a given time.

A form of co-ownership of property by two or more persons, characterized by the "right of survivorship," meaning the surviving owner automatically inherits the deceased owner's share.

The owner of a property who leases or rents it to another party (the tenant).

A hidden structural defect that is not discoverable by a reasonable inspection.

A federal requirement for sellers and landlords of properties built before 1978 to disclose any known lead-based paint hazards.

A contract outlining the terms under which one party agrees to rent property owned by another party.

An agreement that gives a tenant the option to purchase the rented property at a specified price during or at the end of the lease term.

A contract that combines a lease agreement with a purchase agreement, obligating the tenant to buy the property at the end of the lease term.

An interest in real property granted by a lease, allowing the tenant to possess the property for a specified period, but not to own it.

A precise, legally recognized description of a property's boundaries, sufficient to identify it uniquely.

The portion of a homeowners insurance policy that protects the homeowner financially if they are found legally responsible for injuries or damages to others on their property.

A legal claim against a property as security for a debt or obligation.

The order in which liens against a property are paid in the event of a foreclosure or sale, typically based on the order in which they were recorded.

A predetermined amount of money specified in a contract to be paid as compensation if one party breaches the contract.

A legal notice filed in the public records to show that a lawsuit involving title to a property is pending.

A real estate agent who represents the seller in a real estate transaction.

A contract between a property owner and a real estate broker, granting the broker the right to market and sell the property.

The standardized form used by lenders to collect financial and personal information from a borrower applying for a mortgage.

A condition in a purchase contract that makes the sale dependent on the buyer securing a loan for the property.

The complete set of legal papers signed by the borrower at closing, including the promissory note, mortgage/deed of trust, and other disclosures.

A three-page form that provides borrowers with key information about the loan, including estimated interest rate, monthly payment, and closing costs.

A professional who works for a bank or lending institution, helping borrowers apply for and obtain mortgage loans.

A fee charged by a lender for processing a loan application, typically a percentage of the loan amount.

A company responsible for collecting principal and interest payments from borrowers, managing escrow accounts, and handling loan-related inquiries.

The ongoing process of collecting mortgage payments, managing escrow accounts, and handling borrower inquiries after a loan is closed.

A financial metric used in construction or development loans, comparing the loan amount to the total cost of the project.

The ratio of the loan amount to the appraised value of the property, expressed as a percentage.

A written agreement between a borrower and a lender that guarantees a specific interest rate for a mortgage loan for a set period, typically 30-90 days.

A property rented for an extended period, typically 6 months or more, under a formal lease agreement.

A provision in an insurance policy that directs the insurer to make payment for losses to both the insured and a third party, typically the mortgage lender.

A parcel or tract of land, typically identified by a number within a subdivision.

A method of legal description that references a specific lot and block number on a recorded plat map within a subdivision.

The ratio of the loan amount to the appraised value of the property, expressed as a percentage.

A fixed percentage added to the index rate to determine the interest rate on an adjustable-rate mortgage (ARM).

A study of real estate market conditions, including supply, demand, absorption rates, and pricing trends.

The process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.

The most probable price a property will bring in a competitive and open market under all conditions requisite to a fair sale.

A defect in a property that could significantly affect its value or a buyer's decision to purchase.

Any fact that is significant to a reasonable person and that would influence that person's decision regarding a real estate transaction.

A legal claim against a property by contractors, subcontractors, or suppliers who have provided labor or materials for improvements but have not been paid.

A method of describing land using physical features, directions, and distances from a specific point of beginning.

The amount of tax payable per dollar of the assessed value of a property, expressed in mills (dollars per thousand dollars of assessed value).

In real estate investment, a partial ownership in a property that is less than 50%, giving the owner less control.

A database used by real estate professionals to share information about properties for sale.

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

An independent professional who acts as an intermediary between borrowers and lenders, helping borrowers find suitable mortgage products.

A fee paid by the borrower to a mortgage broker for their services in arranging a loan.

A formal written offer from a lender to grant a mortgage loan under specific terms and conditions.

A tax deduction that allows homeowners to deduct the amount of interest paid on their mortgage from their taxable income.

Investment instruments that represent claims to the cash flows from pools of mortgage loans.

A residential building designed to house more than one family, such as a duplex, triplex, or apartment building.

The change of ownership of a property from one person to another. (More common in some global regions)

A commercial lease where the tenant pays base rent plus a portion or all of the property taxes and/or insurance and/or maintenance costs.

A controversial and often illegal listing agreement where the broker's commission is any amount received above a specified net price to the seller.

A property's annual rental income minus operating expenses, excluding mortgage payments and depreciation.

A loan that does not meet the underwriting guidelines of Fannie Mae or Freddie Mac, often due to loan amount, credit standards, or property type.

A type of loan where the lender's recovery in case of default is limited solely to the collateral property, not the borrower's other assets.

A public officer authorized to witness signatures, certify documents, and administer oaths.

A public notice filed by a lender indicating that a borrower is in default on their mortgage payments.

The substitution of a new contract for an old one, or the replacement of one party in a contract with a new party.

The act of taking or holding possession of a property.

Real estate used for professional and administrative services, ranging from small offices to large corporate campuses.

A scheduled time when a property for sale is made available for viewing by potential buyers without an appointment.

The costs associated with operating and maintaining an investment property, excluding debt service and capital expenditures.

The income generated by a property after deducting operating expenses, but before accounting for debt service or taxes.

A negotiated timeframe in a purchase contract during which the buyer has the unrestricted right to terminate the contract for any reason.

A contract that gives a party the exclusive right to buy a property at a specified price within a specified time, but without the obligation to do so.

A fee charged by a lender for processing a loan application, typically a percentage of the loan amount.

The legal right to possess, use, and dispose of a property, including any financial stake in it.

A specific tract or plot of land, often identified by a parcel number or legal description.

A document from a lender detailing the exact amount required to pay off a loan in full on a specific date, including principal, interest, and any fees.

Moveable items that are not permanently attached to real estate.

The portion of a homeowners insurance policy that protects your personal belongings (furniture, clothing, electronics) from covered perils, even if they are not on your property.

Acronym for Principal, Interest, Taxes, and Insurance, the four main components of a typical monthly mortgage payment.

A map of a tract of land showing the boundaries of individual lots, streets, and other features.

A detailed map of a subdivision or parcel of land, showing individual lots, streets, and easements.

Insurance that protects the lender if the borrower defaults on a loan with less than 20% down payment.

The date on which the buyer is legally allowed to take physical occupancy of the property.

A legal document authorizing one person to act on behalf of another in legal or financial matters.

A lender's conditional commitment to lend a specific amount based on verification of income, assets, and credit.

An informal estimate from a lender of how much a borrower might be able to borrow, based on unverified information.

A report prepared by a title company showing the current condition of a property's title before a title insurance policy is issued.

Expenses, such as property taxes and insurance premiums, that are paid in advance by the buyer at closing and credited to the seller.

A fee charged by a lender if a borrower pays off a mortgage loan early.

The original amount of a loan, or the portion of a loan balance that remains unpaid, excluding interest.

The portion of a mortgage payment that goes towards paying down the loan balance (principal) and the cost of borrowing money (interest).

The main broker in charge of a real estate office, responsible for the activities of all licensed agents and brokers in that office.

A legal document outlining the responsibilities and costs for maintaining a private road shared by multiple property owners.

A projection or estimate of future financial performance, often used in real estate to estimate the profitability of an investment property.

A written promise to pay a specified sum of money at a stated time or on demand.

A form filled out by the seller disclosing known defects or issues with a property.

A legal document filled out by the seller disclosing known defects or issues with a property, as required by state law.

A person or company hired to manage the day-to-day operations of a rental property.

Taxes levied by local government on real estate, typically based on the property's assessed value.

The process of proportionally dividing certain expenses (like property taxes, HOA dues, or utilities) between the buyer and seller at closing.

A legally binding contract between a buyer and seller that outlines the terms of a real estate transaction.

A mortgage issued to the borrower by the seller of a home as part of the purchase transaction.

A deed that transfers whatever interest the grantor has in a property, without guaranteeing clear title or making any promises about ownership.

A test to detect the presence of radon gas, a naturally occurring radioactive gas, in a home.

The final acceptance and signing of an agreement by all parties, making it legally binding.

A lawyer specializing in real estate law who advises on legal aspects of property transactions.

A real estate agent who is a member of the National Association of Realtors (NAR) and subscribes to its strict Code of Ethics.

Taxes levied on the sale of assets that have previously received certain tax benefits, such as depreciation.

A significant decline in economic activity spread across the economy, generally visible in a decline in real GDP, real income, employment, industrial production, and wholesale-retail sales.

An agreement between states that allows licensed real estate agents from one state to practice in another state without obtaining a new full license.

The act of filing a legal document with the appropriate public office (e.g., county recorder) to give constructive notice to the public.

The act of filing a document, such as a deed or mortgage, with the appropriate government office (e.g., county recorder) to make it public record.

Fees charged by the local government (county recorder) for recording legal documents, such as the deed and mortgage, to make them public record.

A type of loan where the lender can seize the borrower's assets beyond the collateral if the borrower defaults.

An illegal discriminatory practice where lenders or insurance companies avoid providing services to residents of certain areas based on race or ethnicity, rather than creditworthiness.

The process of replacing an existing mortgage with a new one, often to obtain a lower interest rate or change loan terms.

A loan that finances both the purchase of a home and the cost of its renovation or repair.

A company that owns, operates, or finances income-producing real estate, allowing individuals to invest in large-scale properties similarly to mutual funds.

A document that frees a property from a previous lien or claim, such as a mortgage that has been paid in full.

A legal document that removes a lien from a property, usually after the underlying debt has been paid.

The process of discussing and agreeing to new terms or conditions in a contract after the original terms have been established.

A document that lists all tenants in a rental property, their lease terms, rental rates, and payment status.

An agreement where the seller rents the property back from the buyer for a specified period after closing.

Money received from tenants for the use of a property.

Property acquired by a lender through foreclosure that did not sell at a foreclosure auction.

A formal list of repairs or credits requested by the buyer based on findings from the home inspection.

The cost to replace damaged property with new property of similar kind and quality without deduction for depreciation.

The cancellation of a contract, returning the parties to their positions before the contract was made.

Funds set aside by a homeowners association for future major repairs or replacements, or funds required by lenders for future property expenses.

A federal law that provides consumers with improved disclosures of settlement costs and eliminates abusive practices in the real estate settlement process.

Real estate used for selling goods and services to consumers, such as shopping centers, malls, and individual stores.

A type of credit that allows you to borrow and repay funds repeatedly, up to a certain credit limit (e.g., credit cards, HELOCs).

An addendum or attachment to a contract or insurance policy that modifies or adds to its terms.

Additional clauses or provisions added to a standard contract or insurance policy.

A contractual right that gives a party the option to purchase a property before it is offered to others.

A characteristic of joint tenancy, where the surviving co-owner(s) automatically inherit the share of a deceased co-owner.

A legal right of passage over another person's land, often for roads, utilities, or access to a property.

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the benefit (return) divided by the cost of the investment.

An appraisal method that estimates the value of a property by comparing it to similar properties that have recently sold in the same area.

A legally binding agreement outlining the terms and conditions for the sale and purchase of a property.

A document recorded in public records indicating that a mortgage loan has been fully paid off.

A loan secured by a property that has a lower lien priority than the first mortgage, meaning it gets paid after the first mortgage in case of foreclosure.

The market where mortgage loans and servicing rights are bought and sold between lenders and investors.

A technology platform designed with robust security features to protect data and transactions, often used for online real estate processes.

A document where the seller reveals known material defects and facts about the property to the buyer.

When the seller of a property acts as the lender, providing a loan to the buyer to purchase the property.

An estimate provided by a real estate agent to a seller, detailing the approximate proceeds the seller will receive from a sale after all expenses.

Market conditions where demand exceeds supply, giving sellers more negotiating power and higher prices.

An inspection of a property's septic system to assess its condition and functionality.

The right to collect mortgage payments and manage other aspects of a loan, which can be sold by the original lender to another company.

Funds held by a lender or in escrow for specific purposes related to a loan or property, such as future repairs or a contingency.

The process of finalizing the sale of a property, where documents are signed, and funds are exchanged.

A neutral third party, often a title company or attorney, responsible for overseeing the closing process and ensuring all documents are correctly executed and funds disbursed.

A document that provides an itemized list of all fees or charges that the buyer and seller must pay at the closing of a real estate transaction.

The sale of a property for less than the amount owed on the mortgage, requiring lender approval.

A property rented for a brief period, typically less than 30 days, often through platforms like Airbnb or VRBO.

An appointment for a potential buyer to view a property for sale.

Legal disclosure forms that have been formally acknowledged and signed by the parties involved in a real estate transaction.

A stand-alone residential dwelling designed for one family, typically on its own plot of land.

A detailed drawing of a proposed development or construction project on a parcel of land, showing existing and proposed conditions.

An agent authorized by the principal to perform a specific act or conduct a particular transaction.

An additional fee charged by a homeowners association to its members for unexpected or unbudgeted common expenses or large capital improvements.

A deed in which the grantor guarantees the title against defects arising only during their period of ownership, not before.

A legal remedy where a court orders a party to fulfill the terms of a contract, rather than paying damages.

The total area of a building or property, measured in square feet.

The act of preparing a home for sale by decorating and arranging furniture to make it appealing to potential buyers.

A document outlining the financial adjustments made between the buyer and seller at closing, similar to a settlement statement.

A confidential form completed by buyers and sellers for the title company to help verify identities and prevent fraud.

A legal principle requiring certain contracts, including real estate contracts, to be in writing to be enforceable.

Disclosures that are legally required by state or federal law to be provided to buyers in a real estate transaction.

A method of calculating depreciation where the asset's value is reduced evenly over its useful life.

The division of a tract of land into smaller parcels for sale or development.

A clause in a contract stating that its validity is dependent on another event or condition occurring.

The act of yielding priority, typically by a lienholder, to another lienholder on the same property.

A mortgage loan offered to borrowers with poor credit histories, typically carrying higher interest rates and fees due to increased risk.

The right of an insurer to pursue a third party that caused an insurance loss to the insured.

A drawing that accurately depicts the boundaries of a property, the location of improvements, and any easements or encroachments.

A professional who measures and maps land, defining property boundaries and identifying easements or encroachments.

A document that indicates an investor has paid an outstanding tax debt on a property and has a lien on the property.

A legal document that grants ownership of a property to the winner of a tax foreclosure sale, often for the amount of unpaid taxes.

A legal claim against a property for unpaid property taxes.

A short-term agreement allowing either the buyer to move in before closing or the seller to remain in the property after closing.

A form of co-ownership where two or more parties hold an undivided interest in a property, but with no right of survivorship.

A person who occupies land or property rented from a landlord.

A non-refundable fee paid by a buyer for the right to terminate a contract within a specified option period.

An inspection to detect the presence of termites or other wood-destroying insects.

A federal law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

Legal ownership of a property, representing the right to use, control, and dispose of the property.

A commitment from a title insurance company to issue a title insurance policy once specific conditions are met.

A document issued by a title company that outlines the conditions under which a title insurance policy will be issued.

A company that performs title searches, issues title insurance policies, and often acts as the escrow or closing agent in a real estate transaction.

The process of identifying and resolving defects in a property's chain of title to ensure clear ownership.

Any existing or potential claim, lien, or encumbrance against a property's title that could impair its marketability or transfer.

Insurance that protects property owners and lenders against losses from title defects or ownership disputes.

A formal objection raised by a buyer or their attorney regarding an issue found in the title report that needs to be resolved before closing.

A document prepared by a title company that outlines the current status of a property's title, including ownership, liens, and encumbrances.

A multi-story home that shares one or more walls with adjacent properties, typically with individual entrances and no shared common areas beyond external walls.

A professional who manages the administrative tasks and paperwork involved in a real estate transaction, ensuring smooth and timely closings.

Software designed to help real estate professionals manage the complex process of a real estate transaction, from contract to close.

A tax imposed by state or local governments on the transfer of real property, typically paid at closing.

A set of federal regulations requiring lenders to provide clear disclosures to consumers regarding mortgage loans, specifically the Loan Estimate and Closing Disclosure.

A commercial lease where the tenant pays base rent plus all three "nets": property taxes, building insurance, and common area maintenance (CAM) costs.

A neutral third party who holds legal title to a property under a deed of trust, with the power to sell the property in case of default.

A mortgage loan where the outstanding balance of the loan is greater than the current market value of the property.

A financial professional who evaluates and assesses the risk of a loan applicant and the property to determine if the loan should be approved.

The process by which a lender assesses the creditworthiness of a borrower and the risk of the loan.

A mortgage loan guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, service members, and their spouses, often with no down payment.

The way in which title to real property is held (e.g., joint tenancy, tenancy in common).

A term used to refer to the deed that conveys ownership of a property, specifically noting how the title is held (vesting).

A type of deed that guarantees the grantor holds clear title to a piece of real estate and has the right to sell it to the grantee.

The legal right to use water from a river, lake, or other source, often associated with land ownership.

An inspection of a property's private well system, including water quality and pump functionality.

An investment strategy where an investor contracts to buy a property and then assigns the contract to another buyer for a fee, without actually taking ownership of the property.

Local government regulations that divide land into districts and specify allowed uses for property within each district.

A law or regulation established by local government that dictates how land can be used within its jurisdiction.