Real Estate Terms A-Z
A:
AGENT: A licensed real estate professional who assists in facilitating real estate transactions, putting buyers and sellers together, and acting as their representative in negotiations.
B:
BROKER’S TOUR: A regularly scheduled weekly event featuring newly active properties. Providing REALTORS®, from different brokerages, the opportunity to view properties to gain first-hand knowledge and to better assist their clients.
C:
COMPARATIVE MARKET ANALYSIS (CMA): An estimate of a home's value used to help sellers set listing prices and to help buyers make competitive offers. The analysis considers the location, age, size, construction, style, condition, and other factors for the subject property and comparable properties.
D:
DUAL AGENCY: One agent works for both the buyer and seller — and keeps the full commission. Dual agency also occurs when agents from the same brokerage represent each party.
E:
ESCROW: A legal procedure that is used when real property requires a transfer of title, where a third party is hired to handle the property transaction, the exchange of money and any related documents.
F:
FHA: A Federal Housing Administration (FHA) loan is a mortgage that is insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans.
G:
Gable Roof: A classic, most commonly occurring roof shape consisting of two roof sections sloping in opposite directions and placed such that the highest, horizontal edges meet to form the roof ridge.
H:
Home Inspection: A home inspection observes and reports on the condition of a real estate property, usually when it is on the market to be sold to inform the buyer of any issues that may be happening with the property.
I:
Interest: The cost of borrowing money and is usually expressed as a yearly percentage that is paid as part of your monthly loan payment.
J:
Joint Tenancy: The holding of an estate or property jointly by two or more parties, the share of each passing to the other or others upon death.
K:
Knob & Tube Wiring: Open electric-wiring work in which the wires are supported on knobs or cleats and encased in tubes where they pass through beams or partitions.
L:
Listing Agreement: A contract under which a property owner authorizes a real estate broker or agent to find a buyer for the property on the owner's terms, for which service the owner pays a commission set forth in the agreement.
M:
MLS: Multiple Listing Service is a database established by cooperating real estate brokers to provide data about properties for sale. An MLS allows brokers to see one another's listings of properties for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling broker benefit by consolidating and sharing information, and by sharing commissions.
N:
Net Sheet: A document that calculates how much money one can expect to have once the sale of their home is completed.
O:
Open House: An occasion when real estate offered for sale can be viewed by prospective buyers without an appointment.
P:
Private Mortgage Insurance: PMI is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan.
Q:
Quiet Enjoyment: The right of a property owner or tenant to enjoy his or her property without interference.
R:
REALTOR®: A person who acts as an agent for the sale and purchase of buildings and land; a real estate agent.
S:
Staging: The activity or practice of styling and furnishing a property for sale in such a way as to enhance its attractiveness to potential buyers.
T:
Title: A legal right to ownership of a property, including the right to sell. It's not just real estate that comes with titles — boats, cars, and many other property items of value do as well.
U:
Underwriting: The process through which an individual or institution takes on financial risk for a fee.
V:
VA Loan: A mortgage offered through a Department of Veterans Affairs program. Available to active and veteran service personnel and their families.
W:
Writ of Execution: A court order that puts in force a judgment of possession and directs law enforcement personnel to begin the transfer of property as the result of a legal judgment.
Y:
Yield Rate: The rate of return on an investment or property, typically expressed as a percentage of the investment’s total cost.
Z:
Zero Lot Lines: A residential property that comes up to or lies on the home's property line.