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Soryl & Martin Cohen's - GLOSSARY FOR REAL ESTATE


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A                     back to top

Acceptance - A voluntary receipt of a contract and all its terms offered by another.

Agent - A representative; one who is authorized to act on behalf of another.

Appraisal - Professional service provided by a registered, licensed or certified appraiser or Real Estate licensee to produce an estimate of value.

"As Is" Acceptance - Property is accepted in the physical condition at the time the offer is made.

Assumption of Mortgage - Buyer takes over the existing mortgage of the seller and assumes the liability of the debt. Both buyer and seller are equally liable in the event of default.

B                     back to top

Borrower - The mortgagor; one who gives a mortgage a security for a debt.

C                     back to top

Clear Title - A property that has no legal defects on the existing title that would affect taking ownership.

Closing Costs
- The costs are associated with buying a home and are paid by both buyer and seller. These costs are prorated to each party accordingly.

Comparative Market Analysis (Comp or CMA)
- An informal estimate of market value performed to assist in arriving at an appropriate listing price, or if working with a buyer in arriving at an appropriate offering price.

Condominium
- A multiunit project consisting of individual ownership of a dwelling unit and undivided ownership of common areas.

Co-Op - A multiunit project consisting of individual dwelling units owned by the corporation in which the individual apartment tenants own stock rather than owning their prospective units.

Co-Signer - Another person who signs for the liability of the loan, but may not be an owner.

Contingency - A contract is not complete until a specific event happens, i.e. an inspection, or a payment for escrow has to be made.

Credit - A person's ability to repay their existing liabilities on time, a person's credit history can be obtained from specific companies.

Credit History - Can be obtained from a local bureau. These bureaus allow for a comparatively rapid check of new residents from other states.

D                     back to top

Deed - A type of conveyance; a written instrument to transfer title to real property from one party to another.

E                     back to top

Easement
- A right, privilege or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.

Encroachment - Unauthorized use of another person's property.

Encumbrance
- Any lien, claim or liability affecting the title or attaching to real property.

Equity - Amount of money left after all debts on the property have been paid.

F                     back to top

Fair Credit Report - A Federal Law that gives you the right to see your credit report and correct any errors.

Full Disclosure - It is a Broker/Agent's duty to keep the principal informed at all times of all facts or information obtained that might affect the transaction or value of the property.

J                     back to top

Judgement - Decree of a court that not only declares that one party owes another party a debt, but also fixes the debt amount.

L                     back to top

Lien - A claim on a property for payment of some obligation or debt.

M
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Mechanic's Lien - A claim based on the principle of "unjust enrichment"; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

Mortgage Lien - The portion of a mortgage loan that is not paid.

Multiple Listing Service - An arrangement among members of a real estate board or exchange that allows each member broker to share listings with other members so that greater exposure is obtained and greater chance of sale will result.

O                     back to top

Offer - An intentional proposal or promise made by one party or act to perform provided the other party acts or performs; in the manner requested.

Option - A right or privilege to purchase or lease real property at a specified price during a designated period based on sufficient consideration.

P                     back to top

Plat Map - A plan of a tract of land subdivided into lots and showing required or planned amenities.

R                     back to top

Record - To place any document or instrument affecting title or an interest in real property in the public records of the county in which the property is located.

Right of First Refusal - A buyer has the right to a priority arrangement that will allow them the first right to purchase a property under the agreed upon conditions.

S                     back to top

Self-Amortization - Allows a loan to be repaid with monthly payments of principal and interest over a specified period of time.

Survey - The procedure used to measure and describe a specific tract of real property for the purpose of determining exact boundaries and the area contained therein.

T                     back to top

Tax - Compulsory payment paid by a citizen to a unit of government.

Tax Rate - Percentage of value that is used to determine the amount of tax to be levied against each individual unit of property; ad valorem (according to value).

Title - The group of rights that represent ownership of real property and the quality of the estate owned; evidence of ownership of property; legal title.

Title Insurance - A policy of insurance that protects the holder from any loss resulting from defects in the title.

Townhouse
- A residence connected to another by a common wall, which is often two or three stories high.

W                     back to top

Walk Through - A final tour of the home before sale closing to note defects.

Warranty - A plan that can be purchased by either buyer or seller for specific items or systems found in the home.