• Real Estate Terminology

  • Property & Transaction Basics

    Appraisal ... An expert estimate of a property’s market value.

    As-Is ... Property sold in its current condition, with no repairs by the seller.

    Closing ... The final stage where ownership of the home is officially transferred.

    Closing Costs ... Fees paid at closing (e.g., title fees, taxes, lender charges).

    Deed ... A legal document transferring property ownership.

    Contingency ... A condition in a contract that must be met for the deal to proceed.

    Counteroffer ... A response to an offer with changed terms.

    Listing ... A property that is for sale, usually represented by an agent.


    Financing & Mortgage Terms

    Down Payment ... Initial cash paid upfront toward a property, typically 3–20%.

    Earnest Money ... A deposit to show the buyer’s good faith and commitment.

    Escrow ... A neutral third party that holds funds/documents until conditions are met.

    Equity ... The value of the homeowner’s interest in the property (market value minus mortgage balance).

    Fixed-Rate Mortgage ... Loan with a constant interest rate over the life of the loan.

    Adjustable-Rate Mortgage (ARM) ... Loan with interest rates that may change periodically.

    Pre-Approval ... Lender’s commitment to a borrower, confirming their qualification up to a certain loan amount.

    PMI (Private Mortgage Insurance) ... Insurance required for down payments less than 20%, protecting the lender.


    Legal & Ownership Terms

    Title ... Legal ownership of a property.

    Title Insurance ... Protects against future claims on the property’s ownership.

    Lien ... A legal claim on a property due to unpaid debts. Must be resolved before sale.

    Zoning ... Local laws regulating how land/property can be used (residential, commercial, etc.).

    Easement ... The right of another party to use a portion of the property for a specific purpose (e.g., utility access).


    Real Estate Roles

    Real Estate Agent ... Licensed professional representing buyers or sellers.

    Broker ... A higher-level agent who can operate independently or manage agents.

    Buyer’s Agent ... Represents the buyer’s interests in the transaction.

    Listing Agent ... Represents the seller’s interests and manages the property listing.

    Dual Agent ... Represents both the buyer and seller in the same transaction (legal in some states).

    HOA (Homeowners Association) ... Governing body managing a neighborhood or condo community, enforcing rules and collecting dues.