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Real Estate Glossary of Terms
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Acre: A parcel of space which if square would measure approx. 208 ft by 208 ft (43,560 square ft.)
Adjustable Rate Mortgage: A mortgage with an interest rate that could move up and down over the life of the loan
Agent: One who represents another for a fee
Amortization: The process of paying off a loan over an agreed on period of time at an agreed upon interest rate either fixed or variable
Appraisal fee: The sum paid to a professional appraiser for determining the value of a property
Asking price: The dollar sum at which a seller decides to offer his property for sale.
Buyer's Agent: A person who represents a buyer in a transaction
Closing costs: The accumulated fees a buyer pays at the time of taking possession of a property.
Co-signer: One who signs for and with another thereby assuming shared responsibility for a loan
Down payment: The purchase price minus the ammount of the mortgage
Equity: The sum of money left over when a person sells a property and satisifies all mortgages and liens if any.
Escrow: The process of holding money in the control of a third party until some certain conditions are met.
Fixed-rate mortgage: A loan with an interest rate that remains constant over the life of the loan
FSBO: For Sale By Owner (without the participation of a Realtor)
Home inspection: A physical inspection of a property by a professional to determine the condition of the property and whether defects exist
Income property: A building or space that can be rented in whole or in part thus producing income for the owner.
Lien: A claim on the property of another as security for a debt.
Listing: A written agreement between a seller and a Realtor outling the price and terms at which a seller would be willing to sell his property.
MLS: Multiple Listing Service An agreement among Realtors outlining the conditions under which each may sell properties listed by the other
Mortgage broker: A person who represents many lenders in the search for best terms for a borrower
Mortgage insurance: An insurance policy, paid for by a borrower which insures a portion of a loan thus reducing risk for a lender.
Owner financing: A seller who delivers title to his property to another and agrees to accept payment over a specified period of time at an agreed upon interest rate is said to have provided owner financing
Pre-approval letter: A letter from a lender stating the qualifications of a person to purchase a property within certain price limits.
Prequalification: A letter similar to a pre-approval letter but with less detail, substance and weight.
Property tax: A tax determined by a town assessor and owed on a yearly basis to the municipality.
Real estate broker: A professional licensed by the State to sell properties and to hire others whom he would supervise and for whose actions he would be responsible
Square footage: A measure for comparing the space within a building or parcel of land, (e.g.) a 2000 sq. ft. house.
Subdivision: A parcel of land that has been divided into several building sites.
Survey: The precise description of the dimensions and location of a parcel of real estate
Tax lien: A hold or notice recorded on the land records and on view for the public that taxes due on a property have not been paid
Title insurance: An insurance policy, usually with a one-time fee, guarunteeing that at the time of purchase of the policy there are no outstanding liens against the property and no defects in the title.
Variable interest rate: A loan on which the interest rate may fluctuate from time to time, either up or down, is called a variable rate loan.
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