Abstract of Title:
A public records summary that relates to the title of a specific piece of land. A title insurance company representative or attorney reviews this records summary to determine if there are any title defects that must be cleared before a buyer can purchase clear, marketable and insurable title.
Stipulation or clause in a mortgage document that may require the loan balance to become due immediately. This condition usually applies if regularly scheduled mortgage payments are not made or if there’s a breach of other mortgage conditions.
Adjustable-Rate Mortgage (ARM):
A mortgage with an interest rate that is periodically adjusted by the lender based on a specified index. Also known as a variable rate mortgage. These types of mortgage products typically start with a lower interest rate, then the interest rate may move up or down as market conditions and the index change.
Agreement of Sale:
A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions specified in writing and signed by both parties. Also known as a Contract of Purchase, Purchase Agreement or Sales Agreement according to location or jurisdiction.
The gradual repayment of a mortgage loan by periodic installments.
Estimate of value established by a licensed appraiser, which compares a subject property to recently sold comparable properties.
Licensed person who prepares an appraisal, which is a report of the value of a property.
Increase in the value of real estate over time.
Acronym for adjustable-rate mortgage.
The financial inability to pay debts. The debtor seeks relief through legal proceedings.
An individual who, for a fee or commission, brings together parties and facilitates business negotiation between them. See also Mortgage Broker and Real Estate Broker.
Buydown Your Mortgage:
Paying additional points to your lender at closing in exchange for a reduced rate of interest. The reduced rate may last for the entire or a portion of the loan life.
Describes the relationship between the sales professional performing real estate services for a buyer. The sales professional places the interests of the buyer above all others in the transaction.
Buyer Representation Agreement:
Formal contract signed by the buyer and sales professional which details the sales professional agreement to represent the buyer.
Market economy to the buyer’s advantage. There is a greater supply of homes than there are buyers to purchase them.
Increase in the value of real estate between the time it was bought and the time it was sold.
Certificate of Eligibility:
Certificate provided by the Veterans Administration (VA), which verifies the veteran’s eligibility to receive a VA loan.
A meeting where the sale of a property is finalized by the buyers and sellers signing certain documents to transfer the title of the property and paying closing costs. Also known as the Closing Day or Settlement.
Certain expenses (over and above the property price) incurred by both buyers and sellers when transferring ownership of real property. Typical closing costs may include: attorney’s fees, insurance, a loan origination fee, insurevarious taxes, and an amount held in escrow, along with charges for obtaining title insurance and a survey as needed. The percentage of closing costs varies according to the area or jurisdiction. REALTORS ® or lenders often provide estimates of closing costs to prospective home buyers.
The day specified in a real estate contract when the sale of a property is finalized by the buyers and sellers signing certain documents to transfer the title of the property and paying closing costs. Also known as the Settlement or Closing.
Cloud On Title:
Conditions, typically revealed by a title search, that adversely affect the title to real estate. Clouds on title can interfere with the transfer of real estate because they generally cannot be removed except by court action, quitclaim deed or release.
A written offer or notification from a lender stating the terms under which it agrees to lend money to a home buyer. Also known as a Loan Commitment.
Competitive Market Analysis (CMA):
A report comparing your property to others in your market that were recently sold.
Complement of Services:
A quantity of real estate settlement services considered to complete a real property purchase.
Individually owned units in a multi-unit structure. Stairs, sidewalks and hallways are common areas.
Contract of Purchase:
A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions specified in writing and signed by both parties. Also known as an Agreement of Sale, Purchase Agreement or Sales Agreement according to location or jurisdiction.
A loan that is not insured or guaranteed by the federal government, such as the Veterans Administration or the Federal Housing Administration. Also known as a Conventional Mortgage.
A loan that is not insured or guaranteed by the federal government, such as the Veterans Administration or the Federal Housing Administration. Also known as a Conventional Loan.
Rejection of an offer in written terms which a buyer or seller proposes a substitute offer to the contract terms.
A written document that is properly signed and delivered as an instrument of bond, contract or conveyance, especially relating to property. This document transfers property ownership from the seller to the buyer. The seller signs the deed at closing and the buyer receives a copy. The closing sales professional records the deed with the buyer listed as the new property owner. The buyer’s name appears on the deed and it is sent to the buyer after it is recorded.
Deed of Trust:
A document used in some states instead of a mortgage. When borrowers sign this document, they receive title to the property but convey title to a neutral third party, called a trustee, until the loan is repaid.
Information pertaining to characteristics of human populations and population segments, including population growth and density.
A document, text or form that reveals or uncovers information about real estate. For example, see Seller’s Disclosure.
Percentage of the buyer’s loan usually paid by the seller to the lender in cash at closing. Each point equals 1% on the loan balance. Discount points account for the difference between the market interest rate and the loan rate.
A state tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each state.
The real estate agent professional who has signed agreements with the buyer and the seller in the same transaction.