| Agent |
A person acting on behalf of another, called the principal. |
| Agreement of Sale |
Known by various names, such as "contract of
purchase", "purchase agreement", "sales agreement", or "binder",
according to location or jurisdiction. A contract in which a seller
agrees to sell and a buyer agrees to buy, under certain specific terms
and conditions spelled out in writing and signed by both parties. |
| Appraisal |
An expert judgment or estimate of the quality or value of
Real Estate as of a given date. |
| Assessed Value |
The valuation placed upon property by a public tax
assessor as the basis for taxes. |
| Certificate of Title |
A document signed by a title examiner or
attorney, stating that the seller has good marketable and insurable title. |
| Chattel |
Tangible, movable property which may be included, the sale of
real property. |
| Commission |
Payment of money or other valuable consideration to a Real
Estate broker for services performed. |
| Condominium |
An individually owned unit of real estate, an apartment
or townhouse, in a building or on land that is owned in common by the
owners of the units. Therefore it's community living where the
condominium corporation handles all the affairs of the common elements
of the building. |
| Co-Op |
Similar to condominium living however, shareholders do not have
title to their unit, but own shares in the corporation. |
| Deed |
A formal written instrument by which title to real property is
transferred from one owner to another. |
| Deposit Money |
The money given to the seller by the potential buyer
upon the signing of the agreement of sale to show that buyer is serious
about buying the property/house. |
| Easement |
A right by one tenement over another tenement, for example,
a land owner with a right over another land owner to occupy/use their
property. An easement runs with the land. |
| Encumbrance |
An outstanding lien or claim issued against the property
or the legal use of the property by another person other than the actual
owner. |
| Equity |
The interest or value which owner has in Real Estate over and
above the debts against it. (Sale Price - Mortgage Balance = Equity) |
| Financial Statement |
A report providing financial statistics relative
to a given part of an organization's operations or status. Two most
common statements are the balance sheet and the income statement. |
| Fixture |
What was formerly personal property which is now permanently
attached to real property and goes with the property when it is sold. |
| Hazard Insurance |
Protects against damages caused to property by fire,
windstorms, and other common hazards. |
| Land Contract |
Like a mortgage, a security instrument whereby real
property is given as security for a debt. However, in a land contract
the parties involved are only the seller and buyer. Seller receives land
contract payments and continues to pay existing mortgage payments, if
they exist. |
| Listing Contract |
Between a home owner (as principal) and a licensed
Real Estate broker (as agent) by which the broker is employed to sell
the Real Estate within a given time for which service the owner agrees
to pay a commission. Also, "listing agreement". |
| Market Value |
The highest price which a buyer, ready, willing and able
but not compelled to b u y, would pay, and the lowest price a seller,
ready, willing and able but not compelled to sell, would accept. Basis
for "listing price" or "asking price". |
| Market Price |
The actual amount for which a piece of property is sold.
Also, "sales price", "purchase price". |
| Mortgage |
A lien or claim against real property given by the buyer to
the lender as security for money borrowed. |
| Mortgagee |
Is the lender/creditor. Where property is conveyed as
security for the payment of a debt. |
| Mortgagor |
Is the party who gives the mortgage, the borrower. |
| P.IT.I. |
Principal, interest, taxes and insurance. Most residential
mortgage payments include the above and are therefore referred to as
PITI. Also, "carrying charges". |
| Prepayment Penalty |
Penalty for the payment of a mortgage note or deed
of trust note before it actually becomes due. |
| Principal |
This word has several meanings: (A) to denote the most
important; (B) a capital sum lent on interest; (C) one who appoints an
agent to act for and in behalf of the "principal"; (D) either party to a
contract. |
| Property Management |
The operation of real property, including the
leasing of space, collection of rents, selection of tenants, and the
repair and renovation of the buildings and grounds. |
| Sales Representative |
A person with a real estate license and
associated with a specific real estate broker. |
| Survey |
A map or plat made by a licensed surveyor showing the results
of measuring the land with its elevations, improvements, boundaries, and
its relationship to surrounding tracts of land. A survey is often
required by the lender to assure a building is actually sited on the
land according to its legal description. |
| Title |
As generally used, a document that indicates rights of
ownership and possession of particular property. A summary of the public
records relating to the title to a particular piece of land. |
| Title Insurance |
Protects lenders and property homeowners against loss
of their interest in property due to legal defects in title. |
| Title Search or Examination |
A check of the title records, to make
sure the buyer is purchasing property and there are no liens, overdue
special assessments, or other claims. |
