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| GLOSSARY |
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- Acceptance: An acceptance is a promise by the offeree to be bound by the exact terms proposed by the offeror. The acceptance must be communicated to the offeror.
- Acre: A measure of land equal to 43,560 square feet.
- Adjustments: Money that the buyer and sellers credit each other at the time of closing. Often includes taxes and down payment.
- Appraisal: An estimate of the monetary value of a property on the open market; an estimate of a property's type and condition, its utility for a given purpose or its highest and best use.
- Assessment: The imposition of a tax, charge or lien, usually according to established rates.
- Assignment: A transfer of property rights from one person to another, called the assignee.
- Assessor: Municipal or county official who determines the value of property for taxation.
- Broker: Person licensed to represent homebuyers or sellers for a fee.
- Brokerage: For a commission or fee, bringing together parties interested in buying, selling, exchanging, or leasing real property.
- Building inspection: An overall inspection of a home or building performed by a qualified contractor or inspector. The inspection usually covers all major systems including foundation, plumbing, electrical, roof, heating and air conditioning.
- Closing costs: Expenses of the sale (or loan refinancing) that must be paid in addition to the purchase price (in the case of the buyer's expenses) or be deducted from the proceeds of the sale (in the case of the seller's expenses). Some closing costs result from legal requirements; others are a matter of local custom and practice.
- Commission: The compensation paid to a licensed real estate broker or by the broker to the salesperson for services rendered, usually a percentage of the selling price of the property.
- Comparables: Houses and properties that are similar in style, appearance, construction quality, and usefulness to a particular property in a certain location.
- Comparative Market Analysis (CMA): Realistic estimate of a home's current market value based on the most salient points of the local real estate market.
- Deed: A written instrument, when executed and delivered, conveys title to or an interest in real estate.
- Down payment: Buyer's payment to the sellers at time of closing for that percentage of the purchase price required by the buyer's mortgage loan.
- Dual agency: Representing both the buyer and the seller in the same real estate transaction. By law, all states require that dual agency be disclosed to all parties in the transaction.
- Covenant: An agreement contained in an instrument creating an obligation. It may be positive, stipulating the performance of some act. It may be negative or restrictive, forbidding the commission of some act.
- Depreciation- A loss in value due to any cause.
- Depreciated reproduction cost - Appraisal method by which the cost of replacing a structure, minus depreciation, gives the depreciation reproduction costs.
- Discharge of mortgage- A document executed by the mortgagee, and given to the mortgagor when a mortgage loan has been repaid in full before, at, or after the maturity date.
- Disclosure statement - A statement contained in a consumer credit transaction in order to disclose complete credit terms and interest rates.
- Inspection: A formal survey of a home's structure and systems, often performed by a licensed professional.
- Lease purchase: A contract in which an owner leases his house (usually for one to five years) to a tenant for an increased monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance, with the incremental rent increase being used to form a down payment. Buyers should be wary of this type of contract since they may lose their extra rent/down payment money should the owner suffer financial setbacks before the purchase has been completed.
- Listing broker: The broker in a multiple-listing situation from whose office a listing agreement is initiated, as opposed to the cooperating broker, from whose office negotiations leading up to a sale are initiated. The listing broker and the cooperating broker may be the same person.
- Mortgage: A contract providing security for the repayment of a loan, registered against property, with stated rights and remedies in the event of default. Lenders consider both the property and financial worth of the borrower in deciding on a mortgage loan.
- Mortgage loan: A loan which utilizes real estate as security or collateral to provide for repayment should you default on the terms of your loan. The mortgage or deed of trust is your agreement to pledge your home or other real estate as security.
- Mortgage note: A signed promise to repay a mortgage loan in regular monthly payments.
- Payment cap: protective device included in some adjustable-rate mortgages that sets a maximum amount monthly payment may rise in any given year.
- Real estate agent: A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
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