General Definitions Flashcards
Comparable Sales
Recent sales of similar properties in nearby areas and used to help determine the market value of property
Appraised Value
An estimate of the fair market value of the property, only given by an appraiser
Closing Costs
expenses over and above the purchase price of buying/selling real estate. Examples are commissions, escrow fees, title fees, and seller fees.
Commission
a fee for the professional services that real estate agents provide to home buyers/sellers
Contract
An oral or written agreement to do or no to do a certain thing
Default
Failure to make the mortgage payment within a specified period of time. For 1st mortgage, payments not made in 30 days are considered default
Deed
The document that conveys the title of the property to the purchaser
Deposit
A sum of money given in advance of a larger amount expected in the future. “Earnest money deposit”
Equity
difference between what something is worth, and any loan secured by the asset.
Escrow
The holding of a deed or contract by a 3rd party until purchase is completed
Escrow Officer
A highly trained and experienced employee of a title company, independent escrow company, or real estate broker.
Estate
The title or interest one has in property that can be passed on to survivors at the time of one’s death.
Eviction
a landlord’s legal removal of a tenant from their rental property
Fair Market Value
the value established on real property that is determined to be one that a buyer is willing to pay and a seller is willing to sell
First Mortgage
A mortgage placed on a property in first position
Hard Money Lender
a hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property.
Judgement Lien
an involuntary lien issued by a court after a judgement is entered against the property owner. Becomes a lien with any property owned in that county
Lease
a written agreement between the property owner and tenant that stipulates payment and conditions for which the tenant may possess the real estate for a specified time period
Lien
the legal claim of one person upon the property of another person to secure the payment of debt.
Loan
or mortgage, is a sum of borrowed money that is generally paid back with interest
Loan Payoff
if there is a loan on the property, we must submit for a final loan payoff through escrow to get the exact number needed to payoff the loan
MLS (Multiple Listings Service)
where real estate agents post most homes for sale that are exclusive for them to see. Where Zillow and other real estate websites extract their listings from
Mortgage
a legal document that pledges a property to the lender as security for payment of a debt
Net
the amount the homeowner receives after all debts are paid
Offer
an offer is made to purchase a property at a specific price. After offer is accepted, escrow is opened
Preliminary Title Report
Anything recorded against the title of the property. This usually takes about 48 hours to receives. Examples are liens, delinquent taxes, mortgages
Property Taxes
a tax assessed on real estate. Is usually based on the value of the property. Assessed by local or municipal governments
Renter/Tenant
a person who occupies land or property rented from a landlord
Second mortgage
a mortgage placed on a property in second position to an already existing mortgage
Third Party Authorization
this form says you allows a third party to receive information about you and your mortgage
Title
the evidence of right that a person has to posses the property
Transaction Coordinator TC
assists real estate agent by performing the administrative duties required during each stage of a transaction
Wire Funds
when funds are directly transferred from one party to another
