General Definitions

Question 1

Comparable Sales

Answer 1

Recent sales of similar properties in nearby areas and used to help determine the market value of property

Question 2

Appraised Value

Answer 2

An estimate of the fair market value of the property, only given by an appraiser

Question 3

Closing Costs

Answer 3

expenses over and above the purchase price of buying/selling real estate. Examples are commissions, escrow fees, title fees, and seller fees.

Question 4

Commission

Answer 4

a fee for the professional services that real estate agents provide to home buyers/sellers

Question 5

Contract

Answer 5

An oral or written agreement to do or no to do a certain thing

Question 6

Default

Answer 6

Failure to make the mortgage payment within a specified period of time. For 1st mortgage, payments not made in 30 days are considered default

Question 7

Deed

Answer 7

The document that conveys the title of the property to the purchaser

Question 8

Deposit

Answer 8

A sum of money given in advance of a larger amount expected in the future. “Earnest money deposit”

Question 9

Equity

Answer 9

difference between what something is worth, and any loan secured by the asset.

Question 10

Escrow

Answer 10

The holding of a deed or contract by a 3rd party until purchase is completed

Question 11

Escrow Officer

Answer 11

A highly trained and experienced employee of a title company, independent escrow company, or real estate broker.

Question 12

Estate

Answer 12

The title or interest one has in property that can be passed on to survivors at the time of one’s death.

Question 13

Eviction

Answer 13

a landlord’s legal removal of a tenant from their rental property

Question 14

Fair Market Value

Answer 14

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

Question 15

First Mortgage

Answer 15

A mortgage placed on a property in first position

Question 16

Hard Money Lender

Answer 16

a hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property.

Question 17

Judgement Lien

Answer 17

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

Question 18

Lease

Answer 18

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

Question 19

Lien

Answer 19

the legal claim of one person upon the property of another person to secure the payment of debt.

Question 20

Loan

Answer 20

or mortgage, is a sum of borrowed money that is generally paid back with interest

Question 21

Loan Payoff

Answer 21

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

Question 22

MLS (Multiple Listings Service)

Answer 22

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

Question 23

Mortgage

Answer 23

a legal document that pledges a property to the lender as security for payment of a debt

Question 24

Net

Answer 24

the amount the homeowner receives after all debts are paid

Question 25

Offer

Answer 25

an offer is made to purchase a property at a specific price. After offer is accepted, escrow is opened

Question 26

Preliminary Title Report

Answer 26

Anything recorded against the title of the property. This usually takes about 48 hours to receives. Examples are liens, delinquent taxes, mortgages

Question 27

Property Taxes

Answer 27

a tax assessed on real estate. Is usually based on the value of the property. Assessed by local or municipal governments

Question 28

Renter/Tenant

Answer 28

a person who occupies land or property rented from a landlord

Question 29

Second mortgage

Answer 29

a mortgage placed on a property in second position to an already existing mortgage

Question 30

Third Party Authorization

Answer 30

this form says you allows a third party to receive information about you and your mortgage

Question 31

Title

Answer 31

the evidence of right that a person has to posses the property

Question 32

Transaction Coordinator TC

Answer 32

assists real estate agent by performing the administrative duties required during each stage of a transaction

Question 33

Wire Funds

Answer 33

when funds are directly transferred from one party to another