Real Estate Terms Flashcards
Title
States Ownership
Title Company
Verifies legality of title
Insures proper Ethics are being practiced
Escrow Company
3rd party that receives and disperses funds
Title Insurance
Insures title correctness and accuracy through the purchase process
Home Insurance
Covers fires, floods, etc.
Owner’s Policy
Same as Title Insurance
PITI
Principle Interest Taxes and Insurance
Property Taxes
Taxes paid on property owned
Deed in Lieu
Voluntarily turn over home to lender to avoid foreclosure
Foreclosure
Lender taking over the mortgage property when the owner hasn’t met mortgage obligations
Default
Miss payments
Sub-Contractor
An independent company/worker who fulfills all or part of your contract/work
SFR
Single Family Residence
Condo
Divided buildings that are separately owned, surrounded by common areas that are jointly owned
Apartment
Rent. Occupies part of a building
Townhouse
Owner owns structure and land, but it is not free standing so ownership is limited to front and back yard
Refinance
Finance again, typically with a new loan at a lower interest rate
Appraisal
Assessing the value of the property
Inspection
Examination of the condition of a home
Inspection Period
Window of time for buyers to inspect a home to insure it meets expectations for the home
Down Payment
An amount of money put down at the beginning of a loan
Rent-to-Own
Have the ability to purchase after a set amount of time
Option to purchase
You can purchase at any point in the future for a certain amount
COE
Close of Escrow
MLS
(Multiple Listing Service) Where real estate agents list and browse properties
HUD, Settlement Statement
Shows every single dollar coming in or going out and where its going
Real Estate Agent
Sells properties for clients
Realtor
Same as agent but pays a realtor fee
Closing Costs
What Title and Escrow charges for closing
Primary Lien
Will get paid in full before Junior Lien gets payed a dollar
Junior Lien
Gets paid secondarily
Seller Financing
Loan is provided by the seller
Seller Carryback
When you’re purchasing a house and appraisal comes back for lower than anticipated and the lender will only lend so much. So you get a secondary loan from the seller.
Tax Sale
When you don’t pay your taxes and they sell the rights to your property
Clear Title
When Title is owned by the person trying to sell it without any liens or issues
Payoffs
Amount that the Title officer will request from the bank that the homeowner still owes on their mortgage
Preliminary Title Report
Pulls up whoever has a lien on the property, or a mortgage on the property and look at all the releases
Short Sell
When a homeowner sells their home for less than they owe on the mortgage
Trustee Sell
Sell of real estate through a public auction
Foreclosure Auction
When a lender tries to mitigate losses. Any surplus is given back to the borrower.
General Contractor
Assume responsibility of bringing a construction project to fruition
