Fee simple refers to the most common type of property ownership. Discount points are also known as mortgage points. Accredited Buyer's Representative (ABR) This information is provided without warranty of any kind. This glossary covers all terms and phrases associated with a real estate transaction. If the buyer is unable to make their monthly payments at any time, the seller can legally foreclose and take back the property. A real estate broker is a real estate agent who has passed a state broker’s exam and met a minimum number of transactions. Free and premium plans, Sales CRM software. Each database has its own listings, requires agents to pay dues for access, and allows agents to share listings across regions -- without paying dues to each one. It is done to bypass a typical mortgage broker or lending channel and allows the buyer to assume the seller’s mortgage. ‎ Need to know real estate jargon? A real estate broker who registers a prospective buyer with the auction company, in accordance with the terms and conditions for that auction. A second mortgage is when a property owner borrows against the value of their home. It is most often associated with single-family homes, as condominiums and townhomes are purchased with covenants, conditions, and restrictions. Most real estate agents must work for a realtor or broker with additional training and certification. While you do “own” your home, your mortgage lender has interest in the property until it’s paid off. It is imposed by the state, county, and municipal authority where the transaction is taking place and is based on the property’s value and classification. Insurance payments are usually included in your monthly mortgage payments. A sales is considered “pending” if all contingencies have been met and the buyer and seller are moving toward closing. The broker is paid a commission only if his prospect is the high bidder and successfully closes on the property. A rate lock allows the borrower to lock in that interest rate for a specific period of time protecting them from market fluctuations. Here is a comprehensive list of fairly typical real estate, building & finance terms you may come across, to help make it easier for you. The sale of a home could also be contingent on the buyer selling their home by a specified date. The borrower has the option of converting their ARM to a fixed-rate mortgage, but there are generally fees for the switch. It consists of an 80% - 30 year first lien at market rates, a 10% - 15 year second lien at a slightly higher interest rate, and a 10% down payment. They are also commonly referred to as HELOCs and draw on the market value of the home to provide the borrower with funds to use however they wish. The Ultimate Real Estate Glossary: 497 real estate terms that every salesperson should know. This is usually (but not always) the same as the possession date. Amortization refers to the process of paying off a loan with regular payments so the amount you owe on the loan gradually decreases. It is also called an acceleration clause. To that party, you only owe honesty and fairness. If a homeowner defaults on their loan, it means they have not paid the sum they agreed to. If a third party buyer offers to buy or lease a property owner's asset, the right of first refusal ensures the property holder is allowed a chance to buy or lease the asset under the same terms offered by the third party before the property owner accepts the third-party offer. See all integrations. Appraisal—An estimate or opinion of value of a specific property as of a specific date resulting from an analysis of the facts about that property by a qualified impartial third party. EU Privacy Policy Barron’s Dictionary of Real Estate Terms includes more than 3,000 terms and definitions to help you feel comfortable using modern real estate language. Real estate agent. The inspection is meant to identify major issues that might affect the value of the home and the stability of your and your lender’s investment and return. When the transaction is complete (usually at closing), the third party will release those funds to the seller. To calculate your home’s equity, subtract your outstanding loan balance from the current market value of your property. As a digital marketplace with an exhaustive range of property listings, we know it is easy to get lost. Loan officers are often employed by larger financial institutions and help borrowers choose the right type of loan, compile their loan application, and communicate with appraisers. Free and premium plans, Content management system software. For more information, check out our privacy policy. Tallahassee, FL 32301, Kevin Graham Commercial—Non-residential; commerce or business related. The method by which a surveyor of real property identifies the boundaries of a parcel of land. Refinancing replaces an existing loan with a new one. The Equal Credit Opportunity Act (ECOA) was enacted on October 28, 1974 and rules it unlawful for creditors to discriminate against applications because of race, color, religion, national origin, sex, marital status, age, or because they receive public assistance. The Home Equity Conversion Mortgage (HECM) is an FHA reverse mortgage program enabling homeowners to withdraw equity on their home through either a fixed monthly payment, a line of credit, or a combination of the two. On the closing date, the property is legally transferred from seller to buyer. Home buyers and sellers, as well as real estate professionals, investors, and attorneys can rely on this quick-reference source. 67. Typically, a mortgage default means the homeowner hasn’t made a home loan payment in 90 days or more. In real estate, the lender refers to the individual, financial institution, or private group lending money to a buyer to purchase property with the expectation the loan will be repaid with interest, in agreed upon increments, by a certain date. The document outlines the terms and conditions of a sale and holds each party legally accountable to meeting their agreement. Here are some of the key terms you need to know. Assessment—The valuation of property for the purpose of levying a tax or the amount of the tax levied. Real estate broker. Instead of having to come up with a 20% down payment, a buyer Browse through more than 121,000 verified real estate properties with accurate lowdown on amenities, neighborhoods and cities, and genuine pictures. At PropTiger.com, we guide home buyers right from the start of their home search to the very end. Real Estate Glossary. It consists of an 80% - 30 year first lien at market rates, a 10% - 15 year second lien at a slightly higher interest rate, and a 10% down payment. HUD loan a type of loan available to HUD homebuyers that goes toward fixing up a home. Welcome to one of the most in-depth, detailed real estate glossary on the web! This free online glossary of real estate terms includes selected terms commonly encountered by both tenants and home purchasers. The mortgage lender then sells the mortgage to a secondary mortgage market for a higher price because of the high interest rate. A dictionary of real estate terms is a pedestrian yet essential element of an appraiser's reference library. 68. PUDs offer many common areas owned by the HOA and amenities beyond what normal apartment buildings or townhomes offer, including tennis courts and outdoor playgrounds. Check out this roundup of top real estate blogs and top websites for selling a home. Certificate of title—A written document issued by an attorney or a qualified person who has examined the record of the real estate title reporting the state of that title. Fair market value—The amount of money that would be paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under any pressure to buy or sell. 200 W. College Avenue PITI stands for principal, interest, taxes, and insurance, and refers to the sum of each of these charges, typically quoted on a monthly basis. This quick-reference guide can help. The Uniform Standards of Professional Appraisal Practice (USPAP), Daubert, and others make the use of industry standard definitions and terminology mandatory. Home equity will increase as you pay down your loan or the market value of your home increases. Appraisal —An estimate or opinion of value of a specific property as of a specific date resulting from an analysis of the facts about that property by a qualified impartial third party. Use this dictionary as a study guide for the real estate agent exam. In real estate, a term used meaning a person the agent is NOT under contract with is called a CUSTOMER. It establishes the maximum value of the property and therefore the maximum size of the loan. It is also commonly referred to as the nominal rate or face interest rate. Typical home loans require a 20% down payment. ACCEPTANCE — The act of agreeing or consenting to the terms of an offer thereby establishing the Easement—A right, privilege or interest limited to a specific use or control purpose which one party has in the land of another party and which run with the land and are not a personal right of an individual. A jumbo mortgage exceeds these conforming loan limits, which are tied to local median home values. Escrow is part of the homebuying process. A bridge loan is a short-term loan a homeowner takes out against their property to finance the purchase of another property. and protects consumers, has prepared this glossary to help you better understand the terms commonly used in the real estate and mortgage marketplace. Also known as a participating broker. Need to know real estate jargon? If two people own a home jointly, one person could only transfer their half of the property via quitclaim. An easement grants someone else the legal right to use another person’s land or property while leaving the title in the owner's name. Loan servicing includes sending the borrower monthly statements, maintaining payment and balance records, and paying taxes and insurance. Tenancy – A right of possession or occupancy of real property. A high interest rate means you’ll pay less on the principal, meaning you’ll pay more on your loan over time. Premium plans, Connect your favorite apps to HubSpot. A short sale allows the lender to recoup some of the loan that's owed to them but must be approved by the lender before the seller moves forward. It means there's no question of legal ownership of the property such as building code violations or bad surveys. Many terms in real estate are universal throughout the nation. It means the owner’s rights to the property are indefinite and can be freely transferred or inherited when the owner chooses. When a property owner violates the rights of a neighbor by building or adding on to a structure that extends onto a neighbor’s land or property line, that is called encroachment. AMORTIZATION. Online since 2004. A fixed-rate mortgage is one of the most common types of loans. From the obscure to the obvious, your clients will find all the information they need below. Debt is not eliminated when a borrower refinances. Loan origination is the process during which a borrower submits a loan application and a financial institution or lender processes that application. These fees can cover common area maintenance, repairs, and general upkeep. More than 3,000 terms and definitions cover topics that include appraisal, architec… Real Estate Terms, Definitions and Dictionary related to real estate licensing and real estate exams. You may unsubscribe from these communications at any time. Loan servicing is a term for the administrative aspects of maintaining your loan, from the dispersal of the loan to the time it’s paid in full. To determine the value of your home, you’ll need a real estate appraisal with expertise in your geographic area. The day on which all calculations of interest, tax adjustments and utility bill adjustments (if applicable) are made to either the buyer or seller. 26. The annual percentage rate (APR) is the amount of interest charged on your loan every year. Its goal is to regulate settlement costs, prohibit specific practices such as kickbacks, and limits the use of escrow accounts. It gives the lessee the ability to lease property with the option to buy. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days. Tax costs—A forced contribution of wealth to meet the public need for government. If a payment is more than 30 days late, a lender might begin collection or foreclosure proceedings. (850) 645-0522, US Privacy Policy When a property is contingent, it means the owner has accepted an offer -- but certain contractual expectations must be met or the offer will be void. The goal of this act is to protect consumers from having misinformation used against them. The right of ingress is the right to enter a property. The goal is to lower interest rates on the loan or change certain terms of the mortgage. If you have any questions or require further information, please email me. Inspection—A physical scrutinizing of documents or property done to assure correctness of paperwork such as loan papers, compliance with building codes or absence of termites, etc. It is widely considered the most comprehensive listing service available. Bona fide—In good faith, without fraud or deceit; authentic; sincere. To calculate a home’s likely appreciation rate, add one to the annual appreciation rate, raise this to a power equal to the number of years you’d like to estimate, then multiply that by the current value of the property. Annual Percentage Rate (APR): The cost of Appraisal: A professional analysis used a loan or other financing … This is the date your mortgage begins to accrue interest (though you might not have made a mortgage payment yet). To help prepare you for the home selling process, we’ve created a complete glossary of real estate terms. A life cap is also known as an absolute interest rate or interest rate ceiling and keeps interest rates from ballooning too high over the term of the loan. Maybe you are interested in a glossary of commercial real estate terms A tenancy can be “periodic,” that is, week-to-week or month-to-month, or for a fixed terms (i.e. Owner financing (also known as seller financing) takes place when a borrower finances the purchase of a home through the seller, bypassing conventional mortgage lenders and financial institutions. As the real estate market begins to show signs of recovery, home buyers and sellers, real estate professionals, investors, and attorneys can rely on the up-to-date eighth edition of Barron's Dictionary of Real Estate Terms when they need a handy quick-reference source to the industry's terminology. Hopefully, I can help. Community property refers to property acquired by a married couple and owned equally by both spouses. A real estate agent is a professional with a real estate license who works under a broker and assists both buyers and sellers in the home-buying process. Marketing automation software. Real estate commission is generally 5-6% of the home’s sale price. In this situation, the seller is also likely accepting backup offers in case their current offer fails to meet its contingencies. It might also shorten the lifetime of a loan to benefit the borrower. An assessment is used to determine how much in taxes the owner of a property will pay. Ad valorem—A Latin phrase meaning “according to value” that is usually used in reference to real estate taxation. Assumption is when a seller transfers all terms and conditions of a mortgage to a buyer. Lender during closing HOA fees typically are the part of your home ’ s value them... Covers project costs before long-term funding can dictionary of real estate terms backed by government-sponsored programs will accept a 3.5 down. 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dictionary of real estate terms

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