Liz Chapman
Geri Lee Realty
Common Real Estate Terms
Agency - A relationship created when one person (the principal) delegates to another person (the agent) the right to act on the principal's behalf. In
Agreement - A shortened form of Purchase And Sale Agreement. Also called simply the Contract.
ARM - (Adjustable Rate Mortgage) A mortgage loan on which the interest rate rises and falls with changes in prevailing rates. These loans are tied into various publicly available indexes.
Binding Agreement Date - This is the date when the contract is signed by both parties and delivered. It is a critical date as all the required stipulations in the contract which are tied into a date (for example, the home inspection) are counted forward from the Binding Agreement Date.
Broker - Generally, this term refers to the Realtor who is responsible for managing a Real Estate office. When a Realtor has a question, they go to their Broker for advice.
CC&Rs - Covenants, Conditions & Restrictions. These are rules set up for a particular association that govern anything from the type and size of the structures to be built, type of roofing allowed, fencing requirements, cutting of trees, and dues to be paid to association.
Closing - The act of finalizing a real estate transaction. In
Condominium - A type of dwelling wherein units have shared walls and common space. In this form of ownership, the area owned is considered to be the space inside of the walls of each unit and a shared interest in the common areas of the complex. There is a monthly fee assessed to cover the cost of maintaining the exterior of each building and the common areas. This fee could be hefty, so make sure you inquire when checking out any condo you may consider buying.
Deed - A written document that, when properly executed and delivered, conveys title to land. After the close of the sale, this document is filed in the county courthouse.
Earnest Money - The money that accompanies an offer to purchase as evidence of good faith. This money is held in escrow until the closing, when it is applied to the Buyer's down payment.
Lender - A mortgage broker or bank where you acquire your loan.
Mortgage - A document which makes the property security for the repayment of a debt. This payment consists of four or five sub-parts, which we often call "The PITI payment." Principle + Interest + Taxes + Insurance = Mortgage Payment. There may also be another aspect of the payment, the PMI or Private Mortgage Insurance, which is collected whenever the down payment is less than 20% of the loan amount. This amount is added to your monthly mortgage payment.
Offer - We use this term when we refer to "making an offer" on a home. The Buyer takes the first step in negotiating a sale when they present their offer. The Seller then comes back with a "counter offer." This process goes back and forth until an agreement is reached at which point it becomes a binding contract.
POA - Property Owners' Association. The POA governs and serves the members of a particular PUD.
Possession Date - The date upon which the Buyer can move into their new home.
PUD - Planned Unit Development. This is a development where each property owner has single ownership of their lot and also a shared ownership of a common area. This area is controlled by the POA. The common area usually consists of a club house, pool and/or other amenities. There is a yearly fee for the maintenance of the common area.
Seller's Property Disclosure Statement - The document provided by the Seller disclosing all known problems, past and present, with the house. A Buyer should insist upon seeing a Seller's Disclosure Statement before making an offer to purchase.
Title - The right to or ownership of something. We use this term normally when referring to the deed. The title shows who owns the property.
If you need a term defined that is not shown above, try this Real Estate Dictionary...
©2004 - LiznParadise.com. No part of this page may be copied without the express written permission of the author, Liz Chapman.
Let me help you own a little bit of Paradise!
RealtorGeri Lee RealtyParadise office: 530.872.9117cell: 530.864.5557fax: 530.872.9115main office1102 Mangrove Ave.Chico, CA 95926
liz@liznparadise.com