A measurement of land equal to 43,560 square feet in any shape.
Details that are added onto a document.
A mortgage whose interest rate is changeable; it usually has a cap. ARMs typically start with a low ‘teaser rate’ that that adjusts to the market rate after several years.
A written or oral contract in which you authorize an agent to act on your behalf of in dealing with a third party, such as a home buyer.
A person who is authorized to represent another person. Real estate agents must be licensed in each state in which they do business. Typically, real estate agents are affiliated with a broker, an umbrella real estate business that markets home buying and selling services under its brand. Most agents are self-employed.
A written purchase and sale agreement.
The act of paying off a mortgage with periodic payments of principal and interest. The amortization schedule you shows you much of the amount you are paying goes to principal (the sale prices of the house) and how much goes to interest (the cost of the mortgage, paid to the lender).
A yearly rate of interest that includes all the costs of acquiring the loan.
The estimated fair market value of a house by an authorized and licensed person.
The authorized person who estimates the fair market value of a house. Appraisers are licensed by the state in which they do business.
The value of a property for tax purposes, as determined by a municipal assessor. Assessments may or may not reflect market value. Assessed value is not the same as the appraised value.
The official valuation of a property for tax purposes.
An estimate of a property’s value for tax purposes.
A mortgage amortized over a period of years but whose final payment is due after a set number of payments.
The final payment of a balloon mortgage.
A contract that transfers of property from the seller to the buyer.
An agreement between a buyer and a seller that sets forth the conditions of a sale; shows the good faith of both to have an attorney draw up a sale and – purchase contract Breach of Contract – a failure to execute the terms of a contract.
A loan that covers the period between the end of one loan and the beginning of another. If you bought a new house before the old house sold, you might get a bridge loan to cover the period when you own two houses.
A person licensed to deal in real estate matters.
Comparative Market Analysis.
The relatively clean condition of a house when given to a buyer.
A set of laws to be followed in the construction and building business.
Permission granted by local government to build on a property.
A person authorized to work on behalf of the buyer of a property.
The increase in value of an asset; the profit from the sale of property.
A title to a piece of property that is free of liens or legal problems. The title is your proof of ownership. A clear title means that there are no complications to that ownership, such as another owner also claiming to own the property.
The final step in a real estate deal; money is given to the seller and title is given to the buyer and the title transfers from the seller to the buyer.
Fees and expenses associated with the transfer of ownership of a piece of property includes many different fees; can often add up to a substantial amount.
The document that lists all financial data at time of closing.
A claim on a piece of property that affects the title; can be settled by various actions. For example, a builder might put a lien on the title if the property owner did not pay his bill to the builder. Before the sale can close, the outstanding liens and any other complications to the title must be cleared up.
A fee paid to a broker for transacting a real estate deal. The traditional 6 percent commission is split evenly among the buyer’s agent, that agent’s broker, and the seller’s agent and that agent’s broker. By using USRealty.com, you can decide how much commission you want to pay. USRealty.com recommends compensating the buyer’s agent and buyer’s broker the traditional 3% commission so that you attract buyers’ agents when marketing your house.
A promise in writing by a lender for a specific amount of money over a specific period of time with specific terms (for ex., interest rate).
Properties similar in value to a property being sold; used for appraisal purposes. Usually these are houses near by, in similar condition, and of a similar size.
A comparison of recently sold homes that are roughly similar to each other in location, selling price, etc. also known as comparative market analysis or Broker Pricing Opinion. CMAs are often offered for free by listing agents as a way to get in the door and onto your couch. Their analysis helps you understand how your house compares to recently sold houses, but don’t confuse the informal CMA with an appraisal by a licensed appraiser or with the assessment completed by the municipal assessor.
A condition that must be met before a transaction is binding; for example, a house inspection must be acceptable before a deal is binding.
A legally binding agreement between a buyer and a seller.
A type of financial loan made by an institution such as a bank without any government underwriting.
An offer made by a buyer to a seller for real property, usually a lower offer than the asking price. For example, A rejects B’s price and offers a lower price, which is a counteroffer.
A binding agreement between two parties.
A report citing all debts and their repayments.
A street closed at one end.
The appearance of a house from the outside; for example, attractive landscaping, decorated door, etc. ‘Curb appeal’ offers the first impression a buyer has of a house, so is considered an essential element in marketing a house.
A percentage comparing expenses to your household income; for example, housing expenses might be 30% of income.
A signed and executed document conveying title to a piece of property. The deed proves that you own the house.
Money given by the buyer to the seller to create a binding sale.
The act of revealing any problems with a piece of real estate.
Licensed brokers who usually settle for a lower commission; offer fewer services than full-service brokers.
The difference between a mortgage amount and purchase price given to the seller by the buyer.
Money given by the buyer to the seller to secure a deal; becomes part of the down payment if offer is accepted.
An interest or right to land owned by another for a specified purpose. For example, a utility may have an easement.
The value of a house minus the amount owed on the mortgage. For example, Max owes $50,000 on a mortgage with a fair market value of $200,000; his equity is $150,000.
Usually money held in trust by a third party until a specific transaction has been completed.
This Federal law bans discrimination (race, color, sexual orientation, religion, etc.) in the sale or rental of real estate. When you market your house you must comply with the Fair Housing Act.
The largest supplier of home mortgage loans to retail lenders. You get a mortgage through a bank, credit union or other type of mortgage lender, and chances are that the lender then sells the loan to Fannie Mae so it can quickly get the money back and lend it again.
Any fees incurred in borrowing money for a real estate transaction. For example, interest, points, and so on.
Personal property attached to real property that is passed on with the sale of the house unless specifically excluded in the sale. Traditionally, anything nailed down is considered to be a fixture, such as light fixtures, faucets, wall-to-wall carpet and built-in furniture. The sale contract specifies which appliances and other fixtures are included in the sale. When in doubt, list any amenity in the contract as part of the sale.
A legal proceeding by which a property owner loses interest in a mortgaged property through default on a loan.
“For sale by owner,” or selling the house on your own without using an agent or broker. USRealty.com fills the role of the listing broker to list someone who was formerly a FSBO on MLS. We recommend that sellers offer a buyer’s broker a 2.5% or 3% commission to provide an incentive for them to bring their buyers to your house.
A structural and mechanical assessment of a house prior to the closing. Inspections should be conducted by a licensed home inspector. Home inspectors are not municipal building inspectors.
A group of homeowners who, through the collection of association fees, manage the common areas. Many HOAs are corporations with the right to put a lien on a member’s house if that member does not pay his fees, depending on state law.
A guarantee of the quality of construction offered by the builder to a buyer.
A paper or digital one or two-page advertisement that details the features and specifications of the property, such address, size, number and size of rooms, amenities, and description.
The percentage of the amount borrowed for a mortgage charged by the lender to the borrower.
A loan of usually more than $429,00; not all lenders engage in jumbo loans; interest rates for such a loan may be higher than the usual rates. Jumbo loans are defined by Fannie Mae and vary by market.
The disclosure of the possibility of the presence of lead paint in a structure; lead paint is hazardous to health and may be present in buildings constructed prior to 1978.
A lease in which the tenant has the right to purchase real property as stipulated in the terms of the lease. Also known as rent-to-own.
A description of the exact boundaries of a piece of real property; it is a description recognized by law and is used to locate a specific parcel of land. The legal description is usually written by a surveyor.
A legal claim against a real property; security until an obligation such as taxes, debts, and so on are paid.
Money that is borrowed and usually repaid with interest.
The amount of a loan compared to the appraised value of a property.
A numbered method of identifying a parcel of land.
A system of identifying real property by lot and block numbers on a recorded subdivision map.
A clear, saleable title to a piece of real property.
A lien enforceable by legal proceedings favorable to contractors, engineers, laborers, and others who had worked on the property, in an effort to complete payment for labor and/or materials.
An accurate description of land boundaries (metes=length; bounds=boundaries).
A unit of measure (one-tenth of 1%) used in determining the amount of annual taxes due on real property. Taxes are calculated on the millage rate.
A legal document whereby a parcel of real property is used as security for the repayment of a debt. If the loan is not repaid on time, the lender has the right to call the loan and sell the property to pay off the mortgage.
An agent who brings together a borrower and lender for the purpose of earning a commission Multiple-Listing Service (MLS), a service that lists for its members all properties for sale; provides wide market exposure; gives all agents the opportunity to sell a property and share in the commission.
A presentation of a price by a buyer to a seller for acceptance.
A specified time during which a house is open to prospective buyers without an appointment.
A fee charged by the lender for the preparation of a mortgage; usually called “points”.
Any property which is not real property (that is, whatever is not attached to the property itself) and is not a fixture. Depending on local custom, some items, such as appliances and grills, may or may not count as personal property. When in doubt, list in the contract any item you want included in the sale.
Money paid to a lender for making a loan. Each point is equal to 1% of the loan amount.
A legal document whereby a person gives another the authority to act on his/her behalf.
A method by which the buyer can show the agent and/or seller that he can qualify for a specific loan amount.
A -stipulation in a contract that allows the borrower to make a loan payment in advance of the due date.
A fee payable to the lender by the borrower for prepayment of a loan.
An assessment of a buyer’s ability to secure a loan.
The amount of money borrowed or the amount due on a mortgage.
Insurance required by a lender when the down payment is less than 20% of the cost of the property. When the mortgage is 80% of more of the purchase agreement, the lender requires PMI to ensure that it is paid back if you die or default.
A government tax on privately-owned property based on market value.
A contract between a buyer and a seller setting forth the sale and purchase conditions of real property.
Mortgage given by the seller to the buyer as part of the purchase price.
A radioactive, odorless gas sometimes found in a house which can be harmful to health.
The lender’s commitment to a borrower for a specific interest rate charged on a mortgage loan.
A licensee who is either a broker or salesperson and who is a member local, state and National Association of Realtors. Not all realty agents are Realtors but all Realtors are realty agents.
A legal instrument releasing a property from any liens.
One of several appraisal methods which estimates the value of a house by comparing it to recently-sold comparable properties.
A contract agreement between a buyer and a seller specifying all the terms and conditions of the sale of real estate.
Real estate pledged as collateral for a loan.
A financial arrangement whereby a seller provides financing for the buyer, bypassing traditional mortgage lenders.
A seller’s accurate and honest disclosure of the condition of the real property. The legal liability for full and honest disclosure of the property’s history and condition varies by state.
A sewage system using pipes to drain waste into a below ground septic tank.
A statement of all costs of a real estate sale; generally given at the closing.
A listing of interested buyers at an open house.
A house designed for use by a one family.
A contract clause specifying that a condition be met within a specified period of time.
Evidence to the right of ownership of a piece of real estate.
Insurance against loss from title problems or claims against the property.
A search of all records to determine the ownership of a real property.
An inspection of the premises being bought, usually on the day of closing, to make sure all is in working order according to the terms of the sale.
Regulations by local government of the size, height, etc. of buildings and the use of land.