Here are tips for Home Buyers and Sellers Real Estate Every business has its own jargon and residential real estate is no exception. Mark Nash, author of 1001 Home Buying and Selling Tips, shares commonly used terms with home buyers and sellers.1031 exchange or Starker exchange: The delayed exchange of property that qualifies for tax purposes such as deferred tax exchange.
1099: Statement of income reported to the IRS as an independent contractor.A / I: A contract that is pending with unforeseen costs for a lawyer and an inspection.Accompanied Impressions: Those impressions where the ad agent must accompany the agent and his or her clients when viewing the ad.
Addendum: Addendum to; document.
Adjustable interest rate mortgage (ARM): A type of mortgage loan whose interest rate is linked to an economic index that fluctuates depending on the market. Typical periods of ARM are one, three, five, and seven years.Agent: A licensed real estate seller or broker who represents buyers or sellers.Annual percentage rate (APR): The total costs (interest rate, closing costs, fees, etc.) that are part of the borrower’s loan, expressed as a percentage interest rate. The total costs are amortized over the term of the loan.
Home Buyers and Sellers Real Estate
Application fees: Fees that mortgage companies charge buyers at the time of a written loan application; for example, fees for the preparation of credit reports of borrowers, property valuation fees, and fees specific to the lender.Appointments: Those times or periods in which the agent shows properties to clients.Valuation: Document of opinion on the value of the property at a certain point in time.
Estimated Price (AP): the price that a third party for relocation offers (under most contracts) to the seller for his or her property. Usually the average of two or more independent evaluations.“As is”: A contract or offer clause stating that the seller will not repair or correct property problems. It is also used in advertisements and marketing materials.
One in which the buyer agrees to fulfill the obligations under the existing loan agreement concluded by the seller with the lender. When taking out a mortgage, the buyer becomes personally responsible for the payment of the principal and interest. The original mortgagee must receive a written waiver when the buyer takes over the original mortgage.Back to Market (BOM): When a property or ad is put back on the market after it has recently been removed from the market.
Backup Agent: A licensed agent who works with customers when their agent is not available.
Balloon mortgage: A type of mortgage that is usually repaid over a short period but is amortized over a longer period. The borrower usually pays a combination of principal and interest. At the end of the loan term, the entire outstanding balance must be repaid.Reserve offer: When the offer is accepted depending on the failure or cancellation of the accepted first property offer.
Sale Account: Transfers ownership of personal property in a transaction.Board of REALTORS® (local): Association of REALTORS® in a specific geographical area.Broker: A state-licensed person who acts as an agent for a seller or buyer.Registered broker: The person registered with his state licensing authority as a managing broker at a specific real estate office.
Broker’s Market Analysis (BMA): The real estate broker’s opinion on the expected final net selling price determined after the acquisition of the property by a third party company.
Broker Tour: A pre-set time and day when real estate agents can view listings from multiple brokers in the market.
Buyer: The buyer of the property.
Buyer’s agency: A real estate broker retained by the buyer who has a fiduciary obligation to the buyer.
Buyer’s Agent: The agent who shows the buyer’s property negotiates the contract or offer for the buyer and works with the buyer to complete the transaction.
Transfer costs: Expenses incurred for property maintenance (taxes, interest, insurance, utilities, etc.).
Closure: The end of the transaction process in which the deed is delivered, the documents are signed and the funds are scattered.
CLUE (Comprehensive Loss Underwriting Exchange): The national database of the insurance industry that assigns individuals a risk assessment. CLUE also has an electronic file with property insurance. These files are available from insurance companies nationally. These files could affect the ability to sell a property, as they may contain information that the prospective buyer may find unacceptable, and in some cases not even insured.
Commission: The compensation paid to the broker for listing by the seller for the sale of the property. The buyer may also be required to pay a commission to his agent.Separation of the commission: The percentage distribution of the commission compensation between the real estate agent and the real estate agent or broker.
Competitive Market Analysis (CMA): The analysis is used to provide market information to the seller and assist the real estate broker in securing the ad.Condominium Association: Association of all condominium owners.
Condominium budget: Financial forecast and report on the costs and savings of the condominium association.Condominium rules: Rules adopted by the condominium association used in the management of condominiums.Condominium Declarations: A document that legally establishes condominiums.
Right of first refusal of condominium: A person or association that has the first opportunity to purchase real estate in a condominium when it becomes available, or the right to fulfill any other offer.
Condominium rules and regulations: Condominium association rules that the owners agree to abide by.
Contingencies: A provision in a contract that requires certain actions to be completed before the contract becomes binding.Continue to show: When the property is under a contingency contract, but the seller wants the property to continue to be shown to prospective buyers until contingencies are released.
Action contract: A contract of sale in which the buyer takes possession of the property but the seller has ownership until the loan is repaid. Also known as a contract for the sale of installments.Conventional mortgage: A type of mortgage that has certain restrictions placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans take over conventional mortgages.
Cooperation commission: A commission offered through the buyer’s agent to bring the buyer to the list of the selling broker.Co-op: When the shareholders of the corporation are the residents of the building. Each shareholder has the right to lease a certain share. The difference between a condominium and an apartment is in a condominium, a person owns shares in a corporation; in an apartment, a person owns a single fee simply.
Counter-bid: The response to an offer or quotation from the seller or buyer after the initial quotation or quotation.Credit report: Includes the entire history of the borrower’s credit accounts, outstanding debts, and deadlines for payment of past or present debts.
Credit rating: A rating assigned to a borrower’s credit report based on the information contained therein.Modest attractiveness: The visual impact of the property is projected from the street.Market days: The number of days a property has been on the market.
Decree: A court decision that determines the agreements and rights of the parties.
Disclosure: Federal, state, county, and local disclosure requirements provided by the seller and recognized by the buyer.
Divorce: Legal separation of a spouse by a court decision that completely terminates the marital relationship.
HOME: Market days.
Initial payment: The amount of cash invested in the purchase by the borrower.Drive-by: When a buyer or seller agent or broker goes through a property listing or potential listing.Double Agent: A state-licensed person who represents the seller and the buyer in one transaction.
Deposit: The money given to the seller at the time of the offer is a sign of good faith of the buyer.Escrow Real Estate Tax and Insurance Account: An account in which borrowers pay monthly proportions for real estate tax and property insurance.
Exceptions: Lighting fixtures or personal property that are excluded from the contract or offer to purchase.Expired (listing): A list of properties that have expired under the terms of the registration agreement.
Fax rider: A document that treats a fax transmission as the same legal action as the original document.
Feedback: The real estate agent and/or the reaction of his or her client to an ad or property. Requested by the ad agency.Simple fee: A form of property ownership in which the owner has the right to use and dispose of property at will.
FHA (Federal Housing Administration) Loan Guarantee: A guarantee from the FHA that a percentage of the loan will be taken by a mortgage company or banker.
Adaptation: Personal property that has become part of the property through permanent attachment.
Flat fee: Pre-determined amount of compensation received or paid for a specific service in a real estate transaction.For sale by owner (FSBO): Property for sale by the property owner.
Gift letter: A letter to the lender stating that the gift was made in cash to the buyer (s) and that the person giving the money to the buyer does not expect the gift to be paid. The exact wording of the gift letter should be requested from the lender.
Good faith assessment: According to the Law on Procedures for Real Estate Settlement, within three days after applying, creditors are required to provide in writing to potential borrowers a good faith estimate of the completion costs.Gross selling price: The selling price before any discounts.
Danger insurance: Insurance that covers real estate losses from damages that could affect its value.Homeowner’s Insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.
HUD / RESPA (Law on Housing and Urban Development / Procedures for Real Estate Settlement): A document and statement that describes all the money paid and received at the closure of the real estate.Hybrid Adjustable Rate: Offers a fixed rate for the first 5 years and then adjusts annually for the next 25 years.
IDX (Internet Data Exchange): Allows real estate brokers to advertise each other’s ads published in ad databases as a multi-listing service.
Includes: Lighting fixtures or personal property that are included in a contract or purchase offer.
Independent contractor: A real estate sales agent who conducts real estate business through a broker. This agent does not receive a salary or benefits from the broker.
Inspection Rider: A purchase agreement between a third party, a moving company, and a buyer of the acquirer’s property, stating that the property is being sold “as is”. All inspection reports carried out by a third party are disclosed to the buyer and it is the buyer’s responsibility to carry out his own inspections and tests.
Installment land contract: A contract in which the buyer takes possession of the property while the seller retains ownership of the property until the loan is repaid.
Variable interest rate: The borrower decides to postpone the conclusion of his interest rate on his loan. They can sail their course waiting for the course to move down. At the end of the sailing period, they must lock a course.
Locking the interest rate: When the borrower and the lender agree to lock the interest rate on the loan. There may be rules and conditions attached to the lock.
List Date: The actual date on which the property was registered with the current broker.
Catalog price: The price of the property through a registration agreement.Announcement: Written agreement of the brokers to represent the seller and their property. Agents refer to their list of vendor agreements as lists.
Registration Agent: The real estate sales agent who represents the sellers and their property through a listing agreement.Listing agreement: A document that establishes the real estate agent’s agreement with the sellers to represent their property in the market.
Announcement Meeting: The time when a real estate sales agent meets with potential clients selling a property to secure a registration agreement.
Exclusion from listing: Clause included in the listing agreement when the seller (transferor) lists his property with a broker.
Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest.
Loan application: A document that buyers who want a loan fill out and present to their lender.Loan closing costs: The costs that the lender charges for closing the borrower’s loan. These costs vary from lender to lender and from market to market.
Borrowing commitment: a written document that tells borrowers that the mortgage company has agreed to lend them a certain amount of money at a certain interest rate for a certain period. The loan commitment may also contain the terms on which the loan commitment is based.
Loan package: The group of mortgage documents that the lender sends to the borrower until completion or escrow.
Processing loan: An administrative person entrusted with checking, verifying, and collecting all documents and funds of the buyer and the borrower’s loan for completion.Borrower: The one who borrows for another. Some lenders force investors to take out a loan from the buyer.
Lockbox: A tool that allows secure storage of property keys in the premises for use by an agent. The combo uses a rotating disk to gain access with a combination; Supra® (electronic lock or ELB) has a keyboard.Managing broker: A person licensed by the state as a broker, who is also a record broker for a real estate office. This person manages the day-to-day operations of a real estate office.
Marketing period: The period during which the acquirer may place his property on the market (usually 45, 60, or 90 days), as specified in the third party’s contract with the employer.
Mortgage banker: The one who borrows the funds of the borrowers’ bank and unites creditors and borrowers.Mortgage Broker: A business that or an individual that brings together lenders and borrowers and processes mortgage applications.
Mortgage Service Company: A company that collects monthly mortgage payments from borrowers.
Multiple Ad Service (MLS): A service that collects available properties for sale from member brokers.
Multiple offers: More than one broker buyers submit an offer for one property, where the offers are negotiated simultaneously.
National Association of REALTORS® (NAR): A national association of real estate agents.
Net selling price: Gross selling price minus discounts for buyers.
Off-market: A property listing that has been removed from the market inventory. The property can be temporarily or permanently out of the market.
Purchase offer: When the buyer offers certain conditions and presents them to the seller.
Office / Caravan Tour: Walking or driving tour of a real estate office with ads submitted by agents in the office. It is usually held on a specific day and time.
Parcel Identification Number (PIN): Tracking the number of the property tax authority.Pending: A real estate contract that has been accepted as property, but the transaction has not been completed.
Personal Assistant: Administrative Assistant to a Real Estate Sales Agent.
Planned Unit Development (PUD): A mixed-use complex that separates residential, commercial, and public areas such as schools, parks, etc.
Pre-approval: A higher level of pre-qualification buyer/borrower required by the mortgage lender. Some preapprovals have conditions that the borrower must meet.
Prepaid interest: Funds paid by the borrower on closing based on the number of days remaining in the closing month.
Penalty for early repayment: a fine imposed on the borrower by the lender when the loan is repaid before it is due.
Pre-qualification: The mortgage company tells the buyer before the official mortgage application how much money the borrower can afford to borrow. Some pre-qualifications have conditions that the borrower must meet.
Preview Meeting: When a buyer’s agent inspects the property itself to see if it meets the buyer’s needs.
Pricing: When a potential seller’s agent goes to a potential property to see it for marketing and pricing purposes.
Basis: The amount of money the buyer borrows.
Principal, interest, taxes, and insurance (PITI): The four parts that make up the borrower’s monthly mortgage payment. Private Mortgage Insurance (PMI): special insurance paid by the borrower in monthly installments, usually for loans over 80 percent of the value of the property.
Professional title: Additional unlicensed real estate education completed by a real estate professional.
Professional regulation: a state licensing body that monitors and disciplines licensees.
Promissory note: A document promising payment used with a contract or offer to purchase.
R&I: Estimated and actual costs for repairs and improvements.
Real Estate Agent: A person who is licensed by the state and acts on behalf of his client, buyer, or seller. A real estate agent who does not have a broker’s license must work for a licensed broker.
Real estate contract: Binding agreement between buyer and seller. It consists of an offer and acceptance, as well as remuneration (ie money).
REALTOR®: a registered trademark of the National Association of REALTORS®, which can only be used by its members.
Deed of Exemption: A written document stating that the seller or buyer has fulfilled its obligation under the debt. This document is usually saved.
Relist : A property that has been registered with another broker but is included again with a current broker.
Rider: A separate document that is attached to a document in some way. This is done so that you do not have to rewrite an entire document.
Salary Agent: A real estate sales agent or broker who receives all or part of his or her compensation for real estate sales in the form of a salary.
Sale price: The price paid for an ad or property.
Seller (owner): The owner of a property who has signed a registration agreement or a potential registration agreement.
Display: When an ad is shown to prospective buyers or the buyer’s agent (preview).
Special assessment: Special and additional fee for a condominium or condominium. Also a special real estate tax for improvements that benefit the property.
State Association of REALTORS®: An association of REALTORS® in a specific state.
Supra®: Electronic locking box (ELB) that holds property keys. The user must have a Supra keypad to use the lockbox.
Temporarily out of the market (TOM): Indicated property that has been removed from the market due to illness, travel, necessary repairs, etc.
Temporary residence: Accommodation that the transferred person occupies until a permanent residence is selected or becomes available.
Transaction: The real estate process from the offer to the closing or escrow.
Transaction Management Fee (TMF): A fee charged by the seller’s listing agents as part of the listing agreement.
Parties to the transaction: Both parties to the transaction, sellers and buyers. The term is used to record the number of transactions in which a real estate agent or broker participated during a certain period.
24-hour notice: Permitted by law, tenants must be notified of the display 24 hours before their arrival.
Under contract: A property that has an accepted real estate contract between the seller and the buyer.
VA (Veterans Administration) Loan Guarantee: A mortgage guarantee provided by the Ministry of Veterans.
Virtual tour: Internet web / cd-rom video presentation of the property.
VOW (Virtual Office Websites): An Internet-based real estate brokerage business model that works with real estate users in the same way as real estate brokerage.
W-2: Internal income form issued by the employer to an employee to reflect compensation and deductions from compensation.
W-9: Internal Revenue Form Requiring Taxpayer Identification Number and Certification.
Walk: Display before closing or depositing, which allows buyers one last tour of the property they are buying.Wills: A document by which a person disposes of his property after death.