Every business has it's jargon and residential property is no exception. Mark Nash author of 1001 Tips for Buying and Selling a Home shares commonly used terms with home buyers and sellers.
1031 exchange or Starker exchange: The delayed exchange of properties that qualifies for tax purposes as a tax-deferred exchange.
1099: The statement of income reported to the IRS for an independent contractor.
A/I: A contract that is pending with attorney and inspection contingencies.
Accompanied showings: Those showings where in fact the listing agent must accompany a realtor and his or her clients when viewing an inventory.
Addendum: An addition to; a document.
Adjustable rate mortgage (ARM): A type of mortgage loan whose interest rate is linked with an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.
Agent: The licensed real estate salesperson or broker who represents buyers or sellers.
Annual percentage rate (APR): The total costs (interest rate, closing costs, fees, and so on) that are part of a borrower's loan, expressed as a percentage rate of interest. The total costs are amortized on the term of the loan.
Application fees: Fees that mortgage companies charge buyers during written application for a loan; for example, fees for running credit file of borrowers, property appraisal fees, and lender-specific fees.
Appointments: Those times or time periods a realtor shows properties to clients.
Appraisal: A document of opinion of property value at a particular point in time.
Appraised price (AP): The price the third-party relocation company offers (under most contracts) owner for his or her property. Generally, the common of several independent appraisals.
"As-is": A contract or offer clause stating that the seller won't repair or correct any problems with the property. Also used in listings and marketing materials.
Assumable mortgage: One in which the buyer agrees to satisfy the obligations of the prevailing loan agreement that owner made with the lender. When assuming a home loan, a buyer becomes personally responsible for the payment of principal and interest. The initial mortgagor should receive a written release from the liability once the buyer assumes the initial mortgage.
Back on market (BOM): Whenever a property or listing is placed back available to buy after being removed from the market recently.
Back-up agent: An authorized agent who works together with clients when their agent is unavailable.
Balloon mortgage: A kind of mortgage that is generally paid over a brief period of time, but is amortized over a longer time frame. The borrower typically pays a combination of principal and interest. By the end of the loan term, the entire unpaid balance must be repaid.
Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.
Bill of sale: Transfers title to personal property in a transaction.
Board of REALTORS� (local): An association of REALTORS� in a specific geographic area.
Broker: A state licensed individual who acts as the agent for the seller or buyer.
Broker of record: The individual registered with his or her state licensing authority as the managing broker of a particular property sales office.
Broker's market analysis (BMA): The true estate broker's opinion of the expected final net sale price, determined after acquisition of the house by the third-party company.
Broker's tour: A preset time and day when property sales agents can view listings by multiple brokerages on the market.
Buyer: The purchaser of a property.
Buyer agency: A real estate broker retained by the buyer who has a fiduciary duty to the customer.
Buyer agent: The agent who shows the buyer's property, negotiates the contract or offer for the customer, and works with the buyer to close the transaction.
Carrying costs: Cost incurred to keep up a property (taxes, interest, insurance, utilities, and so forth).
Closing: The finish of a transaction process where in fact the deed is delivered, documents are signed, and funds are dispersed.
CLUE (Comprehensive Loss Underwriting Exchange): The insurance industry's national database that assigns individuals a risk score. CLUE also has an electronic file of a properties insurance history. These files are accessible by insurance firms nationally. These files could impact the ability to sell property as they might contain information a prospective buyer will dsicover objectionable, and perhaps not even insurable.
Commission: The compensation paid to the listing brokerage by the seller for selling the house. A buyer can also be required to pay a commission to her or his agent.
Commission split: The percentage split of commission compen-sation between the real estate sales brokerage and the real estate sales agent or broker.
Competitive Market Analysis (CMA): The analysis used to supply market information to owner and assist the real estate broker in securing the listing.
Condominium association: An association of all owners in a condominium.
Condominium budget: A financial forecast and report of a condominium association's expenses and savings.
Condominium by-laws: Rules passed by the condominium association found in administration of the condominium property.
Condominium declarations: A document that legally establishes a condominium.
Condominium right of first refusal: An individual or an association that has the first possibility to purchase condominium property when it becomes available or the proper to meet any other offer.
Condominium rules and regulation: Rules of a condominium association by which owners consent to abide.
Contingency: A provision in a contract requiring certain acts to be completed prior to the contract is binding.
Continue to show: Whenever a property is under contract with contingencies, however the seller requests that the house continue to be proven to prospective buyers until contingencies are released.
Contract for deed: A sales contract in which the buyer takes possession of the house however the seller holds title before loan is paid. Also known as an installment sale contract.
Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.
Cooperating commission: A commission offered to the buyer's agent brokerage for bringing a buyer to the selling brokerage's listing.
Cooperative (Co-op): Where the shareholders of the corporation are the inhabitants of the building. Each shareholder gets the right to lease a specific unit. The difference between a co-op and a condo is in a co-op, one owns shares in a corporation; in a condo one owns the unit fee simple.
Counteroffer: The reaction to an offer or a bid by owner or buyer after the original offer or bid.
Credit report: Includes all the history for a borrower's credit accounts, outstanding debts, and payment timelines on past or current debts.
Credit history: A score assigned to a borrower's credit report based on information contained therein.
Curb appeal: The visual impact a house projects from the road.
Days on market: The amount of days a house has been available to buy.
Decree: A judgment of the court that sets out the agreements and rights of the parties.
Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the customer acknowledges.
Divorce: The legal separation of a couple effected by way of a court decree that totally dissolves the marriage relationship.
DOM: Days on market.
Down payment: The quantity of cash put toward a purchase by the borrower.
Drive-by: Whenever a buyer or seller agent or broker drives by a property listing or potential listing.
Dual agent: A state-licensed person that represents the seller and the buyer in a single transaction.
Earnest money deposit: The amount of money given to the seller at the time the offer is made as a sign of the buyer's good faith.
Escrow account for property taxes and insurance: A merchant account into which borrowers pay monthly prorations for property taxes and property insurance.
Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.
Expired (listing): A house listing that has expired per the terms of the listing agreement.
Fax rider: A document that treats facsimile transmission as the same legal effect because the original document.
Feedback: The true estate telemarketer and/or his or her client's reaction to a listing or property. Requested by the listing agent.
Fee simple: A kind of property ownership where in fact the owner has the right to use and get rid of property at will.
FHA (Federal Housing Administration) Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by way of a mortgage company or banker.
Fixture: Personal property that has become section of the property through permanent attachment.
Flat fee: A predetermined amount of compensation received or paid for a specific service in a genuine estate transaction.
For sale by owner (FSBO): A property that is for sale by the owner of the property.
Gift letter: A letter to a lender stating a gift of cash has been made to the buyer(s) and that the person gifting the money to the buyer is not expecting the gift to be repaid. The precise wording of the gift letter should be requested of the lender.
Good faith estimate: Under the Real Estate Settlement Procedures Act, within three days of an application submission, lenders are required to provide on paper to potential borrowers a good faith estimate of closing costs.
Gross sale price: The sale price before any concessions.
Hazard insurance: Insurance that covers losses to property from damages that might affect its value.
Homeowner's insurance: Coverage which includes personal liability and theft insurance along with hazard insurance.
HUD/RESPA (Housing and Urban Development/Real Estate Settlement Procedures Act): A document and statement that details all the monies paid and received at a genuine estate property closing.
Hybrid adjustable rate: Offers a fixed rate the initial 5 years and adjusts annually for the next 25 years.
IDX (Internet Data Exchange): Allows real estate brokers to advertise each other's listings posted to listing databases including the multiple listing service.
Inclusions: Fixtures or personal property that are contained in a contract or offer to purchase.
Independent contractor: A genuine estate sales agent who conducts real estate industry by way of a broker. This agent will not receive salary or benefits from the broker.
Inspection rider: Rider to get agreement between third party relocation company and buyer of transferee's property stating that property is being sold "as is." All inspection reports conducted by the 3rd party company are disclosed to the buyer in fact it is the buyer's duty to do his/her own inspections and tests.
Installment land contract: A contract in which the buyer takes possession of the house as the seller retains the title to the property until the loan is paid.
Interest float: The borrower decides to delay locking their interest on their loan. They can float their rate in expectation of the rate moving down. At the end of the float period they must lock a rate.
Interest rate lock: When the borrower and lender agree to lock an interest rate on loan. Might have terms and conditions mounted on the lock.
List date: Actual date the house was listed with the current broker.
List price: The cost of a property through a listing agreement.
Listing: Brokers written agreement to represent a seller and their property. Agents make reference to their inventory of agreements with sellers as listings.
Listing agent: The true estate sales agent that's representing 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.
Listing san diego real estate : The time when a real estate sales agent meets with clients selling a property to secure a listing agreement.
Listing exclusion: A clause included in the listing agreement once the seller (transferee) lists their property with a broker.
Loan: Some money that is lent to a borrower who agrees to repay the amount plus interest.
Application for the loan: A document that buyers that are requesting a loan fill out and submit with their lender.
Loan closing costs: The costs a lender charges to close a borrower's loan. These costs change from lender to lender and from market to market.
Loan commitment: A written document telling the borrowers that the mortgage company has decided to lend them a specific amount of money at a specific interest rate for a specific time period. The loan commitment may also contain conditions where the loan commitment is based.
Loan package: The group of mortgage documents that the borrower's lender sends to the closing or escrow.
Loan processor: An administrative individual who is assigned to check on, verify, and assemble all the documents and the buyer's funds and the borrower's loan for closing.
Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer's loan.
Lockbox: A tool which allows secure storage of property keys on the premises for agent use. A combo runs on the rotating dial to gain access with a combination; a Supra� (electronic lockbox or ELB) includes a keypad.
Managing broker: An individual licensed by hawaii as a broker who is also the broker of record for a genuine estate sales office. This person manages the daily operations of a genuine estate sales office.
Marketing period: The time of time in that your transferee may market their property (typically 45, 60, or 90 days), as directed by the third-party company's contract with the employer.
Mortgage banker: One who lends the bank's funds to borrowers and brings lenders and borrowers together.
Mortgage broker: A small business that or an individual who unites lenders and borrowers and processes mortgage applications.
Mortgage loan servicing company: An organization that collects monthly mortgage payments from borrowers.
Multiple listing service (MLS): Something that compiles available properties on the market by member brokers.
Multiple offers: More than one buyers broker present an offer using one property where the offers are negotiated at the same time.
National Association of REALTORS� (NAR): A national association made up of real estate sales people.
Net sales price: Gross sales price less concessions to the buyers.
Off market: A house listing that is taken off the sale inventory in a market. A property can be temporarily or permanently off market.
Offer to get: When a buyer proposes certain terms and presents these terms to the seller.
Office tour/caravan: A walking or driving tour by way of a property sales office of listings represented by agents in the office. Usually held on a set day and time.
Parcel identification number (PIN): A taxing authority's tracking number for a property.
Pending: A genuine estate contract that has been accepted on a house but the transaction has not closed.
Personal assistant: A genuine estate sales agent administrative assistant.
Planned unit development (PUD): Mixed-use development that sets aside areas for residential use, commercial use, and public areas such as schools, parks, and so on.
Preapproval: A higher level of buyer/borrower prequalification required by a mortgage company. Some preapprovals have conditions the borrower must meet.
Prepaid interest: Funds paid by the borrower at closing based on the amount of days left in the month of closing.
Prepayment penalty: An excellent imposed on the borrower by the lending company when the loan is paid before it comes due.
Prequalification: The mortgage company tells a buyer before the formal mortgage application, how much money the borrower are able to borrow. Some prequalifications have conditions that the borrower must meet.
Preview appointment: Whenever a buyer's agent views a property alone to see if it meets her or his buyer's needs.
Pricing: Once the potential seller's agent goes to the potential listing property to view it for marketing and pricing purposes.
Principal: The money a buyer borrows.
Principal, interest, taxes, and insurance (PITI): The four parts that make up a borrower's monthly mortgage repayment. Private mortgage insurance (PMI): A particular insurance paid by way of a borrower in monthly installments, typically of loans of more than 80 percent of the value of the property.
Professional designation: Additional nonlicensed property education completed by a real estate professional.
Professional regulation: A state licensing authority that oversees and disciplines licensees.
Promissory note: A promise-to-pay document used with a contract or an offer to get.
R & I: Estimated and actual repair and improvement costs.
Real estate agent: A person who is licensed by hawaii and who acts on behalf of her or his client, the buyer or seller. The true estate agent who does not need a broker's license must work for a licensed broker.
Property contract: A binding agreement between buyer and seller. It includes an offer and an acceptance as well as consideration (i.e., money).
REALTOR�: A registered trademark of the National Association of REALTORS� that can be used only by its members.
Release deed: A written document stating that a seller or buyer has satisfied their obligation on a debt. This document is usually recorded.
Relist: Property that has been listed with another broker but relisted with an ongoing broker.
Rider: Another document that is attached to a document for some reason. This is done so that an entire document doesn't need to be rewritten.
Salaried agent: A real estate sales agent or broker who receives all or part of his or her compensation in property sales in the form of a salary.
Sale price: The purchase price paid for a listing or property.
Seller (owner): Who owns a property who has signed an inventory agreement or a potential listing agreement.
Showing: Whenever a listing is shown to prospective buyers or the buyer's agent (preview).
Special assessment: A special and extra charge to a unit in a condominium or cooperative. Also a particular property tax for improvements that benefit a house.
State Association of REALTORS�: A link of REALTORS� in a particular state.
Supra�: An electronic lockbox (ELB) that holds keys to a house. The user must have a Supra keypad to use the lockbox.
Temporarily off market (TOM): A listed property that's taken off the marketplace due to illness, travel, needed repairs, and so forth.
Temporary housing: Housing a transferee occupies until permanent housing is selected or becomes available.
Transaction: The real estate process from offer to closing or escrow.
Transaction management fee (TMF): A fee charged by listing brokers to the seller as part of the listing agreement.
Transaction sides: Both sides of a transaction, sellers and buyers. The term used to record the number of transactions when a real estate sales agent or broker was involved during a specific period.
24-hour notice: Allowed for legal reasons, tenants should be informed of showing 24 hours before you arrive.
Under contract: A property that has a recognized property contract between seller and buyer.
VA (Veterans Administration) Loan Guarantee: A warranty on a home loan amount backed by the Department of Veterans Affairs.
Virtual tour: An Internet web/cd-rom-based video presentation of a property.
VOW's (Virtual Office sites): An Online real estate brokerage business design that works with property consumers in same way as a brick and mortar real estate brokerage.
W-2: THE INNER Revenue form issued by employer to employee to reflect compensation and deductions to compensation.
W-9: The Internal Revenue form requesting taxpayer identification number and certification.
Walk-through: A showing before closing or escrow that permits the buyers one final tour of the house they are purchasing.
Will: A document by which a person gets rid of their property after death.