Set up my Room

Home-selling glossary

Every word a home sale uses, in plain English.

Search 403 real estate terms. Each definition opens into a full reference page with why it matters, a simple example, related words, and the guides where it appears.

403 termsFree to readNo accountKeighbor Research

Search the glossary

403 terms across the whole glossaryTry an abbreviation, too: MLS, HOA, APR

Words sellers meet first

Four common places to begin.

The complete index

All 403 terms

The full list is on this page. Search and filters only narrow what you see.

Property condition

26 terms
Above gradeThe parts of the house at or above ground level.Actual ageThe real age of the home based on when it was built.As-isA property offered for sale in its current condition, with no repairs.Below gradeThe parts of the house below ground level, like a full basement.Cast iron plumbingDrain plumbing common in homes built before the 1970s.Change orderA written change to the scope of work, usually adding cost or time.Deferred maintenanceRepairs and upkeep that got put off.Distressed propertyA property under financial or physical stress: behind on the mortgage, in foreclosure, or in bad condition.Effective ageAn appraiser's estimate of how old a home functions and looks, given upkeep and updates.Encapsulated crawlspaceA crawlspace sealed with heavy plastic on the floor and walls, plus a dehumidifier.External obsolescenceLoss of value from something outside the property: a new highway next door, a shuttered factory in view, a rough patch in the surrounding neighborh...Fixer-upperA home that needs repairs or updates, usually priced below fully renovated comparables.Functional obsolescenceA design or feature that hurts value even when it works fine, because buyers now expect something different.Galvanized plumbingZinc-coated steel supply pipes common in homes built before the 1960s.Garden-level unitA unit that's partly below grade with windows near ground level.Gross living areaThe finished, heated square footage above grade, measured from outside walls.Knob and tube wiringAn early type of electrical wiring found in some pre-1950 homes.Punch listThe list of small items a contractor still needs to finish or fix at the end of a project.RanchA single-story home style, usually long and low.Scope of workA written description of what a contractor will do on a job, with pricing broken out by task or trade.Septic systemA private wastewater system for a property not connected to a public sewer.Split-levelA home style with staggered floors, usually a short set of stairs between levels rather than a full flight.Sump pumpA pump in a basement pit that removes water that collects there.Turn-keyA property in move-in ready condition, no work needed.Walk-out basementA basement with a door to the outside at grade level, usually because the house is built into a slope.Well waterDrinking water from a private well on the property, not a public utility.

Listing & marketing

27 terms
ActiveA listing status meaning the home is on the market and taking offers.Asking priceWhat the seller is asking for the home.Coming soonA listing status showing a home will hit the market soon but isn't taking showings yet.Comparative market analysisA report an agent puts together to estimate what a home might sell for, based on recent nearby sales.ContingentA listing that's under contract but with active contingencies that could still fall through, like inspection, financing, or the sale of the buyer's...Cumulative days on marketThe total days on market across recent listings for the same home, including relisting after a cancel.Curb appealHow attractive a home looks from the street.Days on marketHow many days a listing has been active on the MLS.Exclusive agency listingA listing where the agent gets paid only if they or another agent finds the buyer.Exclusive right to sellThe most common type of listing agreement.Expired listingA listing whose contract ran out without a sale.For sale by ownerA home sold directly by the owner, without a listing agent.List priceThe price the home is listed at on the market.Listing agreementThe contract between a seller and a listing agent.Listing photosThe photos that appear on the MLS and syndicated sites.Listing syndicationWhen a listing entered in the MLS is copied out automatically to the big public sites: Zillow, Redfin, Realtor.com and the rest.Multiple listing serviceThe private database where real estate agents share listings with each other.Net listingAn arrangement where the seller sets a minimum take-home price and the agent keeps anything above it.Open houseA scheduled block of time when anyone can walk through a listed home without an appointment.Open listingA non-exclusive agreement where the seller can list with several agents at once.PendingA listing status meaning the home is under contract with a buyer, waiting to close.Pocket listingA home offered for sale privately, without going on the MLS.ShowingA scheduled appointment for a buyer to walk through a home for sale.StagingFurnishing and decorating a home to make it more appealing to buyers.Under contractSame as pending.Virtual tourA video or 3D walkthrough of a home that buyers can view online.Withdrawn listingA listing pulled off the market before the contract expired.

Offers & contracts

30 terms
AddendumA separate document added to a contract that adds or changes terms.AmendmentA written change to a contract already in force.Appraisal contingencyA contingency that lets the buyer walk or renegotiate if the home appraises for less than the purchase price.As-is clauseA clause saying the seller won't make any repairs.AssignmentTransferring the rights to a signed contract to a new buyer for a fee.Back-up offerAn offer accepted in second position while another offer is under contract.ContingencyA condition in the contract that has to be met before the sale can close.Contingency periodThe window of time a contingency stays active.CounterofferA response to an offer that changes something and sends it back.DefaultWhen one side fails to do what the contract requires.Earnest moneyThe deposit a buyer puts down with an offer to show they're serious.Escalation clauseA clause in an offer that automatically raises the buyer's price by a set amount above any competing offer, up to a cap.Executory contractA contract that's been signed but not yet fully performed.Financing contingencyA contingency that lets the buyer walk if they can't get the loan they need.Home sale contingencyA contingency that lets the buyer walk if their current home doesn't sell first.Inspection contingencyA contingency that lets the buyer inspect the home and either accept it, ask for repairs or credits, or walk away.Kick-out clauseA clause that lets the seller keep marketing the home even after accepting a home-sale-contingent offer.Letter of intentA non-binding letter outlining the main terms of a potential deal before the full contract gets drafted.Loan commitmentA written statement from the lender that the buyer is approved for the loan, subject only to a few final conditions like the appraisal.Meeting of the mindsThe legal moment when both sides agree to the same terms.NovationReplacing one party in a contract with a new party, with everyone's consent.OfferA written proposal from a buyer to buy a home at a specific price and on specific terms.Option to purchaseA contract giving a buyer the right, but not the obligation, to buy a property at a set price within a set window.Purchase agreementThe signed contract between buyer and seller to buy and sell the home.Ratified contractA contract signed by both buyer and seller, with the fully signed copy delivered to both sides.RiderA separate document attached to a contract to add specific terms, often standardized.Right of first refusalA right giving someone first crack at buying a property if the owner decides to sell.Seller concessionsMoney the seller agrees to put toward the buyer's side of the deal, usually as a credit against the buyer's closing costs or a repair.Specific performanceA lawsuit asking a court to force a defaulting party to complete the sale rather than just pay damages.Time is of the essenceA contract phrase making every deadline strict.

Financing

53 terms
Adjustable-rate mortgageA mortgage where the interest rate starts fixed for a period, then adjusts on a schedule tied to a market index.AmortizationThe schedule that splits each payment between interest and principal over the life of the loan.APRThe yearly cost of a loan including interest plus most fees, shown as a percentage.Assumable mortgageA mortgage a buyer can take over from the seller at the seller's existing rate and terms.Balloon paymentA large final payment due at the end of a loan whose monthly payments didn't cover the full amount.Bridge loanA short-term loan that covers the gap between buying a new home and selling the old one.BuydownPaying money upfront to lower the interest rate, either permanently or for a set number of years.Cash-out refinanceA refinance where the new loan is bigger than the old one, and the borrower takes the difference in cash.Clear to closeThe lender's sign-off that every condition on the buyer's loan has been met and the loan can fund.Conventional loanA mortgage not insured or guaranteed by the government.Debt-to-income ratioA lender's measure of monthly debt payments as a percentage of gross monthly income.Deed of trustA document used in some states instead of a mortgage to secure a home loan.Discount pointsAn upfront fee paid to the lender to reduce the interest rate on the loan.Down paymentThe cash the buyer pays upfront toward the purchase price.DSCR loanA rental loan that qualifies the property, not the borrower's income.Due-on-sale clauseA clause in most mortgages saying the full balance becomes due if the property is sold or transferred.Escrow accountAn account your lender uses to collect and pay your property taxes and homeowners insurance.Escrow waiverAn option some lenders offer to skip the escrow account and pay your own taxes and insurance directly.FHA loanA government-backed loan insured by the Federal Housing Administration.Fixed-rate mortgageA mortgage where the interest rate stays the same for the whole loan.Gift fundsMoney a buyer receives from a family member to help with down payment or closing costs.Hard money loanA short-term loan from private lenders, secured by the property.HELOCA revolving line of credit secured by home equity.Home equity loanA lump-sum second loan against home equity, with fixed payments and usually a fixed rate.InterestThe cost of borrowing money, expressed as a rate.Interest-only loanA loan where payments cover only interest for a set period.Jumbo loanA conventional loan larger than the conforming loan limit set by Fannie Mae and Freddie Mac.Land contractA seller-financing arrangement where the buyer takes possession and makes payments to the seller, but the seller keeps legal title until the loan i...Loan estimateA three-page federal form the lender sends within three business days of a full application.Loan officerAn employee of a single lender who takes loan applications and works with the borrower through underwriting and closing.Loan-to-valueThe loan amount as a percentage of the home's value.MortgageA loan used to buy a home, secured by the home itself.Mortgage brokerA licensed intermediary who shops loans across multiple lenders on the borrower's behalf.Mortgage insurance premiumThe FHA equivalent of PMI.NMLSThe system that tracks licensed loan originators.Non-QM loanA loan that doesn't meet the qualified mortgage rules.Origination feeA fee the lender charges for setting up the loan.Portfolio loanA loan a bank keeps on its own books instead of selling to Fannie Mae or Freddie Mac.PreapprovalA written statement from a lender that they've reviewed the buyer's documents and credit and are willing to lend up to a certain amount.PrequalificationA quick estimate of how much a buyer might be able to borrow, based on numbers they give the lender.PrincipalThe part of your loan balance that's actual borrowed money, not interest.Private moneyA loan from an individual rather than an institution.Private mortgage insuranceInsurance the buyer pays that protects the lender if the buyer defaults.Promissory noteThe written promise to repay the loan.Rate lockA lender's promise to hold a specific interest rate for a set number of days while the loan is processed.Rate-and-term refinanceA refinance that changes the rate, the loan length, or both, without pulling cash out.Seller financingThe seller acts as the bank and carries the loan for the buyer.UnderwritingThe lender's review of a loan application.USDA loanA government-backed loan for rural and some suburban areas, from the U.S.VA loanA government-backed loan for eligible veterans and active service members, guaranteed by the Department of Veterans Affairs.Wraparound mortgageA seller-financing setup where the seller keeps their original mortgage in place and gives the buyer a new, larger loan that wraps around it.15-year mortgageA mortgage paid off over 15 years.30-year mortgageA mortgage paid off over 30 years.

Investment terms

64 terms
Adjusted basisCost basis after adjustments for capital improvements added and depreciation taken.After-repair valueWhat a property will be worth after renovations are finished.Bird dogSomeone who finds deals for a real estate investor in exchange for a fee.BRRRRAn investing strategy: Buy a distressed property, Rehab it, Rent it out, Refinance to pull cash out, Repeat.Buy and holdBuying a rental property and keeping it for years, collecting rent and letting equity build.Cap rateYearly net operating income divided by property price, shown as a percentage.Capital improvementA significant upgrade that adds value or extends the life of the property: a new roof, a room addition, a full kitchen remodel.Cash flowThe money left over from rental income each month after paying all expenses, including the mortgage.Cash-on-cash returnYearly cash flow divided by the cash you put in, shown as a percentage.Class A, B, or C propertyInformal grading investors use for property quality, age, and location.Cost basisThe total amount invested in a property for tax purposes: purchase price plus certain closing costs and capital improvements.Cost segregationA tax study that breaks a property into components with shorter depreciation lives, accelerating deductions.Debt service coverage ratioNet operating income divided by yearly debt payments.Debt yieldNet operating income divided by the loan amount, shown as a percentage.DepreciationA yearly deduction that lets investors write off the cost of a rental building over 27.5 years for residential, 39 for commercial.Double closingTwo closings back to back on the same property: the wholesaler buys, then immediately resells to the end buyer.Driving for dollarsInvestors driving neighborhoods looking for distressed properties: overgrown yards, boarded windows, dated exteriors.Effective gross incomeGross scheduled income minus vacancy and collection losses, plus any other income like laundry or parking.Exit cap rateThe cap rate an investor assumes will apply when they sell the property years from now.Fix and flipBuying a property, renovating it, and selling it for a profit within a short window.Forced appreciationValue added by improving the property or the income it generates.General partnerThe active manager in a partnership or syndication.Gross leaseA commercial lease where the tenant pays one flat rent and the landlord covers taxes, insurance, and maintenance out of it.Gross rentThe total rent a property collects before any expenses.Gross rent multiplierProperty price divided by yearly gross rent.Gross scheduled incomeWhat a property would earn if every unit were rented at market rent all year, with no vacancy.Holding costsThe costs of owning a property while you wait to sell it or fix it up: mortgage interest, taxes, insurance, utilities.House hackingLiving in one part of a property and renting out the rest, whether that's a room, a basement, or another unit in a duplex.Internal rate of returnThe annualized return on an investment that accounts for timing of all cash flows in and out.Joint tenancyA co-ownership form with right of survivorship: when one owner dies, their share passes automatically to the other owners, outside probate.Limited partnershipA partnership with two roles: general partners who run the deal and limited partners who invest but don't manage.Loss to leaseThe gap between what a unit could rent for at current market rate and what it's actually renting for under existing leases.Modified gross leaseA commercial lease that splits property costs between landlord and tenant.Motivated sellerA seller with a reason to sell fast or below market: divorce, job move, inherited property, back taxes, or a home that needs work they can't afford.Natural appreciationThe rise in property value from broader market forces: growing demand, inflation, rising rents.Net operating incomeEffective gross income minus operating expenses.Offering memorandumThe document sponsors send to prospective investors describing a syndication deal: the property, the market, the business plan, the financials, and...Operating expensesThe regular costs of running a rental property: taxes, insurance, property management, repairs, utilities the owner pays, and reserves.Passive incomeIncome earned without material participation, in tax terms.Preferred returnThe return investors get paid first in a syndication before the sponsor earns their promote.Price-to-rent ratioThe purchase price divided by the annual rent.Pro formaA projected income and expense statement for a property, usually forward-looking.PromoteThe share of profits a sponsor earns above their invested capital, after investors get their preferred return.Real estate professional statusAn IRS tax status that lets rental losses offset other income without the usual passive activity limits.Real estate syndicationA group of investors pooling money to buy a larger property together, usually through an LLC or partnership.Rehab budgetThe planned cost to renovate a property.Rent concessionsFree months or reduced rent used to fill vacant units, especially in a soft market.Repair vs. improvementRepairs keep a property in working condition and are usually deductible in the year paid.Return on investmentA general measure of what you got back compared to what you put in.Schedule EThe IRS form landlords file with their tax return to report rental income and expenses.SeasoningThe minimum time a lender wants you to own a property before you can refinance it based on its new value.Skip tracingFinding contact information for a property owner using public records and skip trace services.SponsorThe person or firm that finds the deal, raises the money, and runs a syndication.T-12Trailing twelve months of actual income and expenses for a property.Tenants in commonA way for multiple people to co-own property, each with a separate share that can be sold or passed to heirs.Triple net leaseA commercial lease where the tenant pays base rent plus property taxes, insurance, and maintenance.Vacancy rateThe share of rental units sitting empty at a given time, either for a specific property or a whole market.Value-addAn investing strategy of buying a property with under-market rents, deferred maintenance, or weak management, then improving it to raise income and...WaterfallThe order profits get distributed in a syndication.WholesaleGetting a property under contract, then selling the contract to an end buyer for a fee.Yield on costStabilized net operating income divided by all-in project cost, meaning purchase plus rehab.1% ruleA quick screen used by rental investors: monthly rent should be at least 1% of the purchase price.50% ruleA shortcut estimate: about half of gross rent goes to operating expenses (not including mortgage).70% ruleA shortcut used by flippers: pay at most 70% of after-repair value, minus rehab costs.

Agents & representation

17 terms
Agency disclosureA written notice explaining who an agent represents in the deal.Buyer's agentThe agent who represents the buyer.CommissionThe fee paid to a real estate brokerage for their work on a deal.Cooperating brokerThe buyer's brokerage in a deal where the listing offers a split of the commission.Designated agencyWhen two agents from the same brokerage represent opposite sides of a deal.Dual agencyWhen one agent represents both the buyer and the seller in the same deal.Fiduciary dutyThe legal duty an agent owes their client to act in the client's best interest.Listing agentThe agent who represents the seller.Managing brokerThe broker who supervises the agents at a brokerage and is responsible for their compliance and conduct.Real estate brokerA licensed real estate professional who has completed additional training beyond a salesperson license.Real estate salespersonA licensed agent who works under a supervising broker.RealtorA real estate agent who is a member of the National Association of Realtors.Referral feeA payment one licensed brokerage sends another for sending a client.Split commissionWhen the total commission gets divided between the listing brokerage and the buyer's brokerage.State real estate commissionThe state body that licenses agents and brokers, sets the rules they work under, and publishes the official forms, including the seller's disclosur...SubagentAn agent from a different brokerage who works on behalf of the listing agent, and therefore the seller.Transaction brokerAn agent who helps both sides finish a deal without representing either one.

Foreclosure & distressed

17 terms
Anti-deficiency statuteA state law that limits or bans lenders from suing borrowers for the shortfall after a foreclosure sale.Deed in lieu of foreclosureThe borrower voluntarily hands the deed to the lender to avoid foreclosure.Deficiency judgmentA court order making a borrower pay the difference when a foreclosure sale doesn't cover what's owed.ForbearanceA temporary pause or reduction in mortgage payments for a borrower going through hardship.ForeclosureThe legal process a lender uses to take back a home after the borrower stops paying.Judicial foreclosureA foreclosure that goes through the courts.Loan modificationA lender-approved change to loan terms to lower monthly payments, usually offered to borrowers in hardship.Non-judicial foreclosureA foreclosure that skips the courts and follows the power-of-sale process in a deed of trust.Notice of defaultA recorded notice starting the foreclosure clock.Notice of trustee's saleA recorded notice setting the date, time, and place of the foreclosure auction.Pre-foreclosureThe window between the first notice of default and the foreclosure auction.Real estate ownedA property the bank took back at foreclosure auction and now owns.Redemption periodA window after foreclosure when the original owner can reclaim the property by paying what's owed plus costs.Sheriff's saleThe public auction where a foreclosed property gets sold, often on the county courthouse steps.Short saleA sale for less than the mortgage owed, with the lender's approval to write off the difference.Tax saleA county-run sale of properties with long-unpaid property taxes.Trustee's saleThe auction at the end of a non-judicial foreclosure, run by the trustee named in the deed of trust.

Rental & property management

25 terms
Application feeA fee prospective tenants pay to cover the landlord's cost of running credit and background checks.EvictionThe legal process of removing a tenant from a rental.Fair housingFederal law making it illegal to discriminate in housing based on race, color, religion, national origin, sex, disability, or family status.Fixed-term leaseA lease for a specific length, usually 12 months.LandlordThe owner of a rental property, or the person acting for the owner.Last month's rentA separate deposit that specifically covers the final month of the lease.LeaseA written rental agreement for a fixed term, usually a year.Month-to-month tenancyA rental arrangement with no fixed end date, renewing each month.Move-in inspectionA walk-through with the tenant at move-in, documenting the condition of the unit.Notice to cureA notice giving a tenant a set number of days to fix a lease violation or pay overdue rent, or move out.Notice to quitA written notice telling a tenant to leave by a certain date.Pet depositAn extra deposit charged to cover potential pet damage.Property managerA person or company that runs a rental property for the owner: marketing, screening, leasing, collecting rent, coordinating repairs.Quiet enjoymentThe tenant's right to use the rental without unreasonable interference from the landlord.Rent controlLocal laws limiting how much rent can go up each year.Rent rollA list of all units in a property showing current rent, lease dates, tenant names, and deposits.Rent stabilizationA weaker cousin of rent control that limits annual increases and often adds tenant protections.Rental agreementA general term for the contract between landlord and tenant.Right of entryThe landlord's right to enter the rental, usually with 24 or 48 hours' notice, for repairs, inspections, or showings.Security depositMoney the tenant pays at move-in to cover potential damage or unpaid rent.SublettingWhen a tenant rents part or all of their unit to someone else for part of the lease term.TenantThe person who rents the property from the landlord.Tenant screeningThe landlord's review of a prospective tenant: credit, background, income, rental history.Unlawful detainerThe formal lawsuit landlords file to get an eviction order from the court.Warranty of habitabilityAn implied promise from every landlord that the rental will meet basic living standards: safe, sanitary, and structurally sound.

Inspections & appraisals

20 terms
AppraisalA licensed appraiser's opinion of the home's market value.Appraisal gapWhen the appraised value comes in below the contract price.Appraised valueThe value the appraiser assigns to the home in their report.Broker price opinionA real estate broker's written opinion of value, less formal than an appraisal.Comparable salesRecent sales of similar homes nearby, used to estimate value.Home inspectionA trained inspector's review of the home's condition.HVAC inspectionA specialized inspection by an HVAC technician of the heating, cooling, and ductwork.Inspection reportThe written result of the home inspection.Market valueThe most likely price a home would sell for in an arm's-length deal, with a willing buyer and seller and reasonable time on the market.Mold testA test for mold in the air or on surfaces, usually if a general inspection finds signs of moisture.Perc testA test that measures how fast water drains through the soil, to see whether the land can support a septic system.Pest inspectionA specialized inspection looking for termites, carpenter ants, and other wood-destroying pests.Radon mitigationA system installed to reduce indoor radon levels, usually by venting sub-slab air outside.Radon testA test for radon gas, usually done during the inspection period.ReinspectionA follow-up inspection to verify agreed repairs actually got done.Roof inspectionA specialized inspection of the roof by a roofer, giving an opinion on remaining life and needed repairs.Sewer scopeA camera inspection of the sewer line from the house to the street or septic tank.Structural inspectionA specialized inspection by a structural engineer, usually ordered if the general inspection spots foundation cracks or framing problems.WDO inspectionAn inspection for wood-destroying organisms: termites, carpenter ants, wood-boring beetles, and certain fungi.11th-month inspectionAn inspection of a newly built home just before the one-year builder warranty runs out.

Taxes & insurance

28 terms
Assessed valueThe value the county sets for tax purposes.BootCash or other non-like-kind property received in a 1031 exchange.Capital gainsThe profit from selling a property or other asset for more than you paid.Depreciation recaptureWhen you sell an investment property, the IRS taxes you on the depreciation you claimed while you owned it, capped at 25%.Documentary stampsState-level transfer taxes charged on the deed or mortgage, common in Florida and a few other states.Earthquake insuranceA separate policy covering earthquake damage.Flood insuranceA separate policy covering flood damage.Force-placed insuranceInsurance the lender buys on your behalf if you let your homeowners policy lapse.Home warrantyA service contract, not insurance, covering repair or replacement of home systems and appliances.Homeowners insuranceA policy covering the home, personal belongings, and liability if someone gets hurt on the property.Like-kind propertyReal estate held for investment or business use, being exchanged for other real estate held for investment or business use.Mill rateThe property tax rate expressed as dollars per $1,000 of assessed value.Property taxThe tax the county charges on real estate every year, based on the assessed value and the local mill rate.Qualified intermediaryA neutral third party who holds the sale proceeds during a 1031 exchange.Recording feesThe fees the county charges to record the deed and mortgage in the public records.Reverse 1031 exchangeA 1031 exchange where the replacement property gets bought before the relinquished property sells.Section 121 exclusionA federal tax rule letting most owners exclude up to $250,000 of capital gains ($500,000 for married couples) on the sale of a primary residence.Supplemental tax billAn extra property tax bill sent to a new buyer in states where the assessed value resets on sale.Tax abatementA temporary reduction or waiver of property taxes, often used by cities to encourage new construction or improvements.Tax assessmentThe county's official valuation of the property for tax purposes.Tax prorationsThe way property taxes get split between buyer and seller at closing, based on the closing date and when taxes are billed in that area.Three-property ruleA 1031 identification rule letting the taxpayer identify up to three replacement properties, regardless of value.Transfer taxA tax charged by the state, county, or city when property changes hands.Umbrella policyAn extra liability policy on top of homeowners and auto.1031 exchangeA federal tax rule letting investors defer capital gains tax by rolling proceeds from one investment property into another.180-day exchange periodThe window in a 1031 exchange to close on the replacement property.200% ruleA 1031 identification rule letting the taxpayer identify any number of replacement properties, as long as their total value doesn't exceed 200% of...45-day identification periodThe window in a 1031 exchange for identifying replacement properties in writing.

Closing & title

33 terms
Attorney stateA state where a licensed attorney has to be involved in real estate closings, at least on some side of the deal.Chain of titleThe full history of ownership for a property, going back through every recorded deed.Clear titleTitle with no liens, disputes, or unresolved issues.ClosingThe meeting where the sale becomes official.Closing costsThe fees and charges paid at closing beyond the price of the home.Closing dateThe date closing is scheduled to happen.Closing disclosureA five-page federal form the lender must send the buyer at least three business days before closing.Cloud on titleAny claim, lien, or discrepancy that raises doubt about who owns the property or in what condition.DeedThe legal document that transfers ownership of the property from seller to buyer.Dry fundingA closing where papers get signed first, and funding follows a few days later.EscrowWhen money or documents are held by a neutral third party until conditions are met.Escrow officerThe person at a title or escrow company who runs the transaction.Escrow stateA state where closings run through an escrow or title company rather than an attorney.Grant deedA deed used in some states, like California, that includes limited warranties.Lender's title policyTitle insurance that protects the lender, not the buyer.NotaryA state-licensed official who witnesses signatures and confirms the signer's identity.Owner's title policyTitle insurance that protects the buyer's ownership if a title problem comes up later.PossessionWhen the buyer gets the keys and can move in.Power of attorneyA signed document giving another person the legal authority to sign on your behalf.ProrationsThe split at closing of shared costs like property taxes, HOA dues, and rent between buyer and seller, based on the closing date.Quitclaim deedA deed that transfers whatever interest the seller has, with no promises about the quality of title.RecordingFiling the deed and mortgage with the county after closing so ownership and the loan are public record.Rent-backWhen the seller stays in the home after closing for an agreed number of days, paying rent to the buyer.Settlement agentThe person or company that runs closing.Special warranty deedA deed where the seller only guarantees title against claims that arose during their ownership, not before.TitleThe legal right to own and use a property.Title companyA neutral company that handles the title search, title insurance, and often the closing itself.Title insuranceA one-time policy that protects against title problems that show up after closing.Title searchA review of the public records for the property, going back years.Walk-throughThe buyer's last look at the home before closing, usually a day or two before.Warranty deedThe strongest form of deed.Wet fundingA closing where the lender wires the loan proceeds the same day documents are signed.Wire fraudA scam where criminals impersonate the title company by email and trick the buyer into wiring closing funds to a fake account.

Properties & types

27 terms
Buildable lotA lot the city will let you put a house on.CC&RsThe written rules of an HOA.Common areaThe parts of a shared community that belong to everyone, like the pool, hallways, or landscaping in a condo.CondominiumA unit inside a larger building or complex.CooperativeInstead of owning your unit, you own shares in a corporation that owns the whole building.DuplexOne building split into two separate units, each with its own entrance.EasementA legal right for someone else to use part of your land for a specific purpose.EncroachmentWhen a structure crosses onto a neighboring property.FourplexA single building with four separate units.Homeowners associationThe organization that manages shared spaces and enforces rules in a subdivision, condo, or PUD.LotA single piece of land within a subdivision, ready to build on or already built on.Manufactured homeA home built in a factory to federal HUD standards, then moved to its site.Mixed-use propertyA single property that combines residential and commercial space.Mobile homeAn older term for a home built before 1976, when federal standards for factory-built homes changed.Modular homeA home built in sections at a factory, then assembled on a permanent foundation on site.Multi-familyAny building with more than one unit.Non-conforming useA property use that was legal when it started but no longer meets current zoning.ParcelA defined piece of land tracked by the county for tax purposes.Planned unit developmentA community where you own your house and lot outright, but the neighborhood has shared amenities and rules run by an HOA.Raw landUndeveloped land with no utilities, roads, or buildings.SetbackThe minimum distance a building has to sit from a property line, road, or other feature.Single-family homeA standalone house on its own lot, not sharing walls with any other unit.SubdivisionA larger tract of land divided into smaller lots for individual sale.TownhouseA home that shares one or more walls with the units next door.TriplexA single building with three separate units.VariancePermission from the city to do something zoning normally wouldn't allow, like building closer to the property line than the setback requires.ZoningRules from the city or county that decide what kinds of buildings and uses are allowed on each parcel.

Disclosures

10 terms
Latent defectA problem with the home that isn't visible on inspection but that the seller knows about.Lead-based paint disclosureA federal disclosure required for homes built before 1978.Material factSomething that would likely affect a reasonable buyer's decision to buy or their price.Megan's Law disclosureA notice pointing buyers to the state sex offender registry.Mold disclosureA disclosure about known past or present mold in the home.Natural hazard disclosureA disclosure about known flood, fire, earthquake, or other natural hazard zones the property falls in.Patent defectA problem obvious from a normal walk-through, like a cracked window or missing tile.Radon disclosureA disclosure about known radon levels or testing in the home.Seller's property disclosureA form the seller fills out listing known problems with the home.Stigmatized propertyA property with something in its past that makes some buyers uncomfortable, like a death on site or a well-known crime.

Stay in the Learn library

Keep the same question moving.

The glossary explains the words. These show where they appear and what the sale asks for.

In order

The guides

See where each word does real work in a sale.

Browse guidesBy location

Paperwork by state

See which documents your state commonly uses.

Choose your stateTry it

Seller tools

Work through the numbers, timing, people, or offers.

Open tools

Inside your Room, the words explain themselves.

Definitions open beside the step where you meet them, so you do not lose your place.

Free to start. No credit card.