of Frequent Used Real Estate Terms
Abstract of Title A synopsis of the history of a title,
indicating all changes of ownership and including liens, mortgages, charges,
encumbrances, encroachments of any other matter that might affect the title.
Agreement of Sale A written agreement by which a buyer
agrees to buy and a seller agrees to sell a certain piece of property under the
terms and conditions stated therein.
Commonly called a contract.
Amortization The gradual paying out of a loan through regular
fixed payments over a period of time.
Appraisal The estimate of a disinterested qualified
professional as to the current market value of a property. The term also refers to the report that sets
forth the estimate.
Assessment A tax or charge on a property to pay for a
portion of a specific improvement such as streets, sidewalks or sewers.
Binder An agreement to purchase a piece of property
involving a small deposit to show good faith.
It should always include a statement to the effect that the agreement is
subject to formal contracts to be drawn.
Cancellation Any clause in a contract that allows the buyer or
seller to cancel the contract if a certain specified condition or situation
occurs. The mortgage contingency is a
cancellation clause since it allows the buyer to cancel the contract if he
cannot obtain a mortgage.
Chain of Title A history of all the transfers of title
from available records.
Chattel Items of personal property, such as furniture,
appliances, chandeliers, that are not permanently affixed to the house. If included in a real estate sale, each piece
must be specifically listed in the contract.
Closing The meeting of all concerned parties in order to
transfer title. The date when the buyer
takes title to the property.
Closing Costs Various fees and expenses, not including the
price of the home, payable by the seller and the buyer at the time of a real
estate closing-e.g., brokerage commissions, title insurance premiums and
inspection, appraisal, deed recording, and attorney fees.
Commission The payment given to a real estate broker for his
or her services. Commission is usually
paid at closing.
Contract An agreement between two parties. To be valid a contract must be dated; must
be in writing; and must include a consideration, a description of the property,
the place and date of the delivery of the deed, and all terms and conditions
that were mutually agreed upon. It must
also be executed (signed) by all concerned parties.
Deed A written instrument that conveys title to real
property.
Easement A right-of-way or access. The right of one party to cross or use for
some specified purpose the property of another party.
Escrow Money or documents held by a third party until
specific conditions of an agreement or contract are fulfilled. The earnest money paid by the buyer with the
signing of the contract is usually held in escrow until all contingencies in
the contract are met.
Foreclosure The selling of a property to satisfy the debt of
a mortgage. In order to force the sale,
the mortgagee (lender) must file a Lis pendens with the county clerk,
thus giving due notice to the morgagor (borrower).
Interest A fee paid for the use of money. It is usually calculated as a percentage of
the principal.
Lien A recorded notice that there is a debt on a piece
of property. This debt could be a
judgement, mortgage, back taxes, unpaid accounts, etc.
Listing The employment of a real estate broker to sell a
piece of property. Also a piece of
property offered for sale.
Market Value Generally accepted as the best price that a
ready, willing and able buyer will pay and the lowest price a ready, willing
and able seller will accept. In other
words the dollar figure at which there is a meeting of the minds.
Mortgage A legal document that creates a lien upon a piece
of property.
Multiple Listing An agreement among real estate brokers to
make their listings available to each other.
Offer A proposal, oral or written, to buy a property at
a specified price.
Points Sometimes called discount. This is a fee that the lending institution
charges for the mortgage. One point is
1 percent of the face amount of the mortgage.
Qualifying A Buyer The real estate agents process of
checking out the buying potential of a customer. It is necessary to know family income, available down payment
money, and all outstanding debts in order to qualify a buyer.
Right-of-way An easement; the right of one party to cross or
in some way use the property of another party.
Survey The measurement of a piece of land by civil
engineers or surveyors to determine its area and attest to its boundaries.
Title Actual ownership; the right of possession;
evidence of ownership.
Title Search A professional examination of public records to
determine the chain of ownership of a particular piece of property and to note
any liens, mortgages, encumbrances, easements, restrictions, or other factors
that might affect the title.
Zoning Ordinances Municipal ordinances that limit and
regulate the character and uses of private property in a given area.
Holley, NY 14470