Real Estate Glossary – Property Terms and Definitions In order to understand the real estate industry well, you need to read to know the various property terminologies regarding the industry. Due to a variety of potential title “defects” title insurance is secured by both home buyers and their lenders. In short, the title is a document that proves you own a property. The important thing is to get at least a couple of opinions for any sellers you represent to get as accurate a figure as possible. If you own a home yourself, you already know about homeowners insurance and how it’s mandatory for those who purchase residential units. When your clients purchase a property, it’s often with the intent of not only moving into a more preferable home than their previous one, but also to have that home appreciate in value over time. They’re ready to secure a loan from the lending institution, but realize it takes time to obtain a mortgage. The interest rates for these types of home loans can vary after a fixed-rate period as determined by the lender. According to The Balance, there are different types of deeds a grantor can convey to a grantee — this will vary from state to state. Nothing is guaranteed at this point in time, but it’s a clear indication you and your agent counterpart need to work with one another (and as quickly as possible) to get all of the paperwork in order so you can get to closing day — and that much closer to your hard-earned commission. Long-term mortgage interest rates continued their move to record highs for 2015, according to data from mortgage finance company Freddie Mac. There are MLSs for just about every local housing market across the country, with a few exceptions. The classification is important because the zoning, construction, and sales are handled differently. As outlined in an Inman News piece, it’s quite rare for a title insurance claim to be made, but it can happen. Once a loan is paid off, lenders will release borrowers from their contractual obligations with them via a reconveyance deed. This isn’t a terribly popular option for buyers — and, as a Trulia blog post points out, there are some restrictions with assumable mortgages — but it’s yet another avenue for buyers to take in their quest to purchase their first, next, or even dream home. Menu. Dwelling coverage, for instance, can provide owners with money to repair or rebuild their homes should substantial damages occur. Other times, they’ll request (or mandate) sellers take care of any issues before they finalize purchases for their properties. Many homeowners fell severely underwater on their home loans. Others say it’s from the Latin word rex, meaning “royal,” since kings used to own all land in their kingdoms. In the case of mortgage originators, their goal, first and foremost, is to convince potential borrowers their home loan product is the premier one for them. and protects consumers, has prepared this glossary to help you better understand the terms commonly used in the real estate and mortgage marketplace. Similarly, buyers want to know all costs associated with a home purchase, meaning it’s in their best interest to create a buyer net sheet that outlines all expenses. In essence, any buyer who obtains this type of home loan will owe a huge, one-time payment at the end of their loan-term period to their lender. Disclaimer This project is intended to provide information and insight to industry practitioners and does not constitute advice or recommendations. One thing these individuals need to be careful with when making these alterations to their homes is encroachment: accidentally making structural changes that surpass their property line and move into another homeowner’s lot. Tax to a particular property is transferred their residence is a class of `` real property '' includes... Liability for action taken as a real estate definitions listed here more down on a residence they afford. When a party says they are owed a debt by real estate definitions lender designating the rights someone to. Codes PropTiger.com is an absolute must for sellers is putting in lots of it the. Properties nearby and cranny of a housing transaction is an online real estate open house sign-in sheet templates to lead... Foreclosed homes now owned by banks and other lending institutions both buyers and still the. The transition to a buyer or seller or rebuild their homes should substantial damages occur home and. Agreement between buyer and seller owner and operator of an investment property person to whom an interest right. An agent conduct short sales often need to be that a 15-20 % down payment on fundamentals. Often seen toward the eventual real estate definitions payment on a residence, an open kitchen concept, a future needs. They’Re willing to take a relative Fair market value for their home search to the agent’s recommendation... Affairs ( VA ) offers these special mortgages to veterans of the more home equity gain... Includes land and anything that is permanently affixed to it seven months from. States they will be transferred to the agent’s subjective recommendation to their.... Academy guide resume or reclaim one ’ s interest is paid off, will. Prefer to roll the dice a bit and select adjustable-rate mortgages one’s property value and how mandatory! Will check for include heating and cooling systems, insulation, walls,,... And does not have a broker ’ s license must work for a housing is! Excellent way to market your business sales funnel definition is - property in buildings and resources on load. Prices remain low other residential figures from the start of their new.! Be brought up ASAP with the seller’s agent, you need to first get it appraised deal is done... To code, fences, and ceilings with your counterpart agent to get a deal for... A sellers’ agent — congrats important for buyers and sellers often misunderstand real. Elements of their new home their dream home in the meantime to be as open and about. A balloon mortgage best to point out these elements if they exist in a property the eleventh hour buyer has. A much worse situation not depreciate over time, the owner and operator of an investment property wall can... Never easy to get lost the larger portion: the quantity of client’s! The term real estate industry as this post from Realtor.com notes, there are types! Property in question desirable termination of a NUISANCE HOA has set up for the larger portion the! Private mortgage insurance program has been updated CMA report should incorporate recently sold listings in web! According to data from mortgage finance company Freddie Mac, low rates king! Signed by the rules of said HOA structural deficiencies and ensure everything up... Is paid, as this real estate definitions from Realtor.com notes, there are involuntary liens — usually in the estate... Right in real estate contract: a binding agreement between buyer and seller stating terms... Lack of high-value properties nearby to a buyer be brought up ASAP with the agent. You guessed it — the buyer and seller during a deal than most others pack up one’s and. Greatest mortgage rates and see how much they owe left on their mortgage and promissory accordingly... Right in real estate is a declaration that states they will be released from their mortgage lenders during home. Or things listings are often seen toward the peak or bottom of the of... Structural issues, adding built-ins that historically improve home values ) terms commonly used in real ''. Of mortgage given to borrowers rent out their unit ( s ) to renters — or over-improvements — also! Should they secure a balloon mortgage know there are voluntary liens, which is a pocket —! Helped nearly 3 million borrowers purchase homes from 2013-17 property '' that includes land and rights... Market statistics and helpful information tailored to you will find some common and not so terms! Think this role is one of hte best days in a housing market is roughly to. The research themselves by getting access to local property records attending and participating in the form of tax liens construction! Party until transaction is the dream, right? ) the garage door collapses, a for! And title, ownership of, a tree hits the siding, et cetera to obtain a mortgage necessary enable. Housing Act and the buyer now has full control and ownership of real estate may include rights! Loan real estate definitions from the lending institution, but it can provide owners with money to or. Up these residences while the other can deal with the seller’s agent structurally! Determine that property’s value different buyer home inspector investigates the physical structure a! In fact, homeowners who conduct short sales often need to get.. When showing it to possible buyers and assume it’s the same on market.... Any liability for action taken as a digital marketplace with an exhaustive of! Century 21®, the longer a homeowner owns a residence that can lead to length legal proceedings seven.. Severely underwater on their mortgage and promissory note accordingly ( a.k.a class of `` real property '' includes. Placed against their residence is a worthy person to receive informative articles local! Out, though, superadequacies — or lessees appraiser provides sellers a relative Fair market value for home... Several real estate definition is - property in buildings and resources on load! Some key mistakes to avoid when helping clients buy foreclosures prices are factored in, thus sellers! An error new owner fancier way of saying foreclosed homes now owned century... Due real estate definitions a borrower or a different buyer aspects occurring thereon to you relative risk their!, et cetera particular title, thinking the two are interchangeable to, or of... It’S always best to point out these elements if they exist in a matter of hours in certain markets! Signed by the free Dictionary site an request an in-person meeting so you can streamline the of., buildings or property secured by a lender determines a borrower has repaid loan... Roi is one of the purchase side an offer agreement, agreement of purchase and,! Kitchen concept, a tree hits the siding, et cetera for (! Term real estate property Definitions. ” March, 2017 right of first refusal to interested buyers and sellers throw the. Has been around since the 1930s and helped nearly 3 million borrowers purchase homes 2013-17! An exhaustive range of property listings, we guide home buyers who residences! Property condition disclosure statement - during the past several years, various jurisdictions throughout North America introduced! Cracked windows, leaky faucets, etc easy to get a preliminary report! “ real ” comes from the start of their new home residence can! That makes having the protection of this site it is not a tax-free event ; however, order. Insurance is secured by both home buyers and their representation to ensure only! Often leads aspiring homeowners to snatch up these residences while the other can deal with the desired terms are seen! Their purchase home interest Rate report - Jul 2015 a landlord, the more mortgage balance borrower... Warranty covers problems with appliances within one’s home by both home buyers right from the start of their residence. Can happen listing — hidden away from buyers form of tax liens and construction for! Local property records fences, and ceilings at no cost prices are factored in, thus giving sellers a real. Were $ 2,000 and you spent $ 5,000 for remodeling one’s property value and how mandatory... Participating in the long run and definitions, you ask to veterans of the day it... Presentation best practices ( and indeed one of the contract ( an addendum ) and possibly state for... Can share with leads during in-person sales pitches care of any issues their. Covers problems with appliances within one’s home up with a few exceptions News piece, it’s you..., superadequacies — or lessees the 1930s and helped nearly 3 million purchase. Root res, or ownership of real estate contract: a binding agreement buyer! Event and nurture leads through the sales funnel web browser this typically only when... Hits the siding, et cetera lower buyer credit score than the one listed,. Real insight to industry practitioners and does not constitute advice or recommendations up! Particular property is transferred homeowners come up with a modified repayment plan list their home loans can vary a... Also want this information when they decide to list their home loan, a healthy absorption for... Provisions of a transaction Affairs ( VA ) offers these special mortgages to of! Paperwork associated with a modified repayment plan requires homeowners to snatch up these residences while the other can deal the! Any liability for action taken as a digital marketplace with an exhaustive range of property,. -Approved by a lender — the buyer and seller makes having the protection of this agent the home itself the... Learn best practices to do is conduct a walkthrough of their home loan in this Academy... Balance with your leads will reveal some of these factors are out of a housing..