Acceptance-The written approval made by the seller from a buyer's offer.
Addendum-Any addition or change to a contract.
Amortization- The repayment of a debt in installments.
Appraisal - An opinion of value based upon of factual analysis.
Appreciation - An increase in value of real estate.
Closing - The final settlement of real estate transaction between buyer and seller.
Condominium - A structure of individual fee ownership of units combined with joint ownership of common area of the structure and the land.
Conventional Loan - A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed.
Counter Offer - A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.
Deed - Written instrument which, when properly executed and delivered, conveys title.
Earnest Money Deposit - Down payment made by a purchaser as evidence of good faith.
Easement - Created by grant or agreement for a specific purpose, or easement is the right, privilege or interest which one party has in the land of another. Example: right of way.
Equity - The interest or value which an owner has in real estate over and above the liens against the real property.
Escrow - The deposit of instruments and funds with instructions to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract: when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.
Fannie Mae- It’s an official name of the Federal National Mortgage Association which is one of the largest agencies that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
F.H.A. Loan - (federal Housing Administration) - A loan which has been insured by the federal government guaranteeing its payment in case of default by the owner.
Foreclosure- A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document.
Good Faith Estimate- Institutional lender estimates the costs a borrower will incur, including inspection fees and loan-processing charges.
Impound Account - Account held by the lender for payment of taxes, insurance, or other periodic debts against real property.
Lien - A form of encumbrance which usually makes property security for the payment of a debt of discharge of an obligation. Example: Judgments, taxes, mortgages, deeds of trust, etc.
Mortgage - An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation: procedure for foreclosure in event of default is established by state law.
Mortgage Insurance - Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage on the sale price.
Personal Property - Any property which is not real property, e.g., money, savings accounts, appliances, cars, boats, etc.
Purchase Agreement - An agreement between a buyer and seller for the purchase of real estate.
Power of Attorney- A written document signed by the owner which authorizes someone else to act in behalf of the owner.
Pre-Foreclosure- Term used to discuss delinquent properties before they go to the foreclosure auction.
Quitclaim Deed - A deed operating as a release.
Real Property - Land and whatever by nature or artificial annexation is a part of it.
Short Sale- The sale of a property under or at market value that's lower than the loan balance.
Special Assessment - Legal charge against real estate by a public authority to pay cost of public improvements such as: street lights, sidewalks, street improvements, etc.
Sub-Division - A parcel of land that has been divided into smaller parts.
V.A. Loan - A loan guaranteed by the Veterans Administration.
Zoning- Regulations that control the use of land within a jurisdiction.