Glossary of Real Estate Terms
An expert estimate of the value of a property.
The final step in the real estate buying process where property title is transferred.
A legal document that confirms or conveys the ownership of a property.
A financial arrangement where a third party holds funds until certain conditions are met.
The process by which a lender takes back property when the owner fails to make mortgage payments.
A thorough assessment of a property’s condition by a professional before sale.
A loan specific to purchasing real estate.
The original amount of a loan, excluding interest.
Real Estate Agent
A professional who represents buyers or sellers in real estate transactions.
A legal document providing evidence of an individual’s ownership of property.
The process by which a lender evaluates the risk of giving a loan to a homebuyer.
Local laws that regulate how property in a specific area can be used.
The difference between the market value of a home and the outstanding amount on its mortgage.
A provision in a real estate contract that specifies a condition or action that must be met.
Earnest Money Deposit (EMD)
A deposit made to a seller to demonstrate a buyer’s commitment to the purchase.
Adjustable Rate Mortgage (ARM)
A mortgage with an interest rate that can change periodically based on an index.
Fixed Rate Mortgage
A mortgage with a fixed interest rate for the entire term of the loan.
An initial assessment of the creditworthiness of a potential borrower.
A deeper assessment that results in a commitment to lend a specific amount.
A legal claim on a property as security for a debt or obligation.
The profit from the sale of a property or investment.
A decrease in the value of a property over time.
MLS (Multiple Listing Service)
A service used by real estate agents to view listings of properties for sale.