Real Estate Glossary

Amortization: The gradual repayment of a mortgage through scheduled, periodic payments.

Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that can change periodically.

Assessment: The valuation of a property for tax purposes.

Buyer's Agent: A real estate agent representing the buyer in a transaction.

Buyer's Market: A market condition where there are more properties for sale than buyers.

Closing: The final step in a real estate transaction where ownership is transferred, and all necessary documents are signed.

CMA (Certified Management Accountant): A professional designation for accountants specializing in financial management and planning.

Comparative Market Analysis (CMA): An evaluation of similar properties in the area to determine a property's market value.

Condo: Short for condominium, a type of housing where individuals own their units and share ownership of common areas.

Contingency: A condition that must be met for a real estate contract to be binding.

Debt-to-Income Ratio (DTI): A financial metric representing the percentage of a borrower's gross income used to cover debt payments.

Deed: A legal document that transfers ownership of a property.

Earnest Money: A deposit made by the buyer to demonstrate their serious intent to purchase a property.

Easement: The legal right to use another person's land for a specific purpose.

Escrow: A neutral third party that holds funds and documents during a real estate transaction until all conditions are met.

Fannie Mae: The Federal National Mortgage Association, a government-sponsored enterprise that supports mortgage lending.

FHA Loan: A mortgage insured by the Federal Housing Administration, often requiring a lower down payment.

Fixture: An item permanently attached to a property and considered part of the real estate.

For Sale By Owner (FSBO): A property listed for sale by its owner without the representation of a real estate agent.

Gentrification: The process of renovating and improving a neighborhood, often resulting in increased property values.

Home Equity Loan: A loan using a homeowner's equity as collateral.

Homeowners Association (HOA): An organization that sets and enforces rules for a community with shared amenities.

HUD: The U.S. Department of Housing and Urban Development.

Home Warranty: A service contract covering the repair or replacement of major home systems and appliances.

Interest-Only Mortgage: A loan where the borrower pays only the interest for a specified period before beginning principal payments.

Interest Rate: The percentage of a loan amount charged by the lender for borrowing.

Joint Tenancy: A form of property ownership where two or more individuals share equal ownership with the right of survivorship.

Joint Venture: A business arrangement where two or more parties collaborate for a specific purpose, such as real estate development.

Lien: A legal claim on a property as security for a debt.

Lis Pendens: A legal notice indicating that a property is involved in a lawsuit.

Listing Agent: A real estate agent representing the seller in a transaction.

Market Value: The estimated worth of a property based on current market conditions.

Mortgage Broker: A professional who connects borrowers with lenders and helps secure a mortgage.

Multiple Offers: A situation where a property receives more than one purchase offer.

Net Proceeds: The amount a seller receives from a real estate transaction after deducting closing costs and other fees.

Nonconforming Loan: A mortgage that doesn't meet the lending standards set by Fannie Mae and Freddie Mac.

Open House: A scheduled period for potential buyers to view a property without an appointment.

PITI: An acronym for Principal, Interest, Taxes, and Insurance – the components of a mortgage payment.

Plat Map: A detailed map illustrating the layout of a subdivision.

Points: Fees paid to a lender to lower the interest rate on a mortgage.

Quiet Title: Legal action to confirm ownership of a property and clear any potential issues.

Realtor: A real estate professional who is a member of the National Association of Realtors.

Right of First Refusal: A contractual right giving a party the option to purchase a property before the owner considers other offers.

Short Sale: A sale in which the proceeds are less than the outstanding mortgage balance.

Survey: A measurement of a property's boundaries and features.

Title Search: An examination of public records to confirm a property's legal ownership.

Underwater Mortgage: A situation where the outstanding mortgage balance exceeds the property's market value.

VA Loan: A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and active-duty military personnel.

Walkthrough: A final inspection of a property before closing to ensure it's in the agreed-upon condition.

Zillow: An online real estate marketplace providing property information and home values.