Real Estate Terms PDF

Real Estate Terms 1/12/25, 6:59 PM Real Estate Terms Acre: A measure of land equal to 43,560 square feet. Adjustable rate mortgage (ARM): A mortgage loan...

Real Estate Terms 1/12/25, 6:59 PM Real Estate Terms Acre: A measure of land equal to 43,560 square feet. Adjustable rate mortgage (ARM): A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills Appreciation: An increase in value or worth of property. Opposite of depreciation. Capital gains: The profit on the sale of a capital asset, such as stock or real estate. Clear title: A land title that doesn’t have any liens (including a mortgage) against it. Closing costs: What the buyer must pay at the time of the closing in addition to the down payment Commission: The compensation paid to a licensed real estate broker or by the broker to the salesman for services rendered. Usually a percentage of the selling price of the property. Comparables: Properties which are similar to a particular property and are used to compare and establish a value for that property. Condominium: A form of real estate, usually a dwelling with individual ownership of separate portions of the building plus shared ownership of the common areas. Credit report: An account of your credit history, prepared by a credit bureau. There are three major credit bureaus, Equifax, Experian and TransUnion Credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time. Creditors and lenders consider your credit scores as one factor when deciding whether to approve you for a new account. Equity: The difference in dollars between a house’s value and the mortgage amount. Fixed rate mortgage: A mortgage with an interest rate and monthly payment that doesn’t vary for the term of the loan. Flood insurance: A special and separate type of homeowner’s insurance the provides coverage for damages resulting from flooding Flood plain is an area subject to periodic flooding. Foreclosure: A legal process instituted by a mortgagee or lien creditor after the debtor’s default. Gross income: For qualifying purposes, the income of the borrower before taxes or expenses are deducted. Home equity loan: A fixed or adjustable rate loan obtained for a variety of purposes, secured by about:srcdoc Page 1 of 2 Real Estate Terms 1/12/25, 6:59 PM the equity in your home. Homeowners’ association (HOA): An organization comprising neighbors concerned with managing the common areas of a subdivision or condominium complex. House closing: The final transfer of the ownership of a house from the seller to the buye Interest: The sum paid in return for the use of money; could be considered rent for the use of money Interest rate: The periodic charge, expressed as a percentage Landlord: The owner of any real estate, such as a house, apartment building or land, that is leased or rented to another person, called the tenant Leverage: The use of borrowed funds to finance an investment and to magnify the rate of return. Know why its a double edged sword Mortgage: A contract providing security for the repayment of a loan, registered against property, with stated rights and remedies in the event of default. Lenders consider both the property (security) and financial worth of the borrower (covenant) in deciding on a mortgage loan. Multiple Listing Service (MLS): A system by which a number of real estate firms share information about homes that are for sale Points: Fees paid to induce lenders to make mortgage loans at a particular interest rate. Each point is equal to one percent (1%) of the loan principal Property taxes: Taxes that are paid yearly on real property. Real estate agent: A person licensed to negotiate and transact the sale of real estate on behalf of the property owner. Rental Property refers to a piece of real estate that is purchased or developed primarily in order to earn income by renting or leasing it out to others, with a secondary goal of price appreciation. Single-family home: A free-standing, residential structure, designed to accommodate one family. Title: The right of ownership of a property. Townhouse: A dwelling unit usually with two, three or four floors, and shared structural walls. Vacation Home is a secondary dwelling, other than the owner's principal residence, and is used primarily for recreational purposes including vacations or holidays. Zoning: Zoning is a set of laws that dictate how land can be used in a specific area. about:srcdoc Page 2 of 2