terms to know GLOSSARY
Helpful Terms to Get You Started.
During the course of your house hunting, you may come across unfamiliar terms. The following list
helps explain some common terms associated with the home-buying process. Can’t find the term
you’re looking for in this list? Just ask me for a description – I’m always here to help you!
Abstract of Title
A summary of the public records relating to
the ownership of a particular piece of land. It
represents a brief legal history of the property
and traces its ownership from the time of the
first recorded transfer to present.
Adjustable-Rate Mortgage
This type of mortgage allows the interest rate to
be changed periodically.
Agency
A legal relationship in which an owner-principal
engages a broker-agent in the sale of property
or a buyer-principal engages a broker-agent in
the purchase of property.
Appraisal
An evaluation of a piece of property to
determine its value. A bank requires an appraisal
before approving your mortgage.
Asbestos
A mineral fiber used in some building materials
such as flooring, siding, insulation and roofing. It
is presently banned for most uses in homes and
buildings.
Building Codes
State and local laws that regulate the
construction of new property and the
rehabilitation of existing property.
Closing
The final step in the sale and transfer of
ownership of a property. The title is transferred
from the seller to the buyer; the buyer signs the
mortgage and pays costs of settlement. Any
monies due to the seller and buyer are paid.
Closing Costs
Fees and expenses, not including the price of
the home, payable by the seller and the buyer
at the closing (e.g., brokerage commissions,
title insurance premiums, fees for recording and
attorney’s fees).
Comparables
Properties similar in size and character to the
one being bought or sold.
Condominium
Ownership of a unit only, rather than the entire
building with the land.
Assessed Value
The valuation placed on property by a public tax
assessor as the basis of property taxes.
Contingency
A specific condition that must be satisfied
before a contract is binding such as an
inspection and mortgage approval.
Bridge Loan
A short-term mortgage made until a longer-term
loan can be made. It is sometimes used when
a person needs money to build or purchase a
home before the present one has been sold.
Conventional Mortgage
The most common type of mortgage from a
traditional lender, usually requiring a minimum
of 5% down payment. Can be a fixed rate, fixed
term, adjustable or balloon. Ask for more details!
Broker
A person licensed by his or her state to act
independe