For Sale By Owner FSBO This real estate lingo and acronym refers to property that is sold directly by the owner of the property without enlisting the help of any real estate agents. He or she is also responsible for the safekeeping of the escrow money. Escrow Agent A neutral third party whose job is to ensure that all the conditions of a real estate transaction are being met by the buyer and seller. After closing, part of the escrow money will be used for paying taxes and insurance. Escrow Money such as deposits and earnest money that is held for safekeeping before closing by a third party. The earnest money will be held by a neutral third party until the time of closing when it becomes part of the down payment. "Good Faith Sum" is another name for this term. It is proof that the buyer is sincere in purchasing the property. Earnest Money Earnest money is a sum of money that is submitted together with an offer to purchase. A deed is transferred from seller to buyer during closing. Deed This real estate jargon refers to the legal document that determines who has ownership of a property. Translating real estate jargon: A common example of contingencies is "This offer is subject to the buyer's obtaining adequate financing." This means that the buyer does not have to buy the property if he or she is not able to obtain a property mortgage or loan within a fixed period of time. Closing costs typical add to 3 to 5% of the final selling price of the property Contingencies Contingencies are conditions worded into real estate offers to prevent a buyer from being forced to buy a property that is unsatisfactory - either structurally or financially. Do note that down payment is not considered as a closing cost. Closing costs can include loan origination fees, discount points, recording fees, pre-payments and lawyer fees. Closing Costs These are the additional costs incurred at the time of closing. Closing also finalizes the mortgage of the property. Closing This refers to the process where the deed of the property is formally transferred from the seller to the buyer. A buyer or seller can perform a CMA to help determine the value of a property. This assessment is then used to determine the amount of property taxes owed by the owner.Ĭomparable Market Analysis CMA A comparable market analysis is a comparison of the prices of similar houses in the same geographic area. Assessment Real estate lingo explained: This refers to the value of a property as calculated by the local tax laws. Every non-owner financed mortgage will require an appraisal and it is paid for by the buyer in general. A written property appraisal my help the buyer borrow the required funds to buy the property.
#Real estate lingo professional
Appraisal An appraisal is an estimated value of a property by a professional third party such as a certified real estate appraiser. Agent Real estate jargon definition: This refers to the third party person who represents a seller, a buyer (or both) in the sale or purchase of real estate. This rule only applies only if certain requirements are met - such as using the property for investment purposes and closing the sale within certain time limits. allowing property owners to avoid paying capital gains taxes if they sell their investment property to buy another like-kind property.
Are you looking for a real estate jargon dictionary? Then click here as we explain important real estate lingo and acronyms in plain English.ġ031 Tax Deferred Exchange An important IRS rule in the U.S.
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