Real Estate Glossary
Basic Property Terms
- Appraisal: A professional estimate of a property's market value.
- Assessed Value: The value placed on a property by a local government for tax purposes.
- Closing Costs: Expenses (beyond the property price) incurred by buyers and sellers in a real estate transaction.
- Contingency: A condition in a real estate contract that must be met for the deal to proceed (e.g., financing, inspection).
- Deed: The legal document that transfers ownership of a property.
- Due Diligence: A specific period in the North Carolina real estate purchase contract where the buyer has the right to thoroughly investigate the property (inspections, appraisal, etc.) and decide whether to proceed with the purchase. A due diligence fee is often paid to the seller for this right.
- Earnest Money Deposit (EMD): Money paid by a buyer to show their serious intent to purchase a property.
- Escrow: A neutral third party that holds funds and documents during a real estate transaction.
- Foreclosure: The legal process by which a lender takes possession of a property when a borrower defaults on their mortgage.
- Home Inspection: A professional examination of a property's condition.
- Lien: A legal claim against a property as security for a debt.
- Listing Agreement: A contract between a seller and a real estate agent authorizing the agent to sell the property.
- Market Value: The price a willing buyer would pay a willing seller in a fair transaction.
- Mortgage: A loan used to purchase real estate.
- Title: Legal ownership of a property.
- Title Insurance: Insurance that protects against losses due to problems with a property's title.
Types of Property
- Single-Family Home: A detached house designed for one family.
- Condominium (Condo): Individual ownership of a unit within a larger building or complex.
- Townhouse: A multi-story home that shares one or more walls with adjacent units.
- Cooperative (Co-op): Ownership shares in a corporation that owns a building, granting residents the right to occupy a unit.
- Multi-Family Home: A property with multiple units, such as a duplex or apartment building.
Financing & Lending
- Amortization: The process of gradually paying off a loan over time.
- Annual Percentage Rate (APR): The total cost of a loan, including interest and fees, expressed as a yearly rate.
- Down Payment: The upfront cash payment made by a buyer when purchasing a property.
- Equity: The difference between a property's market value and the outstanding mortgage balance.
- Interest Rate: The cost of borrowing money, expressed as a percentage.
- Loan-to-Value Ratio (LTV): The ratio of a loan amount to the property's appraised value.
- Principal: The original amount of a loan.
- Refinance: Replacing an existing mortgage with a new one, often to get a lower interest rate.
Real Estate Agents & Brokers
- Buyer's Agent: A real estate agent who represents the buyer in a transaction.
- Listing Agent: A real estate agent who represents the seller in a transaction.
- Real Estate Broker: A licensed professional who oversees real estate transactions and manages agents.
- Commission: A fee paid to a real estate agent for their services, usually a percentage of the sale price.
Legal & Regulatory
- Easement: The right to use another person's property for a specific purpose.
- Zoning: Local regulations that control how land can be used.
- HOA (Homeowners Association): An organization that manages common areas and enforces rules in a planned community.
- CC&Rs (Covenants, Conditions & Restrictions): Rules that govern properties within a planned community or subdivision.
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