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Appraisal- An expert judgment of the value or worth of a property. Completed by a licensed appraiser and required by the lender as a condition of loan approval.
Broker's Open- A way for agents and brokers to preview a home before bringing their buyers. These are typically held on Tuesday afternoons. Buyer's Agent- A residential real estate broker or salesperson who represents the prospective purchaser in a transaction. The buyer's agent owes the buyer/principal the common-law or statutory agency duties. For more information, see Buyer Brokerage in a Nutshell. Closing Statement- Also known as the HUD-1, or settlement statement. A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction. Contract- A legally enforceable promise or set of promises that must be performed and for which, if a breach of the promise occurs, the law provides a remedy. Counteroffer- A new offer made in response to an offer received. It has the effect of rejecting the original offer, which cannot be accepted thereafter unless revived by the offeror. Deed- A written instrument that, when executed and delivered, conveys title to or an interest in real estate. Deed of Trust- An instrument used to create a mortgage lien by which the borrower conveys title to a trustee, who holds it as security for the benefit of the note holder (the lender). Escrow or Earnest Money- Money deposited by a buyer under the terms of a contract, to be forfeited if the buyer defaults but applied to the purchase price if the sale is closed. Equity- The interest or value that an owner has in property over and above any indebtedness. Home Inspection Report- A report prepared by a qualified inspector, it evaluates a property's structural and mechanical systems. Lender- See mortgage banker or mortgage broker. MRIS (Metropolitan Regional Information System- A system that provides to its members detailed information about properties for sale throughout the Greater DC area. Market Price- The actual price at which a property sold. Market Value- The price that is established by present economic conditions, locations, and general trends. Mortgage- A conditional transfer or pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien. Mortgage Banker- A professional who works for a mortgage loan company that originates, services and sells loans to investors. Mortgage Broker- An agent of a lender who brings the lender and borrower together. The broker receives a fee for this service. Mortgage Lien- A lien or charge on the property of a mortgagor that secures the underlying debt obligations. Offer- A promise made by one party (buyer or seller), requesting something in exchange for that promise. The offer is made with the intention that the offeror will be bound to the terms if the offer is accepted. Open House- A way for a seller to open their home to show to prospective buyers. Typically the listing agent is present and holds the open house on Saturday or Sunday afternoons. If a buyer is being represented by a buyer agent who is not present, the buyer must disclose that agency relationship to the agent at the open house either verbally or on the sign-in sheet. Principal- One of the parties to a contract; the amount of money borrowed, for which interest is charged. Realtor- A member of the National Association of Realtors and/or local realtor association. Settlement- Also called "closing." The culmination of legal and financial transactions required to make the contract terms finalized and to cause transfer of title of the property to the buyer. Title- The right to or ownership of land. The evidence of ownership of land. Title Company- The company that coordinates all of the parties involved in the transaction, examines the title search to the property, conducts the settlement and completes all the necessary post-settlement work. The title company will execute a closing statement. Title Insurance- Insurance that protects against loss from legal defects in the title. Title Search- A detailed examination of the land record of the entire documented history of a property. * Above definitions provided by Modern Real Estate Practices and Universal Title's Guide to Home buying in Maryland and the District of Columbia. Real estate listings and ads seem to have a language all their own. What do all those abbreviations mean? Abbreviations are a necessity in real estate advertising because so much information must be communicated in so little space. Here are some common abbreviations and their meanings:
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