HomeBuying

Common Real Estate Terms and Definitions

  • Appraisal: An expert’s written estimate of a property’s current market value.
  • As-is: Seller will not repair or correct any problems with the property.
  • Back-up Offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.
  • Broom Clean: All personal property (not included in the sale), debris, and trash to be removed from the property prior to the walk-through and closing. This includes items left on or under decks, in storage sheds, etc. Broom Clean does not mean Professionally Cleaned.
  • CD/ALTA (Closing Disclosure/American Land Title Association): A document and statement that details all of the monies paid out and received at a real estate property closing.
  • Closing: The end of the transaction process where the deed is delivered, documents are signed, and funds are dispersed.
  • Closing Costs: All of the expenses outside of the cost of the property such as insurance, the appraisal, attorney fees, etc.
  • Contingency: A provision in a contract requiring certain acts to be completed. (i.e. Home Inspection & Financing)
  • Contract to Purchase/Offer to Purchase: A Buyer proposes certain terms that are then presented to the Seller.
  • Down Payment: The amount of cash put toward the purchase by the Buyer.
  • Earnest Money Deposit: The money given to the Seller’s representative at the time the offer is made as a sign of the Buyer’s good faith and then the remainder at the time of the signing the Purchase & Sale.
  • Escrow: Funds (Buyer’s deposits) held by a neutral/disinterested third party (commonly Seller’s Broker or Attorney) until completion of the transaction.
  • Exclusions: Fixtures or personal property that are excluded from the sale.
  • Financing Commitment: A written document telling the borrower that the mortgage company has agreed to lend them a specific amount of money at specific terms.
  • Home Inspection: A complete and detailed inspection that examines and evaluates the mechanical and structural condition of a property. A common contingency a Buyer may ask for in the purchase.
  • Mortgage: A loan that is taken out to finance the purchase of property that will be paid back incrementally over a designated period of time.
  • Multiple Offers: More than one Buyer submitted an offer on one property.
  • Purchase & Sale Agreement (P&S, PSA): A legal document that has been agreed upon and states the terms of the sale between the Buyer and Seller. This document will supersede the Contract to Purchase.
  • Title: Documentation that reveals the ownership of a property.
  • Walk-through: A showing that permits the Buyer to a final tour of the house to ensure that the property is delivered in the condition as agreed upon.