Real Estate Terms
Real Estate Terms
Agency â A legal relationship in which an ownerâprincipal engages a brokerâagent in the sale of property or a buyerâ principal engages a broker-agent in the purchase of property.
Amortization â The gradual repayment of a mortgage by installments.
Assessed Value â The valuation placed on property by a public tax assessor as the basis of property taxes.
Assumption of mortgage â An agreement whereby the buyer assumes responsibility for a mortgage owed by the seller; the seller remains liable to the lender unless the lender agrees to release the seller from the liability.
Binder â An agreement, accompanied by a deposit, whereby the buyer evidences good faith.
Bridge Loan â A short term loan made until a longer term loan can be arranged; itâs sometimes used when a person needs money to build or purchase a home before the present one has been sold.
Broker â A person licensed by a real estate commission to act independently in conducting a real estate brokerage business. Although requirements for a brokerâs licenses may vary, an individual must usually have at least one year of experience in the industry and pass an examination.
Cap â The maximum amount an interest rate or monthly payment can change, either at adjustment time or over the life of the mortgage.
Cloud on title â A lien or encumbrance that can prevent the seller from delivering clear title and the buyer from obtaining insurance.
Contingency â A condition that must be met before a contract is binding.
Deed â A legal document conveying title to a property.
Earnest money â a portion of the down payment given to the seller by a potential buyer indicating the buyerâs intent to complete the purchase of the property.
Equity loan â A loan based on the borrowerâs equity in their home rather than on their credit worthiness.
Escrow â The placement of money or documents with a third party for safeâkeeping pending the fulfillment of a specified condition.
Graduatedâpaymentâmortgage â A mortgage loan in which the monthly payments increase by a specific amount each year, with the âover paymentsâ applied to the principal.
Lien â A legal claim against a property that must be paid when the property is sold.
Loanâtoâvalue ratio â The relationship between the amount of a home loan and the total value of the property. Lenders may limit their maximum loan to 80â95 percent of value.
Lockâinârate â A commitment made by lenders on mortgage loans to âlockâinâ a certain rate pending loan approval. Lock-in periods may vary.
Market value â The highest price a buyer will pay for a property and the lowest price the seller will accept.
Mortgage broker â An individual or company that obtains mortgages for others by finding lending institutions, insurance companies, or private ources to lend the money; may also handle collections and disbursements.
Mortgage insurance â A policy that provides protection for the lender in case of a default and guarantees repayment of the loan if the borrower becomes disabled or dies.
Negative Amortization â An increase in the outstanding balance of a loan resulting from the failure of periodic debt service payments to cover required interest charged on the loan.
Points â A dollar amount paid to a lender for making the loan. A point is 1 percent of the loan amount; also called discount points.
Private mortgage insurance (PMI) â Insurance issued to a lender to protect it against loss on a defaulted mortgage loan. Its use is usually limited to loans with high loanâtoâvalue ratios. The borrower pays the premiums.
Realtor® and Realtor Associate® â The registered collective membership marks that identify real estate professionals who are members of the National Assoc-iation of Realtors® and subscribe to its strict Code of Ethics.
Shared equity mortgage â A home loan in which an investor is granted a share of the equity, thereby allowing the investor to participate in the proceeds from resale.
Title â A document thatâs evidence of ownership.
Title Insurance â Protection for lenders and homeowners against financial loss resulting from legal defects in the title.
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FSBO Real Estate
Originally Posted on 5/23/2005 7:39:16 AMContent source: http://www.hansenhomesaventura.com/blogmiamirealestate/archives/2005/04/real_estate_ter.html
Agency â A legal relationship in which an ownerâprincipal engages a brokerâagent in the sale of property or a buyerâ principal engages a broker-agent in the purchase of property.
Amortization â The gradual repayment of a mortgage by installments.
Assessed Value â The valuation placed on property by a public tax assessor as the basis of property taxes.
Assumption of mortgage â An agreement whereby the buyer assumes responsibility for a mortgage owed by the seller; the seller remains liable to the lender unless the lender agrees to release the seller from the liability.
Binder â An agreement, accompanied by a deposit, whereby the buyer evidences good faith.
Bridge Loan â A short term loan made until a longer term loan can be arranged; itâs sometimes used when a person needs money to build or purchase a home before the present one has been sold.
Broker â A person licensed by a real estate commission to act independently in conducting a real estate brokerage business. Although requirements for a brokerâs licenses may vary, an individual must usually have at least one year of experience in the industry and pass an examination.
Cap â The maximum amount an interest rate or monthly payment can change, either at adjustment time or over the life of the mortgage.
Cloud on title â A lien or encumbrance that can prevent the seller from delivering clear title and the buyer from obtaining insurance.
Contingency â A condition that must be met before a contract is binding.
Deed â A legal document conveying title to a property.
Earnest money â a portion of the down payment given to the seller by a potential buyer indicating the buyerâs intent to complete the purchase of the property.
Equity loan â A loan based on the borrowerâs equity in their home rather than on their credit worthiness.
Escrow â The placement of money or documents with a third party for safeâkeeping pending the fulfillment of a specified condition.
Graduatedâpaymentâmortgage â A mortgage loan in which the monthly payments increase by a specific amount each year, with the âover paymentsâ applied to the principal.
Lien â A legal claim against a property that must be paid when the property is sold.
Loanâtoâvalue ratio â The relationship between the amount of a home loan and the total value of the property. Lenders may limit their maximum loan to 80â95 percent of value.
Lockâinârate â A commitment made by lenders on mortgage loans to âlockâinâ a certain rate pending loan approval. Lock-in periods may vary.
Market value â The highest price a buyer will pay for a property and the lowest price the seller will accept.
Mortgage broker â An individual or company that obtains mortgages for others by finding lending institutions, insurance companies, or private ources to lend the money; may also handle collections and disbursements.
Mortgage insurance â A policy that provides protection for the lender in case of a default and guarantees repayment of the loan if the borrower becomes disabled or dies.
Negative Amortization â An increase in the outstanding balance of a loan resulting from the failure of periodic debt service payments to cover required interest charged on the loan.
Points â A dollar amount paid to a lender for making the loan. A point is 1 percent of the loan amount; also called discount points.
Private mortgage insurance (PMI) â Insurance issued to a lender to protect it against loss on a defaulted mortgage loan. Its use is usually limited to loans with high loanâtoâvalue ratios. The borrower pays the premiums.
Realtor® and Realtor Associate® â The registered collective membership marks that identify real estate professionals who are members of the National Assoc-iation of Realtors® and subscribe to its strict Code of Ethics.
Shared equity mortgage â A home loan in which an investor is granted a share of the equity, thereby allowing the investor to participate in the proceeds from resale.
Title â A document thatâs evidence of ownership.
Title Insurance â Protection for lenders and homeowners against financial loss resulting from legal defects in the title.
HansenHomesAventura.com
more...
FSBO Real Estate
Originally Posted on 5/23/2005 7:39:16 AMContent source: http://www.hansenhomesaventura.com/blogmiamirealestate/archives/2005/04/real_estate_ter.html
posted by charttrader @ 5:39 AM
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