A
- Abstract of Title – A summary of all legal records related to a property, including past ownership and claims.
- Appraisal – A professional estimate of a property’s market value.
- Assessed Value – The value assigned to a property by the government for tax purposes.
- Assignment – The transfer of legal rights or responsibilities from one person to another, often used in lease agreements.
- Attorney Opinion of Title – A lawyer’s written statement that a property title is valid and free from legal issues.
B
- Balloon Payment – A large final loan payment due at the end of a mortgage or loan term.
- Bill of Sale – A legal document that transfers ownership of personal property, not real estate.
- Breach of Contract – When one party fails to follow the terms of a real estate agreement.
- Broker – A licensed professional who helps buy, sell, or lease real estate.
C
- Closing – The final step in a real estate transaction where ownership is officially transferred.
- Closing Costs – Fees paid at the closing of a real estate deal, such as taxes, legal fees, and title insurance.
- Cloud on Title – A legal issue or dispute that affects ownership of a property.
- Commission – The fee paid to a real estate agent or broker for helping buy or sell a property.
- Common Area – Shared spaces in properties like condominiums, such as hallways or swimming pools.
- Condemnation – When the government takes private property for public use, usually with compensation.
- Condominium (Condo) – A type of real estate where individual units are owned separately, but common areas are shared.
- Contract for Deed – A real estate agreement where the buyer makes payments to the seller but does not get the title until all payments are made.
D
- Deed – A legal document that transfers property ownership.
- Deed Restriction – A rule placed on a property that limits how it can be used.
- Default – Failure to meet a legal obligation, such as missing mortgage payments.
- Deposit (Earnest Money) – Money paid upfront to show a buyer is serious about purchasing a property.
- Disclosures – Information a seller must provide about a property’s condition and legal issues.
E
- Easement – A legal right to use someone else’s land for a specific purpose, such as a driveway or utility lines.
- Eminent Domain – The government’s right to take private property for public use, usually with payment.
- Encroachment – When a structure illegally extends onto someone else’s property.
- Encumbrance – Any claim or restriction on a property that affects its use or value, such as a mortgage or lien.
- Escrow – A financial arrangement where a third party holds funds until all conditions of a real estate transaction are met.
- Estate – The total property, assets, and debts left behind by a person after they die.
F
- Fair Market Value – The price a property would sell for under normal conditions.
- Foreclosure – The legal process where a lender takes back a property due to unpaid mortgage payments.
- Fixture – Something attached to a property, like built-in cabinets, that is legally considered part of the real estate.
- Fraud – Deception used to gain an unfair advantage in a real estate transaction.
G
- Grantee – The person who receives ownership of a property.
- Grantor – The person who transfers ownership of a property.
H
- Homeowners’ Association (HOA) – A group that manages shared areas in a community and enforces rules for property owners.
- Homestead Exemption – A tax benefit that reduces property taxes for a homeowner’s primary residence.
I
- Inspection – A professional evaluation of a property’s condition before purchase.
- Interest Rate – The percentage charged on a loan for borrowing money.
- Intestate – Dying without a will, which affects how real estate is transferred.
J
- Joint Tenancy – A type of property ownership where two or more people own equal shares, and when one dies, the other automatically inherits their share.
- Judgment Lien – A legal claim placed on a property due to an unpaid court judgment.
L
- Landlord – The owner of a rental property.
- Lease – A legal agreement allowing someone to use property for a set period in exchange for rent.
- Leasehold Estate – A tenant’s right to use a property for a specific time under a lease agreement.
- Lien – A legal claim on a property used as collateral for a debt.
- Listing Agreement – A contract between a homeowner and a real estate agent to sell a property.
M
- Market Value – The estimated price a property would sell for under normal conditions.
- Mechanic’s Lien – A legal claim placed on a property by a contractor or supplier for unpaid work.
- Mortgage – A loan used to buy real estate, with the property serving as collateral.
- Multiple Listing Service (MLS) – A database used by real estate agents to list and find properties for sale.
N
- Notary Public – A licensed official who verifies the signing of legal documents.
O
- Option Agreement – A contract giving someone the right to buy a property at a fixed price within a set time.
- Owner’s Title Insurance – Protection for the buyer against hidden legal issues with a property’s title.
P
- Partition – A legal process to divide property among owners who no longer want to share ownership.
- Power of Attorney – A legal document giving someone the authority to act on another’s behalf in real estate matters.
- Pre-Approval – A lender’s confirmation that a buyer qualifies for a mortgage before they make an offer.
- Principal – The original amount borrowed on a loan before interest.
- Property Taxes – Taxes paid to the local government based on a property’s value.
- Public Records – Government-maintained documents that include property ownership history and legal filings.
Q
- Quitclaim Deed – A deed that transfers property ownership without guaranteeing a clear title.
R
- Real Property – Land and anything permanently attached to it, such as buildings.
- Refinancing – Replacing an existing mortgage with a new one, usually to get a lower interest rate.
- Restrictive Covenant – A rule placed on a property that limits how it can be used.
- Right of Way – The legal right to pass through someone else’s land.
S
- Seller’s Disclosure – A form that sellers must complete to reveal known property issues.
- Short Sale – When a homeowner sells a property for less than they owe on the mortgage, usually to avoid foreclosure.
- Survey – A detailed map showing property boundaries and features.
T
- Tax Lien – A legal claim by the government for unpaid property taxes.
- Tenancy in Common – A type of property ownership where multiple people share ownership but do not automatically inherit each other’s shares.
- Title – A legal document proving property ownership.
- Title Insurance – A policy that protects buyers from legal problems with a property’s title.
- Trust – A legal arrangement where a trustee manages property for someone else’s benefit.
W
- Will – A legal document stating how a person’s property should be distributed after death.