Real Estate Dictionary, Offer and Contract Edition
Every industry has their own language. There terms they throw around like everyone knows what they're talking about but no one outside the industry really does. In most cases it's okay. I don't need to know what a carburator and cam are as long as my car gets me where I need to go. But in Real Estate, it's your money and your home we're talking about, so a little education can go a long way.
There are a LOT of Real Estate terms, so I'll break them down by category. Here are a few mortgage related terms to get you started.
Realtor (Pronouced Reel-tor)
According to the National Association of Realtors, "REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics."
In reality, a Realtor is someone who sells your home in record time, finds your dream home and solves problems you never knew existed!
Disclosures
Obligation of a seller to disclose potential problems to a prospective buyer that could affect the value of the property being sold. This is especially important just before a buyer makes an offer so you know.
Contingent
A clause in an accepted contract that allows either party to break the contract if certain terms are not met. Contracts are most commonly contingent on inspections, appraisals, sale of another property and financing.
Earnest Money
Think of it as a promise to the seller. It's your money and will be put toward your expenses at the closing table, but if you walk away from the deal without a reason that was outlined in the contract (known as breach of contract) the seller gets to keep that money. It's basically their insurance policy that you're serious.
Under Contract
When an offer has been accepted but the property has not yet closed.
Buying or selling a home can be stressful but knowing a few terms can help make the process feel so much less intimidating. If ever you need to know more, just refer to my other Real Estate Dictionary posts. Or better yet, ask your friendly neighborhood Realtor!
There are a LOT of Real Estate terms, so I'll break them down by category. Here are a few mortgage related terms to get you started.
Realtor (Pronouced Reel-tor)
According to the National Association of Realtors, "REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics."
In reality, a Realtor is someone who sells your home in record time, finds your dream home and solves problems you never knew existed!
Disclosures
Obligation of a seller to disclose potential problems to a prospective buyer that could affect the value of the property being sold. This is especially important just before a buyer makes an offer so you know.
Contingent
A clause in an accepted contract that allows either party to break the contract if certain terms are not met. Contracts are most commonly contingent on inspections, appraisals, sale of another property and financing.
Earnest Money
Think of it as a promise to the seller. It's your money and will be put toward your expenses at the closing table, but if you walk away from the deal without a reason that was outlined in the contract (known as breach of contract) the seller gets to keep that money. It's basically their insurance policy that you're serious.
Under Contract
When an offer has been accepted but the property has not yet closed.
Buying or selling a home can be stressful but knowing a few terms can help make the process feel so much less intimidating. If ever you need to know more, just refer to my other Real Estate Dictionary posts. Or better yet, ask your friendly neighborhood Realtor!
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