Real Estate Dictionary, Closing 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 faucet aerator or a backflow valve are as long as my plumbing works.  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 pre-house hunting 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!

Closing Costs
Fees paid the day of closing to cover the cost of the title search, lender expenses, taxes and insurance.  Generally both buyers and sellers have closing costs but this can be determined during the process of negotiating the sales contract.



Clear to Close
The words every buyer and seller want to hear!  This is one of the final stages before your loan is funded and means you're this close to the closing table.  Likely the next step will be setting the closing date.

Wire Fraud
Financial fraud involving the use of information technology (IT) or telecommunications.  If you receive a request to wire money in the course of a Real Estate transaction, always call your agent and/or lender before sending money!



Buying and selling your 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!