Real Estate Resources

Glossary Of Terms

Addendum: form explaining an addition or change to a purchase agreement

Affidavit: statement signed by the buyer or seller to indicate the information provided is the truth

Appraisal: determination of the fair market value of property

Appraiser: qualified professional in the appraisal of real estate

Appraisal Fee: the cost that an appraiser charges in order to provide an estimate of a property’s market value

Appreciation: an increase in the property's value

Balloon Loan: loan with monthly payments and a leftover balance due in a lump sum payment at the end of the loan term

Blanket Mortgage: one mortgage that includes more than one property

Closing: the final part or settlement of the process to transfer property ownership

Closing costs: the transaction fees that home buyers (or sellers) must pay at the close of escrow when real estate is transferred

Closing Date: date for the property to officially be exchanged

Contingency: contract provision stating that some or all of the contract's terms will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing

Deed: document that indicates the transfer of a property’s ownership

Default: the lack of ability to pay mortgage payments as agreed

Depreciation: gradual loss of value to property due to the property's age, natural wear and tear, or deterioration

Down Payment: the percentage of the total purchase price paid when an agreement of sale has been signed

Earnest money deposit (EMD): a partial payment demonstrating commitment in a contract

Escrow: funds or documents that a neautral third party holds until closing

Fixed-Rate Mortgage: a loan with a constant interest rate and payment amount for the term of the loan

Foreclosure: when a property is sold to handle the losses when an owner defaulted on a loan

Holding Period: the time period in which a property is owned

Homeowner’s Insurance: insurance that protects property from hazards such as storms or fire

Inquiry: a credit report request

Inspections: checking a property for defects

Interest Rate: cost to borrow money from a lender

Listing Agent: the agent representing a property's seller

Mortgage: a legal document and term that indicates a loan; the property is pledged to a lender and is the security for a loan's payment

Mortgagee: the lender in a mortgage agreement

Mortgagor: the borrower in a mortgage agreement

Origination Fee: expense paid to the lender processing a loan application

PITI: an abbreviation for the expenses that make up a mortgage payment: the principal,
interest, taxes, and insurance

Pre-Qualification: used to determine if a borrower is able to qualify for a loan

Price-to-Income Ratio: how a property's affordability is measured

Purchase Offer: a document that provides an offer to buy a property

Real Estate Agent: a licensed professional who assists in a property sale

Real Estate Broker: a licensed real estate professional or company negotiating the purchase of real estate between a buyer and seller

Realtor®: A real estate agent who is a member of the National Association of Realtors

Real Estate Salesperson: a licensed professional who has similar tasks as a real estate broker, and is connected to and supervised by a broker

Second Deposit: another deposit that is paid when the purchase agreement is signed

Title: the evidence that a person has the legal right to own real estate or personal property

Transfer Taxes: state and local taxes applied upon the transfer of real estate

Zoning: the laws and regulations created by local governments regarding a property’s use in a particular location

Contact Brad and Luke Today!

Whether you’re eager to sell your home for top dollar or track down the property of your dreams, you can trust the Rozansky Group to provide superior service every step of the way. Contact our team to start the next chapter of your real estate journey—we look forward to hearing from you!

By giving us your phone number and email address, you are giving Rozansky Group permission to contact you via email, phone, or text.