Here, you can find definitions of commonly used real estate terms:
Amortization- The process of combining interest and principal in payments, allowing the ability to build more equity in the home from the beginning.
Appraisal- An estimate of value, for sale, assessment, or taxation valuation. (Used to determine the value of a home in regards to financing from a lender and for tax purposes.)
Assumable Mortgage- A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must “qualify” in order to assume the loan.
Balloon Mortgage- A mortgage loan that requires the remaining principal balance be paid at a specific point in time. (Ex. A 30 yr amortized loan requires the remaining balance be paid at the end of the 10th year)
Cloud on Title- Any conditions revealed by a title search that adversely affect the title to real estate.
Comparative Market Analysis (CMA)- A report created using comparable properties against a subject property to determine an accurate value for the subject property.
Condominium- A type of ownership in which all of the owners in the complex own the property, common areas, and buildings together, with the exception of the interior of the unit to which they have title. Refers to the type of ownership.
Contingencies- A condition that must be met for the purchase of a home to be finalized. (Ex. Appraisal, Inspection, buying/selling, loan, Etc.)
Deed- The legal document conveying title to a property.
Easement- A right of way giving persons other than the owner access to or over a property.
Escrow- A contract, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition. (Ex. Usually in a transaction, the escrow is made in the form of a deposit known as EMD or “down payment” accompanied with an offer.)
Fee Simple- The greatest possible interest a person can have in real estate in terms of title.