Realty Glossary of Frequently used Real Estate terms

Abstract of Title	A synopsis of the history of a title, indicating all changes of ownership and including liens, mortgages, charges, encumbrances, encroachments of any other matter that might affect the title.
Affidavit of Title	A sworn written statement signed by the seller stating that he owns the property, has clear title to it, and therefore has the right to sell it.
Agreement of Sale	A written agreement by which a buyer agrees to buy and a seller agrees to sell a certain piece of property under the terms and conditions stated therein. Commonly called a contract.
Amortization	The gradual paying out of a loan through regular fixed payments over a period of time.
Appraisal	The estimate of a disinterested qualified professional as to the current value of a property. The term also refers to the report that sets forth the estimate.
Assessment	A municipality's determination of a property's value for the purpose of taxation.
Binder	An agreement to purchase a piece of property involving a small deposit to show good faith. It should always include a statement to the effect that the agreement is "subject to formal contracts to be drawn."
Cancellation	Any Clause in a contract that allows the buyer or seller to cancel the contract if a certain specified condition or situation occurs. The mortgage contingency is a cancellation clause since it allows the buyer to cancel the contract if he cannot obtain a mortgage.
Chain of Title	A history of all the transfer of title from available records.

Chattel	Items of personal property, such as furniture, appliances, chandeliers, that are not permanently affixed to the house. If included in a real estate sale, each piece must be specifically listed in the contract.
Closing	The meeting of all concerned parties in order to transfer title. The date when the buyer takes title to the property.
Closing Costs	Various fees and expenses, not including the price of the home, payable by the seller and the buyer at the time of a real estate closing - e.g., brokerage commissions, title insurance premiums and inspection, appraisal, deed recording, and attorney fees.
Commission	The payment given a real estate broker for his services. Commission is usually paid at the closing.
Contract	An Agreement between two parties. To be valid a contract must be dated; must be in writing; and must include a consideration, a description of the property, the place and date of delivery of the deed, and all terms and conditions that were mutually agreed upon. It must also be executed (signed) by all concerned parties.
Deed	A written instrument that conveys title to real property.
Easement	A right-of-way or access. The right of one party to cross or use for some specified purpose the property of another party.
Escrow	Money or documents held by a third party until specific conditions of an agreement or contract are fulfilled. The earnest money paid by the buyer with the signing of the contract is usually held in escrow until all contingencies in the contract are met.

Foreclosure	The selling of a property to satisfy the debt of a mortgage. In order to force the sale, the mortgagee (lender) must file a Lis pendens with the county clerk, thus giving due notice to the mortgager (borrower).
Interest	A fee paid for the use of money. It is usually calculated as a percentage of the principal.
Lease	A contract that allows one party the possession of real estate for a specific period of time in return for a consideration (usually rent) paid to the other party
Lien	A recorded notice that there is a debt on a piece of property. This debt could be a judgment, mortgage, back taxes, unpaid accounts, etc.
Listing	The employment of a real estate broker to sell a piece of property. Also a piece of property offered for sale.
Market Value	Generally accepted as the best price that a ready, willing and able buyer will pay and the lowest price a ready, willing and able seller will accept. In other words the dollar figure at which there is a meeting of the minds.
Multiple Listing	An agreement among real estate brokers to make their listings available to each other
Offer	A proposal, oral or written, to buy a property at specified price.
Points	Sometimes called discount. This is a fee that the lending institution charges for the mortgage. One point is 1 percent of the face amount of the mortgage.

Qualifying a Buyer	The real estate agent's process of checking out the buying potential of a customer. It is necessary to know family income, available down payment money, and all outstanding debts in order to "qualify" a buyer
Right-of-way	An easement; the right of one person to cross or in some way use the property of another party.
Survey	The measurement of a piece of land by civil engineers or surveyors to determine its area and attest to its boundaries.
Title	Actual Ownership; the right of possession; evidence of ownership
Title Search	A professional examination of public records to determine the chain of ownership of a particular piece of property and to note any liens, mortgages, encumbrances, easements, restrictions, or other factors that might affect the title.
Zoning ordinances	Municipal ordinances that limit and regulate the character and use of private property in a given area.