vocabulary

Check out this A to Z list of the many words in
Real Estate that you need to know.

APPRECIATION: An increase in the value of a house due to changes in market conditions or other causes.

APPRAISAL: A report made by a qualified person setting forth an opinion of estimate of value. The term also refers to the process by which the estimate is obtained.

ASSESSED VALUE: The valuation placed upon property by a public tax assessor for the purpose of taxation. This is also known as the State Equalized Value (SEV)

BUILDING CODE: The local regulations that control design, construction and materials issued in construction. Building codes are based on safety and health standards.

CERTIFICATE OF OCCUPANCY: Written authorization given by a local municipality that allows a newly completed or substantially renovated structure to be inhabited. Many municipalities that require City Certs, will require a C of O at closing.

CLOSING: The conclusion of the transaction. In real estate, closing includes delivery of a deed, financial adjustments, the signing of notes and disbursement of funds necessary for the sale loan transaction.

EARNEST MONEY: Money paid to a seller by a potential buyer as a binder to demonstrate serious interest in a property. If the deal goes through, earnest money applies on down payment. If the deal fails, money many or may not be forefeited, depending on the terms of the purchase agreement.

EQUITY: Value of property less remaining principal of mortgage and any other loan against it.

LAND CONTRACT: Agreement to purchase real estate on an installment basis with title remaining in the original owner's name until the buyer completes all payments.

LEIN: A claim by one person on the property of another as security for money owed, usually for materials and labor.

PURCHASE AGREEMENT: A written conract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

SALES CONTRACT: Basic legal agreement between buyer and seller. It should represent an exact list of items included with the house: make provisions for paying hazard insurance, taxes and utilities; enumerate closing costs; define the conditions of the sale and the provisions of releasing each party from the agreement if contingencies are not met; and set a date for the closing. Also known as a purchase agreement.