| AGENT |
A licensed professional who arranges real estate transactions, representing buyers and sellers |
| AGREEMENT |
Legal document outlining the terms of a real estate transaction |
| AIR RIGHTS |
Property rights in the “space” above a property |
| APPRAISAL |
A valuation of property by the estimation of an authorized expert |
| ASBESTOS |
A hazardous material that used to be used as insulating material |
| AS-IS SALE |
When the buyer agrees to buy a product in its current condition |
| ASSESSED VALUE |
Value assigned to a home by a municipality for the purpose collecting taxes |
| ASSESSMENT |
Measurement of value indicating how a property will be taxed by the government |
| ASSET |
Anything you own that holds financial value including property, stocks, funds, etc. |
| ATTORNEY |
A real estate attorney specializes in real estate law. As the representative of the buyer or seller, the attorney prepares and reviews the entire process from contract agreement to closing |
| ATTORNEY REVIEW |
Stage in which the attorney reviews the contract |
| AUCTION |
Method of selling real estate to competing bidders |
| BANKRUPTCY |
Legal proceeding where a borrower declares they are unable to repay outstanding debts |
| BOARD OF DIRECTORS |
Group elected by owners to manage a condo or co-op |
| BROKER |
Real estate professional who acts as an intermediary |
| BUILDER |
State-licensed professional who can build houses |
| BUILDING CODES |
Regulations that govern the design, construction, and modification of buildings |
| BUYER |
The party buying the property |
| BUYER’S AGENT |
The agent representing the buyer |
| BUYER’S MARKET |
A state of the real estate market where there are more sellers than buyers, benefitting the buyer |
| CAPITAL GAIN |
Profit made sale of real estate |
| CERTIFICATE OF OCCUPANCY |
A legal document that proves a structure is safe to inhabit |
| CLEAR TO CLOSE |
Indicates that there are no issues with the mortgage or title and the process can proceed to closing |
| CLOSING |
Final step in a real estate transaction where the final documents are signed, down payments are made, and necessary items are given from seller to buyer |
| CLOSING COST |
Additional costs due at closing outside of property purchase cost |
| CLOSING DOCUMENT |
Closing Disclosure or HUD-1, document that lists all charges and credits in transaction |
| COLLATERAL |
Asset that is offered by the borrower for the lender to secure the loan |
| COMMERCIAL |
Pertaining to business rather than residential purposes |
| COMMISSION |
Percentage of purchase price paid to real estate agents and brokers |
| COMPARABLES |
Properties with characteristics that are similar to the property being appraised, used to determine relative value |
| CONDEMNATION |
Acquisition of a private property for public purpose |
| CONDO |
Property complex comprised of individual units that are individually owned |
| CONTINGENCY |
Conditions that must be met for the contract to become legally binding |
| CONTRACT |
Document between the buyer and seller participating in a real estate transaction |
| CONTRACTOR |
A general contractor hires subcontractors to carry out a construction or renovation project |
| COOP |
A property where the residents cooperatively own the property |
| CO-SINGER |
A third party who agrees to pay the borrower’s loan if the primary borrower can no longer make payments |
| COUNTER OFFER |
An offer made in response to the original offer |
| CREDIT REPORT |
A detailed breakdown of your credit history prepared by a credit bureau |
| CUL-DE-SAC |
Area where a street comes to an end and is closed to traffic |
| DEED |
Document that transfers the title to property from one owner to another |
| DEPOSIT (Purchase) |
Money paid by the buyer at the time of signing the real estate contract |
| DEPRECIATION |
Annual decrease in value of your property over time |
| DOWN PAYMENT |
The amount the buyer pays upfront (usually 20% of the total cost) |
| DUAL AGENCY |
One agent representing both the buyer and the seller |
| DUPLEX |
House that has two units in the same building, either up-and-down, or side-by-side |
| EARNEST MONEY |
Sum of money put down by the buyer representing the buyer’s seriousness about buying the home |
| EASEMENT |
The right to use someone else’s property for specified reasons |
| ENCUMBRANCE |
A claim against the property that impacts its transferability or use (including lien, easement, restriction, etc.) |
| EQUALIZATION |
A step in property taxation ensuring uniformity in tax assessment levels |
| EQUITY |
Market Value – Mortgage = Equity; the difference between how much your home is worth and how much you owe on your mortgage |
| ESCROW |
Legal arrangement in which a third party temporarily holds money to protect parties during transaction |
| ETHICS |
Code of ethics followed by real estate professionals to ensure fairness |
| EVICTION |
Court-ordered removal of a tenant from the property where they reside |
| EXCHANGE 1031 |
A real estate investing tool allowing investors to swap an investment property for another and avoid paying capital gains taxes |
| FAIR MARKET VALUE |
Most probable price which a property would bring on the open market, given knowledgeable and willing buyers and sellers |
| FINAL WALK THROUGH |
Stage where the buyer inspects the property a final time before closing |
| FIXTURES |
Any object permanently attached to a property, and will be stay with the house in a real estate transaction |
| FLOOD ZONE |
A geographic area designated as having flood risk by FEMA |
| FORECLOSURE |
Process by which a lender seizes and sells a property after a borrower is unable to meet their repayment obligation |
| HOA |
Homeowners Association, a self-governing organization in condos or co-ops where homeowners collectively pay fees to maintain the units |
| HOME INSPECTION |
An expert inspector observes and reports on the condition of the property (Home, Termite, Radon) |
| HOMEOWNER’S WARRANTY |
Protection for your home and possessions against damage and theft |
| IMPROVEMENT |
Any positive permanent change to land that augments the property’s value (Land + Improvement = Real Estate) |
| INSURANCE |
Home Insurance, Master Insurance, Condo Insurnce, Flood Insurance, etc. |
| JUDGEMENT |
Official decision rendered by the court regarding a civil matter |
| LANDLORD |
The owner of real estate property that is leased or rented to a tenant |
| LEAD PAINT |
Lead-based paint used in buildings before 1978. As a serious health hazard, its use is illegal now. |
| LEASE |
Contract outlining the terms under which the tenant agrees to rent the property from the landlord |
| LETTER OF INTENT |
In commercial real estate, acts as the document outlining the sale or lease terms and conditions |
| LIEN |
A legal claim on assets that allows the holder to obtain access to the property if debts are not paid |
| LIS PENDENS |
“Lawsuit pending,” a notice stating that the title or ownership is under legal dispute |
| LISTING |
A contract between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer for the property, more commonly understood as a property available in the market |
| LISTING AGENT |
The real estate agent representing the seller in a real estate sale, the agent making the listing |
| LISTING AGREEMENT |
Contract under which the seller authorizes a real estate agent to find a buyer for the property |
| LOT |
A parcel of land owned or meant to be owned by some owner |
| MAINTENANCE FEE |
A charge for the upkeep of the property set by a condo association, co-ops, or HOA |
| MARKET PRICE |
The actual value of property when placed at sale on the open market |
| MULTI FAMILY |
Property with 2-4 units, 5 or more units is treated as commercial |
| MULTIPLE LISTING SERVICE |
Database maintained by real estate professionals to help their clients buy and sell property (e.g. njmls.com) |
| NEGOTIATION |
Process where the buyer and seller attempt to find an agreeable middle ground in the contract that is beneficial to both sides |
| NON-CONFORMING USE |
A use of property that was allowed under the zoning regulations at the time the use was established, but is no longer permitted due to subsequent changes |
| NOTARY PUBLIC |
A public officer responsible for witnessing and authenticating the signing of a document |
| OFFER |
A document that the buyer sends to the seller outlining a potential real estate transaction |
| OIL SWEEP |
An inspection designed to locate oil tanks in the property |
| OPEN HOUSE |
A public event where the seller’s agent openly shows the home to potential buyers |
| PERMIT |
Document issued by a governmental agency allowing the recipient to do something (e.g. build a home) |
| PLANNING BOARD |
Body of appointed members to prepare and administer a plan of development, including zoning and subdivision |
| POWER OF ATTORNEY |
A legal document transferring the legal right to the attorney or agent to manage and access the property |
| PROOF OF FUND |
Document demonstrating how much money a person or entity has available, required when sending an offer for paying with cash or paying a down payment of more than 30% |
| PROPERTY |
Anything owned or possessed; in real estate, this pertains to a parcel of land and everything that is attached to that land |
| PROPERTY TAX |
A tax assessed on real estate by the local government that must be paid by the property owner |
| PURCHASE |
The transfer of property from one person to another by agreement; to buy |
| QUITE ENJOYMENT |
An implied term in every lease that the tenant has the right to use and enjoy real property without disturbance |
| QUIT CLAIM DEED |
A deed transferring ownership of property from one party to another |
| RADON TEST |
Inspection to ensure that the radon levels in the home are safe |
| READY, WILLING, AND ABLE |
A prospective buyer who is fully prepared legally and financially to purchase a property |
| REAL ESTATE |
The physical land and any permanent structures attached to that land |
| REAL ESTATE OWNED |
A property owned by a lender or bank |
| REALTOR ASSOCIATE |
A member of the NAR (National Association of Realtors) |
| REALTY TRANSFER FEE |
A one-time tax paid upon the transfer of real property |
| RECORDING |
The filing of the original deed – the document showing that the buyer now legally owns the property – in the appropriate government office |
| RENOVATION |
Updating an existing structure with cosmetic changes |
| RENT |
A contract renting property to another |
| RESCISSION |
Backing out of a contract |
| RESIDENTIAL |
Property used for human habitation, as opposed to commercial, or business, use |
| RIDER |
A document addressing additional details, conditions, or terms of a contract |
| SECURITY DEPOSIT (Lease) |
Payment made to a landlord, lender, or seller as proof of tent to move in and care for the property |
| SELLER |
The party selling the property |
| SELLER’S AGENT |
The agent representing the seller |
| SELLER’S MARKET |
A state of the market where there are more buyers than sellers, benefitting the seller |
| SELLING AGENT |
The agent representing the buyer in a home sale |
| SETBACK |
Zoning requirements that limits where buildings and other structures can be placed on a property to avoid overcrowding (ex. Distance from sidewalk to house) |
| SEWER INSPECTION |
Inspection of the property’s underground sewer line |
| SHORT SALE |
An offer of a property at an asking price that is less than the amount due on the current owner’s mortgage |
| SHOWING |
A scheduled appointment where a potential buyer can tour the property |
| SINGLE FAMILY |
A freestanding home designed to be used by one family, with one owner, no shared walls, on its own land |
| SPECIAL ASSESSMENT TAX |
An additional property tax that is assessed when the property would benefit from a project within that area (e.g. street paving, streetlights, parking structures) |
| STEERING |
Illegal practice of influencing a buyer’s choice of communities based upon one of the protected characteristics, race, color, religion, gender, disability, familial status, or national origin |
| SUBLEASE |
A lease by the lessee of an estate to a third person for a specified period of time |
| SUMP PUMP |
A pump that redirects water and moisture from the basement away from the home |
| SURVEY |
Determination and confirmation of a property’s boundary lines |
| TAX ASSESSOR |
A government official who determines the value of a property for local real estate taxation purposes |
| TENANT |
An individual who leases, or temporarily occupies or possesses, real estate that belongs to a landlord |
| TERMITE INSPECTION |
An inspection done to make sure the home is free of termites |
| TITLE |
A document showing legal ownership to a property |
| TITLE INSURANCE |
Insurance that protects lenders and homebuyers from financial loss sustained from defects in a title, required by the mortgage company |
| TITLE SEARCH |
Examination of public records to determine and confirm a property’s legal ownership |
| TOWNHOUSE |
A single-family home with at least two floors that share a wall with another house |
| TWO FAMILY |
A home that is divided to accommodate two families living separately, usually split up-and-down with separate entrances |
| UNDER CONTRACT |
Stage when the seller has accepted the buyer’s offer, but the sale is not final until all contingencies are met |
| VACANCY |
Rental property that is not occupied |
| VARIANCE |
A request to deviate from a zoning law, permitting the owner to use their property in a manner that is normally not allowed |
| ZONING |
Municipal or local laws that govern how real property can and cannot be used |
| ZONING OFFICER |
Also known as zoning inspectors, interpret and enforce property zoning regulaitons |
