by Property Cafeteria Here are some commonly used terms in real estate that are important for buyers to understand:
- Buyer’s agent – A licensed real estate agent who represents the buyer in a real estate transaction.
- Closing – The final stage of a real estate transaction, during which the title is transferred and the buyer takes possession of the property.
- Contingency – A condition in a real estate contract that must be met before the transaction can be completed. For example, a contingency may be that the buyer must secure financing before the transaction can be completed.
- Down payment – The initial payment made by the buyer to secure a mortgage loan, usually a percentage of the purchase price of the property.
- Earnest money – A deposit made by the buyer to show that they are serious about purchasing the property.
- Homeowners association (HOA) – A governing body in a residential development that enforces rules and regulations and collects fees from residents.
- Multiple Listing Service (MLS) – A database used by real estate agents to list and find properties for sale.
- Pre-approval – The process of obtaining a commitment from a lender to provide financing for a mortgage loan, subject to certain conditions.
- Property disclosure – A document that lists any known defects or issues with the property that the seller is required to disclose to the buyer.
- Real estate contract – A legal agreement between the buyer and seller that outlines the terms and conditions of the real estate transaction.