Real Estate Glossary DynamicEdge Realty Research Library

The rate at which homes sell in a specific market over a given period of time. Absorption rate is commonly used to measure supply and demand conditions.

A mortgage loan with an interest rate that may change periodically based on market conditions after an initial fixed-rate period.

A legal relationship in which a real estate agent represents a buyer, seller, or both in a transaction.

A written disclosure explaining the type of representation a real estate agent provides in a transaction, including seller’s agent, buyer’s agent, dual agent, or transaction broker depending on state law.

An independent professional opinion of a property's market value, typically required by a lender before approving a mortgage loan.

The value of a property as determined by a licensed appraiser based on comparable sales, market conditions, and property characteristics.

An increase in the value of a property over time due to market conditions, improvements, or changes in supply and demand.

A property offered for sale in its current condition, with the seller making no agreement to perform repairs.

A value assigned to a property by a local taxing authority for the purpose of calculating property taxes.

The value used by a municipality to determine property taxes, which may differ from market value.

The transfer of a buyer’s rights in a contract to another party, commonly used in certain investment transactions.

A loan that requires smaller payments for a period of time followed by a large final payment at the end of the term.

An offer submitted on a property that already has an accepted contract, which becomes effective if the first contract falls through.

A short-term loan used to provide funds for purchasing a new property before the sale of an existing property is completed.

A relationship in which a real estate agent represents the buyer and owes fiduciary duties to the buyer.

A real estate agent who represents the buyer in a transaction and negotiates on the buyer’s behalf.

A written agreement between a buyer and a brokerage that defines the terms of representation, duties, and compensation.

Expenses paid by the buyer at closing, which may include lender fees, title charges, taxes, insurance, and escrow deposits.

Profit realized from the sale of a property when the sale price exceeds the original purchase price and certain costs.

An offer to purchase property without financing, meaning no mortgage loan is required.

A document issued by a municipality confirming that a building complies with applicable codes and may be legally occupied.

The history of ownership of a property as recorded in public records.

Ownership of property free of liens, claims, or legal disputes that could affect transfer of ownership.

The final stage of a real estate transaction when documents are signed, funds are transferred, and ownership is officially conveyed.

Expenses associated with completing a real estate transaction, including lender fees, title insurance, attorney fees, taxes, and recording charges.

A document provided before closing that details the final loan terms, monthly payment, and closing costs.

A form of ownership in which a buyer purchases shares in a corporation that owns the building rather than owning the unit directly.

An estimate of a property's value based on recent sales of similar properties in the same market.

A contractual condition that must be satisfied before a real estate transaction can proceed to closing.

A legally binding agreement between buyer and seller that sets the terms of the transaction.

A mortgage not insured by a government program, typically requiring stronger credit and financial qualifications.

A response to an offer in which one party proposes different terms.

A numerical measure of creditworthiness used by lenders to evaluate loan risk.

The number of days a property has been listed for sale in the Multiple Listing Service.

A ratio used by lenders to compare a borrower’s monthly debt payments to their gross monthly income.

A legal document used to transfer ownership of real property from one party to another.

The legal process of conveying ownership of property through a signed and recorded deed.

Failure to meet the obligations of a loan or contract, such as missing mortgage payments.

Money paid by a buyer when submitting an offer to demonstrate good faith intent to complete the purchase.

Information that a seller is required to provide regarding known conditions affecting the property.

The portion of the purchase price paid by the buyer in cash, separate from the mortgage loan.

A situation in which one brokerage represents both the buyer and the seller in the same transaction, subject to legal disclosure requirements.

A deposit submitted with an offer to show the buyer’s serious intent to purchase the property.

A legal right allowing someone to use part of another person’s property for a specific purpose.

A claim, lien, restriction, or legal interest that affects title to a property.

The difference between a property's market value and the amount owed on any loans secured by the property.

Funds or documents held by a neutral third party until conditions of a contract are satisfied.

A sale of property owned by a deceased person or by an estate, often requiring court or fiduciary approval.

A listing agreement giving one brokerage the sole right to market and sell a property.

A listing agreement in which the listing broker is entitled to compensation regardless of who finds the buyer.

A property that was listed for sale but did not sell before the listing agreement ended.

The price a property would likely sell for in an open market between a willing buyer and willing seller.

A mortgage insured by the Federal Housing Administration, often allowing lower down payments and more flexible credit requirements.

A buyer’s inspection shortly before closing to confirm the property’s condition has not changed.

A mortgage with an interest rate that remains the same for the entire loan term.

The practice of buying property with the intention of selling it quickly for a profit after improvements or market changes.

A property offered for sale directly by the owner without listing with a real estate brokerage.

A legal process in which a lender takes ownership of a property after the borrower fails to meet loan obligations.

Ownership of property without any mortgage or liens.

Money given to a buyer, usually by a family member, to help with the down payment or closing costs.

An estimate of loan costs and terms provided by a lender early in the mortgage application process.

The total commission paid in a real estate transaction before it is divided among brokers and agents.

Income before taxes and deductions, often used by lenders when evaluating loan eligibility.

A professional evaluation of a property’s visible condition, including structure, roof, plumbing, electrical systems, and major mechanical components.

Insurance coverage that protects against damage to the property and liability for accidents that occur on the premises.

The difference between the current market value of a property and the amount owed on any mortgages or liens.

A loan secured by the equity in a property, usually with a fixed interest rate and repayment schedule.

A revolving line of credit secured by a property, allowing the owner to borrow against available equity.

The number of properties available for sale in a market at a given time.

Real estate purchased primarily for the purpose of generating rental income or investment return.

A contract provision allowing the buyer to cancel or renegotiate if inspection results are unsatisfactory.

The percentage charged by a lender for borrowing money.

Property purchased for income, appreciation, or resale, rather than personal use.

The purchase of real estate using funds held in certain types of retirement accounts, subject to special rules.

A form of ownership in which two or more people own property with equal rights and survivorship.

A court ruling that may create a lien against a property until the debt is satisfied.

A mortgage that exceeds the conforming loan limits set by government-sponsored lending guidelines.

An important deadline in a real estate transaction, such as inspection, mortgage commitment, or closing date.

A contract provision allowing a seller to continue marketing the property and accept another offer if certain conditions occur.

A financing arrangement in which the seller provides financing to the buyer instead of a traditional mortgage lender.

A contract granting the right to occupy property for a specified period of time in exchange for rent.

An agreement allowing a tenant to purchase the property after renting for a specified period.

A bank, credit union, or financial institution that provides mortgage financing.

A legal claim against property used as security for a debt.

A property that is being marketed for sale under a listing agreement with a real estate brokerage.

A contract between a property owner and a brokerage authorizing the brokerage to market the property.

The price at which a property is offered for sale.

A lender’s written approval to provide financing, subject to stated conditions.

A document provided by a lender showing estimated loan terms, interest rate, and closing costs.

The ratio of the loan amount to the value of the property, used by lenders to evaluate risk.

An agreement with a lender to secure a specific interest rate for a limited period before closing.

The price a property would likely sell for under normal conditions between a willing buyer and willing seller.

A loan secured by real property that is used to finance the purchase.

A professional who helps borrowers obtain mortgage financing by working with multiple lenders.

A lender’s formal approval to provide a mortgage loan, subject to stated conditions.

A contract provision allowing the buyer to cancel the transaction if financing cannot be obtained.

A cooperative database used by real estate brokers to share property listings and market information.

A property designed for more than one household, such as a two-family or apartment building.

The amount of money a seller receives after paying closing costs, commissions, and any loan balances.

A listing agreement in which the seller specifies the amount they want to receive and the broker keeps the remainder as commission, subject to legal restrictions in some states.

A newly built property that has not previously been occupied.

An offer that does not depend on certain conditions, such as financing or sale of another property.

A proposal to purchase property under specified terms, including price, financing, and closing date.

A scheduled period when a property is available for public viewing.

The first price at which a property was offered for sale.

An arrangement in which the seller provides financing to the buyer instead of a traditional lender.

A status indicating that a contract has been accepted but the transaction has not yet closed.

The four components that make up a typical monthly mortgage payment: principal, interest, property taxes, and insurance.

A lender’s preliminary review of a buyer’s finances to determine the amount they may be able to borrow.

An informal estimate of borrowing capacity based on information provided by the borrower.

The amount borrowed on a mortgage loan, not including interest.

Insurance required on some loans when the down payment is less than a certain percentage of the purchase price.

A legal process used to transfer ownership of property after a person has died.

Taxes assessed by local government based on the value of the property.

A written contract between buyer and seller describing the terms of the transaction.

A deed that transfers whatever ownership interest the grantor has, without guaranteeing that the title is clear.

A licensed professional authorized to assist in buying, selling, or renting real estate under the supervision of a broker.

A licensed professional who may operate a brokerage and supervise real estate agents.

A real estate professional who is a member of the National Association of REALTORS® and agrees to follow its code of ethics.

Replacing an existing mortgage with a new loan, usually to change the interest rate, term, or loan amount.

Listing a property for sale again after a previous listing expired or was withdrawn.

A list showing the tenants, rents, and lease terms for an income property.

The cancellation of a contract, restoring the parties to their positions before the agreement.

Money set aside for future repairs, maintenance, or unexpected expenses, often used in co-ops or condominiums.

The final price agreed upon by the buyer and seller.

An agreement by the seller to pay certain costs for the buyer at closing.

Information provided by the seller regarding known defects or conditions affecting the property.

The amount the seller receives after paying all closing costs, commissions, and loan balances.

A sale in which the lender agrees to accept less than the amount owed on the mortgage.

A property designed for one household.

A drawing showing the boundaries and improvements of a property.

A document listing all financial details of a transaction, including credits, debits, and closing costs.

Preparing a property for sale by arranging furniture, decor, and improvements to enhance appearance.

The value assigned to property by a municipality for calculating property taxes.

A claim placed on property for unpaid taxes.

A form of ownership in which two or more people own shares of property without survivorship rights.

Legal ownership of real property.

Insurance protecting against losses caused by defects in title.

A review of public records to confirm ownership and identify liens or claims.

A tax imposed when ownership of property changes.

A sale of property owned by a trust, often handled by a trustee or fiduciary.

A status indicating that buyer and seller have agreed to terms, but the transaction has not yet closed.

The lender’s process of reviewing a borrower’s finances, credit history, and property details before final loan approval.

Property that has no liens, loans, or legal claims against it.

A mortgage program available to eligible veterans and service members, often allowing low or no down payment.

A loan with an interest rate that may change over time based on market conditions.

A final inspection of the property before closing to confirm condition and completion of agreed repairs.

A deed in which the seller guarantees clear title to the property.

Local government regulations controlling how land may be used, such as residential, commercial, or industrial purposes.

Permission granted by a municipality to allow a use that differs from existing zoning rules.