If you’re new to the real estate world, it can be confusing to understand all of the terms. It can make it almost impossible to sell or purchase a home without a full understanding of some of the most popular Modern Real Estate Term Glossary terms. Take a look at the following information, to learn more about these terms. Once you learn these definitions, you will understand a lot more about real estate.
Appraisal – An estimate of the value of a property based on an analysis of facts about the property.
Broker – An individual who acts as an agent for another in order to negotiate sales or purchases in return for commission
Brokerage – A commission paid to a broker for his or her services.
Closing – May also be referred to as a settlement; A closing occurs when a real estate transaction is completed. During this process, documents are signed and delivered and payments details are attended to.
Closing Statement – A balance sheet of a closing that shows debts and credits to which each party to the real estate transaction is entitled.
Deed – A written document that transfers ownership of a property.
Depreciation – Loss of value by regular wear and tear.
Foreclosure – The collection of real estate mortgages which cuts off the rights to redeem the mortgage property. In most cases, the foreclosure property is sold in order to pay off the debts.
Lease – An agreement that grants the occupancy of land in exchange for rent.
Lien – A claim upon property for payment of a debt.
Market value – The highest price that a buyer will pay and the lowest price a seller will accept for a property.
Mortgage – A legal document that specifies a certain amount of money to purchase a home at a certain interest rate, using the property as collateral.
Mortgagee – A bank or financial institution that lends money to a borrower.
Promissory Note – A written document that outlines a promise to pay or repay a sum of money, at a stated time. In most cases, a promissory note usually outlines the payment of interest.
Tenant – One who holds possession of a property under the terms of a lease.
As you can see, there are many important real estate terms. Now you know a little bit more about some of these terms. With this better understanding, you will feel more comfortable discussing issues that are related to the real estate world.