The ABCs of Real Estate
A glossary of Real Estate Terms. Learn how to "talk the talk" of Real Estate before you buy or sell!
Whether you're a seasoned Seller brushing up or a first-time Buyer dipping your feet in the water, you've probably heard a ton of real estate jargon thrown around during your research and preparation. At Fine New England Living we are committed to cutting through the confusion of the real estate world for our clients. If you ever have any questions about real estate, please do not hesitate to get in touch with us. In the meantime, though, here's a helpful glossary of terms to assist you in your journey.
TERMS
Bridge Loan
A short-term loan that allows a borrower to leverage one asset (i.e., a home that they are planning to sell) to get funds to purchase another asset (i.e., a home they want to purchase) before the original asset is sold
Buydown
A method for a borrower to receive a lower interest rate on a loan by paying “discount points” as a one-time upfront fee at closing.
See also: "Points"
Buyer's Agent
A licensed real estate salesperson or broker who represents the Buyer in a real estate transaction.
Buyer's Market
Occurs when supply exceeds demand. I.e., there are plenty of homes for sale, but a shortage of interested buyers. This typically causes slow home sales, declining real estate prices, and more favorable conditions for Buyers.
Cancellation Clause
A section in a contract that details conditions under which a party may back out of the agreement.
Cap
In an Adjustable Rate Mortgage (ARM), a limit on how much the interest rate or mortgage payments may increase or decrease
Cash-Out Refinance
A refinance transaction in which a homeowner refinances more than they currently owe on the home, so the original loan balance is paid off (along with closing costs, points, and any subordinate liens), and the homeowner receives the remaining balance in cash.
Cashier's Check
A check written directly by your bank or financial institution to your payee. To receive one you have to go directly to your financial institution, pay the full amount of the check, and usually a small service charge. A cashier’s check ensures available funds because they are backed by the financial institution.
Certificate of Eligibility
A document issued by the U.S. Department of Veterans Affairs (VA) certifying a veteran’s eligibility for a VA loan.
Chain of Title
The history of all the documents that have transferred title to a property, from the current owner back to the original owner
Clear Title
Ownership that is free of liens, levies, judgements, defects, or other legal encumbrances, indicating that it belong solely to the owner. Also known as “Free and Clear Title”
Client
Someone represented by an agent in a transaction. A Buyer becomes a Client by signing a Buyer Agency Agreement with a broker, and a Seller becomes a Client by signing a Listing Agreement with a broker.