REAL ESTATE TERMS GLOSSARY

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Abstract of Title: A summary of the public records relating to the title to a particular piece of land. An attorney or a title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable title. 

Acceleration Clause: Condition in a mortgage that may require the balance of the loan to become due immediately if regular mortgage payments are not made or for breach of other conditions of mortgage. 

Adjustable Rate Mortgage (ARM): A loan for which the interest rate is subject to change on a periodic basis (i.e. every 1, 3, or 5 years).

Agency: In real estate, an agency is created by the contract between a Real Estate Broker and an owner of real property whereby the broker agrees to act as the owner’s agent in representing and negotiating for sale of the property under contract.  The contract is known as a listing agreement. 

Agency Listing:  In some states, this describes a listing whereby a broker’s commission is protected against a sale by other agents, but not by a sale by the property owner or the principal in the agreement.  This allows the property owner to sell on their own as well and not have to pay commission.  Called a “non-exclusive listing” in some states.  For other types of listing agreements, see Exclusive Listing and Open Listing. 

Agent:Acts on behalf of another. The annual cost of credit over the life of a loan including interest, service charges, points, loan fees, mortgage insurance and other items. representing that person’s interests.

Agreement of Sale: Known by various names such as contract to purchase, purchase agreement, or sales agreement, according to location. A contract in which a seller agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties. 

Amortization: A payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal. 

Appraisal: An expert judgment or estimate of the quality or value of real estate as of a given date. 

Appreciation: An increase in the value of a property.

Assessment : A tax levied on a property or a value placed on the worth of a property by a taxing authority.

Assumable Mortgage: When a home is sold, a mortgage than can be taken over by the buyer at the same interest rate.

Assumption of Mortgage: An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is released from further liability under the mortgage. Since the mortgagor is to be released from further liability in the assumption, the mortgagee's consent is usually required. The original mortgagor should always obtain a written release from further liability if he desires to be fully released under the assumption. Failure to obtain such a release renders the original mortgagor liable if the person assuming the mortgage fails to make the monthly payments. 

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Balloon : A loan that has a series of monthly payments with the remaining balance due in a large lump sum payment at the end.

Bridge Loan : A loan obtained by a homeowner who has not yet sold an existing property, yet is closing on a new property. Often becomes the source of the down payment.

Binder or Offer to Purchase: A preliminary agreement, secured by the payment of earnest money, between a buyer and a seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. if the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder or offer expressly provides that it is to be refunded.

Broker: See Real Estate Broker 

Building Line or Setback: Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, or by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances. 

Buyer-agency : A relationship between an agency and a buyer in which the agent represents the interests of the buyer, not the seller. The primary duty of a buyer’s agent is to obtain the best deal for his/her client.

Buy Down : A subsidy (usually paid buy a builder or developer) to reduce the monthly payments on a mortgage loan.

Buyer Representation:– Historically, an agent represented only the seller in a real estate transaction (agents working with buyers were actually "sub-agents" of the seller’s listing agent). Buyers today have the opportunity to be fully represented by an agent and brokerage firm.

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Cap : A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.

Certificate of Title: A certificate issued by the title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of tide offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy. 

Closing : The completion of documents that transfer property from a seller to a buyer (also referred to as a settlement). Also used loosely to mean "reaching final agreement

Closing Costs: The numerous expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to price of property and are items prepaid at dosing. This is a typical list: 

                 BUYER'S EXPENSES                                   SELLER’S EXPENSES

                 Documentary Stamps on Notes                      Cost of Abstract

                 Recording Deed and Mortgage                        Documentary Stamps on Deed

                 Escrow & Attorney Fees                                Escrow & Attorney Fees

                 Title Insurance & Survey Charge                     Recording Mortgage & Survey Charge

                 Appraisal & Inspection                                   Real Estate Commission

 

The agreement of sale negotiated previously between the buyer and the seller

may state in writing who will pay each of the above costs.

 

Closing Day: The day on which the formalities of the real estate sale are concluded The certificate of title abstract & deed are generally prepared for the dosing by an attorney and this cost is charged to the buyer. The buyer signs the mortgage, and dosing costs are paid. The final closing merely confirms the original agreement reached in the agreement of sale. 

Cloud (on the title): An outstanding claim or encumbrance which adversely affects the marketability of the title. 

Commission: Money paid to the real estate broker by the seller as compensation for finding a buyer and completing the sale. Usually a percentage of sales price. 

Comparative Market Analysis (CMA) : A survey of attributes and selling prices of comparable houses listed for sale, recently sold or expired from the market; used to help determine correct pricing strategy for a seller's property.

Conditions, Covenants and Restrictions : The standards that define how a property may be used and the protections the developer makes for the benefit of all owners in a subdivision.

Condominium: Individual ownership of a dwelling unity and an individual interest in the common areas and facilities which serve the multi-unit project. 

Condo Board : (Also condominium board.) A small group (usually three to seven) of resident-owners elected by a condominium community to serve as a governing board. Responsible for enforcing bylaws and maintaining common property.

Contingency:– A condition in a contract that must be met for the contract to be binding.

Contract of Purchase: See Agreement of Sale 

Conventional Mortgage: A mortgage loan not insured by HUD or guaranteed by the Veteran's Administration. It is subject to conditions established by the lending institution and State statutes. The mortgage rates may vary with different lender and between different States. (States have various interest limits.) 

Conversion Option : The ability to change a loan from an adjustable rate to a fixed rate.

Cooperate : A standard of practice in real estate in which brokers/agents agree to work together with other brokers/agents, but only in their client's best interest. Under a cooperative arrangement, there is no obligation to share commissions or fees.

Cooperative Housing: An apartment bulling or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or the association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit as long as he owns the stock A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be delivered to the purchaser at dosing day. There are two parties to the deed: the grantor and the grantee. 

Counteroffer:  An offer made in response to an offer received. Essentially it rejects the original offer.

Credit : A person’s reputation for solvency and integrity, allowing a borrower to receive something of value in exchange for a promise of repayment.

Credit History : A record of an individual's current and past debt obligations. Lenders use it when determining a potential borrower's ability to repay debt in a timely manner. Also see Credit Report.

Credit Report : A report ordered from a credit bureau that indicates if a borrower is a good credit risk.

Credit Score : A statistical methodology for determining a potential borrower's ability repay a loan. The higher the Credit Score, the more likely a borrower can qualify for a loan with a good interest rate.

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Debt:: Something owed. An obligation to pay something.

Debt-To-Income Ratio: A comparison of gross income to expenses (both housing and non-housing).

Deed : Legal document that formally conveys ownership of property from seller to buyer.

Deed Restrictions : Legally binding rules for the building and maintenance of homes and properties

Deed of Trust: A security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender. In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender. 

Default: Generally, thirty days after the due date if payment is not received, the mortgage is in default. It is the mortgagor's responsibility to remember the due date and send the payment prior to the due date, not after. In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents, and start foreclosure. Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust. 

Depreciation: Decline in the value of a house due to wear and teat; adverse changes in the neighborhood, or any other reason. 

Discount Points : A fee paid to a mortgage lender by a borrower to get a lower interest rate on the mortgage loan. One point equals one percent of the loan amount.

Documentary Stamps: A State tax, in the form of stamps, required on deeds and mortgages when real estate title passes form one owner to another. The amount of stamps varies with each State. 

Downpayment: Downpayment is the difference between the sales price and the mortgage amount. The agreement of sale will refer to the downpayment amount and will acknowledge receipt of the downpayment. The downpayment may not be refundable if the purchaser fails to buy the property without good cause. If the purchaser wants the downpayment to be refundable, he should insert a clause in the agreement of sale specifying the conditions under which the deposit will be refunded, if the agreement does not already contain such a clause. If the seller cannot deliver good title; the agreement of sale usually requires the seller to return the downpayment and to pay interest and expenses incurred by the purchaser. 

Due–On–Sale : A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property.

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Earnest Money: The deposit given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the downpayment. If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable. 

Easement Rights: A right of way granted to a person or company authorizing access to or over the owner's land. An electric company obtaining a right-of-way across private property is a common example.  These usually “run with the land”, meaning the easement is permanently granted no matter who owns it or how often it is sold. 

Encroachment: An obstruction, building, or part of a building that intrudes beyond a legal boundary onto a neighboring private or public land, or a building extending beyond the building line. 

Encumbrance: A legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action ,unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it. 

Equity: The value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property &e paid in full the homeowner has 100% equity in his property. 

Escrow: Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. In FHA mortgage transactions an escrow account usually refers to the funds a mortgagor pays the lender. The money is held in a trust fund, provided by the lender for the buyer. Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments. 

Exclusive Agency Agreement : A contract that gives a real estate agency the right to market and sell a home

Exclusive Listing: A listing contract whereby a property owner agrees to pay a fee or commission to the listing broker if the property under contract is sold during the stated period, regardless of whether the broker or their sales agents were or were not the cause of the sale.  Also known as Exclusive Right to Sell.  For other types of listing agreements, see Agency Listing and Open Listing. 

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Fair Market Value : The price of a home based on the highest price a buyer would pay as well as the lowest price a seller would accept.

FHA : The Federal Housing Administration. It insures loans made by an approved lender, as long as the loan is in accordance with FHA regulations.

Fiduciary Duties : Obligations owed by an agent/broker to a client (buyer or seller). In real estate, these include loyalty, obedience, full disclosure, skill, care, diligence, and accounting of all monies.

Finance Charge : The total cost, including all fees, points, and interest payments a borrower pays to obtain credit.

Fixed–Rate Mortgage: A mortgage with an interest rate that remains constant over the life of a loan.

Fixture:  A recognizable object (such as a chandelier, kitchen cabinet, or light unit) that is permanently attached to property and belongs to the property when it is sold, unless otherwise specified in the sale agreement.

Foreclosure: A legal term applied to various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgage property, and depriving the mortgagor of possession. 

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General Warranty Deed: A deed which conveys all the grantor's interests in and title to the property of the grantee. It also warrants that if the title is defective or has a "cloud" on it; such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it; the grantee may hold the grantor liable. 

Grantee: The party in the deed who is the buyer or the recipient. 

Grantor: The party in the deed who is the seller or the giver. 

Grace Period : A specified amount of time during which a loan payment may be made after its due date without incurring a late penalty. Each mortgage lender sets its own Grace Period policies.

Gross Income : A tax term meaning all income earned before expenses are deducted

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Hazard Insurance: Protects against damages caused to property by fire, windstorms, and other common hazards. 

HUD: U.S. department of Housing and Urban Development. Office of Housing / Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes. 

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In Contract:: A condition when a buyer and a seller have agreed on price, terms and conditions for the sale of the home and have signed a Purchase Agreement.

Income : An amount of money received for something such as labor, services rendered, or sale of property or possessions.

Index : The interest rate or adjustment standard that determines the changes in monthly payments for an adjustable rate loan

Interest: A charge paid for borrowing money. Len: A claim by one person on the property of another as security for money owed. Such claims may include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor.

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Joint Tenancy : A form of ownership in which the tenants own a property equally. If one dies, the other would inherit the entire property

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Level Payment Mortgage : A mortgage with identical monthly payments over the life of the loan.

Lien : Security claim on property until a debt is satisfied.

List Price:– Also called the asking price. The price of the home as determined by the seller and his/her agent. The list price is often negotiable

Listing Agreement: Contract between a Real Estate Broker and an owner of real property whereby it is agreed that the broker will perform as the seller’s agent for the express purpose of selling the property under contract.  This agreement sets the listing price and terms in return for a fee or commission.  It usually is made for a set length of time after which it expires.  There are three basic types of listing agreements; Agency Listing, Exclusive Listing and Open Listing. 

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Market Value: The price that is established by present economic conditions, location and general trends

Marketable Title: A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection. 

Mortgage: A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off. 

Mortgage Broker : A broker who represents numerous lenders and helps consumers find affordable mortgages, the broker charges a fee only if the consumer finds a loan.

Mortgage Commitment: A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house. 

Mortgage Company:– A company that borrows money from a bank, lends it to consumers to buy homes, then sells the loans to investors

Mortgage Insurance Premium: The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis. 

Mortgage Lien : A legal claim against a mortgaged property that must be paid when the property is sold.

Mortgage Loan : A contract in which the borrower's property is pledged as collateral. It is repaid in installments. The mortgagor (buyer) promises to repay principal and interest, keep the home insured, pay all taxes and keep the property in good condition.

Mortgage Note: A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures, the interest rate, and renders the mortgagor personally responsible for repayment. 

Mortgagee: The lender in a mortgage agreement. 

Mortgagor: The borrower in a mortgage agreement. 

Multiple Listing Service (MLS)  A system that provides to its members detailed information about properties for sale.

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National Association of Realtors (NAR): A national trade organization of more than one million real estate agents and brokers. Members may call themselves Realtors®.

Negative Amortization : An increase in the outstanding amount when a monthly payment does not cover the monthly interest due.

Non-conforming Loan : A loan that doesn't comply with Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) underwriting guidelines. Usually incur a rate and origination fee premium.

Note : A formal document showing the existence of a debt and stating the terms of repayment.

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Open-ended : Allows you to borrow in the future for home improvements or other purposes, up to the amount of principal you've paid off.

Open Listing: A listing contract whereby a property owner agrees to pay a fee or commission to the listing broker if the broker or their sales agent presents the seller with a bone fide offer that meets the specified price and terms. There is no Exclusive Right to Sell and the offer must be brought before any other offer is presented or accepted.  It is not required that the offer be accepted by the owner for the commission to have been earned.  For other types of listing agreements, see Agency Listing and Exclusive Listing. 

Origination Fee : A charge for the work involved in preparing and servicing a mortgage application (usually one percent of the loan amount).

Owner-assisted Loan:– A loan in which the seller agrees to finance all or part of the purchase.

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P.I.T.I : Principal, interest, taxes, and insurance -the four major components of monthly housing payments

Plat: A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land and easements. 

Pre-Approval : A mortgage approval obtained before negotiating a contract on a specific home.

Pre-Paid Items : Money to cover anticipated costs such as property taxes, interest and mortgage and hazard insurance

Points: Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $100,000, one point is $1000. Points are charged by a lender to raise the yield on his loan. On a conventional mortgage, points may be paid by either the buyer or the seller. Sellers must pay points on a VA loan. 

Prepayment: Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. FHA loans may be prepaid.

Pre–Qualification : An informal estimate of how much financing a potential borrower might expect to obtain

Principal: The basic element of the loan as distinguished from the interest, mortgage insurance premium, hazard insurance or real estate taxes. Principal is the amount upon which interest is paid. 

Private Mortgage Insurance (PMI) : Insurance required on most conventional loans with less than 20 percent down payment to protect the lender against default.

Possession Date : The day on which a property's new owner is actually entitled to occupy that property.

Prepayment Penalty :  An extra fee for paying off a mortgage loan before maturity. About 80 percent of all loans in the United States are paid off early.

Property Survey : A survey to determine the boundaries of your property. The cost depends on the complexity of the survey.

Property Tax : A local tax assessed on property owned, such as a home or other real estate. Based on the estimated value of the home.

Purchase Agreement : Also called a Sales Agreement. A contract for the sale of a home between a buyer and a seller that outlines the price, terms and conditions of the transaction.

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Quitclaim Deed: Such a deed makes no warranties as to the title. but simply transfers to the buyer whatever interest the grantor has. A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. 

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R-Value : The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value

Real Estate Agent: A licensed sales agent working under the authority of a Real Estate Broker.  In some states, agent is required to have a brokers license, in others, only a sales agent license is required.  Check with a state’s Board of Realtors for their requirements. 

Real Estate Broker: A middleman or agent who buys and sells real estate for a company, firm or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.  Required to have a license and be registered in the state where practicing.  Is legally responsible for complete disclosure and ultimately works for the seller, not the buyer.  In many states, broker is manager over sales agents and has more training in state and federal law. 

Real Estate Settlement Procedures Act (RESPA): A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs

Realized Amount : The selling price of a home, less selling expenses

Realtor® : Registered trade name which may be used only by members of state and local real estate boards affiliated with (and subscribing to the Code of Ethics of) the National Association of REALTORS®.

Recording Fee : A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.

Refinancing: The process of the same mortgagor paying off one loan with the proceeds from another loan. 

Reserves : A lender-specified amount that the borrower must have in reserve. The funds are in addition to the down payment and closing costs and are usually equal to a lender-specified number of monthly mortgage payments

Restrictive Covenants: Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer. The determination whether the covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. 

Reverse Mortgage : A loan that enables elderly homeowners to borrow against the equity in their house without selling it or moving from it. Repayment only occurs at the time of the sale of the property.

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Sales Agreement: Also called a Purchase Agreement. A contract for the sale of a home between a buyer and a seller that outlines the price, terms and conditions of the transaction.

Sales Contract:: An agreement between a buyer and seller that should be explain, in detail, exactly what the purchase includes, if there are any warranties, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot obtain a mortgage commitment at the agreed-upon terms.

Second Mortgage : A loan that uses the equity in a home as collateral.

Secondary Mortgage Market : The buying or selling of an existing mortgage.

Service Guarantee: A formal agreement, usually in writing, that a service will conform to specified standards for a particular period of time.

Settlement Sheets: Also called a Closing Statement. Forms provided at closing that show the disbursements resulting from a real estate transaction

Special Assessments: A tax imposed on property, individual lots or all property in the immediate area for road construction, sidewalks, sewers, street lights, etc. 

Special Liens: A lien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets. It creates a right to retain something of value belonging to another person as compensation for labor, materials, or money expended in that person's behalf. In some localities it is called "particular" lien or "specific" lien. (See lien") 

Special Warranty Deed: A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has or which might in the future, impair the grantee's title. 

State Stamps: See documentary stamps. 

Survey: A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and it's relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description. 

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Tax: As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. 

Tenancy in Common : A form of ownership in which the tenants own separate but equal parts. To inherit the property, a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.

Terms and Conditions : The negotiated details of the sale outlined in the purchase agreement. May include such items as inspections, warranties, and closing and moving dates, among other details. Terms and conditions of all agreements should be carefully read and understood by all parties involved prior to closing the negotiation.

Title: As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents) or may refer to the ownership interest one has in the real estate. 

Title Insurance: Protects lenders or homeowners against loss of their interest in property due to legal defects in the title. Title insurance may be issued to either the mortgagor or as an "owner's title policy". Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an owner's title policy, if he desires the protection of title insurance. 

Title Search or Examination: A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title. 

Total Representation : Real Living’s program of representing either the buyer or seller in a transaction.

Transfer Taxes : Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdiction

Trustee: A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, enforce-able in a court of law. (See deed of trust.) 

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VA – Veterans Administration: A government agency that guarantees mortgage loans for eligible veterans of the military (including National Guard and Reserves). The guarantee protects the lender, which encourages lenders to provide mortgages.

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Walk–Through : A final inspection of a home before title transfer to search for problems that need to be corrected before ownership changes

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Zoning Ordinances: The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.