Terms you should know in Real Estate

Ever wonder what all the jargon in real estate means?  Well, here's a quick go-to guide on guide on real estate terms you might run into!

Terms you might run into in escrow:

• Amendments: A change--either to alter, add to, or correct--part of an agreement without changing the principal idea or essence.
• Appraisal: An estimate of real property resulting from analysis of facts about the real property; an opinion of value.
• Assumption: Taking over another person's financial obligation; taking title to a parcel of real property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the real property.
• Beneficiary: The recipient of benefits, often from a deed of trust; usually the lender.
• Close of Escrow: Generally the date the documents are recorded and title passes from Seller to Buyer.  On this date, the Buyer becomes the legal owner, and title insurance becomes the legal owner, and title insurance becomes effective.
• Comparable Sales: Sales that have similar characteristics as the subject property, used for analysis in the appraisal.  Commonly called "comps."
• Deed (Grant Deed or Warranty Deed):  A real estate oriented document used to convey fee title to real property from the grantor (usually the Seller) to the grantee (usually the Buyer).
• Deed of Trust: An instrument used in many states in place of a mortgage.
• Deed Restrictions: Limitations in the deed to a parcel of real property that dictate certain uses may or may not be made of the property.
• Earnest Money Deposit: Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.
• Easement: A right, privilege, or interest limited to a specific purpose that one party has in the land of another.
• Lien:  A form of encumbrance that usually makes a specific parcel of real property the security for the repayment of a debt or or discharges of an obligation.  For example, judgments, taxes, mortgages, deeds of trust.
• Mortgage: The instrument by which real property is pledged as security for repayment of a loan.
• PITI: A payment that combines Principal, Interest, Taxes, and Insurance.
• Power of Attorney: A written instrument whereby a principal gives authority to an agent.  The agent acting under such a grant is sometimes called an "Attorney-in-Fact.:
• Purchase Agreement:  The purchase contract between the Buyer and Seller.  It is usually completed by the real estate agent and signed by the Buyer and Seller.
• Quitclaim Deed: A deed operating as a release, intending to pass any title, interest, or claim which the grantor may have in the real property,  but not containing any warranty of a valid interest or title by the grantor.
• Recording: Filing documents affecting real property with the County Recorder as a matter of public record. 
 

Professionals involved in your transaction:

• Realtor: A Realtor is a licensed real estate agent and a member of the National Association of Realtors, a real estate trade associations.  Realtors also belong to their state and local Association of Realtors.
• Real Estate Agent:  A real estate agent is licensed by the state to represent parties in the transfer of real property.  Every Realtor is a real estate agent, but not every real estate agent has the professional designation of a Realtor. 
• Listing Agent:  A key role of the listing agent or broker is to form a legal relationship with the homeowner to sell the property and place the property in the Multiple Listing Service.  
• Buyer's Agent: A key role of the buyer's agent or broker is to work with the buyer to locate a suitable property and negotiate a successful home purchase.
• Multiple Listing Service (MLS):  The MLS is a database of properties for sale by Realtors who are members of the local Association of Realtors.  Information on an MLS property is available to thousands of Realtors. 
• Title Company:  These are the people who carry out the title search and examination, work with you to eliminate the title exceptions you are not willing to take subject to, and provide the policy of title insurance regarding title to the real property.
• Escrow Officer: An escrow officer leads the facilitation of your escrow, including escrow instructions preparation, document preparation, funds disbursement, and more.