R,S,T,U,V,W,X,Y & Z
Rate Cap A rate cap is the interest rate limit applied during the term of an adjustable rate mortgage. There are restrictions on the amount interest rates can change each year as well as over the life of the loan.
Real Estate Real estate is referred to as real property and can be land and anything permanently attached to it. No real estate items are called personal property.
Real Estate Agent A licensed person who can negotiate and complete the sale of real estate. They are not a member of the NAR. They work on commission and for a broker.
Realtor®Designation reserved for members of the National Association of REALTORS® who pledge to abide by and uphold the NAR’s Code of Ethics. Not all real estate agents are Realtors®. They also work on commission and for a broker.
Real Estate Owned (REO) REO homes are those properties owned by a lender. They are available because they did not sell at a foreclosure auction.
Real Estate Settlement Procedures Act (RESPA) RESPA is a federal law that regulates the activities of lending institutions and requires them to give consumers advance notice of closing costs.
Real Property Land and any permanent structures that occupy the land.
Recording Recording is what happens when a claim, lien, or ownership registration of a specific parcel of real estate occurs at the county clerks office.
Recording Fees A fee charged by the county recorder’s office to record items such as deeds, mortgage notes, and mortgage extensions.
Referral Fee A fee that is paid by one broker to another (or agent to agent) for referring a buyer or seller. The fee is taken from the commission split of the agent who acquired the referral.
Refinancing Refinancing involves paying off the existing mortgage on a home with the proceeds of a new loan. It is often done to acquire a lower interest rate, decrease the pay back period, or for loan consolidation purposes.
Rider A rider is an addendum to a document or contract that covers issues not in the original document or contract.
Riparian Rights Riparian Rights is access to and use of water awarded to property owners who are adjacent to a body of water, such as a river.
Sale Price Commonly referred to as the purchase price. It is the amount paid for a home by the buyer to the seller.
Seller Contribution Often referred to as concessions. When a seller agrees to pay some or all of a buyer’s closing costs.
Seller’s Agent The listing agent who works for and in the best interest of the seller.
Servant Tenement Land that is subjected (encumbered) by an easement.
Setback The distance a property is setback from the front or interior property line.
Short Sale When a home owner sells their home for less than the balance of all outstanding liens. The lien holders must approve the short sale and agree to take less than is owed when the sale occurs.
Square Footage It is the measurement of an area (such as a room) that can be measured in different ways and is usually considered approximate.
Super Jumbo Loan This is a loan that exceeds 1 million dollars and is considered a luxury property. They have special approval guidelines that are different than smaller loans.
Survey A map showing the area, boundaries, and measurements of a property. It will also identify any encroachments, easements, improvements, or rights of way.
Tax Abatement An incentive offered by a local government that reduces or eliminated property taxes for a specified time to stimulate interest in areas that have lower consumer demand.
Tax Deductible The tax deductible expenses homeowners can see benefit from are mortgage interest payments and property taxes.
Title The document that identifies who legally owns a property. It is recorded at the county in the form of a deed.
Title Insurance Insurance that protects the buyer if a dispute over property ownership arises.
Title Search An examination of local public records to determine if the seller is the legal property owner. It is also used to determine if there are any outstanding claims or liens against a property.
Underwriting The analysis of a loan application used to determine if the loan risk is acceptable to the lender. It includes a review of the property appraisal and the borrowers credit history.
Unencumbered Property Property that is free of any type of lien.
Usury Charging a rate of interest higher than the rate allowed by state law. Interest rates are capped to protect the rights of buyers.
Veterans Administration (VA) Associated with active duty military, those honorably discharged, and retirees who use their VA eligibility to purchase a home using VA financing.
VA Guaranteed Loan A loan that is guaranteed to qualifying members by the VA.
Valuation The use of analysis to determine the purchase price of a property based on property age, location square footage, and other variables.
Walk-Through Inspection A home inspection generally performed just prior to closing to ensure the home meets all the contracted stipulations and requirements.
Wetlands Wetlands are state and federal tracks of land found between uplands and aquatic habitats that is covered in surface water and plays a large role in the soil, plants, and animals that inhabit the area. Ask for a Department of Environmental Protection report as part of your due diligence and see if the area you are considering is designated as a wetlands.
Zero Down The buyer does not have to incur any out of pocket expenses to purchase the home. One such program is the U.S. Department of Agriculture Rural Development home loan program.
Zoning Ordinance A local zoning ordinance controls the location, size, and use of buildings in a specific area.
This list is a small sample of the type of real estate language buyers need to know about. Each situation, each question, and each buyer is different. If you need further clarification or want a term added, please let me know. Happy house hunting buyers!
Real Estate Real estate is referred to as real property and can be land and anything permanently attached to it. No real estate items are called personal property.
Real Estate Agent A licensed person who can negotiate and complete the sale of real estate. They are not a member of the NAR. They work on commission and for a broker.
Realtor®Designation reserved for members of the National Association of REALTORS® who pledge to abide by and uphold the NAR’s Code of Ethics. Not all real estate agents are Realtors®. They also work on commission and for a broker.
Real Estate Owned (REO) REO homes are those properties owned by a lender. They are available because they did not sell at a foreclosure auction.
Real Estate Settlement Procedures Act (RESPA) RESPA is a federal law that regulates the activities of lending institutions and requires them to give consumers advance notice of closing costs.
Real Property Land and any permanent structures that occupy the land.
Recording Recording is what happens when a claim, lien, or ownership registration of a specific parcel of real estate occurs at the county clerks office.
Recording Fees A fee charged by the county recorder’s office to record items such as deeds, mortgage notes, and mortgage extensions.
Referral Fee A fee that is paid by one broker to another (or agent to agent) for referring a buyer or seller. The fee is taken from the commission split of the agent who acquired the referral.
Refinancing Refinancing involves paying off the existing mortgage on a home with the proceeds of a new loan. It is often done to acquire a lower interest rate, decrease the pay back period, or for loan consolidation purposes.
Rider A rider is an addendum to a document or contract that covers issues not in the original document or contract.
Riparian Rights Riparian Rights is access to and use of water awarded to property owners who are adjacent to a body of water, such as a river.
Sale Price Commonly referred to as the purchase price. It is the amount paid for a home by the buyer to the seller.
Seller Contribution Often referred to as concessions. When a seller agrees to pay some or all of a buyer’s closing costs.
Seller’s Agent The listing agent who works for and in the best interest of the seller.
Servant Tenement Land that is subjected (encumbered) by an easement.
Setback The distance a property is setback from the front or interior property line.
Short Sale When a home owner sells their home for less than the balance of all outstanding liens. The lien holders must approve the short sale and agree to take less than is owed when the sale occurs.
Square Footage It is the measurement of an area (such as a room) that can be measured in different ways and is usually considered approximate.
Super Jumbo Loan This is a loan that exceeds 1 million dollars and is considered a luxury property. They have special approval guidelines that are different than smaller loans.
Survey A map showing the area, boundaries, and measurements of a property. It will also identify any encroachments, easements, improvements, or rights of way.
Tax Abatement An incentive offered by a local government that reduces or eliminated property taxes for a specified time to stimulate interest in areas that have lower consumer demand.
Tax Deductible The tax deductible expenses homeowners can see benefit from are mortgage interest payments and property taxes.
Title The document that identifies who legally owns a property. It is recorded at the county in the form of a deed.
Title Insurance Insurance that protects the buyer if a dispute over property ownership arises.
Title Search An examination of local public records to determine if the seller is the legal property owner. It is also used to determine if there are any outstanding claims or liens against a property.
Underwriting The analysis of a loan application used to determine if the loan risk is acceptable to the lender. It includes a review of the property appraisal and the borrowers credit history.
Unencumbered Property Property that is free of any type of lien.
Usury Charging a rate of interest higher than the rate allowed by state law. Interest rates are capped to protect the rights of buyers.
Veterans Administration (VA) Associated with active duty military, those honorably discharged, and retirees who use their VA eligibility to purchase a home using VA financing.
VA Guaranteed Loan A loan that is guaranteed to qualifying members by the VA.
Valuation The use of analysis to determine the purchase price of a property based on property age, location square footage, and other variables.
Walk-Through Inspection A home inspection generally performed just prior to closing to ensure the home meets all the contracted stipulations and requirements.
Wetlands Wetlands are state and federal tracks of land found between uplands and aquatic habitats that is covered in surface water and plays a large role in the soil, plants, and animals that inhabit the area. Ask for a Department of Environmental Protection report as part of your due diligence and see if the area you are considering is designated as a wetlands.
Zero Down The buyer does not have to incur any out of pocket expenses to purchase the home. One such program is the U.S. Department of Agriculture Rural Development home loan program.
Zoning Ordinance A local zoning ordinance controls the location, size, and use of buildings in a specific area.
This list is a small sample of the type of real estate language buyers need to know about. Each situation, each question, and each buyer is different. If you need further clarification or want a term added, please let me know. Happy house hunting buyers!
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