Earnest money not refundable

Acceptance - The time at which an offer to purchase is accepted. The fact that it was accepted must be relayed to the person that made an offer in order for all parties to be bound to the contract.

Non-Refundable Earnest Money - Good or Bad? | Phil Hoover

Ad Valorem Tax — Charged by local government, this tax is based on the value of the property, as determined by the local government authorities. Adjustable Rate Mortgage ARM - A mortgage whose interest rate over the life of the loan is not necessarily the same as the original interest rate at the loan inception. Rate changes may go up or down and are usually tied to an economic indicator and a time period.

The person getting the mortgage should check to see if these fluctuations have a cap, and make sure they are comfortable with whatever that cap is. Some ARMS are convertible to a fixed interest rate after a period of time. In real estate, this agent may be a listing agent representing the seller, a selling agent representing the buyer, or a dual agent which means the agent or company may represent both the seller and the buyer.

There is a fourth option, a transaction agent or broker that represents neither party but helps the transaction to be completed. A real estate agent must be licensed under the laws of their state. An agent must place their license under the direction of a real estate broker.

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To become a broker, one must take the same courses that a salesperson does, but also complete addition training and meet experience requirements which differ from state to state.

Amortization — The repayment of a loan over time. Amortization Schedule - This table shows each payment amount for the mortgage, how much of each payment is applied to the principal, how much is applied to the interest, and how much remains to be paid.

The table shows each payment until there is a zero balance and the loan is paid in full. Annual Percentage Rate APR — Required by the Federal Truth-in-Lending-Act, this details the amount of money financed.

The APR is the true cost of borrowing money, which includes the total finance charges added to the principal amount. Mortgage companies usually require an appraisal of the property by a licensed, disinterested party before agreeing to loan money on the property. Methods of determining value may be based on many things, such as comparable sales in the area, the cost approach, the income approach, or the highest and best use of the property.

Appraised Value —The worth of the property as determined by a professional appraiser. Appreciation — The opposite of depreciation. When the value of a property rises, based on economics and market conditions of the area, it appreciates.

As Is Condition — Disclaiming any warranties or representations regarding the condition of a property. Assessed Value - The value used by the governing authority i. Assignee — The person responsible if the rights and responsibilities for a property are transferred to a new person. Assumable Mortgage — The buyer takes over and assumes the existing mortgage on the property on the same terms as the original person that took out the mortgage.

This would mean the new buyer does not have to obtain a new loan. In years past, the new buyer could take over the loan without having to qualify, but mortgage requirements are now more stringent. Assumption of mortgage — The act of taking over and accepting legal responsibility for the terms of an existing mortgage. Back-Up Contract -- A contract or offer that is in a secondary position to an already existing contract. This contract shall be elevated to the first position if some condition in the first contract is not met.

If the first position contract is consummated, then the second contract is no longer in effect. Balloon — A mortgage where there are payments over a period of time but the final payment is a lump sum which is quite large, compared to the previous payments. Bill of Sale — A document that serves as written proof for the transfer of title.

Real estate is transferred by a deed. Personal property is transferred by a Bill of Sale. Mortgage companies will not make loans on personal property, and a Bill of Sale may be included with a real estate contract to outline what personal property is being transferred to the new owner. Binder - A preliminary agreement, often accompanied by an earnest money deposit, that shows good faith on behalf of the buyer.

Bridge Loan, also called a swing loan - A short term loan used to transition in between the paying off of an old loan, and the inception of permanent financing. This is often used to build or purchase a new home, when the previous home is still owned, but is up for sale. Once the previous home is sold, and the owner receives the proceeds from that sale, permanent financing is usually obtained.

A broker has full authority to run a real estate company, whereas a real estate agen t must have their license held under the auspices of a broker. Buyer — A person who purchases real estate. For example, many adjustable rate mortgages have a maximum amount that the interest rate may increase over a certain time period.

Certificate of Title - A statement verifying who has the rights and responsibilities of ownership in a property. This may be ascertained by a public record search but does not guarantee that any other parties may not stake a claim to the property. Title insurance protects against claims that may arise against the title. Certificate of Occupancy - A document which must be obtained from the local government which states that the new construction has been inspected and is built in accordance with regulations.

The property is therefore ready to be occupied. Clear Title - Ownership that is free of liens, defects and encumbrances, beyond those which the the owner agrees to accept.

Closing - The transaction where title passes from seller to buyer and the seller is paid. A settlement statement shows all costs incurred and gained by both parties.

Closing Costs — The expenses incurred in obtaining the property and transferring title to the new owner. Code of Ethics — Set forth by the National Association of Realtors, these are written professional standards that all members are expected to uphold. Commitment Letter, also known as a loan commitment - A written offer by a lender to make a loan by a particular date under certain conditions. A buyer has more clout with a seller if he submits a letter of loan commitment from his lender to the seller at the same time that he submits his offer to purchase to the seller than a buyer who has not even applied for the loan yet.

Common Areas - The space that is shared among all property owners. In a condominium that may be the building corridors, elevators, parking areas, recreational facilities, etc. Condominium - Real estate ownership where several owners hold title to different individual units, or parts, of the building and have a shared interest in the common areas.

Construction Loan - A short term loan made to a builder for the purpose of constructing the building. After completion, permanent financing is normally secured. Contingency - A condition that must be met before a contract is legally binding, or before a sale is to be completed. The contingency provides an out or an escape from performing if the condition is not met. Conventional loan or conventional mortgage - A real estate loan, which is not insured by the government agency FHA nor guaranteed by the Veterans Administration.

Typically subject to the terms of their particular institution, the conditions may be more flexible, as the lender is not required to follow federal guidelines. The lender looks to the credit of the borrower and the security of the property to insure payment of the debt. Convertible ARM -An adjustable-rate mortgage ARM that can be changed, or converted into a fixed rate mortgage during a specified period and under certain conditions of the loan.

Co-op — cooperative — also known as cooperative ownership — Where several residents hold shares to a cooperative trust or corporation that owns the multi-unit building. Owning the shares of ownership grants the resident the privilege of occupying a specific unit of the property.

Counteroffer - If the receiver of an offer makes any changes to the original offer, it is considered a rejection of the initial offer and becomes a counteroffer. These are not uncommon in subdivision and are usually intended to maintain the value and integrity of the property. Credit Report - The official credit history of any individual as complied by a credit bureau.

This is used by lenders in determining the size loan a person may, or may not, qualify for. Credit Report Fee - The amount that the person applying for a loan must pay to their lender in order to have the lender obtain their credit history directly from a credit reporting bureau. Deed - The document that sellers and buyers sign when transferring title to real estate. It legally transfers the property from the seller to the buyer, and is then recorded by the closing agency in county records.

Deed of Trust - Some states use a deed of trust to convey property being held as security for a loan. Default - Failure to make payments when due which can result in foreclosure of the mortgaged property. This includes not only monthly mortgage payments but also taxes or any other promise in the original deed.

Delinquency - Outstanding past-due mortgage or loan payments. Delivery — The legal transfer of a deed to property by the seller and recorded in the county records.

Deposit — also called Earnest Money - A good faith deposit of a sum of money offered by the prospective purchaser at the time of the offer to purchase. These funds are typically deposited into an escrow account and held until the real estate closing takes place.

At the closing, the buyer is most often given credit for the earnest money that has already been paid, but it some cases it may be returned to the buyer at closing. Depreciation -The decline in real estate value due to physical deterioration or lack of updating an older property. Discount Points - Investors typically offer an interest rate with no discount points, but can lower that rate if the buyer is willing to pay an up front fee that will give the investor the same yield.

Distress Sale — A distress sale occurs when the sellers must sell the property very quickly and are willing to decrease the price as an incentive to potential purchasers. Down Payment - The difference, in dollar amount, between the purchase price and the loan amount. Dual Agent — An agent who represents both the seller and the buyer in a real estate transaction. Due Diligence — The act of best effort of ensuring that all statements about the real property are true.

Due on Sale Clause — Language in the mortgage closing agreements that inform the borrower that if they allow their loan to be assumed or transferred in any way, the lender has the right to demand the balance in full. Earnest Money also called Deposit — Funds given by the buyer and held in an escrow account until the real estate closing. In some cases, these funds are refundable if the loan fails to close, but if the loan does close, the purchaser is given credit at closing for the earnest money.

Easement — A legal document on certain property giving persons other than the owner the right of way, access and limited use or enjoyment of the land involved.

Example, power companies sometimes need a right of way for power lines. These easements must be acceptable to the mortgage company before the buyer can consummate a binding closing.

Eminent Domain — The right of local or state government to purchase private property for public use. Owners receive compensation based on fair market value and sometimes additional funds for the inconvenience of moving.

This is legal under the Fifth Amendment of the United States Constitution. Reasons for eminent domain can include schools, roads, parks, hospitals, public safety and other public buildings. Equal Credit Opportunity Act — A federal law under Title VII of the Consumer Credit Protection Act which requires lenders not to discriminate against consumers based on race, color, religion, national origin, sex or marital status, or receipt of income from public assistance food stamps, social security.

Borrowers are notified at application in writing of agencies that they may contact if they feel they have been discriminated against in any way. In the case of a mortgage, the total monthly mortgage payment may include funds to pay for future taxes and insurance paid in addition to the principal and interest. After the taxes and insurance are paid, the lender may re-adjust the total monthly payment to insure sufficient funds for future escrowed items. Eviction - Eviction is the process of removing an occupant, either tenant or owner, by law enforcement for failure to perform as promised on a note or lease contract.

Exclusive Agency Listing — A written agreement between a property owner and a real estate broker giving the broker the exclusive right to sell the property for a specified period and at a specified fee. This also established guidelines and procedures for correcting errors on your credit report. Fair Market Value - A median price based on the highest price a willing buyer would be willing to pay and the lowest price a willing seller would be willing to accept in a competitive market.

Fannie Mae — FNMA - Federal National Mortgage Association. A government agency that is a major mortgage investor. Potential forex trading using candlesticks are required to attend a pre-purchase home buying class.

FHA - An agency of the U.

Is $2, Non-Refundable Earnest Money Deposit (EMD) Normal?

FHA was the government's response to a lack of quality housing available at the time, excessive foreclosures and a building industry that had collapsed during the Depression.

The FHA sets standards for construction and underwriting but does not lend money or construct housing. FHA b — The most popular FHA government loan. It typically requires a three percent down payment. FHA k - A renovation and repair loan through the Federal Housing Authority, typically made for single family properties. Fiduciary - A relationship which implies a position of trust or confidence. Among the obligations a fiduciary owes to his principal are duties of loyalty, obedience, full disclosure, the duty to use skill, care and diligence, and the duty to account for all finances.

First Mortgage -The first mortgage is the primary loan against a property, and takes precedence over any other mortgage, equity line or other lien. First Right Of Refusal - A legal right by an individual giving how much money does talecris pay for plasma person the first opportunity to purchase or lease real property. Fixed Rate Mortgage - A mortgage with an interest rate and monthly payment that remain the same and cannot change over the life of the loan.

Flood Insurance - A special and separate insurance policy that covers property in the flood area against damage by flooding. Although flood insurance may be bought through your local insurance agent, it is issued through the federal government. When purchasing real estate, a survey is typically required where there is any risk of flooding to the property. Forbearance- The act of refraining from taking legal action despite the fact that payment of a promissory note in a mortgage or deed of trust is in arrears.

It is usually granted only when a borrower makes a satisfactory arrangement by which the arrears will be paid at a future date. Foreclosure - The legal process that begins when a borrower fails to make payments to a lender on a mortgaged property. Should the borrower not be able to correct the default, the property will be sold at public auction to satisfy the debt.

FNMA originally bought FHA loans, but now is a conventional, FHA and VA investor. FNMA is now a private company operating with private capital. FHLMC was chartered by Congress in Grantee - The individual to whom interest in real property is conveyed. Grantor —The individual conveying the interest in real property to another person. Guarantee Mortgage — A mortgage that is guaranteed by a third party, often a government agency.

Hazard Insurance —An insurance policy selected by the borrower to cover the property against loss due to hazards such as fire, hail, etc. The borrower pays an annual premium for this coverage. These funds are held in reserve on behalf of the borrower in an escrow account. Many contracts to purchase are contingent on the buyer having a home inspection performed within a certain time period prior to closing.

Homeowners Insurance — The same as hazard insurance. It covers the property mortgaged against loss due to fire, hail, theft, etc. The borrower selects the insurance, and pays the annual premiums, often through an escrow account. Homeowners Warranty - An insurance policy covering specific future repairs, should they become necessary, for a specific time period.

These are often provided by the seller or builder as a condition of sale. Department of Housing and Urban Development. The Office of Interstate Land Sales Registration, the Federal Housing Administration FHA and the National Mortgage Association GMNA are all under HUD. Interest - What a lender charges to borrow money. Investment Property — A property that is not occupied by the owner as their primary residence but is instead used to produce income, depreciation for tax benefits or future gains by appreciation.

Joint Tenancy — A legal way for parties to co-own real property with equal rights to the real estate. Should any of the joint tenancy owners die, no interest in the property can be transferred by will as the remaining joint tenant s acquires all ownership. Junior Mortgage - A second, third chris moneymaker before poker equity mortgage that is subordinate to an existing lien already on the property.

Late Charge - As established in the original agreement, the penalty that is due when the borrower fails to pay by a certain number of days after the payment due date. There is usually a 15 day grace period on traditional mortgages before late charges are incurred. Rent payments often have a 3 — 5 day grace period. These materials have since been taken off the market as stock markets banks and growth correlation of causality can be harmful.

When selling or leasing a property that was built prior tothe owner should take care to provide the buyer or tenant with a lead based paint disclosure.

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Lease Purchase - A contract between a tenant and an owner by which part of the monthly rent payments may go toward down payment on the property. When pre-determined sufficient funds are received by the seller, the buyer may seek a first mortgage through a typical lender or in some cases with the seller. Legal Description - The written description of a piece of land giving all pertinent information such as land lot, subdivision name, Block, parcel, acreage, etc.

For a real estate contract to be binding it must include an accurate legal description. Lessee - The person to whom property is rented or leased; called a tenant in most residential leases. Lessor - The person who rents or leases property to another. In residential leasing, he or she is often referred to as a landlord. One who leases property to a tenant. Lien - A monetary claim against a property that must be paid off when a property is sold in order for the new ownership to be legally recorded in county records.

Lifetime Cap — The maximum that an interest rate can increase or decrease over the life of a loan. Listing Agent - A real estate agent that represents the seller of the property. It is often another broker, representing a buyer, that secures an offer to purchase the property.

In such cases, the brokers cooperate co-op and the commission is split between the two companies. Listing Contract also called Listing Agreement - A real estate broker or agent, acting on behalf of the broker and a seller sign this agreement in order to give the broker the rights to advertise the property and represent the seller.

The seller's real estate is then listed for sale, most often in a multiple listing service. In most cases the payment of a commission to the brokerage is contingent upon the agent procuring a satisfactory buyer for the property within the time frame of the Listing Contract.

Flat fee listing contracts have become popular, whereby a seller may pay a specified amount upfront for the services received. All details are typically determined by the listing contract. Loan Application - A form used to apply for a mortgage loan that a borrower must complete in order to secure the loan.

Loan Origination - The process of applying for a mortgage loan. Loan Originator - The person who assists borrowers in obtaining their new loan. Loan to Value - The ratio of the amount of the loan divided by the value or sales price of the home. Lock In - An agreement in which the lender guarantees a specified interest rate for a certain amount oil price shocks and stock market returns time at a particular cost.

Maturity Date - The date on which the last payment on a mortgage or any other financial instrument becomes due and payable. To properly describe the subject property it begins and ends at the same point and is usually done by a licensed surveyor. MLS - An acronym for "Multiple Listing Service. Molds - Fungi that may be present both indoors and out. Prior to a real estate closing, a termite inspection is usually performed to inspect for termites, mold and mildew on the property or in a crawl space.

Mortgage - A legal document signed by borrower s and promising a property to the lender in return for payment of a debt. Some states use First Trust Deeds instead of mortgages. Mortgage Banker - A lender that tools binary options mortgage loans through mortgage brokers for sale to investors such as Fannie Mae, Freddie Mac, or Ginnie Mae.

Mortgage Broker - A company that buys mortgages from mortgage bankers to sell to investors such as Earnest money not refundable Mae and Freddie Mac. Mortgage Insurance - Insurance paid by the borrower to insure the lender against default in case of non payment of the mortgage loan.

The mortgage insurance company may buy the property or just cover part of the losses to the lender. Mortgage Insurance Premium — MIP - The monthly insurance paid by the borrower to offset any potential loss in case of foreclosure. Mortgage Interest Rate - The percentage rate lenders charge for mortgage depression stock market chart comparison shown on the note signed at closing.

Mortgagee - The lender originating and closing the mortgage loan in their name prior to selling to a broker for investor purchase. Mortgagor - The borrower signing the note in a mortgage loan process. Negative Amortization - When adjustable rate mortgage payments are not sufficient to pay the monthly principal and interest, the deficient amount is added to the original mortgage which causes the outstanding principal balance to increase.

Therefore, the amortization is negative instead of positive. Nehemiah - An FHA insured government loan that helps low income home buyers with down payment assistance.

No Doc Loan - also called Low Doc Loans - Little or no documentation loans. Generally used review divorce binary options trading signals the self employed and small business owners. Also used vanguard total stock market index fund returns non profits, specialized companies and individuals.

Note - A statement borrowers sign at loan closing that gives the terms of repayment. Notice of Default - A formal written notice to a borrower that a default has occurred i. Offer - When a buyer makes a written promise to purchase real estate, it is an offer. It does not become a contract until all terms are accepted by both seller and buyer. Open End Loan - A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being secured by the same original mortgage.

Open Listing - A listing under which the principal owner reserves the right to list his property with other brokers, yet grants the real estate agent stock markets banks and growth correlation of causality right to advertise and sell the property.

Option - The right to purchase or lease property within a pre-determined time at a specific price. There is no obligation to purchase, but the seller is obligated to sell if the option holder exercises the right to purchase. For the option to be valid, it must include consideration i. Origination Fee - The fee charged by most lenders to originate a loan, typically one percent of the loan amount.

Owner Financing — The seller provides financing so that the buyer does not have to go through a bank or traditional sources to obtain funding to purchase the property.

The seller does not receive all proceeds at once, as in a traditional closing where the buyer obtains bank icici bank forex rate card, but the seller does receive interest in addition to the principal.

Payment - The monthly amount due that a borrower must pay on a mortgage loan. Payment Cap - The most that a monthly mortgage payment can be increased on an adjustable rate loan mortgage.

Personal Liability - Person is legally liable for individual action, responsibility or activity. PITI - Principal, interest, taxes and insurance combined. Planned Unit Development — PUD - A housing design to produce a high density of dwellings and maximum utilization of open spaces. Plat — A map that is drawn to scale of a specific piece of land that shows the shape, acreage, etc.

Points - Discount points are paid upfront to mortgage brokers to give a sufficient yield when the borrower would like a lower interest rate. One point is one percent of the loan amount. Possession - The buyer occupying the property that is purchased or a tenant occupying the property that is leased. In a real estate sale, possession is rarely granted prior to closing when the seller receives their funds.

Prepayment Penalty - A fee charged when a borrower pays a mortgage in full prior to the agreed upon date. The note and deed would advise of any such penalty. Prequalification - Having a mortgage lender advise that debt ratios and credit report plus other factors show a borrower qualifies for a particular loan amount before signing a contract. Principal - The outstanding loan balance not including interest. Property Tax - Taxes payable to the county where the property is located.

Many counties will offer a homestead exemption, which is a reduction in taxes, if the real estate is your primary residence. Purchase and Sale Agreement - The contract between the buyer and seller stating terms, conditions, sales price and other pertinent information about the property being purchased.

Qualify - To meet the guidelines based on debt, income, and credit worthiness. Quit Claim Deed - A document by which one property owner releases his or her claims, rights and interest in a particular property. Radon - A natural gas found in the environment. If present inside a home, it can be harmful in sufficient concentrations. Radon gas testing is available. Rate Lock -When the lender issues a written commitment to a borrower as to a specific interest rate for a specific period of time.

Real Estate Agent - A person licensed to advertise and negotiate the sale and lease of real estate on behalf of the property owner. Real Estate Commission - Each state has a Real Estate Commission or similarly named department or agency that oversees the licensure of real estate agents and real estate brokers in that state. Qualifications and requirements for licensure differ from state to state. This Commission or department or agency may also oversee similar licensure, such as real estate appraisers.

This Commission sets all policies, procedures, and rules for practicing real estate within the state. Real Estate Investment Trust — REIT - A business trust or corporation that pools the money of High Yield Investors for the benefit of investing in real estate. The REIT Company offers common shares to the public. In this way, a REIT stock is similar to any other stock that represents ownership in an operating business.

However, a REIT has two unique features: Corporations and trusts that qualify for REIT status with the IRS generally do not pay corporate income taxes. Instead, they pay out all of their taxable income in the form of dividends. Real Estate Owned — REO - Real estate that is owned by a bank or financial group. Usually a result of their borrowers defaulting on the loan and the subsequent foreclosure of the property from that buyer. Real Estate Settlement Procedures Act — RESPA - Real Estate Settlement Procedures Act is a federal law, enacted inwhich details the procedures to be followed in a real estate closing.

It is intended to protect the borrower and seller by making everyone more knowledgeable about possible costs and charges. The NAR has a Code of Ethics that all members are to adhere to. All Realtors are real estate brokers and real estate salespeople, but not all real estate brokers and real estate salespeople are Realtors members of the National Association of Realtors.

Refinancing - Obtaining a different loan for the benefit of perhaps a lower interest rate, converting an ARM to a fixed rate, or to take out some of the equity in the property.

The borrower re-applies for a mortgage and goes through another closing transaction on the property they have previously mortgaged. The new loan pays off and replaces the original loan.

Rent with option to buy — or lease purchase option - An alternative financing option that allows home buyers to lease a home with an option to purchase at the end of the lease. Each month's rent payment may consist of the customary rent payment, plus an extra amount that is applied towards the down payment on the purchase. Restrictions - Covenants or other types of conditions in the deed or other real estate documents that restrict the use, restructure and care of real estate involved in the transaction.

Return On Investment ROI - is how much profit or cost savings is realized as a result of participating in the investment. Right of first refusal - The right to the first opportunity to lease or purchase real property. For example, apartment tenants might retain the right of first refusal when their units are being converted to condominiums.

Rule of 72 - The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into It is only available in rural areas on a case by case basis.

Second Home - Real estate owned that is not a primary residence. This may be a vacation home, seasonal property, or other real estate. The IRS allows certain benefits for a second home under specific conditions.

Second Mortgage - A loan taken out behind the first mortgage, perhaps at the purchase or even at a later date when the owner needs funds and the equity is sufficient. Secondary Mortgage Market - Buying and selling existing mortgages, usually in blocks of several loans. Seller financing, or seller take-back - When the seller receives only a portion of the sales price at closing, and the balance he finances to the buyer in the form of a promissory note secured by the real estate purchased.

Selling Agent - A real estate agent who represents the seller in a transaction. Settlement Statement - The form showing all fees, charges and monetary transfers involving the buyer, seller, and all parties involved in the transaction. Special assessment - A tax or levy against real property for improvements. The fee is not necessarily imposed on all residents of a community, but to the owners of specific properties. Also, condominium owners may have a special assessment imposed for specific improvements.

Special Stipulations — also called special stips — These are specific instructions written into a contract that are unique to this buyer and this seller and are in addition to the standard contract form. Subject to mortgage - A buyer, usually an investor, takes title to real property "subject to the current mortgage" but is not personally liable to the original mortgagee for payment of the mortgage note.

The buyer does not obtain a new loan, but rather takes over payments on the existing mortgage. This form of purchase is most often used in a distress sale or in an attempt to save the owner from foreclosure proceedings. Subordination clause - A clause in which the holder of a mortgage permits a subsequent mortgage to take priority.

Subordination is the act of yielding priority. For example, this clause provides that if a prior mortgage is paid off or renewed, the junior mortgage will continue in its subordinate or secondary position and will not automatically become primary mortgage. An investor purchases a first mortgage that has a subsidized second mortgage behind it.

The second mortgage may be issued by a state, county, or local housing agency, foundation, or non-profit corporation. Payment on the second mortgage is often deferred and carries a very low interest rate or no interest rate. Part of the debt may be forgiven incrementally for each year the buyer remains in the home. Survey - The measurement of a parcel of real estate by a licensed surveyor. It shows the specific details about the measurement, shape, size and location of the property.

Tax Deed - A deed that is used to convey title when the real estate is purchased from the county, having been auctioned off to pay for back taxes that went unpaid by the original property owner. Tax Lien - A lien against a property for unpaid taxes. Ten Thirty One Exchange — Exchange — A means of deferring capital gains taxes on real estate exchanges for like kind properties.

This is allowed under the U. Internal Revenue Code, Section Tenancy by the Entirety - A special type of real estate ownership that is reserved for married couples. The law considers the marital unit to be the owner and both spouses have an equal, undivided interest in the whole. Both spouses have the right to enjoy the property, and when one spouse dies, the surviving spouse gets title to the property in the entirety. It is similar to joint tenancy with the right of survivorship, but it is a term that is only used in certain states.

Tenancy in Common - A type of ownership in which two or more people have an undivided interest in property, without the right of survivorship. Upon death of one of the owners, his or her interest passes, not to the co-owner s but to whomever they have chosen as their heir. Term - The length of time it will take to pay the mortgage in full. Time is of the Essence - The statement in a contract which emphasizes that punctual performance by all parties is essential.

Time Limit of an Offer - An offer should include a specified time period during which the other party must decide to accept, reject, or counter the offer.

Title Company -The company that, for a fee, checks and insures the title against liens, ownership claims, and title problems. Title Insurance - An insurance policy that may be purchased to protect the new owner from any liens or clouds against the title. In order to issue title insurance, the issuer will perform a title search in the county records.

Since title is searched at the time of closing, title insurance is usually less expensive at the time of closing, rather than if a buyer called the title company at a later time, as an additional title search would have to be performed prior to issuing the insurance.

Transaction Broker - A transaction broker also referred to as a facilitator, coordinator or contract broker is not a representative or agent for either the buyer or the seller. The job of a transaction broker is to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property.

Transfer Tax - A tax that is collected at closing for the transfer of ownership of real property. Truth in Lending Act - Federal law that makes lenders disclose, in writing, all terms, charges and APR to borrowers upon loan application and again at the closing of the mortgage loan. Underwriters - Trained individuals that make the final decision of whether each loan is approved, approved with conditions, or denied. VA Funding Fee - A funding fee is added to most VA loan amounts, depending on the amount of down payment that the veteran makes.

They must qualify by providing proof of eligibility. Warranty - A binding promise that certain statements are true. Warranty Deed - A deed warranting that the grantor has clear title and promises he has the right to convey the property to the buyer.

Yield - The profit from an investment, normally stated as a percentage of the amount invested. Zoning - Local requirements for the use of real estate in a particular area. Your use of this web site constitutes your acceptance of the MLS. The mark 'Realtor' is a servicemark of the National Association of Realtors to designate a real estate professional who is a member of the National Association of Realtors. MLS Multiple Listing Service Listings Your Trusted Real Estate Source.

Glossary of Real Estate Terms. Property Search Find Foreclosures Find New Homes Search MLS Listings. A Acceptance - The time at which an offer to purchase is accepted.

B Back-Up Contract -- A contract or offer that is in a secondary position to an already existing contract. D Deed - The document that sellers and buyers sign when transferring title to real estate.

E Earnest Money also called Deposit — Funds given by the buyer and held in an escrow account until the real estate closing. G Grantee - The individual to whom interest in real property is conveyed. H Hazard Insurance —An insurance policy selected by the borrower to cover the property against loss due to hazards such as fire, hail, etc. I Interest - What a lender charges to borrow money.

J Joint Tenancy — A legal way for parties to co-own real property with equal rights to the real estate. See Listing Contract Loan Application - A form used to apply for a mortgage loan that a borrower must complete in order to secure the loan. M Maturity Date - The date on which the last payment on a mortgage or any other financial instrument becomes due and payable. N Negative Amortization - When adjustable rate mortgage payments are not sufficient to pay the monthly principal and interest, the deficient amount is added to the original mortgage which causes the outstanding principal balance to increase.

O Offer - When a buyer makes a written promise to purchase real estate, it is an offer. P Payment - The monthly amount due that a borrower must pay on a mortgage loan. Q Qualify - To meet the guidelines based on debt, income, and credit worthiness.

R Radon - A natural gas found in the environment. S Second Home - Real estate owned that is not a primary residence. See Owner Financing Selling Agent - A real estate agent who represents the seller in a transaction. T Tax Deed - A deed that is used to convey title when the real estate is purchased from the county, having been auctioned off to pay for back taxes that went unpaid by the original property owner.

U Underwriters - Trained individuals that make the final decision of whether each loan is approved, approved with conditions, or denied. V VA Funding Fee - A funding fee is added to most VA loan amounts, depending on the amount of down payment that the veteran makes. W Warranty - A binding promise that certain statements are true. Y Yield - The profit from an investment, normally stated as a percentage of the amount invested.