Convey:
When real property is transferred from one owner to another.

Deed:
A document by which legal title to real property is conveyed from the seller to the buyer.

Down Payment:
An amount which, in addition to the mortgage, equals the purchase price of a property.

Disclosed Dual Agent:
A broker and the agents under his or her supervision who represent both parties in a real estate transaction after obtaining the written informed consent of both parties.

Earnest Money Deposit:
The deposit given to the buyer's agent or title company by the buyer as evidence of good faith and in consideration of his or her promise to purchase the property.

Equity:
The interest or value that the owner has in real estate over and above the liens against it.

Escrow:
Money or other valuables left in trust with a third party, usually the Title/Escrow Company, until closing.

Exclusive Right-to-Sell:
A written agreement between the broker and the owner, whereby the owner promises to pay a fee or commission to the broker if his or her property is sold during the listing period.

Fannie Mae:
Nickname for the Federal National Mortgage Association, which buys and sells FHA and VA mortgages.

Freddie Mac:
Nickname for the Federal Home Loan Mortgage Corporation which buys and sells FHA, VA, and, conventional loans from members of the Federal Reserve System and Federal Home Loan Bank System.

FHA Mortgage:
A mortgage loan insured by the Federal Housing Administration.

Fixture:
Personal property that is permanently attached to real property.

Fixed-Rate Mortgage:
A loan that has only one stated interest rate.

Home Inspection:
An examination of the physical structure and systems of a home and property.

Listing Contract:
A written agreement between a seller and a broker that allows the broker to sell the property during a given time period for a stated commission.

Loan Application Fee:
The charge paid by the buyer to the lender when applying for a mortgage.

Loan Origination Fee:
The charge paid by the buyer to the lender for processing a mortgage.

Market Value:
The highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

Mortgage:
A lien on real estate given by the buyer to a lender as security for money borrowed on a Note.

Mortgage Insurance:
A policy that provides protection for the lender in the case of default. Also may guarantee repayment of the loan in the event of the death or disability of the borrower.

Option:
The right to purchase property under certain terms for a specified period of time.

Points:
A point is 1 percent of the amount of the mortgage loan.

PMI or MIP:
Private mortgage insurance provides protection for the lender when the borrower's down payment is less than 20% of the purchase price.

Prepayment Penalty:
Penalty for the payment of a mortgage before it becomes due, may be applicable to some home mortgages.

Principal:
A leading person in a transaction. Usually refers to the buyer or seller. Also may refer to the amount loaned that is subject to interest.

Realtor® and Realtor-Associate® :
Registered collective membership trademarks that identify real estate professionals who are members of the National Association of Realtors® and subscribe to its strict Code of Ethics.

Recordation:  Recording the title with the state.

Survey:
A map or plat that indicates the boundaries, measurements, and improvements to a piece of property.

Title:
Indicates evidence and quality of ownership in real estate.

Title Insurance:
Protection for lenders and homeowners against financial loss resulting from legal defects in the title.

Title Search:
A check of title records to identify liens, encumbrances, and ownership rights to property.

VA Mortgage:
A mortgage loan guaranteed by the Veterans Administration.

1031 Exchange

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