Terms you should know

Terms you should know

Amendment A change to alter, add, or correct part of an agreement without changing the principal idea.

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.

Buyer’s Agent The buyer’s agent works with the buyer to find a suitable property and negotiate a successful home purchase.

Beneficiary The recipient of benefits, often from a deed of trust; usually the lender.

Close of Escrow The date the documents are recorded and title passes from seller to buyer, thus the buyer becomes the legal owner and title insurance becomes effective.

Comparable Sales Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”

Deed/Grant Deed/Warranty Deed A real estate-oriented document used to designate fee title/ownership 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 the real property that dictates certain uses that may or may not be made of the property.

Down Payment An initial payment made when something is bought on credit or financed. DPA (Down Payment Assistance) helps home buyers with loans or grants to reduce the amount they need to save for a down payment.

Earnest Money Deposit Down payment made by the buyer 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.

Escrow Officer An escrow officer leads the facilitation of your escrow, including escrow instructions preparation, document preparation, fund disbursement, and more.

Home Loan A loan advanced to a person to assist in buying real estate.

Lien A form of encumbrance that usually makes a specific parcel of real property the security for the repayment of a debt or discharge of an obligation.

Listing Agent The listing agent forms a legal relationship with the homeowner to sell the property and place the property in the Multiple Listing Service.

Mortgage The instrument by which real property is pledged as security for repayment of loan.

Multiple Listing Service (MLS) The MLS is a database of properties listed for sale by realtors who are members of the local Association of Realtors. Information on an MLS property is available to thousands of realtors.

PITI Mortgage payment that combines Principle, Interest, Taxes, and Insurance. Power of Attorney A written instrument whereby a principal gives authority to an agent. The agent acting under such grant is sometimes called an “attorney-in-fact.”

Purchase Agreement The contract created based on the purchase agreement 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 meant to transfer any title, interest, or claim which the grantor (seller) may have in the real property to the grantee(buyer), but not containing any warranty of a valid interest or title by the grantor.

Real Estate Agent/Broker A real estate agent is licensed by the state to represent parties in the transfer of real property. Also known as a broker, a real estate agent does not have the professional designation of a Realtor.

Realtor A Realtor is a licensed real estate agent and a member of the National Association of Realtors, a real estate trade association. Realtors also belong to their state and local Association of Realtors.

Recording Filing documents affecting real property with the County Recorder as a matter of public record.

Title Company A combined agent of the insurance company, buyer, seller, and parties involved, they make sure the title of a property is legitimate, issue insurance policies, and facilitates with closing, filing and recording paperwork.

Types of Loans Conventional, FHA (Federal Housing Administration), Home Equity Line of Credit, USDA (Rural development loan), VA (Veteran’s Affairs).

Washington State Housing and Finance Commission (WSHFC) State agency that is dedicated to increasing housing access and affordability.