RESOURCES
REAL ESTATE TERMS
Appraisal
Assessment of the property’s market value, for the purpose of obtaining a mortgage and performed by a licensed appraiser.
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Assessed Value
Value placed upon property for property tax purposes by the Tax Collector.
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Closing Costs
Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, title insurance and escrow fees.
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Closing Statement
The statement which lists the financial settlement between Buyer and Seller, and the costs each must pay.
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Contingency
Certain criteria that have to be met in order to finalize the sale.
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Conventional Mortgage
A mortgage or Deed of Trust not obtained under a government insured program such as FHA or VA.
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Credit
Money given to a buyer from a seller through escrow at closing.
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Escrow
A neutral third party that handles the transfer of any money during the sale of a home from initial deposit to final funding and closing.
Earnest Money Deposit
Buyers in California usually deposit 3% of the purchase price to show that the buyer is serious about purchasing the home. It is usually refundable in the event a contingency in the sales contract cannot be met.
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Fixed Rate Mortgage
A loan on which the interest rate and monthly payment do not change.
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Home Warranty
A policy that covers certain repairs (e.g. plumbing/heating) of a newly purchased home for a period of time, typically one-year.
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Preliminary Title Report
A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a new title insurance policy will be issued.
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Title Insurance
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
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Recording Fees
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
