Appraisal: An estimation of the value of a property conducted by a licensed appraiser.

Amortization: The process of gradually paying off a debt, such as a mortgage, through regular payments that include both principal and interest.

Agent: A licensed professional who represents buyers, sellers, or both in real estate transactions.

Assessed Value: The value assigned to a property by a taxing authority for the purpose of determining property taxes.

Adjustable-Rate Mortgage (ARM): A mortgage loan with an interest rate that can change periodically, usually based on a specified financial index.

As-is: Refers to a property being sold in its current condition without any repairs or improvements being made by the seller.

Appurtenance: A right or privilege that is attached to a property and transfers with the property when it is sold.

Absorption Rate: The rate at which available properties in a market are sold or leased over a given period of time.

Appropriate Land Use: The designated use of a property according to local zoning regulations and land-use plans.

Assessment: The process of determining the value of a property for taxation purposes.

Agreement of Sale: A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate transaction.

Appreciation: An increase in the value of a property over time.

Air Rights: The rights to use the space above a property, often associated with the development of high-rise buildings or air corridors.

Addendum: A supplementary document that is added to a contract to modify or clarify its terms.

Abstract of Title: A summary of the history of ownership and legal rights associated with a property, including transfers, liens, and encumbrances.

Buyer's Agent: A real estate agent who represents the buyer in a transaction and advocates for their best interests.

Balloon Mortgage: A type of mortgage that requires the borrower to make small monthly payments for a fixed period and then pay off the remaining balance in a lump sum (balloon payment) at the end of the term.

Bridge Loan: A short-term loan that helps bridge the gap between the purchase of a new property and the sale of an existing property.

Building Code: A set of regulations and standards that govern the construction, design, and safety of buildings.

Broker: A licensed real estate professional who acts as an intermediary between buyers and sellers, assisting with negotiations and facilitating transactions.

Broker Price Opinion (BPO): An estimate of a property's value provided by a real estate broker or agent based on comparable properties and market analysis.

Buildable Area: The portion of a property where construction is permitted based on zoning regulations and land-use restrictions.

Buyer's Market: A market condition where there are more properties for sale than there are buyers, giving buyers more negotiating power and potentially leading to lower prices.

Bank-Owned Property: A property that has been repossessed by a bank or lender due to the owner's failure to meet mortgage payments. Also known as a foreclosure or REO (Real Estate Owned) property.

Building Permit: A government-issued document that authorizes the construction, alteration, or renovation of a building or structure.

Biweekly Mortgage: A mortgage payment plan where the borrower makes payments every two weeks instead of once a month, resulting in faster equity buildup and interest savings.

Backyard: The outdoor area at the rear of a property, typically used for recreation or gardening purposes.

Baseboard: A decorative and functional trim or molding that covers the joint between the wall and the floor.

Building Inspection: A comprehensive examination of a property's structure, systems, and components to assess its condition and identify any potential issues.

Breach of Contract: A violation of the terms and conditions outlined in a legally binding agreement between two parties, such as a buyer and seller.

Closing: The final stage of a real estate transaction where ownership of the property is transferred from the seller to the buyer, and all necessary documents are signed and funds are disbursed.

Condominium: A type of property ownership where individuals own their individual units within a larger complex or building, and share common areas and amenities with other unit owners.

Contract: A legally binding agreement between two or more parties that outlines the terms and conditions of a real estate transaction.

Closing Costs: Expenses incurred by the buyer and seller during the transfer of property ownership, including fees for inspections, appraisals, title search, insurance, and legal services.

Comparative Market Analysis (CMA): A report prepared by a real estate agent that provides an estimate of a property's value based on recent sales of comparable properties in the area.

Contingency: A condition or requirement specified in a contract that must be met in order for the contract to be valid or binding. Common contingencies include home inspection, financing, and appraisal contingencies.

Commission: The fee paid to a real estate agent or broker for their services in facilitating a real estate transaction. It is typically a percentage of the final sale price.

Capitalization Rate (Cap Rate): A measure used to evaluate the return on investment for an income-producing property. It is calculated by dividing the property's net operating income by its purchase price or value.

Credit Score: A numerical representation of an individual's creditworthiness, which is based on their credit history and financial behavior. Lenders use credit scores to assess the risk of lending money.

Certificate of Title: A document that serves as proof of ownership of a property and provides information about any encumbrances, liens, or restrictions that may exist.

Collateral: Property or assets that are pledged as security for a loan. In real estate, the property being purchased often serves as collateral for a mortgage.

Capital Gains: The profit made from selling a property or other investment, calculated by subtracting the purchase price and any associated expenses from the sale price.

Conveyance: The transfer of ownership or title of a property from one party to another.

Co-op (Cooperative): A type of housing where residents own shares in a corporation or cooperative association that owns the entire building or development. Residents are granted a proprietary lease to occupy a specific unit.

Closing Disclosure: A document provided to the buyer by the lender at least three business days before the closing, which details the final terms and costs of the loan.

Deed: A legal document that transfers the ownership of a property from one party to another.

Down Payment: The initial payment made by a buyer towards the purchase price of a property, typically a percentage of the total price.

Dual Agency: A situation where a real estate agent or broker represents both the buyer and the seller in the same transaction, which may have legal and ethical implications.

Escrow: The holding of funds, documents, or assets by a neutral third party (often an escrow agent or company) until specific conditions are met in a real estate transaction.

Equity: The value of a property that exceeds the outstanding balance of any liens or mortgages on it. It represents the owner's ownership interest in the property.

Easement: A legal right that allows someone to use another person's property for a specific purpose, such as access to a public road or utility lines.

Fair Housing Act: A federal law that prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability.

Fixed-Rate Mortgage: A mortgage loan with an interest rate that remains the same throughout the entire term of the loan.

FSBO (For Sale By Owner): A property that is being sold directly by the owner without the representation of a real estate agent.

Good Faith Estimate (GFE): An estimate of the closing costs and mortgage terms provided by a lender to a borrower within three business days of applying for a mortgage.

Grant Deed: A type of deed that transfers ownership of a property from one party (the grantor) to another party (the grantee) and includes certain guarantees about the property's title.

Gross Income: The total income generated by a property before subtracting any expenses or deductions.

Homeowners Association (HOA): An organization that establishes and enforces rules and regulations for a residential community or condominium, and collects fees from homeowners for maintenance and communal amenities.

Home Inspection: A thorough examination of a property's condition conducted by a professional inspector to identify any potential issues or defects.

Home Equity: The difference between the market value of a property and the outstanding balance of any liens or mortgages on it. It represents the owner's financial interest in the property.

Housing Market: The overall supply and demand for residential properties in a particular area, which can impact prices and sales activity.

HUD (U.S. Department of Housing and Urban Development): A government agency responsible for promoting fair housing, providing affordable housing options, and enforcing housing regulations.

HVAC: Stands for Heating, Ventilation, and Air Conditioning, referring to the system or equipment that controls the temperature and air quality in a building.

Hard Money Loan: A type of short-term loan secured by real estate, typically used by investors or borrowers with poor credit or unconventional financing needs.

Holding Period: The length of time that an investor holds onto a property or investment before selling it.

Homestead Exemption: A legal provision that offers protection to a homeowner's primary residence by reducing the property's taxable value and providing certain creditor protections.

Housing Starts: The number of new residential construction projects, such as houses or apartment buildings, that have begun in a specific period.

House Poor: A situation where a homeowner devotes a large portion of their income to mortgage payments and housing-related expenses, leaving little room for other financial obligations or discretionary spending.

Home Warranty: A service contract that provides coverage for the repair or replacement of certain home systems and appliances within a specified period.

Housing Discrimination: Unlawful practices that deny equal access to housing based on an individual's race, color, religion, sex, national origin, familial status, or disability.

Holding Costs: The expenses incurred by a property owner while holding onto a property, including mortgage payments, property taxes, insurance, and maintenance costs.

HOA Fee: The regular fee paid by homeowners to a homeowners association to cover the costs of maintaining common areas, amenities, and other community-related expenses.

Interest Rate: The percentage charged by a lender on a loan, which represents the cost of borrowing money.

Inspection Contingency: A clause in a purchase agreement that allows the buyer to conduct a professional inspection of the property and negotiate repairs or adjustments based on the findings.

Investment Property: A property purchased with the intent of generating income or appreciation, rather than for personal use.

Joint Tenancy: A form of property ownership where two or more individuals have equal ownership rights and the right of survivorship, meaning that if one owner passes away, their share automatically transfers to the surviving owner(s).

Jumbo Loan: A mortgage loan that exceeds the maximum loan limit set by government-sponsored entities like Fannie Mae and Freddie Mac.

Key Money: A payment made by a tenant to a landlord, often in commercial real estate, to secure a favorable lease agreement or exclusive rights to the property.

Kick-out Clause: A provision in a purchase agreement that allows the seller to continue marketing the property and accept backup offers if the current buyer fails to meet certain conditions or deadlines.

Landlord: The owner of a property who rents or leases it to tenants in exchange for regular rental payments.

Lease: A legally binding contract that outlines the terms and conditions of a rental agreement between a landlord and a tenant.

Listing Agent: The real estate agent who represents the seller and assists in marketing and selling the property.

Loan-to-Value Ratio (LTV): The ratio of the loan amount to the appraised value or purchase price of a property, expressed as a percentage. It is used by lenders to assess the risk of a loan.

Lock-In Period: The period during which a borrower is committed to a specific interest rate and loan terms as specified in a mortgage agreement.

Land Survey: The process of determining and mapping the boundaries, dimensions, and characteristics of a parcel of land.

Loan Origination Fee: A fee charged by a lender to cover the administrative costs of processing a loan application.

Lien: A legal claim or encumbrance on a property as security for the payment of a debt. It gives the creditor the right to seize and sell the property if the debt is not repaid

Market Value: The estimated value of a property based on current market conditions, comparable sales, and other relevant factors.

Mortgage: A loan secured by a property, typically used to finance the purchase of real estate, where the property serves as collateral for the loan.

Multiple Listing Service (MLS): A database used by real estate professionals to share property listings and cooperate with other agents in buying and selling properties.

Net Operating Income (NOI): The income generated by an income-producing property after deducting operating expenses but before deducting mortgage payments or taxes.

Negative Amortization: A situation where the outstanding balance of a loan increases over time due to the borrower's payments being insufficient to cover the interest charges.

Offer: A proposal or bid by a buyer to purchase a property at a specific price and under certain terms and conditions.

Open House: A scheduled period during which a property is made available for prospective buyers to view without the need for a prior appointment.

Principal: The original amount of money borrowed in a loan, excluding interest and other charges.

Pre-approval: The process in which a lender evaluates a borrower's creditworthiness and confirms their ability to qualify for a mortgage up to a certain amount.

Property Management: The professional management of real estate properties on behalf of owners, including tasks such as tenant screening, rent collection, and property maintenance.

Quiet Enjoyment: The right of a tenant or property owner to use and enjoy the property without interference or disturbance from others, including the landlord or neighbors.

Quitclaim Deed: A legal document used to transfer an individual's ownership interest in a property to another party without making any guarantees or warranties about the property's title.

Real Estate Agent: A licensed professional who represents buyers or sellers in real estate transactions and helps facilitate the buying or selling process.

Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-generating real estate properties, allowing individual investors to buy shares and receive dividends from the rental income.

Rental Yield: The return on investment (ROI) generated from a rental property, calculated as a percentage of the property's value or the rental income received.

Seller's Agent: A real estate agent who represents the seller in a transaction and works to secure the best terms and price for the property.

Short Sale: A sale of a property where the proceeds fall short of the outstanding mortgage balance, and the lender agrees to accept a reduced payoff to release the lien on the property.

Survey: The measurement and mapping of a property's boundaries, features, and other physical characteristics, conducted by a professional land surveyor.

Title: The legal right to ownership of a property. A title search is conducted to verify the ownership history and ensure there are no liens or claims against the property.

Title Insurance: Insurance coverage that protects the property owner and lender against losses due to defects in the property's title or undiscovered claims or liens.

Tenant: A person who rents or leases a property from a landlord and occupies it as their place of residence or for business purposes.

Underwriting: The process of evaluating a borrower's financial information and the property to assess the risk and determine whether to approve a loan application.

Upside: The potential for an increase in the value or profitability of a property or investment. It refers to the positive future prospects or potential gains.

VA Loan: A mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA), available to eligible veterans, active-duty military personnel, and surviving spouses.

Vacancy Rate: The percentage of vacant units or properties in a rental market at a given time, which is used to assess the demand and supply dynamics of the rental market.

Walk-through: A final inspection of a property conducted by the buyer shortly before the closing to ensure that the property's condition is as expected and any agreed-upon repairs have been completed.

Warranty Deed: A legal document that transfers ownership of a property from one party to another and provides guarantees that the property's title is clear of any encumbrances or defects.

Working Capital: The amount of available funds or liquid assets that a business or property owner has after subtracting current liabilities from current assets. It represents the financial buffer or liquidity for operations and expenses.

X-Factor: An informal term used in real estate to refer to unique or exceptional qualities of a property that make it stand out from others in the market.

Yield: The income generated by an investment property, typically expressed as a percentage of the property's value or the amount invested.

Zoning: The division of land into different designated zones or districts by a local government to regulate the use, density, and development of properties within each zone.

Zoning Variance: Permission granted by a local zoning board or authority that allows a property owner to deviate from the specific requirements or restrictions of the existing zoning regulations.