Popular Property Terms

Appraisal:

An evaluation of a property's value conducted by a licensed appraiser.

Capitalization Rate:

The rate of return on an investment property, calculated by dividing the property's net operating income by its purchase price.

Closing Costs:

Expenses incurred by the buyer and seller during the real estate transaction, such as title insurance, attorney fees, and taxes.

Condominium:

A type of housing where individuals own their units but share common areas and facilities with other residents.

Down Payment:

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

Equity:

The difference between the market value of a property and the outstanding mortgage balance.

Escrow:

A neutral third party that holds funds and documents during a real estate transaction until all conditions are met.

Foreclosure:

The legal process by which a lender takes possession of a property due to the borrower's failure to make mortgage payments.

Home Inspection:

A professional assessment of a property's condition, typically conducted before the purchase to identify any potential issues.

Homeowners Association (HOA):

An organization that sets and enforces rules and regulations for a community or condominium complex, typically funded by monthly fees paid by residents.

Lease:

A legal agreement between a landlord and tenant, outlining the terms and conditions of renting a property.

Mortgage:

A loan obtained from a financial institution to finance the purchase of a property, with the property serving as collateral.

Pre-approval:

The process of obtaining a lender's commitment to provide a mortgage loan, based on an evaluation of the borrower's creditworthiness.

Title:

The legal right to ownership of a property.

Zoning:

Local government regulations that dictate how land can be used, such as residential, commercial, or industrial purposes.