| AGENT | A licensed professional who arranges real estate transactions, representing buyers and sellers |
| AGREEMENT | Legal document outlining the terms of a real estate transaction |
| AIR RIGHTS | Property rights in the “space” above a property |
| APPRAISAL | A valuation of property by the estimation of an authorized expert |
| ASBESTOS | A hazardous material that used to be used as insulating material |
| AS-IS SALE | When the buyer agrees to buy a product in its current condition |
| ASSESSED VALUE | Value assigned to a home by a municipality for the purpose collecting taxes |
| ASSESSMENT | Measurement of value indicating how a property will be taxed by the government |
| ASSET | Anything you own that holds financial value including property, stocks, funds, etc. |
| ATTORNEY | A real estate attorney specializes in real estate law. As the representative of the buyer or seller, the attorney prepares and reviews the entire process from contract agreement to closing |
| ATTORNEY REVIEW | Stage in which the attorney reviews the contract |
| AUCTION | Method of selling real estate to competing bidders |
| BANKRUPTCY | Legal proceeding where a borrower declares they are unable to repay outstanding debts |
| BOARD OF DIRECTORS | Group elected by owners to manage a condo or co-op |
| BROKER | Real estate professional who acts as an intermediary |
| BUILDER | State-licensed professional who can build houses |
| BUILDING CODES | Regulations that govern the design, construction, and modification of buildings |
| BUYER | The party buying the property |
| BUYER’S AGENT | The agent representing the buyer |
| BUYER’S MARKET | A state of the real estate market where there are more sellers than buyers, benefitting the buyer |
| CAPITAL GAIN | Profit made sale of real estate |
| CERTIFICATE OF OCCUPANCY | A legal document that proves a structure is safe to inhabit |
| CLEAR TO CLOSE | Indicates that there are no issues with the mortgage or title and the process can proceed to closing |
| CLOSING | Final step in a real estate transaction where the final documents are signed, down payments are made, and necessary items are given from seller to buyer |
| CLOSING COST | Additional costs due at closing outside of property purchase cost |
| CLOSING DOCUMENT | Closing Disclosure or HUD-1, document that lists all charges and credits in transaction |
| COLLATERAL | Asset that is offered by the borrower for the lender to secure the loan |
| COMMERCIAL | Pertaining to business rather than residential purposes |
| COMMISSION | Percentage of purchase price paid to real estate agents and brokers |
| COMPARABLES | Properties with characteristics that are similar to the property being appraised, used to determine relative value |
| CONDEMNATION | Acquisition of a private property for public purpose |
| CONDO | Property complex comprised of individual units that are individually owned |
| CONTINGENCY | Conditions that must be met for the contract to become legally binding |
| CONTRACT | Document between the buyer and seller participating in a real estate transaction |
| CONTRACTOR | A general contractor hires subcontractors to carry out a construction or renovation project |
| COOP | A property where the residents cooperatively own the property |
| CO-SINGER | A third party who agrees to pay the borrower’s loan if the primary borrower can no longer make payments |
| COUNTER OFFER | An offer made in response to the original offer |
| CREDIT REPORT | A detailed breakdown of your credit history prepared by a credit bureau |
| CUL-DE-SAC | Area where a street comes to an end and is closed to traffic |
| DEED | Document that transfers the title to property from one owner to another |
| DEPOSIT (Purchase) | Money paid by the buyer at the time of signing the real estate contract |
| DEPRECIATION | Annual decrease in value of your property over time |
| DOWN PAYMENT | The amount the buyer pays upfront (usually 20% of the total cost) |
| DUAL AGENCY | One agent representing both the buyer and the seller |
| DUPLEX | House that has two units in the same building, either up-and-down, or side-by-side |
| EARNEST MONEY | Sum of money put down by the buyer representing the buyer’s seriousness about buying the home |
| EASEMENT | The right to use someone else’s property for specified reasons |
| ENCUMBRANCE | A claim against the property that impacts its transferability or use (including lien, easement, restriction, etc.) |
| EQUALIZATION | A step in property taxation ensuring uniformity in tax assessment levels |
| EQUITY | Market Value – Mortgage = Equity; the difference between how much your home is worth and how much you owe on your mortgage |
| ESCROW | Legal arrangement in which a third party temporarily holds money to protect parties during transaction |
| ETHICS | Code of ethics followed by real estate professionals to ensure fairness |
| EVICTION | Court-ordered removal of a tenant from the property where they reside |
| EXCHANGE 1031 | A real estate investing tool allowing investors to swap an investment property for another and avoid paying capital gains taxes |
| FAIR MARKET VALUE | Most probable price which a property would bring on the open market, given knowledgeable and willing buyers and sellers |
| FINAL WALK THROUGH | Stage where the buyer inspects the property a final time before closing |
| FIXTURES | Any object permanently attached to a property, and will be stay with the house in a real estate transaction |
| FLOOD ZONE | A geographic area designated as having flood risk by FEMA |
| FORECLOSURE | Process by which a lender seizes and sells a property after a borrower is unable to meet their repayment obligation |
| HOA | Homeowners Association, a self-governing organization in condos or co-ops where homeowners collectively pay fees to maintain the units |
| HOME INSPECTION | An expert inspector observes and reports on the condition of the property (Home, Termite, Radon) |
| HOMEOWNER’S WARRANTY | Protection for your home and possessions against damage and theft |
| IMPROVEMENT | Any positive permanent change to land that augments the property’s value (Land + Improvement = Real Estate) |
| INSURANCE | Home Insurance, Master Insurance, Condo Insurnce, Flood Insurance, etc. |
| JUDGEMENT | Official decision rendered by the court regarding a civil matter |
| LANDLORD | The owner of real estate property that is leased or rented to a tenant |
| LEAD PAINT | Lead-based paint used in buildings before 1978. As a serious health hazard, its use is illegal now. |
| LEASE | Contract outlining the terms under which the tenant agrees to rent the property from the landlord |
| LETTER OF INTENT | In commercial real estate, acts as the document outlining the sale or lease terms and conditions |
| LIEN | A legal claim on assets that allows the holder to obtain access to the property if debts are not paid |
| LIS PENDENS | “Lawsuit pending,” a notice stating that the title or ownership is under legal dispute |
| LISTING | A contract between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer for the property, more commonly understood as a property available in the market |
| LISTING AGENT | The real estate agent representing the seller in a real estate sale, the agent making the listing |
| LISTING AGREEMENT | Contract under which the seller authorizes a real estate agent to find a buyer for the property |
| LOT | A parcel of land owned or meant to be owned by some owner |
| MAINTENANCE FEE | A charge for the upkeep of the property set by a condo association, co-ops, or HOA |
| MARKET PRICE | The actual value of property when placed at sale on the open market |
| MULTI FAMILY | Property with 2-4 units, 5 or more units is treated as commercial |
| MULTIPLE LISTING SERVICE | Database maintained by real estate professionals to help their clients buy and sell property (e.g. njmls.com) |
| NEGOTIATION | Process where the buyer and seller attempt to find an agreeable middle ground in the contract that is beneficial to both sides |
| NON-CONFORMING USE | A use of property that was allowed under the zoning regulations at the time the use was established, but is no longer permitted due to subsequent changes |
| NOTARY PUBLIC | A public officer responsible for witnessing and authenticating the signing of a document |
| OFFER | A document that the buyer sends to the seller outlining a potential real estate transaction |
| OIL SWEEP | An inspection designed to locate oil tanks in the property |
| OPEN HOUSE | A public event where the seller’s agent openly shows the home to potential buyers |
| PERMIT | Document issued by a governmental agency allowing the recipient to do something (e.g. build a home) |
| PLANNING BOARD | Body of appointed members to prepare and administer a plan of development, including zoning and subdivision |
| POWER OF ATTORNEY | A legal document transferring the legal right to the attorney or agent to manage and access the property |
| PROOF OF FUND | Document demonstrating how much money a person or entity has available, required when sending an offer for paying with cash or paying a down payment of more than 30% |
| PROPERTY | Anything owned or possessed; in real estate, this pertains to a parcel of land and everything that is attached to that land |
| PROPERTY TAX | A tax assessed on real estate by the local government that must be paid by the property owner |
| PURCHASE | The transfer of property from one person to another by agreement; to buy |
| QUITE ENJOYMENT | An implied term in every lease that the tenant has the right to use and enjoy real property without disturbance |
| QUIT CLAIM DEED | A deed transferring ownership of property from one party to another |
| RADON TEST | Inspection to ensure that the radon levels in the home are safe |
| READY, WILLING, AND ABLE | A prospective buyer who is fully prepared legally and financially to purchase a property |
| REAL ESTATE | The physical land and any permanent structures attached to that land |
| REAL ESTATE OWNED | A property owned by a lender or bank |
| REALTOR ASSOCIATE | A member of the NAR (National Association of Realtors) |
| REALTY TRANSFER FEE | A one-time tax paid upon the transfer of real property |
| RECORDING | The filing of the original deed – the document showing that the buyer now legally owns the property – in the appropriate government office |
| RENOVATION | Updating an existing structure with cosmetic changes |
| RENT | A contract renting property to another |
| RESCISSION | Backing out of a contract |
| RESIDENTIAL | Property used for human habitation, as opposed to commercial, or business, use |
| RIDER | A document addressing additional details, conditions, or terms of a contract |
| SECURITY DEPOSIT (Lease) | Payment made to a landlord, lender, or seller as proof of tent to move in and care for the property |
| SELLER | The party selling the property |
| SELLER’S AGENT | The agent representing the seller |
| SELLER’S MARKET | A state of the market where there are more buyers than sellers, benefitting the seller |
| SELLING AGENT | The agent representing the buyer in a home sale |
| SETBACK | Zoning requirements that limits where buildings and other structures can be placed on a property to avoid overcrowding (ex. Distance from sidewalk to house) |
| SEWER INSPECTION | Inspection of the property’s underground sewer line |
| SHORT SALE | An offer of a property at an asking price that is less than the amount due on the current owner’s mortgage |
| SHOWING | A scheduled appointment where a potential buyer can tour the property |
| SINGLE FAMILY | A freestanding home designed to be used by one family, with one owner, no shared walls, on its own land |
| SPECIAL ASSESSMENT TAX | An additional property tax that is assessed when the property would benefit from a project within that area (e.g. street paving, streetlights, parking structures) |
| STEERING | Illegal practice of influencing a buyer’s choice of communities based upon one of the protected characteristics, race, color, religion, gender, disability, familial status, or national origin |
| SUBLEASE | A lease by the lessee of an estate to a third person for a specified period of time |
| SUMP PUMP | A pump that redirects water and moisture from the basement away from the home |
| SURVEY | Determination and confirmation of a property’s boundary lines |
| TAX ASSESSOR | A government official who determines the value of a property for local real estate taxation purposes |
| TENANT | An individual who leases, or temporarily occupies or possesses, real estate that belongs to a landlord |
| TERMITE INSPECTION | An inspection done to make sure the home is free of termites |
| TITLE | A document showing legal ownership to a property |
| TITLE INSURANCE | Insurance that protects lenders and homebuyers from financial loss sustained from defects in a title, required by the mortgage company |
| TITLE SEARCH | Examination of public records to determine and confirm a property’s legal ownership |
| TOWNHOUSE | A single-family home with at least two floors that share a wall with another house |
| TWO FAMILY | A home that is divided to accommodate two families living separately, usually split up-and-down with separate entrances |
| UNDER CONTRACT | Stage when the seller has accepted the buyer’s offer, but the sale is not final until all contingencies are met |
| VACANCY | Rental property that is not occupied |
| VARIANCE | A request to deviate from a zoning law, permitting the owner to use their property in a manner that is normally not allowed |
| ZONING | Municipal or local laws that govern how real property can and cannot be used |
| ZONING OFFICER | Also known as zoning inspectors, interpret and enforce property zoning regulaitons |
