Real Estate Terms

Question 1

Title

Answer 1

States Ownership

Question 2

Title Company

Answer 2

Verifies legality of title
Insures proper Ethics are being practiced

Question 3

Escrow Company

Answer 3

3rd party that receives and disperses funds

Question 4

Title Insurance

Answer 4

Insures title correctness and accuracy through the purchase process

Question 5

Home Insurance

Answer 5

Covers fires, floods, etc.

Question 6

Owner’s Policy

Answer 6

Same as Title Insurance

Question 7

PITI

Answer 7

Principle Interest Taxes and Insurance

Question 8

Property Taxes

Answer 8

Taxes paid on property owned

Question 9

Deed in Lieu

Answer 9

Voluntarily turn over home to lender to avoid foreclosure

Question 10

Foreclosure

Answer 10

Lender taking over the mortgage property when the owner hasn’t met mortgage obligations

Question 11

Default

Answer 11

Miss payments

Question 12

Sub-Contractor

Answer 12

An independent company/worker who fulfills all or part of your contract/work

Question 13

SFR

Answer 13

Single Family Residence

Question 14

Condo

Answer 14

Divided buildings that are separately owned, surrounded by common areas that are jointly owned

Question 15

Apartment

Answer 15

Rent. Occupies part of a building

Question 16

Townhouse

Answer 16

Owner owns structure and land, but it is not free standing so ownership is limited to front and back yard

Question 17

Refinance

Answer 17

Finance again, typically with a new loan at a lower interest rate

Question 18

Appraisal

Answer 18

Assessing the value of the property

Question 19

Inspection

Answer 19

Examination of the condition of a home

Question 20

Inspection Period

Answer 20

Window of time for buyers to inspect a home to insure it meets expectations for the home

Question 21

Down Payment

Answer 21

An amount of money put down at the beginning of a loan

Question 22

Rent-to-Own

Answer 22

Have the ability to purchase after a set amount of time

Question 23

Option to purchase

Answer 23

You can purchase at any point in the future for a certain amount

Question 24

COE

Answer 24

Close of Escrow

Question 25

MLS

Answer 25

(Multiple Listing Service) Where real estate agents list and browse properties

Question 26

HUD, Settlement Statement

Answer 26

Shows every single dollar coming in or going out and where its going

Question 27

Real Estate Agent

Answer 27

Sells properties for clients

Question 28

Realtor

Answer 28

Same as agent but pays a realtor fee

Question 29

Closing Costs

Answer 29

What Title and Escrow charges for closing

Question 30

Primary Lien

Answer 30

Will get paid in full before Junior Lien gets payed a dollar

Question 31

Junior Lien

Answer 31

Gets paid secondarily

Question 32

Seller Financing

Answer 32

Loan is provided by the seller

Question 33

Seller Carryback

Answer 33

When you're purchasing a house and appraisal comes back for lower than anticipated and the lender will only lend so much. So you get a secondary loan from the seller.

Question 34

Tax Sale

Answer 34

When you don't pay your taxes and they sell the rights to your property

Question 35

Clear Title

Answer 35

When Title is owned by the person trying to sell it without any liens or issues

Question 36

Payoffs

Answer 36

Amount that the Title officer will request from the bank that the homeowner still owes on their mortgage

Question 37

Preliminary Title Report

Answer 37

Pulls up whoever has a lien on the property, or a mortgage on the property and look at all the releases

Question 38

Short Sell

Answer 38

When a homeowner sells their home for less than they owe on the mortgage

Question 39

Trustee Sell

Answer 39

Sell of real estate through a public auction

Question 40

Foreclosure Auction

Answer 40

When a lender tries to mitigate losses. Any surplus is given back to the borrower.

Question 41

General Contractor

Answer 41

Assume responsibility of bringing a construction project to fruition