Real Estate definitions:

Adjustable Rate Mortgages (ARM)-A mortgage in which the interest changes periodically.

Appraisal- A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Appraiser-An individual qualified by education and training to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders,most are independent.

Balloon payment-The final lump some payment that is due to a balloon mortgage in order to own the land (real estate) free and clear.

Broker-Most realtors are agents who work under a Broker.

Chain of title-An analysis of the transfer of title to a piece of property over the years.

Clear Title-A title that is free of liens or legal questions of ownership of the property.

Collateral-In a home loan,the property is the collateral,the borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

cooperative(co-op) A type of multiple ownership in which the residents of a multiunit housing complex own shares on the cooperative corp. that owns the property,giving each resident the right to occupy a specific apartment or unit.

Commission-Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction,including Realtors,loan officers,title representatives,attorneys and owners.

Closing-This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others,the closing is a meeting where all the documents are signed.

Down Payment-The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Eminent Domain-The right of a goverment to take private property for public use upon payment of fair market value.

Easement-A right of way giving persons other then the owner access to or over property.real estate.

Eviction-The lawful expulsion of an occupant from real property.

Excusive Listing-A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

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