GLOSSARY

Acre
A measurement of land equal to 4,840 square yards or 43,560 square feet.

Appraised Value
An opinion of a property's fair market value based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

Buyer's Agent:
A residential real estate broker or salesperson who represents the prospective purchaser in a transaction.

Commission
The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is generally a percentage of the price of the property or loan.

Comparable Sales
Recent sales of similar properties in nearby areas that are used to help determine the market value of a property; also referred to as "comps".

Condominium
A single unit in a multi-unit building. The owner of a condominium unit owns the unit itself and has the right, along with other owners, to use the common areas but does not own the common elements such as the exterior walls, floors and ceilings or the structural systems outside of the unit. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

Condominium Conversion
Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.

Contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Earnest Money
Money given by a buyer to a seller as a form of deposit (part of the purchase price) in order to bind a transaction or to ensure payment.

Home Inspection
A thorough inspection that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.

Listing Price
The price at which a house is listed for sale; the asking price.

Multiple Listing Service (MLS):
A clearinghouse through which member real estate brokerage firms regularly and systematically exchange information on listings of real estate properties and share commissions with members who locate purchasers. The MLS for an area is usually operated by the local, private real estate association as a joint venture among its members designed to foster real estate brokerage services.

Real Estate Agent
A person licensed to negotiate and transact the sale of real estate.

Sale Price
The price at which the house actually sold. The difference between a home's sale price and the listing price is useful for buyers in making offers on comparable homes.

Seller's Agent:
An agent who represents the seller of real property.

Subdivision
A housing development that is created by dividing a tract of land into individual lots for sale or lease. Subdivision refers to any land, whether contiguous or not, if two or more lots, parcels, units or interests are offered as part of a common promotional plan of advertising and sale.

Title
A legal document evidencing a person's right to or ownership of a property.

Title Insurance
Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.

Title Search
A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding