As buyers and sellers, I feel these are some of the most common terms used during a real estate transaction. I have provided and overview of these terms with their definitions below. I hope these help you in some way or another.
Agency - The legal relationship resulting from an agreement that the agent is authorized by a principal to perform certain acts on behalf of another person.
Agent - A person who is authorized to act on behalf of another person, called the "principal."
Appraisal - An estimate of value on a specific piece of real estate.
Attorney-in-fact - One who is authorized to perform certain acts for another under a power of attorney.
Breach of Contract - Violation of any of the terms or conditions of a contract; default.
Buyer's Agent - A person who represents a buyer in a real estate transaction.
Certificate of Occupancy (C.O.) - A document issued by local government indicating that the building is in compliance with the public health and building codes and may be legally occupied.
Closing - The time when a transactions is consummated, or the actual signing over the documents and delivery of the deed.
Contingency - A condition in a contract, which could void it, or change its terms, if not met.
Contingent- Dependent upon an uncertain future event.
Dual Agent- A person who represents both the buyer and seller in the same transaction.
HUD-1 Uniform Settlement Statement- Standard settlement form required by RESPA
Mortgage - An instrument in writing in which, when recorded, creates a lien upon a property pledged as security for the repayment of a debt or obligation.
Negotiate - To transact business; to arrange terms of a contract.
Offer - A promise by one party to act in a certain manner provided the other party would act in the manner requested.
Survey - Process by which a parcel of land is measured and its area ascertained.
Valid Contract- Contract that is binding, is legally sufficient, and authorized by the law.
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