REAL ESTATE TERMS YOU MAY WANT TO KNOW WHEN BUYING OR SELLING A HOME IN THE ORLANDO AREA
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Get To Know The “R’s” Of Real Estate
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Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.
a radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems.
a limit on an ARM on how much the interest rate or mortgage payment may change. Rate caps limit how much the interest rates can rise or fall on the adjustment dates and over the life of the loan.
a commitment by a lender to a borrower guaranteeing a specific interest rate over a period of time at a set cost.
an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.
a security representing an interest in a trust having multiple classes of securities. The securities of each class entitle investors to cash payments structured differently from the payments on the underlying mortgages.
a tax deductible expense reducing a taxpayer’s taxable income.
a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.
land, including all the natural resources and permanent buildings on it.
a real estate agent or broker who is a member of the NATIONAL ASSOCIATION OF REALTORS, and its local and state associations.
A reconstructed operating statement is a statement of income that is revised from its original form with new information or that is reconstructed from relevant information after the fact.
A statement of property income and expenses formatted for the purposes of appraisal and investment analysis. Differs from typical management operating statement in the treatment of certain expenses: management, mortgage, vacancy, and collection loss.
the public official who keeps records of transactions concerning real property. Sometimes known as a “Registrar of Deeds” or “County Clerk..
the recording in a registrar’s office of an executed legal document. These include deeds, mortgages, satisfaction of a mortgage, or an extension of a mortgage making it a part of the public record.
charges for recording a deed with the appropriate government agency.
paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).
a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages – like the FHA’s 203(k) – allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.
a phase of the foreclosure process where the homeowner has an opportunity to stop the foreclosure by paying money that is owed to the lender.
the amount of principal that has not yet been repaid.
the original amortization term minus the number of payments that have been applied.
an agreement between a lender and a delinquent borrower where the borrower agrees to make additional payments to pay down past due amounts while making regularly scheduled payments.
net income available to common stockholders, as a percentage of average common stockholder equity.
the reverse mortgage is used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. A lending institution such as a mortgage lender, bank, credit union or savings and loan association funds the FHA insured loan, commonly known as HECM.
a provision in an agreement that requires the owner of a property to give one party an opportunity to purchase or lease a property before it is offered for sale or lease to others.
an amount of capital needed to offset losses during a ten-year period with adverse circumstances.
Fee structure used by creditors based on risks of granting credit to a borrower with a poor credit history.
an automated way to analyze a credit report verses a manual review. It takes into account late payments, outstanding debt, credit experience, and number of inquiries in an unbiased manner.
Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.
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