This vocabulary list is featuring all the important words of the Real Estate. All the words are comprehensive terms and used in the Real estate industry.
Real Estate Vocabulary Words – A to Z
Let’s learn a few of the words that are used in the Real Estate world along with their explanation:
- Sublease: lease or rent all or part of to another person
- Easement: the legal privilege of using something that is not your own
- Lease: a contract granting use or occupation of a property
- Real estate broker: a person who is authorized to act as an agent for the sale of land
- Real estate: property consisting of houses and land
- Breach of contract: a breach of a legal duty
- Real estate agent: a person who is authorized to act as an agent for the sale of land
- Transaction: conducting business within or between groups
- Foreclosure: proceedings initiated to repossess the collateral for a loan
- Homeowner: someone who owns a home
- Litigation: a legal proceeding in a court
- Transactions: a written account of what transpired at a meeting
- Eviction: expulsion of someone, especially a tenant, from a property
- Vacate: leave behind empty; move out of
- Estate: extensive landed property retained by the owner
- Documentation: confirmation that some fact or statement is true
- Encroachment: any entry into an area not previously occupied
- Misrepresentation: a misleading falsehood
- Tenant: someone who pays rent to use property owned by someone else
- Workout: the activity of exerting your muscles in various ways to keep fit
- Landslide: the descent of a large mass of dirt and rock down a slope
- Participant: someone who takes part in an activity
- Law firm: a firm of lawyers
- Disclaimer: a voluntary repudiation of legal claim to something
- Upgrade: rate higher; raise in value
- Occupancy: an act of being a tenant
- Investor: someone who commits capital to gain financial returns
- Negotiate: discuss the terms of an arrangement
- Concise: expressing much in few words
- Liabilities: anything that is owed to someone else
- Financing: the act of funding
- Subordination: the state of being lower in rank to something
- Adjustable Rate Mortgage: A loan product with a mortgage rate that adjusts annually up or down depending on the market instead of remaining fixed or locked in like a fixed rate mortgage.
- Agent: A real estate agent is a person who works for a seller, buyer, or both during a real estate transaction.
- Amortization: A period in which a loan balance is gradually paid off from a mortgage payment that includes both principal and interest.
- Appraisal: The estimation of a property’s market value by a licensed appraiser to assist banks in making loans to home buyers.
- Appraiser: The person who visits a property, analyzes it, and determines its approximate value
- Appreciation: The annual increase in a property’s market value.
- Assessment: The value assigned to your home by a government tax assessor, which is used to calculate property taxes.
- Buyers Agent: A realtor who works specifically for the buyer, representing the buyer in the transaction.
- Capitalization Rate: A rate used to determine property value based on net income typically used for apartment buildings.
- Closing: This refers to the process where the deed of the property is formally transferred from the seller to the buyer.
- Closing Costs: The costs associated with completing a real estate transaction
- Commercial: A zoning classification for property that refers to property used for business activities such as retail stores, farms, offices, etc.
- Comparable Market Analysis: An evaluation of similar, recently sold homes that are near a home intended to be bought or sold. It establishes a price estimate based on current market activity that can be used as a guide for pricing a home.
- Comparables: The prices of houses that have recently sold with similar characteristics to the house you are currently valuing.
- Construction Loan: A type of loan that covers the construction cost of a new home being built by a builder
- Contingencies: Clauses in a contract that allow a buyer to not be forced to purchase a property if certain conditions are unsatisfactory either structurally or financially.
- Counter Offer: When a seller sends back a new or adjusted offer that differs from the original offer sent by the buyer.
- Deed: The legal document that determines who has ownership of a property. This is the document transferred from seller to buyer at closing.
- Default: Failing to make loan repayments by the required deadline.
- Down Payment: The amount of money paid upfront for the property.
- Dial Agency: When a real estate agent represents the seller and the buyer in the same transaction
- Earnest Money: The sum of money that is submitted with an offer as an add-on to prove the buyer is serious and not wasting either party’s time.
- Equity: The financial value above what is owed on the property.
- Escrow: A neutral third party or attorney that handles the exchange of money and documents between a buyer and seller once a mutual offer has been accepted and the parties move to closing.
- Fixed Rate Mortgage: An interest rate that stays constant over the entire life of the loan.
- Foreclosure: A property that defaulted on loan payments and failed to make them up over the course of the foreclosure process ultimately leading the bank to reclaim the property from the owner.
- Inspection: A thorough inspection of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home.
- Interest: The cost of borrowing money. It is the money owed in addition to the loan amount being paid back.
- Loan: Borrowing money from another person or institution to pay for the property.
- Lien: A right to keep possession of property belonging to another person until a debt owed by that person is discharged.
- Listing: A term for the property, or land being put up for sale for others to see.
- Mortgage: The charging of real property by a debtor to a creditor as security for a debt, on the condition that it shall be returned on payment of the debt within a certain period.
- Mortgage Broker: The company or person who helps a home buyer qualify for a loan and handles all aspects of getting the loan creating / lending in place for the borrower.
- Multiple Listing Service: The MLS is a local or regional service that compiles available real estate for sale by member brokers along with detailed information brokers and agents can access online.
- Net Income: The amount of income left over after operating expenses have been subtracted from revenues.
- Offer: The price that a buyer offers to the seller to purchase their property as well as any special terms the buyer requires as part of their offer to the seller.
- Pre-Approval Letter: A document buyers should obtain from a lender that provides proof they can afford to buy a home up to a certain amount so agents/sellers do not feel like they are being tricked or time wasted.
- Principal: The amount borrowed for a mortgage loan. Monthly mortgage payments include both the repayment of the principal and interest owed.
- Private Mortgage Insurance: A monthly payment added to the mortgage payment when a buyer has less than 20% as a down payment on the property.
- Property Tax: An annual or semi-annual tax paid to one or more government agencies based on the property value assessment.
- Real Estate Broker: A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction.
- Real Estate Owned Properties: If a foreclosed property is not sold off during the foreclosure auction, the bank will take ownership of the real estate.
- Real Estate Purchase: A legal document that obligates a buyer to buy and a seller to sell.
- Refinance: Getting a new loan from the lender with better terms such as a lower interest rate or a lower monthly payment.
- Residential: Used as a residence or by residents. It’s a term for how property is zoned by the local zoning board in a city.
- Sellers Agent: Also known as a listing agent, the seller’s agent works for the seller to help them list their home on the market and get it sold to a buyer.
- Single Family: A single independent property that is used by a single family for living such as a house. In simple terms, the property is used by one family only.
- Title: A legal document listing the history of ownership of the home.
- Title Insurance: Title insurance protects against losses resulting from problems with the title.
- Zoning: Laws that govern how a real estate can be used.
With the knowledge of above mentioned words you can comfortably participate in real estate discussions.
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