A list of helpful terms to aid your buying or selling experience. Reach out to us if you have any questions!
Agency Disclosure Brochure
Anyone working with an agent must sign an Agency Disclosure Brochure. By signing this form you are only arming that you have received and read it. Agents are required by the government to give this to potential clients in order to protect the interests of the public.
Appraisal
An opinion of the value of the property by an appraiser, based on professional knowledge and the current market. *Appraisals are usually paid by the seller. (Approximate $500).
Broker
Every real estate company must have a broker. The broker is a licensed real estate agent who is responsible for all real estate transactions that go through their company.
Closing
A closing takes place at a title company and all necessary documents are signed. Signing the closing documents does not mean that the buyer can take possession of the property, or the seller will receive their funds the same day. If it is too late in the day for the funds to be disbursed, the buyer may not be able to take possession of the property until the next day.
Earnest Money
When a buyer decides to purchase a home they submit an earnest check with the Purchase and Sale Agreement. This is to show they are earnest about their decision. When an agreement has been signed by both parties and all contingencies have been removed, the earnest money will be refundable only by seller default. The earnest money
is usually held in the trust account of the selling agent’s company (selling agent is the buyer’s agent).
Good Faith Estimate / Preliminary Cost
Estimate Provided by the title company, this is an estimate of all closing costs.
Inspection
An inspector inspects a home for safety and structural defects. Per the inspection the buyer and their agent will write an Inspection Contingency Release Notice, asking
the Seller to make repairs. *The buyer usually pays for the inspection. (Approximately $250 – $350).
Lead-Base Paint Disclosure
Homes built prior to 1978 are assumed to have lead-based paint. The seller is required to sign a disclosure stating whether they do or do not know of any lead-based paint in their home. It is the buyer’s choice whether they want to have a lead-based paint inspection.
Listing Agent (seller’s agent)
The real estate agent working with the sellers.
MLS
Multiple Listing Service. Full access to the Multiple Listing Service is granted only to Realtors. This is an online service that provides information about all listed properties. It usually does not include properties that are FSBO (for sale by owner).
NAR
National Association of Realtors. See “Realtor” for more information.
Preliminary Title Report
A report that shows the condition of a property before a sale / loan is executed / completed.
Pre-Qualification Letter | Pre-Approval
Letter This is a letter from the buyer’s lender saying that they pre-qualify for a loan.
Power of Attorney (POA)
The authority that gives someone else the legal right to act for you. The title company can prepare this for you at no expense.
RE-10 Inspection Contingency Release Notice
This is submitted by the buyer, usually after a professional inspection is performed, with a list of items they would like repaired.
RE-11 Addendum
Any additions to the Purchase & Sale Agreement.
RE-13 Counter Offer
A Counter Offer is a revision to a previous offer or counter offer. The most recent counter offer supersedes all previous counter offers. Anything mentioned on previous counter offers that is not in the original purchase and sale agreement must be indicated on the most recent counter offer or those items will not be enforceable.
RE-16 Exclusive Seller Representation Agreement
This form lists the term of the agreement, brokerage fee, authorizes the agent to perform certain services (MLS, Lockbox, Advertising), items included and excluded from the sale, type of representation, etc.
RE-21 Real Estate Purchase and Sale Agreement
Received from buyer / buyer’s agent as an offer to purchase the seller’s house.
RE-25 Seller’s Property Disclosure Form
This form is filled out by the seller, to the best of their knowledge, regarding the condition of their house.
Realtor
Not all real estate agents are Realtors. A Realtor is a member of the NAR (National Association of Realtors). Members of NAR have access to MLS, pay dues and
adhere to a strict code of ethics that protect the public.
Residential Data Form
All information about the seller’s house that will be put into MLS.
Selling Agent (buyer’s agent)
The real estate agent working with the buyers.
