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1031 Exchange
A 1031 exchange is a tax-deferral strategy that lets you sell an investment property and...
1031 Exchange Basics
A 1031 exchange lets you sell an investment property and defer the capital gains tax...
1031 Exchange Overview
A 1031 exchange lets you sell an investment property and defer all capital gains taxes...
A
Abstract Of Title
An abstract of title is the complete documented history of a property’s ownership — every...
Actual Cash Value
Actual cash value (ACV) is what your property or belongings are worth today after subtracting...
Addendum
An addendum is a document added to your purchase agreement that introduces new terms or...
Adverse Possession
Adverse possession is the legal principle that allows someone to claim ownership of land they’ve...
Amendment
An amendment is a formal change to your existing purchase agreement — it modifies terms...
Amortization
Amortization is how your mortgage payment gets split between interest and principal each month —...
Application Fee
A rental application fee is the non-refundable charge a landlord collects to run your background...
Appraisal
An appraisal is a licensed professional’s opinion of what your home is actually worth —...
Appraisal Gap
An appraisal gap is the difference between what you agreed to pay for a home...
Appreciation
Appreciation is when your property goes up in value over time — and historically, it’s...
APR
APR, or Annual Percentage Rate, is the true yearly cost of your mortgage expressed as...
ARM
An adjustable-rate mortgage (ARM) starts with a lower fixed interest rate for an introductory period...
As Is Sale
An as-is sale means the seller is selling the home in its current condition —...
Assignment
Assignment in real estate means transferring your rights under a purchase contract to someone else...
B
Backup Offer
A backup offer is your bid on a home that’s already under contract with another...
Balloon Payment
A balloon payment is a massive lump sum due at the end of a loan...
Bank Owned Property
A bank-owned property is a home the lender repossessed after the previous owner defaulted on...
Best And Final Offer
A best and final offer is the seller’s way of asking all competing buyers to...
Binder
A binder in real estate is a preliminary agreement that holds a property while the...
BRRRR Method
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — it’s a strategy that lets you...
Building Permit
A building permit is official approval from your local government to start construction or renovation...
Buydown
A temporary buydown is a financing arrangement where someone (usually the seller or builder) pays...
Buyers Agent
A buyer’s agent is a real estate agent who represents you — the buyer —...
Buyers Market
A buyer’s market happens when there are more homes for sale than there are people...
C
Cap Rate
Cap rate — short for capitalization rate — is the annual return a property would...
Capital Gains Tax Real Estate
Capital gains tax on real estate is the IRS taking a cut of your profit...
Cash Flow
Cash flow is the money left in your pocket after every expense tied to a...
Cash Offer
A cash offer means the buyer is paying for your home without a mortgage —...
Cash On Cash Return
Cash-on-cash return measures how much cash income you earn relative to the actual cash you...
Cash Out Refinance
A cash-out refinance replaces your existing mortgage with a larger one and gives you the...
CC&Rs
CC&Rs (Covenants, Conditions & Restrictions) are the legally binding rules that govern what you can...
Certificate Of Occupancy
A certificate of occupancy (CO) is a document from your local building department confirming that...
Chain Of Title
Chain of title is the complete history of every person or entity that has ever...
Change Order
A change order is a formal modification to your construction contract — changing materials, scope,...
Clear Title
A clear title means there are no liens, disputes, or legal claims against a property...
Closing Agent
A closing agent is the neutral third party who handles all the paperwork, money transfers,...
Closing Costs
Closing costs are the fees and charges you pay on top of your home’s purchase...
Closing Disclosure
The Closing Disclosure is a five-page document your lender must send you at least three...
Cloud On Title
A cloud on title is any unresolved claim, lien, or document that raises doubt about...
CMA
A CMA — comparative market analysis — is the report your agent puts together to...
Co Signer
A co-signer is someone who signs your lease alongside you and agrees to pay your...
Commission Real Estate
Real estate commission is the percentage of the sale price that goes to the agents...
Comparative Market Analysis
A comparative market analysis (CMA) is a report your real estate agent puts together showing...
Condemnation
Condemnation is the legal process the government uses to take your property through eminent domain...
Conforming Loan
A conforming loan is a mortgage that meets the size limits and underwriting guidelines set...
Constructive Eviction
Constructive eviction is when your landlord makes your apartment so unlivable that you’re essentially forced...
Contingency
A contingency is a condition in your purchase contract that must be met before the...
Conventional Loan
A conventional loan is any mortgage that isn’t backed by a government agency like the...
Correspondent Lender
A correspondent lender originates and funds your mortgage using their own money, then sells the...
Cost Segregation
Cost segregation is a tax strategy that reclassifies parts of your building into shorter depreciation...
Counteroffer
A counteroffer is the seller’s response when they don’t accept your offer as-is — they...
Credit Check Rental
A rental credit check is when your landlord pulls your credit report to see how...
D
Days On Market
Days on market (DOM) is the scoreboard every seller watches — it counts how many...
Debt Service
Debt service is the total amount of money you owe in loan payments over a...
Deductible Insurance
Your homeowners insurance deductible is the amount you pay out of pocket before your insurance...
Deed
A deed is the legal document that transfers ownership of real property from one person...
Deed Of Trust
A deed of trust is a three-party agreement where you (the borrower) give a neutral...
Depreciation Real Estate
Depreciation in real estate is a tax deduction that lets you write off the cost...
Direct Lender
A direct lender is any bank, credit union, or online company that funds your mortgage...
Discount Broker
A discount broker is a licensed real estate agent who charges less than the standard...
Documentary Stamp Tax
Documentary stamp tax is Florida’s version of a transfer tax — it’s charged when the...
Down Payment
Your down payment is the chunk of cash you pay upfront when buying a home...
DTI
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward...
Dual Agency
Dual agency is when one real estate agent (or brokerage) represents both the buyer and...
Due Diligence Period
The due diligence period is the window of time after your offer is accepted where...
Dwelling Coverage
Dwelling coverage (Coverage A) is the core of your homeowners insurance — it pays to...
E
Early Termination Clause
An early termination clause is the section of your lease that spells out exactly how...
Earnest Money
Earnest money is the cash you put down to prove you’re serious about buying a...
Easement
An easement gives someone else the legal right to use a portion of your property...
EMD
EMD stands for Earnest Money Deposit — it’s the upfront cash you put down when...
Eminent Domain
Eminent domain is the government’s power to take your private property for public use —...
Encroachment
An encroachment happens when a structure, fence, or improvement from one property extends onto a...
Encumbrance
An encumbrance is any legal claim, restriction, or liability attached to your property that limits...
Equity
Equity is the portion of your property that you actually own — the difference between...
Escalation Clause
An escalation clause automatically raises your offer above competing bids up to a maximum price...
Escrow
Escrow is a neutral third-party account that holds money during a real estate transaction —...
Escrow Account
An escrow account is a special holding account your mortgage servicer manages to pay your...
Eviction Process
The eviction process is the legal procedure a landlord must follow to remove you from...
Exclusive Right To Sell
An exclusive right-to-sell agreement is the most common listing contract in real estate, and it...
Expired Listing
An expired listing is a property that didn’t sell before the listing agreement ran out...
F
Fair Housing Act
The Fair Housing Act is the federal law that makes it illegal for landlords, sellers,...
FHA Loan
An FHA loan is a government-insured mortgage designed for borrowers who don’t have perfect credit...
FHA Loan Buying
An FHA loan is a mortgage insured by the Federal Housing Administration that lets you...
FICO Score
A FICO score is a three-digit number (300-850) that lenders use to evaluate your creditworthiness...
First Time Homebuyer Programs
First-time homebuyer programs are government and state-backed deals that offer lower down payments, reduced interest...
Fix And Flip
Fix and flip is buying a distressed property, renovating it, and selling it for a...
Fixed Rate Mortgage
A fixed-rate mortgage locks in the same interest rate for the entire life of the...
Flat Fee Mls
Flat-fee MLS is a service where you pay a one-time fee — usually $100 to...
Float Down
A float-down option lets you snag a lower interest rate if the market drops after...
Flood Insurance
Flood insurance is a separate policy that covers water damage from rising water, storm surge,...
Forbearance
Mortgage forbearance is an agreement with your lender to temporarily reduce or pause your monthly...
Foreclosure
Foreclosure is the legal process a lender uses to take back a property when the...
Foundation Types
The foundation is literally what your entire house sits on, and the type of foundation...
FSBO
FSBO — “for sale by owner” — means you’re selling your home without a listing...
G
General Contractor
A general contractor (GC) is the person who manages your entire construction or renovation project...
Good Faith Estimate
A Good Faith Estimate (GFE) was a document lenders used to give you showing estimated...
Grant Deed
A grant deed transfers property ownership with two basic promises — the seller hasn’t already...
Gross Rent Multiplier
The Gross Rent Multiplier is a quick-and-dirty way to compare rental properties — think of...
Guarantor
A guarantor is someone who agrees to cover your rent if you default, but unlike...
H
Habitability
Habitability is the legal standard that says your rental must be safe and livable —...
Hazard Insurance
Hazard insurance is the portion of your homeowners policy that specifically covers physical damage to...
HELOC
A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your...
HOA
An HOA (Homeowners Association) is a private governing body that creates and enforces rules for...
Home Equity
Home equity is the dollar amount of your house that belongs to you free and...
Home Inspection
A home inspection is a top-to-bottom examination of a property’s physical condition, done by a...
Home Sale Contingency
A home sale contingency makes your offer to buy a new home conditional on selling...
Home Staging
Home staging is the art of making your house look like nobody actually lives there...
Home Warranty
A home warranty is a service contract that covers the repair or replacement of major...
Homeowners Insurance
Homeowners insurance is a policy that protects your home and belongings against damage, theft, and...
Homestead Exemption
A homestead exemption reduces the taxable value of your primary residence, directly lowering your annual...
House Hacking
House hacking is living in one part of a property while renting out the rest...
HUD (Department of Housing and Urban Development)
HUD is the federal agency overseeing national housing policy, FHA mortgage insurance, fair housing enforcement,...
I
Ibuyer
An iBuyer is a company that uses algorithms to make you an instant cash offer...
Impound Account
An impound account is just another name for an escrow account — it’s a holding...
Interest
Interest is the cost of borrowing money — it’s the fee your lender charges for...
Interest Rate
Your mortgage interest rate is the percentage your lender charges you each year to borrow...
Internal Rate Of Return IRR
Internal Rate of Return — IRR — is the annualized percentage return an investment earns...
J
K
L
Last Months Rent
Last month’s rent is an upfront payment that covers your final month in the apartment...
Lead Based Paint Disclosure
If your home was built before 1978, federal law requires you to disclose the potential...
Lease Agreement
A lease agreement is the legally binding contract between you and your landlord that spells...
Lease Break Fee
A lease break fee is the penalty you pay to end your lease early —...
Legal Description
A legal description is the precise, standardized way your property’s boundaries are defined in legal...
Letter Of Intent
A letter of intent (LOI) is a written outline of the basic terms you’d offer...
Leverage Real Estate Investing
Leverage in real estate investing means using borrowed money to control a property worth far...
Liability Coverage
Liability coverage is the part of your homeowners insurance that pays when someone gets injured...
Lien
A lien is a legal claim on your property that says someone else has a...
Lis Pendens
A lis pendens is a public notice filed in the county records that warns everyone:...
Listing Agreement
A listing agreement is the contract you sign with a real estate agent that gives...
Listing Price
Your listing price is the number on the sign — the amount you’re telling the...
Load Bearing Wall
A load-bearing wall is a wall that holds up the weight of the structure above...
Loan Estimate
A Loan Estimate is a standardized three-page document every mortgage lender must give you within...
Loan Modification
A loan modification permanently changes the terms of your existing mortgage to make payments more...
Loss Of Use Coverage
Loss of use coverage (Coverage D) pays your additional living expenses when a covered disaster...
Lot Size
Lot size is the total land area your property sits on, measured in square feet...
LTV
Loan-to-value ratio (LTV) compares how much you’re borrowing against how much your home is worth...
M
Market Value
Market value is the price a property would sell for on the open market under...
Mechanics Lien
A mechanics’ lien is a legal claim that contractors, subcontractors, or suppliers can file against...
MIP
Mortgage Insurance Premium (MIP) is the insurance charge on FHA loans that protects the lender...
MLS (Multiple Listing Service)
MLS stands for Multiple Listing Service — a database where agents share property listings so...
Modular Home
A modular home is a house built in sections at a factory, trucked to your...
Month To Month Lease
A month-to-month lease is a rental agreement that automatically renews every 30 days, giving both...
Mortgage Banker
A mortgage banker is a financial institution that originates, funds, and often services home loans...
Mortgage Broker
A mortgage broker is a licensed middleman who shops your loan application across multiple lenders...
Mortgage Insurance Overview
Mortgage insurance is an extra monthly premium you pay to protect your LENDER (not you)...
Mortgage Lien
A mortgage lien is a legal claim your lender places on your property as collateral...
Mortgage Note
A mortgage note is the legal document you sign at closing that says “I promise...
Mortgage Servicer
Your mortgage servicer is the company that collects your monthly payments, manages your escrow account,...
Multiple Offers
Multiple offers means two or more buyers have submitted bids on the same property at...
Municipal Water
Municipal water is the public water supply provided by your city or county — treated,...
N
Net Listing
A net listing is an arrangement where you tell your agent “I want $X for...
Net Proceeds
Net proceeds are what you actually take home after selling your house — the sale...
NOI Net Operating Income
Net Operating Income — NOI for short — is the profit a property generates before...
Non QM Loan
A non-QM loan is a mortgage that doesn’t meet the Consumer Financial Protection Bureau’s “Qualified...
O
Off Market Sale
An off-market sale happens when a home changes hands without ever being publicly listed —...
Open Listing
An open listing lets you hire as many real estate agents as you want at...
Option Period
An option period is a set number of days after your contract is signed where...
Origination Fee
An origination fee is what your lender charges to process, underwrite, and fund your mortgage...
Owner Financing
Owner financing is just another name for seller financing — you sell your property and...
P
Par Rate
The par rate is the base interest rate a lender offers with zero discount points...
Passive Income Real Estate
Passive income from real estate is money that shows up in your bank account without...
Personal Property Coverage
Personal property coverage (Coverage C) is the part of your homeowners insurance that protects your...
Pet Deposit
A pet deposit is an upfront fee your landlord charges specifically to cover potential damage...
PITI
PITI stands for Principal, Interest, Taxes, and Insurance — it’s your total monthly housing payment,...
Plat Map
A plat map is an official, recorded drawing that shows how a piece of land...
PMI
Private mortgage insurance (PMI) is a monthly premium you pay to protect your lender —...
Pocket Listing
A pocket listing is a home for sale that never hits the MLS — the...
Points
Discount points are upfront fees you pay at closing to permanently reduce your mortgage interest...
Possession Date
The possession date is the day you actually get the keys and can move into...
Power Of Attorney Real Estate
A power of attorney in real estate lets someone else sign documents and make decisions...
Pre Approval
Mortgage pre-approval is a lender’s verified confirmation that you qualify to borrow a specific amount...
Pre Approval Vs Pre Qualification
Pre-approval and pre-qualification sound like the same thing, but they carry very different weight —...
Pre Qualification
Pre-qualification is a quick estimate of how much mortgage you might qualify for — it’s...
Premium Insurance
Your insurance premium is the amount you pay — monthly or annually — to keep...
Prepayment Penalty
A prepayment penalty is a fee your lender charges if you pay off your mortgage...
Price Reduction
A price reduction is exactly what it sounds like — you’re lowering your asking price...
Principal
Principal is the actual amount of money you borrowed to buy your house — it’s...
Probate Real Estate
Probate real estate refers to property that must go through the court-supervised probate process after...
Promissory Note
A promissory note is a legally binding written promise to repay borrowed money — in...
Proof Of Funds
Proof of funds is a document showing a buyer actually has the cash they claim...
Property Condition Report
A property condition report is a standardized form where you document the current state of...
Property Tax Assessment
A property tax assessment is your local government’s official valuation of your home for the...
Punch List
A punch list is the final checklist of defects, unfinished items, and touch-ups that need...
Purchase Agreement
A purchase agreement is the legally binding contract between you and the seller that spells...
Q
R
Rate And Term Refinance
A rate-and-term refinance replaces your current mortgage with a new one that has a different...
Rate Lock
A rate lock is a lender’s written guarantee that your mortgage interest rate won’t change...
Ratification
Ratification is the moment both buyer and seller have signed the purchase agreement and all...
Real Estate Crowdfunding
Real estate crowdfunding lets you invest in properties starting at $10 to $1,000 through online...
Real Estate Partnership
A real estate partnership is when two or more people combine money, skills, or both...
Real Estate Portfolio
A real estate portfolio is your collection of investment properties — and how you build,...
Refinancing
Refinancing means replacing your current mortgage with a new one — usually to get a...
REITs
A REIT — Real Estate Investment Trust — is a company that owns income-producing real...
Rent Back Agreement
A rent-back agreement lets you sell your home and then stay in it as a...
Rent Control
Rent control is a government-imposed cap on how much a landlord can charge for rent...
Rent Stabilization
Rent stabilization is a softer version of rent control that limits annual rent increases to...
Rental Property Analysis
Rental property analysis is the process of running the numbers on a potential investment before...
Rental Yield
Rental yield is the annual return a property generates from rent alone, expressed as a...
REO
REO stands for Real Estate Owned — it’s a property that a bank or lender...
Replacement Cost
Replacement cost is the amount it would take to rebuild your home or replace your...
RESPA
RESPA — the Real Estate Settlement Procedures Act — is a federal law that protects...
Reverse Mortgage
A reverse mortgage lets homeowners aged 62 or older convert their home equity into cash...
Riders Endorsements
Riders and endorsements are add-ons to your homeowners insurance policy that extend or modify your...
Right Of Way
A right-of-way is a specific type of easement that gives someone the legal right to...
S
Security Deposit
A security deposit is money you hand over before moving in that your landlord holds...
Seller Concession
A seller concession is when you agree to cover some of the buyer’s costs —...
Seller Disclosure
A seller disclosure is a form where you list everything that’s wrong with your home...
Seller Financing
Seller financing means you — the homeowner — act as the bank and let the...
Sellers Agent
A seller’s agent (also called a listing agent) is the real estate professional who represents...
Sellers Market
A seller’s market is when buyer demand outpaces the number of homes for sale —...
Septic System
A septic system is a private underground wastewater treatment setup that handles your home’s sewage...
Setback
A setback is the minimum distance your local zoning code requires between your building and...
Setback Requirements
Setback requirements are the minimum distances your structure must sit from property lines, roads, and...
Settlement Agent
A settlement agent is the person who runs the closing table — they’re basically the...
Short Sale
A short sale is when a homeowner sells their property for less than what they...
Spec Home
A spec home (speculative home) is a house a builder constructs without a specific buyer...
Special Assessment
A special assessment is a one-time charge your HOA or local government hits you with...
Special Warranty Deed
A special warranty deed guarantees that the seller didn’t cause any title problems during the...
Square Footage
Square footage (or gross living area) is the total finished, livable floor space in a...
Subject To
A “subject to” deal means you’re buying a property while the seller’s existing mortgage stays...
Sublease
A sublease is when you rent out your apartment to someone else while your name...
Subordination
Subordination is a legal agreement that rearranges the priority of liens on your property —...
Survey
A property survey is a professional measurement and mapping of your lot’s exact boundaries, structures,...
Syndication
A real estate syndication is when a group of investors pool their money to buy...
T
Tax Lien
A tax lien is the government’s legal claim on your property when you fail to...
Tenant Screening
Tenant screening is the background check process landlords use to decide if you’ll pay rent...
Tenant Turnover
Tenant turnover is what happens when a renter moves out and you have to find...
Title
Title is your legal right to own, use, and sell a piece of real estate...
Title Commitment
A title commitment is the title company’s promise to issue you a title insurance policy...
Title Disputes
A title dispute is any legal conflict over who actually owns a piece of property...
Title Insurance
Title insurance protects you from losing your home (or a chunk of money) because of...
Title Insurance Detailed
Title insurance is a one-time policy that protects you from financial loss if someone challenges...
Title Search
A title search is a deep look at public records to make sure the person...
Transfer Tax
Transfer tax is a fee charged by your state, county, or city when property changes...
Triple Net Lease NNN
A triple net lease — written as NNN in listings — is a commercial lease...
Turnkey Property
A turnkey rental property is one that’s already renovated, tenanted, and managed — you buy...
U
Umbrella Policy
An umbrella policy is extra liability insurance that kicks in when your homeowners or auto...
Underwriting
Underwriting is the behind-the-scenes process where a lender’s risk team dissects your finances, employment, credit...
USDA Loan
A USDA loan is a zero-down-payment mortgage backed by the U.S. Department of Agriculture for...
V
VA Loan
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs that...
Vacancy Rate
Vacancy rate tells you what percentage of a rental property’s available units are sitting empty...
Variance
A variance is official permission from your local zoning board to break a zoning rule...
Virtual Staging
Virtual staging uses software to digitally add furniture and decor to photos of empty rooms...
W
Walkthrough
A walkthrough (or final walk-through) is your last chance to inspect the home before closing...
Warranty Deed
A warranty deed is the gold standard of property transfers — it guarantees that the...
Well Water
Well water comes from a private well drilled on your property that taps into underground...
Wholesaling
Wholesaling is finding deeply discounted properties, putting them under contract, and then selling that contract...