Basic Real Estate Terms

The More You Know.

1. Pre-Approval: Preliminary evaluation of a potential borrower by a lender to ensure applicant meets minimum requirements.

2. MLS: Stands for 'Multiple Listing Service'.

3. Buyers Agency: The agency relationship that exists between a buyer principal and his or her buyer's agent.

4. Consumer Notice: Explains the different duties and responsibilities that an agent has to consumers, and that consumers may enter into an agency relationship with a licensee.

5. Earnest Deposit: "Good Faith Deposit" is a sum of money that is included with your offer to show the seller you're serious about buying.

6. Down Payment: An initial up front partial payment for a larger purchase.

7. Inspection Contingency: Gives the buyer the right to have the property inspected in a specified time period.

8. Closing Costs: The expenses over and above the property's price that buyers and sellers incur to complete a real estate transaction.

9. AOS (Agreement of Sale): A contract that defines the terms and conditions of the sale of real estate by a seller to a buyer.

10. FHA (Federal Housing Administration): A mortgage that is insured by the FHA and issued by a bank or other approved lender.