Real Estate is full of its own unique language. Knowing the terminology can help you understand what you’re buying, selling, or leasing. At Prestige Properties, we want you to feel confident in real estate terminology. Here are some important terms in real estate that you might come across in your buying or selling journey.
Acreage: Acreage is a measurement of land area, equal to 43,560 square feet, or 43,560 square yards. Acreage is commonly used to measure the size of a lot or parcel of land. It is sometimes used to refer to the total area of a tract of land, including any buildings and other improvements.
Appraisal: An opinion of a property's market value, determined by a professional appraiser.
Closing Costs: Expenses incurred by buyers and sellers when transferring ownership of a property. Examples include title insurance, attorney fees, loan origination fees, and transfer taxes.
Cosigner: A cosigner is someone who agrees to take full legal responsibility for a loan or other debt if the primary borrower fails to repay it. When someone applies for a home loan, the lender will usually require a cosigner in order to approve the loan. The cosigner has the same legal responsibility for the loan as the primary borrower. This means that late payments or defaults will appear on both the primary borrower’s and the cosigner’s credit report, and the cosigner can be sued if the loan is not repaid. In addition, the cosigner’s income will be taken into consideration when determining the loan amount and other loan terms.
Depreciation: A decrease in the value of an asset over time.
Escrow: Money and documents held in trust by a third party during a real estate transaction. Escrow is typically used to ensure that the buyer and seller fulfill their legal obligations before the sale is complete.
Foreclosure: Foreclosure is the legal process by which a lender takes ownership of a property when the borrower fails to make payments on their loan. Foreclosures are typically used when a borrower is in default on their loan and the lender wants to take possession of the property to sell it in order to recover their losses.
Lease: A contract that outlines the terms of a rental agreement between a landlord and tenant.
Lien: A lien is a legal claim against a property that a creditor has in order to secure a debt or payment. The most common type of lien is a mortgage lien, which is placed on a property by a lender in order to secure a loan.
Mortgage: A loan used to purchase a property. The lender holds a lien on the property until the loan is repaid.
Property Tax: Taxes that are assessed on a property to fund local services and projects.
Real Estate Agent: A professional who is licensed to represent buyers and sellers in real estate transactions. Agents work with lenders, appraisers, and title companies to facilitate the sale of a property.
Title: A legal document that grants the owner of a property the right to possess and use the land.
Zoning: Local laws that determine how a piece of land can be used. Zoning regulations can limit the size of buildings, determine the types of activities that are allowed, and determine the type of structures that can be built.
How We Can Help!
Prestige Properties in Auburn, Alabama is a premier real estate company dedicated to providing exceptional service to our clients. Our team of professionals has the knowledge and expertise to meet the needs of any buyer or seller. Whether you are looking to buy or sell a home or commercial property, or have a question about the market, Prestige Properties is here to help. Contact us today!