Real Estate - Chapter 4

Addendum

Expressly lists those conditions and contingencies the buyer wishes to exercise.

Contingency

A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes building; a condition of the contract.

Major Defect

A defect that that exceeds $1,000 or more such as a major system defect or foundation problem.

Rider

Special terms, conditions and situations affecting the loan that are not present in the main mortgage document.

Zoning Variance

A variance is the process by which an applicant can request deviation from the set of rules a municipality applies to land use and land development, typically a zoning ordinance, building code or municipal code. The manner in which variances are employed can differ greatly depending on the municipality.

Condition Precedent

An event which has to occur or achieved (e.g. mortgage financing) before a contract comes to fruition.

Mortgage

A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.

Right of First Refusal

created when a property owner promises to give the contracting party the first chance to buy the property or to match the bona fide offer of a third party, should the owner decide to sell.

Endorsement

An endorsement is a rider attached to a
Mortgage or an Owner policy to expand or
limit the policy coverage.

Home Inspection

Requested by the buyer to be apprised of the home's condition, especially structure and major systems.