housing vocab

abstract

brief legal history of a property

amortization

decrease in principal by payment on the loan

appraisal

evaluation of a property by an authorized person

appreciation

increase in value

assessment

taxes added to a property on which improvement have been made

broker/realtor

person who negotiates contracts in the sale of a property

closing

the final step in the sale of a property

commission

fee paid to a realtor when they sell a property

contract for deed

buyer makes payments get ownership when certain amount is paid

deed

document that transfers ownership

default

failure to make a payment when it is due

depreciation

decrease in a property’s value

earnest money

buyer puts down money, to show they are serious about buying a home

easement

legal right that gives someone, other than the owner to use a part of a property for a certain reason

lien

legal claim against a property, that must be paid when the property is sold

equity

owner’s financial interest in a property

escrow

money held by a 3rd party until a contract is complete

foreclosure

taking a property because of an unpaid debt

listing

placing a property for sale with a relator

mortgage

contract with a bank to pay for a property

plat

map that shows property lines

title

document that shows ownership