Many people may have heard the term ‘property manager’ before. Some people probably even work with them in the buildings that they live in. But what do these people do? What are their roles and responsibilities? Let’s find out!
For those who aren’t real estate professionals, understanding real estate terms can be very confusing and overwhelming. The terminology can make someone unfamiliar with the real estate industry have a very difficult time dealing with the process of selling, buying or renting a house. In order to help deal with this, check out this list of some of the most commonly used real estate terms and their definitions.
Adjustable-rate mortgage (ARM): A mortgage where the interest periodically changes based on corresponding fluctuations in an index.
Appraiser: An experienced person who has been educated and trained to estimate the value of property.
Assessor: A public official who established the value of a property for taxation purposes.
Contingency: A condition that must be met before a contract can be legally binding. A typical contingency on a contract is when homeowners specify that that contract isn’t binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
Credit: An agreement where a borrower receives something of value in exchange for the promise that they will repay the lender at a later date.
Default: The failure to make the mortgage payment within a specified period of time.
Equity: A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other possessions.
Escrow: An item of value, money, or documents deposited with a third party that is to be delivered upon the fulfillment of a condition.
Lease: A written contract between the property owner and a tenant. This stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.
Lock-in: An agreement where the lender guarantees a specified interest rate for a certain amount of time at a certain cost.
Mortgage: A legal document that pledges a property to the lender as security for payment of a debt.
Realtor: A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors.
Security: The property that will be pledged as collateral for a loan.
Title: A legal document evidencing a person’s right to or ownership of a property.