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Common Real Estate Terms

Common Real Estate Terms

Below is a break down of common words used in the real estate industry, courtesy of

Real Estate Ink, a full-service boutique brokerage in Melbourne, FL. Serving the entire Space Coast, we offer sales and leasing representation, property management, project development, and short-term rental services.

Appurtenance

Something attached to the land that’s part of the property; examples include an agreement not to block the view of a neighbor, or an easement to gain access across a neighbor’s land.

Assumption

This occurs when a buyer takes over payments for the seller’s mortgage. Generally, the borrower must qualify to assume the loan. However, not all mortgages are assumable.

Cloud on Title

This can be any condition that is found in a property title search that affects a property’s clear title. Examples include unpaid property taxes, improperly recorded easements, a misspelled address on a deed and pending lawsuits, which must be cleared by deed, court action, or release.

Earnest Money

A deposit made by the potential home buyer to show the seller they’re intent on buying the property.

Escrow

A time period during the real estate transaction when a neutral third party holds deposited money temporarily pending completion of the agreed terms of a sales contract. The neutral party assumes responsibility for handling all distributing funds and paperwork.

Mortgage Insurance

Mortgage insurance is referred to as MIP mortgage insurance premium.

PITI

The four parts of a monthly mortgage payment, which are: the loan’s principal amount, the loan’s interest, the amount in the escrow account to pay for property taxes and the building insurance.

Realtor

A real estate agent, associate, or broker who is an active member in a local real estate board, affiliated with the National Association of Realtors. Note that not all real estate agents are realtors.

Real Estate Ink is the boutique brokerage that Brevard County residents can trust. Buying and selling are very important transactions that will affect you for years down the road, and you can trust our team to work hard for you. We stand by you through the process of listing or buying your property, and making sure you understand the contracts and transactions.

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