If you regularly follow our blog, then you know that we’ve been going through a list of common real estate terms, five at a time! There are so many real estate terms that surface during the buying and selling processes…it’s enough to make your head spin! (This is one of the reasons why it pays to employ the services of a licensed Realtor– read more about that in our previous post on the topic!) We thought we’d take a few terms at a time and give simple explanations for each, courtesy of National Association of Realtors (NAR) Real Estate Glossary. For the full list of the terms and definitions, click here! For the first five terms that we covered, click here!
Down payment: The amount of cash put toward a purchase by the borrower.
Dual agent: A state-licensed individual who represents both the seller and the buyer in a single transaction.
Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer’s good faith.
Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.
Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.