The cost of a loan or other financing as an annual rate. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower is required to pay.

A professional analysis used to estimate the value of a property. This includes examples of sales of similar properties.

A professional who conducts an analysis of a property, including examples of sales of similar properties in order to develop an estimate of the value of a property. The analysis is called an appraisal.

An increase in the market value of a home due to changing market conditions or home improvements or both.

A process where disputes are settled by referring them to a fair and neutral third party (arbitrator). The disputing parties agree in advance to agree with the decision of the arbitrator. At an arbitration hearing, both parties have an opportunity to be heard, after which the arbitrator makes a decision.

A toxic material that was once used in housing insulation and fireproofing. Because some forms of asbestos have been linked to certain lung diseases, it is no longer used in new homes. However, some older homes may still have asbestos in these materials.

Typically the value placed on a property for the purpose of taxation.

A public official who establishes the value of a property for taxation purposes.

A document evidencing the transfer of ownership of a mortgage from one party to another.

The history of all of the documents that have transferred title to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Ownership that is free of liens, defects, or other legal encumbrances.

The process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as escrow, a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions.

The person or entity that coordinates the various closing activities, including the preparation and recordation of closing documents and the disbursement of funds. (May be referred to as an escrow agent or settlement agent in some jurisdictions.) Typically, the closing is conducted by title companies, escrow companies or attorneys.

The upfront fees charged in connection with a mortgage loan transaction. Money paid by a buyer (and/or seller or other third party, if applicable) to effect the closing of a mortgage loan, generally including, but not limited to, a loan origination fee, title examination and insurance, survey, attorney's fees, and prepaid items, such as escrow deposits for taxes and insurance.

The date on which the sale of a property is to be finalized and a loan transaction completed. Often, a real estate sales professional coordinates the setting of this date with the buyer, the seller, the closing agent, and the lender.

See HUD-1 Settlement Statement.

A binding offer from a lender that includes the amount of the mortgage, the interest rate, and repayment terms.

Those portions of a building, land, or improvements and amenities owned by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

An abbreviation for "comparable properties," which are used as a comparison in determining the current value of a property that is being appraised.

A unit in a multiunit building. The owner of a condominium unit owns the unit itself and has the right, along with other owners, to use the common areas but does not own the common elements such as the exterior walls, floors and ceilings or the structural systems outside of the unit; these are owned by the condominium association. Condominium association fees are usually assessed for building maintenance, property upkeep, taxes and insurance on the common areas and reserves for improvements.

A condition that must be met before a contract is legally binding. For example, home purchasers often include a home inspection contingency; the sales contract is not binding unless and until the purchaser has the home inspected.

A project in which a corporation holds title to a residential property and sells shares to individual buyers, who then receive a proprietary lease as their title.

The legal document transferring ownership or title to a property.

The transfer of title from a borrower to the lender to satisfy the mortgage debt and avoid foreclosure. Also called a "voluntary conveyance."

A legal document in which the borrower transfers the title to a third party (trustee) to hold as security for the lender. When the loan is paid in full, the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt.

A right to the use of, or access to, land owned by another.

The intrusion onto another's property without right or permission.

Any claim on a property, such as a lien, mortgage or easement

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

An account that a mortgage servicer establishes on behalf of a borrower to pay taxes, insurance premiums, or other charges when they are due. Sometimes referred to as an "impound" or "reserve" account.

The accounting that a mortgage servicer performs to determine the appropriate balances for the escrow account, compute the borrower's monthly escrow payments, and determine whether any shortages, surpluses or deficiencies exist in the account.

The legal act of removing someone from real property.

Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood hazard zones.

A legal action that ends all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage.

The loss of money, property, rights, or privileges due to a breach of a legal obligation.

A person who oversees a home improvement or construction project and handles various aspects such as scheduling workers and ordering supplies.

A form required by the Real Estate Settlement Procedures Act (RESPA) that discloses an estimate of the amount or range of charges, for specific settlement services the borrower is likely to incur in connection with the mortgage transaction.

Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other covered hazards or natural disasters.

A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation, and pest infestation.

A policy that protects the homeowner and the lender from fire or flood, which damages the structure of the house; a liability, such as an injury to a visitor to the home; or damage to personal property, such as furniture, clothes or appliances.

Insurance offered by a seller that covers certain home repairs and fixtures for a specified period of time.

An organization of homeowners residing within a particular area whose principal purpose is to ensure the provision and maintenance of community facilities and services for the common benefit of the residents.

A final listing of the closing costs of the mortgage transaction. It provides the sales price and down payment, as well as the total settlement costs required from the buyer and seller.

A lien on the property of a debtor resulting from the decree of a court.

An option sometimes used by sellers to rent a property to a consumer, who has the option to buy the home within a specified period of time. Typically, part of each rental payment is put aside for the purpose of accumulating funds to pay the down payment and closing costs.

Insurance coverage that protects property owners against claims of negligence, personal injury or property damage to another party.

A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you don't make the mortgage payments.

The current value of a home based on what a purchaser would pay. An appraisal is sometimes used to determine market value.

A transaction in which the property seller provides all or part of the financing for the buyer's purchase of the property.

A legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.

A document that details the price and conditions for a transaction. In connection with the sale of a residential property, the agreement typically would include: information about the property to be sold, sale price, down payment, earnest money deposit, financing, closing date, occupancy date, length of time the offer is valid, and any contingencies.

A contract that shows both the buyer and the seller of the house have agreed to an offer. This offer may include sales contingencies, such as obtaining a mortgage of a certain type and rate, getting an acceptable inspection, making repairs, closing by a certain date, etc.

A federal law that requires lenders to provide home mortgage borrowers with information about transaction-related costs prior to settlement, as well as information during the life of the loan regarding servicing and escrow accounts. RESPA also prohibits kickbacks and unearned fees in the mortgage loan business.

Land and anything permanently affixed thereto, including buildings, fences, trees, and minerals.

The public official who keeps records of transactions that affect real property in the area. A Recorder is sometimes known as a "Registrar of Deeds" or "County Clerk."

The filing of a lien or other legal documents in the appropriate public record.

The cancellation or annulment of a transaction or contract by operation of law or by mutual consent. Borrowers have a right to cancel certain mortgage refinance and home equity transactions within three business days after closing, or for up to three years in certain instances.

A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.

A transaction in which the buyer leases the property back to the seller for a specified period of time.

The process of completing a loan transaction at which time the mortgage documents are signed and then recorded, funds are disbursed, and the property is transferred to the buyer (if applicable). See also Closing.

A document that lists all closing costs on a consumer mortgage transaction.

A precise measurement of a property by a licensed surveyor, showing legal boundaries of a property and the dimensions and location of improvements.

Funds collected as part of the borrower's monthly payment and held in escrow for the payment of the borrower's, or funds paid by the borrower for, state and local property taxes and insurance premiums.

An inspection to determine whether a property has termite infestation or termite damage. In many parts of the country, a home must be inspected for termites before it can be sold.

The right to, and the ownership of, property. A title or deed is sometimes used as proof of ownership of land.

Insurance that protects lenders and homeowners against legal problems with the title.

A review of the public records to ensure that the seller is the legal owner of the property and to identify any liens or claims against the property.

State or local tax payable when title to property passes from one owner to another.

A common clause in a sales contract that allows the buyer to examine the property being purchased at a specified time immediately before the closing, for example, within the 24 hours before closing.

Written guarantees of the quality of a product and the promise to repair or replace defective parts free of charge.