Real Estate Terms

The following are some common real estate terms used by buyers, sellers, brokers, real estate agents, bankers, and other professionals involved in the real estate transaction process. Check my blog frequently for more terms. If you have any questions about buying or selling real estate, contact Jennifer today at Panama City Real Estate or 800-728-0853

Disclosure laws:
State and federal regulations which require sellers to disclose such conditions as whether a house is located in a flood plain or whether there are known defects in or affecting the property.

Earnest Money Deposit:
EMD, A portion of a down payment given to the seller by a potential buyer indicating the buyer’s intent to complete the purchase of the property.

Easement:
A right to use the land of another.

Encroachment:
A condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements, unpaid taxes, etc.

Equity:
The value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value.

Equity mortgage:
A mortgage based on the borrowers’ equity in their home rather than on their credit worthiness.

Escrow:
The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specified act or condition.

Federal Housing Administration (FHA):
An agency within the Department of Housing and Urban Development (HUD) that administers loan guarantee programs and loan insurance programs to make more housing available.