A rough screen saying monthly rent should be at least 1% of the purchase price. It is a quick filter, not a full analysis, and is hard to meet in many high-priced markets.

Also called: one percent rule, 1 percent rule, 2% rule

A federal tax rule that lets an investor defer capital gains tax by selling an investment property and buying another under strict timelines and rules. Talk to a tax pro first.

Also called: like-kind exchange, Starker exchange, tax-deferred exchange, 1031

An IRS form the closing agent files to report the seller's gross proceeds from a real estate sale. Some home sales are exempt from reporting if the seller certifies they qualify.

Also called: form 1099-S, proceeds from real estate transactions

An owner who does not live at the property, such as a landlord in another city. Investors often target absentee owners when looking for off-market deals.

Also called: absentee landlord, out-of-state owner, non-owner occupied

How fast homes are selling in an area, often shown as the share of current listings that sell in a month. Higher rates point to a seller's market.

Also called: sales rate

A second, smaller home on the same lot as a main house, such as a garage apartment or backyard cottage. Local zoning decides whether you can build or rent one.

Also called: ADU, granny flat, in-law suite, casita, backyard cottage

A home that is currently for sale and taking offers. It has not yet gone under contract with a buyer.

Also called: active, for sale, on the market

An extra document attached to the contract, usually when it is first signed, that adds terms or details. Common ones cover lead paint, HOA rules or a home sale contingency.

Also called: addenda, contract addendum, rider

A mortgage with a fixed rate for an initial period, then a rate that resets at set intervals based on an index plus a margin. Caps limit how much it can change. Payments can rise after the fixed period.

Also called: ARM, variable rate mortgage, 5/1 ARM, 7/1 ARM

Dollar amounts an appraiser adds to or subtracts from a comp's price to account for differences like an extra bedroom, a garage, or a pool.

Also called: appraisal adjustments, comp adjustments

The estimated market value of a property once planned repairs are done. Flippers and hard money lenders use it to set offer prices and loan amounts.

Also called: ARV, after repair value

A form that tells a buyer or seller who the agent works for. Most states require it at or before the first real conversation about a property.

Also called: agency relationship disclosure, agency form

Company stock some public brokerages give agents for milestones like a first deal or capping. Some also let agents buy stock with part of each commission at a discount.

Also called: agent equity, stock awards, agent ownership, equity program

A signed change to a contract that is already in effect, such as a new closing date or lower price. It must be signed by both sides to count.

Also called: contract amendment, change to contract

Paying off a loan through regular payments over a set term. Early payments go mostly to interest; later ones go mostly to principal. An amortization schedule shows that split for every payment.

Also called: amortization schedule, amortizing

A large, well-known tenant, such as a grocery store, that draws traffic to a shopping center and helps smaller tenants. Anchors often get lower rents, and their departure can hurt the whole center.

Also called: anchor, anchor store, major tenant

A licensed appraiser's professional opinion of what a home is worth. Lenders require one to make sure the home supports the loan amount.

Also called: home appraisal, appraisal report, URAR

A contract term that lets the buyer renegotiate or cancel if the home appraises below the purchase price. It matters most when a lender bases the loan amount on the appraised value.

Also called: appraisal clause

A promise by the buyer to pay some or all of the difference in cash if the appraisal comes in below the price. It makes an offer stronger but means bringing more money to closing.

Also called: appraisal gap, appraisal gap guarantee, gap coverage

When a lender agrees to skip the appraisal, usually because automated data supports the value. It is different from a buyer waiving the appraisal contingency.

Also called: PIW, property inspection waiver, value acceptance

The value the appraiser puts on the home in the report. Lenders base the loan on the lower of this number and the purchase price.

Also called: appraisal value, appraised price

A state-licensed or certified professional who estimates property values. For mortgages, the lender orders the appraisal so the appraiser stays independent of the buyer and seller.

Also called: licensed appraiser, certified appraiser

An increase in a property's value over time from market growth or improvements. It is not guaranteed and is realized only when you sell or refinance.

Also called: home value growth, value appreciation, forced appreciation

The yearly cost of a loan including the interest rate plus certain fees, such as points and origination charges. It is usually higher than the interest rate and makes it easier to compare offers from different lenders.

Also called: annual percentage rate

A sale where the seller will not make repairs. Buyers can usually still inspect, and seller disclosure duties still apply in most states.

Also called: as is, sold as-is, as-is condition

A mineral once common in insulation, flooring, and siding. It is mainly a hazard when disturbed, so testing matters before renovating older homes.

The value a local tax assessor assigns to a property to calculate property taxes. It often differs from market value and is not a reliable guide to price.

Also called: tax assessed value, assessment value, tax value

Transferring a buyer's rights in a purchase contract to someone else, often for a fee. The contract must allow assignment, and some loans and states limit it.

Also called: contract assignment, assignment fee, assignable contract

A mortgage a buyer can take over from the seller, keeping its rate and remaining term. FHA, VA and USDA loans are generally assumable with lender approval; most conventional loans are not. The buyer pays the seller's equity in cash or other financing.

Also called: loan assumption, assumable loan, assumption

A short period after signing when either side's lawyer can approve, change or cancel the contract. It is customary in some markets, such as New Jersey and parts of Illinois, and not used in many others.

Also called: attorney review period, attorney approval

Software that estimates a home's value from public records and recent sales. Online estimates come from AVMs and can be far off, especially for unusual or updated homes.

Also called: AVM, online home value estimate, home value estimator

A home that went under contract but returned to active status because the deal fell apart. It does not always mean something is wrong with the house; financing or the buyer's own sale may have failed.

Also called: BOM, back on the market

A loan with smaller payments for a set term followed by one large final payment of the remaining balance. Borrowers usually plan to sell or refinance before it comes due.

Also called: balloon loan, balloon payment

The fixed rent in a commercial lease before any added charges like CAM, taxes or percentage rent. It is usually quoted per square foot per year and often rises by set amounts over the term.

Also called: minimum rent, face rent, base rental rate

Failing to do what the contract requires without a legal excuse, such as not closing or missing a deadline. The other side may be able to cancel, keep the deposit or sue.

Also called: breach, breached contract

A short-term loan that uses the equity in your current home to buy the next one before the first sells. It costs more than a regular mortgage and is repaid when the old home sells.

Also called: bridge financing, swing loan, gap loan

A license level above agent. A broker can run a brokerage and supervise agents. Agents must work under a broker.

Also called: real estate broker, broker license

A commercial broker's estimate of what a property would sell for, based on its income, comparable sales and market conditions. It is used to pitch listings and set pricing, and is not a formal appraisal.

Also called: BOV, broker valuation, opinion of value

A value estimate from a real estate agent or broker, often for a lender on a short sale or foreclosure. It is cheaper than an appraisal but less formal.

Also called: BPO

The company agents work under. Commission checks go to the brokerage first, which pays the agent their share after its split and fees.

Also called: real estate company, real estate firm, office

A strategy of buying a property below value, rehabbing it, renting it, then doing a cash-out refinance to pull money back out and repeat. It depends on accurate repair costs and appraised value.

Also called: BRRRR method, buy rehab rent refinance repeat

A project where a developer builds a property to a specific tenant's needs, and the tenant signs a long-term lease or buys it at completion. Common for retail chains, distribution centers and medical users.

Also called: BTS, build to suit lease, custom build

Paying money upfront to lower a loan's interest rate, either for the full term or temporarily for the first year or two. Sellers and builders often pay for buydowns as a concession.

Also called: rate buydown, 2-1 buydown, temporary buydown, permanent buydown

How the buyer's agent gets paid. It can come from the buyer, from the seller as a concession, or from the listing brokerage. It's set in the buyer agreement and offer.

Also called: co-op commission, co-op fee, cooperating compensation, buyer agent fee

A contract between a buyer and their agent. It says what the agent does and how they get paid. Since August 2024, MLS rules require one before touring a home.

Also called: buyer agreement, buyer broker agreement, exclusive buyer agreement, BRA

The agent who represents the buyer. They find homes, set up showings, write offers and negotiate. Since 2024 most need a signed buyer agreement before touring homes.

Also called: buyers agent, selling agent, buyer's broker, cooperating agent

A market with more homes for sale than buyers. Homes sit longer, prices soften, and buyers have more room to negotiate price and repairs.

Also called: buyers market

The most an agent pays their brokerage in splits in a year. After you cap, you keep 100% of your commission, minus any per-deal fees.

Also called: capping, annual cap, company dollar cap, capped

Net operating income divided by the property's price or value. It shows the yearly return before financing and is used to compare properties and estimate value.

Also called: capitalization rate, cap rates

Tax on the profit from selling an asset, based on the sale price minus your cost basis. Many homeowners can exclude part of the gain on a primary residence they have lived in long enough.

Also called: capital gains, cap gains, section 121 exclusion

The money left each month after collecting rent and paying all expenses, including the mortgage. Positive cash flow means the property pays for itself with some left over.

Also called: monthly cash flow, positive cash flow, negative cash flow

The total amount the buyer must bring to closing, usually the down payment plus closing costs minus earnest money and any credits. The final figure is on the Closing Disclosure.

Also called: funds to close, cash due at closing, amount due at closing

Yearly pre-tax cash flow divided by the cash you actually put in, such as the down payment, closing costs and rehab. It shows the return on your own money when using a loan.

Also called: CoC, cash on cash, CoC return

A refinance where the new loan is larger than what you owe, and you receive the difference in cash. It turns home equity into money but raises your balance and resets the loan.

Also called: cash out refi, cash-out refi

A local government document saying a building meets code and can be lived in. New construction needs one, and some towns require one when a home sells.

Also called: CO, C of O, occupancy permit

The recorded history of every transfer of a property from one owner to the next. Gaps or errors in the chain can delay a sale until they are fixed.

Also called: title history, ownership history

Informal grades for commercial buildings. Class A is newer, high-quality space with top rents; Class B is older but well kept; Class C is older and needs work, with lower rents and more risk.

Also called: class A, class B, class C, building class

A NAR rule that a listing must hit the MLS within one business day of public marketing, like a yard sign or a social post. In 2025 NAR added an option for sellers to delay public marketing.

Also called: clear cooperation policy, MLS Statement 8.0, CCP

The underwriter's sign-off that all loan conditions are met and the loan can fund. It typically comes a few days before closing and triggers the final Closing Disclosure.

Also called: CTC, cleared to close, final approval

The final step of a sale, when documents are signed, money changes hands, the deed is recorded and the buyer gets ownership. In some states everyone signs at a table; in others signing and funding happen separately.

Also called: settlement, close of escrow, COE, closing day

Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.

Also called: settlement costs, closing fees

The date set in the contract for the sale to close. It can move only if both sides sign an amendment.

Also called: settlement date, COE date, close date

The final form showing the loan terms, payment and every closing cost, which the borrower must receive at least three business days before closing. Compare it with the Loan Estimate for changes.

Also called: CD, closing disclosure form

A brokerage without traditional offices. Agents work remotely and use online tools, which often means lower fees and a higher split.

Also called: virtual brokerage, online brokerage, cloud-based brokerage

Any claim, lien or error in the records that casts doubt on who owns a property. It usually must be cleared before the sale can close.

Also called: title defect, title issue, clouded title

A building owned by a corporation, where buyers purchase shares that give them the right to live in a unit. A co-op board usually must approve buyers, and financing rules differ from condos.

Also called: cooperative, housing cooperative, coop

A condition that breaks local building or housing codes. Open violations can delay closing or become the buyer's problem after purchase.

Also called: building code violation, open permit

A status some MLSs allow for homes that will be listed shortly but cannot be shown yet. Rules on marketing and showings during this period vary by MLS.

Also called: coming soon listing

Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.

Also called: CRE, commercial property, income property

What agents are paid when a deal closes, usually a percent of the sale price. It's always negotiable. It goes to the brokerage, which pays the agent their share.

Also called: realtor fee, agent fee, commish

How a commission is divided between the agent and the brokerage. With an 80/20 split, the agent keeps 80% and the brokerage gets 20%, often until a cap.

Also called: split, agent split, 80/20, 70/30, 100% split

Fees tenants pay for upkeep of shared areas like parking lots, lobbies, landscaping and security, usually split by each tenant's share of the space. Estimates are billed monthly and reconciled once a year.

Also called: CAM, CAM charges, CAM fees, common area charges

Recently sold homes near the subject property that are similar in size, age, and features. Appraisers and agents use them to estimate value.

Also called: comps, comparables, sold comps

An agent's estimate of a home's likely sale price based on recent nearby sales and current listings. It guides list prices and offers but is not an appraisal.

Also called: CMA, market analysis, comp report

A home where you own your unit and share ownership of common areas like halls, roofs, and grounds. An HOA manages the building, and monthly dues cover shared costs.

Also called: condo

A conventional loan that meets Fannie Mae and Freddie Mac guidelines, including a maximum loan size set each year by the FHFA. The limit is higher in high-cost counties. Loans above it are jumbo loans.

Also called: conforming mortgage, conforming loan limit

A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.

Also called: contingencies, contingency clause, condition

The seller has accepted an offer, but the deal still depends on conditions like an inspection, appraisal, or loan approval. Some contingent homes still take backup offers.

Also called: active contingent, active under contract, accepting backup offers

Classes agents must take to renew their license. Hours and topics are set by each state.

Also called: CE, CE credits, license renewal

A mortgage not insured or guaranteed by a government agency such as FHA, VA or USDA. Most follow Fannie Mae and Freddie Mac rules and require private mortgage insurance when the down payment is under 20%.

Also called: conventional mortgage, conventional

Valuing a property by estimating land value plus what it would cost to rebuild the structure, minus wear and age. It is most useful for new or unusual buildings.

Also called: replacement cost approach

What you paid for a property plus certain purchase costs and improvements, minus depreciation taken. It is subtracted from the sale price to figure your taxable gain.

Also called: basis, adjusted basis, tax basis

A reply to an offer that changes one or more terms, such as price or closing date. A counteroffer rejects the original offer, and the other side can accept, reject or counter again.

Also called: counter, counter offer, counter-offer

An amount subtracted from what the buyer owes at closing, often agreed to instead of doing repairs. Lenders limit credits to actual closing costs, so they cannot be paid out as cash.

Also called: closing credit, repair credit, credit in lieu of repairs

A number, usually from 300 to 850, that summarizes how you have handled debt. Lenders use it to decide whether to approve a loan and what rate and mortgage insurance cost to charge.

Also called: FICO, FICO score, credit rating

Software that keeps track of contacts, leads, notes and follow-ups. Agents use it to stay in touch with their sphere and new leads.

Also called: customer relationship management, contact manager, database software

How attractive a home looks from the street. Landscaping, paint, and a clean entry shape buyers' first impression before they walk in.

How long a home has been listed for sale. A high number can mean room to negotiate; cumulative DOM counts time across relistings.

Also called: DOM, CDOM, cumulative days on market, time on market

A property's net operating income divided by its annual loan payments. A ratio above 1.0 means income covers the debt; lenders usually set a minimum, often around 1.2 to 1.25 for commercial loans.

Also called: DCR, debt coverage ratio, debt service coverage

Your monthly debt payments, including the new housing payment, divided by your gross monthly income. Lenders use it to judge whether you can carry the loan; each loan program sets its own limits.

Also called: DTI, debt to income, back-end ratio, front-end ratio

The signed legal document that transfers ownership from the seller to the buyer. It is recorded with the county after closing to make the transfer part of the public record.

Also called: property deed, deed of conveyance, grant deed

An agreement where a struggling borrower signs the property over to the lender to settle the loan and avoid foreclosure. The lender must agree, and other liens can complicate it.

Also called: deed in lieu, DIL

A document used in many states instead of a mortgage, where a neutral trustee holds title as security for the loan until it is paid. It usually allows non-judicial foreclosure, which is faster than going to court.

Also called: trust deed, DOT

When one side fails to meet its obligations under a contract or loan. In a purchase, the contract spells out remedies, which often include the seller keeping the earnest money.

Also called: in default, buyer default, seller default

Upkeep that has been put off, like old paint, worn roofs, or aging systems. It lowers value and adds to what a buyer will spend after moving in.

Also called: neglected maintenance

The date by which the buyer must deliver earnest money after the offer is accepted, often within one to three business days. Missing it can put the buyer in default.

Also called: earnest money deadline, EMD due date

A tax deduction that spreads the cost of a rental building, not the land, over its useful life, 27.5 years for residential rentals. Depreciation taken may be taxed when you sell.

Also called: tax depreciation, depreciation deduction, cost recovery

A monthly fee an agent pays the brokerage for a desk, tools or support. Some brokerages pair high desk fees with a 100% split.

Also called: monthly fee, office fee, desk rent

An appraisal done without the appraiser visiting the property, using public records, MLS data, and photos or floor plans. Only some loans allow it.

Also called: hybrid appraisal, remote appraisal

The part of the purchase price you pay in cash rather than borrow. A larger down payment lowers the loan amount and can remove the need for mortgage insurance on a conventional loan.

Also called: down, money down

Programs, often run by state or local housing agencies, that help buyers cover the down payment or closing costs through grants or low-cost or forgivable second loans. Most have income, price or first-time buyer rules.

Also called: DPA, down payment grant, first-time buyer assistance

The agents you sponsored, plus the agents they sponsored, in a revenue-share brokerage. Payouts are counted in tiers by how far away each agent is from you.

Also called: tiers, rev share tiers, upline

An investment property loan qualified on the rental income the property produces rather than the borrower's personal income. Lenders look at whether rent covers the payment by a set ratio.

Also called: debt service coverage loan, investor loan, rental property loan

One agent or brokerage representing both buyer and seller in the same deal. It needs written consent from both, and some states ban it.

Also called: dual agent, designated agency

The buyer's work to check a property before committing, such as inspections, surveys, HOA documents and zoning. In some states, like North Carolina, it is a defined period with a fee paid to the seller.

Also called: due diligence period, DD period, due diligence fee

A single building with two separate units, each with its own entrance and kitchen. Owners often live in one unit and rent the other.

Also called: two-family home, 2-unit, triplex, fourplex, quadplex

Insurance that covers agents if a client sues over a mistake. Most brokerages require it and charge it per deal or per year. Some states require it.

Also called: errors and omissions, errors and omissions insurance, E and O

A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.

Also called: EMD, earnest money deposit, good faith deposit, deposit

A right for someone else to use part of a property for a set purpose, such as a utility line or a shared driveway. Easements usually stay with the property when it sells.

Also called: right-of-way, utility easement, access easement

A document from a surveyor or engineer showing a building's height relative to expected flood levels. It can greatly affect flood insurance cost.

Also called: EC

When a structure such as a fence, shed or driveway crosses onto a neighbor's land or an easement. A survey usually finds it, and it can cloud title.

Also called: encroach, boundary encroachment

The part of a property's value you own outright: its market value minus what you owe on loans against it. Equity grows as you pay down the loan and as the property gains value.

Also called: home equity, ownership stake

An offer term that automatically raises the buyer's price by a set amount above any competing offer, up to a cap. Sellers usually need to show the competing offer to trigger it.

Also called: escalator clause, escalation addendum, escalator

An arrangement where a neutral third party holds money and documents until every condition of the sale is met. Some states use escrow companies to close; others use title companies or attorneys.

Also called: in escrow, escrow period, under contract

An account the loan servicer keeps to pay your property taxes and homeowners insurance, funded by part of each monthly payment. It is reviewed yearly, so the payment can rise or fall with tax and insurance bills.

Also called: impound account, impounds, escrow impound

The neutral party who holds funds and documents, follows the written instructions of buyer and seller, and pays everyone out at closing. Depending on the state, this is an escrow company, title company or attorney.

Also called: escrow officer, escrow holder, closing agent, settlement agent

A signed statement from a tenant confirming lease terms, rent, deposit and whether either side is in default. Buyers and lenders require them so a tenant cannot later claim different terms.

Also called: estoppel, tenant estoppel

The legal process a landlord uses to remove a tenant, usually for unpaid rent or lease violations. It must go through the courts, and steps and timelines vary by state and city.

Also called: unlawful detainer, notice to quit, eviction notice

The most common listing agreement. The listing brokerage earns the commission no matter who finds the buyer, even the seller.

Also called: exclusive listing, ERTS, exclusive agency

A listing that came off the market because the listing agreement ran out before the home sold. The seller can relist with the same agent, a new agent, or not at all.

Also called: expired

Federal law that bans housing discrimination based on race, color, religion, sex, disability, familial status, or national origin. Many states add more protected classes.

Also called: Fair Housing Act, housing discrimination

Working one neighborhood over and over with mailers, door knocking and events, so you become the agent people there call.

Also called: geographic farm, farm area, door knocking

The most complete form of ownership, where the owner holds the land and buildings with no time limit and can sell or pass them on. Most homes are owned this way.

Also called: fee simple absolute, freehold

A mortgage insured by the Federal Housing Administration, allowing low down payments and more flexible credit standards. Borrowers pay an upfront and annual mortgage insurance premium, and loan amounts are capped by county.

Also called: FHA, FHA mortgage, federal housing administration loan

The legal duty an agent owes their client: loyalty, obedience, disclosure, confidentiality, accounting and reasonable care.

Also called: fiduciary, OLDCAR

The buyer's last look at the property shortly before closing to confirm it is in the agreed condition, repairs were done and included items are still there.

Also called: walkthrough, walk-through, final walkthrough

A contract term that lets the buyer cancel without losing earnest money if they cannot get the loan described in the contract by a set date.

Also called: mortgage contingency, loan contingency

Someone buying their first home. Many programs define it as anyone who has not owned a home in the past three years, which can open access to special loans and assistance.

Also called: first time buyer, FTHB, first-time buyer

Buying a property, renovating it and reselling it quickly for a profit. Profit depends on the purchase price, repair costs, holding costs and the after-repair value.

Also called: flipping, house flipping, flip

A mortgage whose interest rate stays the same for the life of the loan, so principal and interest payments never change. Taxes and insurance in the payment can still go up.

Also called: fixed rate, 30-year fixed, 15-year fixed, fixed

A home that needs significant repairs or updates and is priced to reflect that. It can be a bargain, but repair costs and financing limits are easy to underestimate.

Also called: fixer, handyman special, TLC, needs work

A separate policy that covers flood damage, which regular homeowners insurance excludes. Lenders require it for federally backed loans on homes in high-risk flood zones; it is available through the NFIP or private insurers.

Also called: NFIP, flood policy

An area FEMA maps by flood risk. If a home with a federally backed loan is in a high-risk zone, flood insurance is usually required.

Also called: FEMA flood zone, special flood hazard area, SFHA, flood map

A home the owner is selling without a listing agent. The seller handles pricing, marketing, and paperwork, though buyers may still use their own agent.

Also called: FSBO, fizbo, by owner

A temporary pause or reduction in mortgage payments granted by the servicer during a hardship. The missed amount is not forgiven and must be repaid later through a lump sum, repayment plan, deferral or modification.

Also called: mortgage forbearance, payment pause

The legal process a lender uses to take and sell a property after the borrower defaults. Some states require a court case (judicial foreclosure), while others allow a faster non-judicial sale under a deed of trust.

Also called: foreclose, REO, bank-owned, repossession

Cracks, settling, or movement in a home's foundation. Some cracks are normal, but serious ones can be costly and may need a structural engineer to assess.

Also called: foundation problems, structural issues, settling, foundation cracks

A limited inspection of the roof, electrical, plumbing, and heating and cooling systems, often required by insurers for older homes, especially in Florida.

Also called: 4-point inspection, 4 point

A cut of each commission paid to a national brand, often 5% to 8%. Agents at franchise brokerages usually pay it on top of their split.

Also called: royalty fee, brand fee

Money given by a relative or other allowed donor toward a down payment or closing costs, with no expectation of repayment. Lenders require a signed gift letter and proof of the transfer.

Also called: gift letter, gifted down payment, gift money

An agent's total commission before the brokerage split and fees. Brokerages use it to measure production and to figure caps.

Also called: GCI, gross commission

A lease where the tenant pays one flat rent and the landlord covers property taxes, insurance and maintenance out of it. Common in office buildings and residential rentals.

Also called: full service lease, full service gross, FSG

The finished, above-grade living space of a home. Basements and garages are usually listed separately, which is why square footage can differ between sources.

Also called: GLA, living area, finished square footage, heated square feet

Price divided by gross yearly rent. It is a quick screening tool for comparing rentals, but it ignores expenses and vacancy.

Also called: GRM, rent multiplier

Placing your license with a brokerage so you can work under it. Moving to a new brokerage means transferring it, usually online with your state.

Also called: license transfer, switching brokerages, hang license

A short-term loan from a private lender based mainly on the property's value rather than the borrower's income. It closes fast but carries high rates and fees, and is common with flips and other investment deals.

Also called: hard money, private money loan, fix and flip loan

A revolving credit line secured by your home, which you can draw on and repay as needed. Rates are usually variable, and it typically sits behind the first mortgage as a second lien.

Also called: HELOC, equity line, home equity line

A one-time lump-sum loan secured by your home's equity, usually with a fixed rate and fixed payments. It is a second lien that stays separate from your first mortgage.

Also called: second mortgage, HEL

A visual check of a home's structure and systems by a trained inspector, usually during the buyer's contingency period. It finds problems before you're locked in; it is not a pass or fail test.

Also called: inspection, general inspection, buyer's inspection

The person who performs a home inspection and writes the report. Licensing requirements vary by state.

Also called: inspector

A contract term that makes the purchase depend on the buyer selling their current home. Sellers often accept it only with a kick-out clause.

Also called: sale of home contingency, house to sell contingency, home sale clause

A yearly service contract that helps pay to repair or replace covered systems and appliances. It is not homeowners insurance and usually has service fees and exclusions.

Also called: home protection plan, residential service contract

The organization that runs a condo, townhouse, or planned community. It collects dues, maintains common areas, and enforces rules that owners must follow.

Also called: HOA, POA, HOA dues, homeowners association fees

A policy covering the home and belongings against damage such as fire or wind, plus liability. Lenders require it before closing. Standard policies do not cover flood, and often not earthquake.

Also called: hazard insurance, home insurance, HO-3

A program that lowers property taxes, and sometimes protects equity from creditors, on a primary residence. You often must apply, and rules vary by state.

Also called: homestead

Living in one part of a property and renting out the rest, such as other units, rooms or an ADU, to offset housing costs. It often lets buyers use owner-occupied loans with lower down payments.

Also called: house hack, live-in flip

The MLS feed that lets agents show other brokerages' listings on their own websites. Each MLS sets display rules, like showing the listing brokerage's name.

Also called: internet data exchange, IDX feed, IDX website

Valuing a property based on the income it produces, often by dividing net operating income by a cap rate. It is used mainly for rentals and commercial property.

Also called: income capitalization approach

Most agents aren't employees. They're self-employed, get a 1099, pay their own taxes and set their own hours.

Also called: 1099 agent, 1099, self-employed agent

Property used for manufacturing, storage, distribution and logistics, including warehouses and flex buildings. Clear height, loading docks, power and highway access matter most to tenants.

Also called: industrial property, warehouse, flex space, distribution center

A contract term that gives the buyer time to inspect the property and then cancel, ask for repairs or renegotiate based on what is found. Waiving it means accepting the home's condition as is.

Also called: due diligence contingency, inspection period

The written findings from a home inspection, usually with photos and notes on safety issues, defects, and items to watch. Buyers use it to decide on repair requests or walking away.

Also called: inspection results

The percentage a lender charges to borrow money, used to figure the interest part of each payment. It does not include fees, which is why the APR is often higher.

Also called: note rate, mortgage rate, rate

A loan where payments cover only interest for a set period, so the balance does not go down. After that period, payments jump to include principal or the balance comes due.

Also called: interest only, IO loan, interest-only mortgage

Shared ownership where each owner holds an equal share and, when one dies, the others automatically take over that share without probate. Some states also offer tenancy by the entirety or community property for married couples.

Also called: JTWROS, joint tenants with right of survivorship, right of survivorship

A mortgage larger than the conforming loan limit for the area, so it cannot be sold to Fannie Mae or Freddie Mac. Lenders often require higher credit scores, larger down payments and more reserves.

Also called: jumbo mortgage, non-conforming loan, jumbo

A clause that lets the seller keep marketing the home after accepting a contingent offer. If a better offer comes in, the first buyer gets a short window to remove the contingency or step aside.

Also called: escape clause, 72-hour clause, kickout clause

The owner who rents a property to a tenant. Landlords must follow fair housing law and state and local landlord-tenant rules.

Also called: lessor, property owner, owner

Finding people who may buy or sell soon. Examples: online ads, open houses, door knocking, expired listings and buying leads.

Also called: lead gen, prospecting, leads

A federal disclosure required when selling or renting most homes built before 1978. The seller must share known lead hazards and give the buyer a chance to test.

Also called: lead paint disclosure, lead disclosure

A contract between a landlord and tenant that sets the rent, term, deposit and rules for using a property.

Also called: rental agreement, lease agreement, rental contract

The bank, credit union or mortgage company that provides the loan money. The lender sets the rate and terms, underwrites the loan and holds or sells it after closing.

Also called: mortgage lender, bank, creditor

A short document outlining the main terms of a proposed lease or purchase, such as price, rent, term and contingencies, before a full contract is drafted. Most of it is usually non-binding.

Also called: LOI, term sheet, letter of interest

Using borrowed money to buy more property than you could with cash alone. It can raise returns when values and rents rise and magnify losses when they fall.

Also called: OPM, other people's money, financing leverage

A legal claim against a property that secures a debt, such as a mortgage, unpaid taxes or contractor bills. Liens generally must be paid off or released before the property can be sold with clear title.

Also called: encumbrance, lien holder, lienholder

The price the seller advertises the home for. It is a starting point for negotiation, and the final sale price can be above or below it.

Also called: asking price, listing price

The agent who represents the seller. They price the home, market it, handle showings and negotiate offers.

Also called: seller's agent, sellers agent, listing broker

The contract between a seller and a brokerage to sell a home. It sets the price, the commission, how long it lasts and what the agent will do.

Also called: listing contract, listing paperwork

Sending listings from the MLS or brokerage to sites like Zillow, Realtor.com and Homes.com. Sellers can usually opt out.

Also called: Zillow feed, portal feed, listing feed

The ratio of rentable to usable square feet, showing how much shared space is added to a tenant's suite. A 1.15 load factor means paying for 15% more space than you occupy.

Also called: add-on factor, loss factor, common area factor, core factor

A standard three-page form a lender must give within three business days of a loan application, showing the estimated rate, payment and closing costs. It makes offers from different lenders easy to compare.

Also called: LE, loan estimate form

A permanent change to a mortgage's terms, such as a lower rate, longer term or added balance, to make payments affordable after a hardship. It is negotiated with the servicer and avoids refinancing.

Also called: loan mod, mortgage modification

The person who helps you choose a loan, takes your application and guides it to closing. Loan officers must be licensed or registered through the NMLS.

Also called: LO, mortgage loan originator, MLO, loan originator

The loan amount divided by the property's value or price, whichever is lower, as a percentage. Lower LTV means less risk for the lender and often better pricing; above 80% usually triggers mortgage insurance on conventional loans.

Also called: LTV, loan to value ratio, LTV ratio

A secure box on the door that holds the house key. Agents open it with an app or code, which logs who entered and when.

Also called: supra, key box, electronic lockbox

When the appraised value comes in below the contract price. The buyer may need to bring more cash, renegotiate, challenge the value, or use an appraisal contingency to exit.

Also called: appraisal came in low, under appraisal, appraisal shortfall

The broker legally responsible for a brokerage or office. They oversee agents, review files and hold escrow funds. The title varies by state.

Also called: designated broker, principal broker, broker of record, supervising broker

A home built in a factory and moved to a site. Whether it is financed like a house often depends on whether it sits on a permanent foundation on land you own.

Also called: mobile home, modular home, trailer, HUD-code home

The price a home would likely sell for between a willing buyer and seller, both informed and not under pressure. Appraisals and CMAs both try to estimate it.

Also called: fair market value, FMV

A problem that would significantly affect a property's value or a reasonable buyer's decision, such as a cracked foundation or a failing roof. Sellers and agents generally must disclose known ones.

Also called: material fact, latent defect, known defect

A claim against a property filed by a contractor or supplier who was not paid for work or materials. It must usually be paid or released before the property can sell with clear title.

Also called: mechanics lien, construction lien, contractor's lien

A property or project that combines more than one use, often retail on the ground floor with apartments or offices above. Zoning must allow the combination, and financing can be more complex.

Also called: mixed use, mixed-use development, live-work

The shared database where local agents post listings and share offers of cooperation. Only members can enter listings; the public sees them through IDX sites.

Also called: MLS, multiple listing service, the MLS, listing service

A middle ground between gross and net leases, where tenant and landlord split operating costs in a way the lease spells out. Tenants often pay utilities and janitorial while the landlord pays taxes and insurance.

Also called: MG lease, modified gross, semi-gross lease

Fungus that grows where there is moisture. Visible mold usually points to a leak or ventilation problem that should be found and fixed.

Also called: mold inspection, mildew

How many months it would take to sell every current listing at the recent pace of sales. Under about four to six months generally favors sellers; more favors buyers.

Also called: months of inventory, MOI, housing inventory

A loan used to buy real estate, with the property pledged as security. If the borrower stops paying, the lender can foreclose. Some states use a deed of trust instead of a mortgage document, but people call both a mortgage.

Also called: home loan, mortgage loan

A licensed go-between who shops your loan to several wholesale lenders instead of lending its own money. The broker is paid by the borrower or the lender, and that pay shows on the Loan Estimate.

Also called: loan broker, wholesale broker

Mortgage insurance on FHA loans, made up of an upfront premium usually added to the loan plus an annual premium paid monthly. With less than 10% down, the annual premium lasts for the life of the loan.

Also called: MIP, FHA mortgage insurance, UFMIP, upfront MIP

A homeowner selling their current home to buy a bigger or pricier one. Timing both sales often means a home sale contingency, bridge loan, or rent-back.

Also called: trade-up buyer, repeat buyer

A building with two or more separate housing units. Properties with two to four units can use residential loans; five or more are usually financed as commercial.

Also called: multi-family, multiplex, apartment building, small multifamily

When a seller gets more than one offer at the same time. Sellers may ask for highest and best, and buyers compete on price, terms, and contingencies.

Also called: bidding war, multiple offer situation, highest and best

The 2024 settlement of commission lawsuits against NAR. Since August 2024, offers of buyer agent pay can't go in the MLS and buyers must sign an agreement before touring.

Also called: NAR lawsuit, Sitzer Burnett, commission lawsuit, practice changes

A property's yearly income minus operating expenses, before mortgage payments and income taxes. It is the base number for cap rate and many commercial valuations.

Also called: NOI, net income

The money a seller actually receives at closing after paying off the mortgage, commissions, and closing costs. It is shown on the settlement statement.

Also called: seller proceeds, net to seller, take-home

A home that is newly built or still being built, usually sold by the builder. Builder contracts differ from resale contracts, and the sales rep works for the builder.

Also called: new build, builder home, new home

A mortgage that does not meet the federal qualified mortgage rules, often used by self-employed borrowers, investors or people with recent credit events. It allows other ways to document income but usually costs more.

Also called: non-qualified mortgage, non QM, bank statement loan

A property sold without being listed publicly on the MLS. Buyers find these through direct outreach, networks or wholesalers.

Also called: off-market deal, off market, private sale

A buyer's written proposal to buy a property at a stated price and terms. It becomes a binding contract only when the seller accepts it as written and both sides sign.

Also called: written offer, make an offer, offer to purchase

A marketing document for a commercial property for sale, with photos, location details, financials, rent roll and tenant information. Brokers often release it only after buyers sign a confidentiality agreement.

Also called: OM, offering memo, marketing package, investment summary

Property used for professional and administrative work, from small suites to high-rise towers. It is graded by class, leased by rentable square foot, and often uses full service gross leases.

Also called: office, office building, office lease

A scheduled time when a listed home is open for anyone to walk through without an appointment. A broker open is one held just for agents.

Also called: open, OH, broker open

The ongoing costs of running a property, such as taxes, insurance, repairs, management, utilities and HOA dues. They do not include mortgage payments or major capital improvements.

Also called: OpEx, operating costs, expenses

A designated low-income area where investing capital gains through a qualified fund can bring federal tax benefits. The rules and holding periods are detailed, so talk to a tax pro.

Also called: OZ, qualified opportunity zone, QOZ, opportunity fund

A Texas contract feature where the buyer pays the seller a small fee for a set number of days to cancel for any reason. Other states use inspection or due diligence periods instead.

Also called: option fee, termination option, option money

A fee the lender charges to process and fund a loan, often a percentage of the loan amount. It appears on the Loan Estimate and is included in the APR.

Also called: loan origination fee, lender fee, processing fee

The seller has accepted an offer and the main conditions are cleared or waived. The sale is waiting to close and usually no longer takes new offers.

Also called: under contract, sale pending

Local government approval for construction, additions, or major system work. Unpermitted work can cause problems with appraisals, insurance, and resale.

Also called: building permit, unpermitted work

A promise by a business owner to be personally responsible for a lease or loan if the business cannot pay. Landlords and lenders often require one from small or newer businesses.

Also called: PG, personal guaranty, guaranty, good guy guarantee

A review of a property's records, history and site conditions to spot possible contamination, such as old gas stations or dry cleaners. Commercial lenders usually require one, and it can lead to a Phase II with soil testing.

Also called: Phase I, Phase I ESA, ESA, environmental site assessment

Short for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders use PITI, plus any HOA dues or mortgage insurance, to judge whether you can afford the loan.

Also called: principal interest taxes and insurance, monthly payment

A community where you own your home and its lot, plus a share of common areas run by an HOA. Lenders treat PUDs differently from condos.

Also called: PUD

A home marketed privately by an agent instead of being put on the MLS. It limits exposure, and many MLSs restrict it under rules like Clear Cooperation.

Also called: pocket, private listing, off-MLS listing, whisper listing

Upfront fees paid to the lender at closing to lower the interest rate. One point equals 1% of the loan amount. Paying points makes sense mainly if you keep the loan long enough to recover the cost.

Also called: discount points, mortgage points, buying down the rate

When the buyer gets the keys and the right to occupy the home. It is often at closing or funding, but the contract can set a later date.

Also called: move-in date, keys, date of possession

A flat fee per deal that some brokerages charge after you cap. It's usually a few hundred dollars or less.

Also called: post-cap transaction fee, capped fee

A legal document that lets one person sign for another. Using one at closing usually needs advance approval from the lender and title company.

Also called: POA, attorney-in-fact

A lender's written statement that you qualify for a loan up to a certain amount after reviewing your credit, income and assets. Sellers usually expect one with an offer. Final approval still depends on the property and underwriting.

Also called: preapproval, pre-approval letter, preapproved

A home inspection a seller orders before listing to find and fix problems early. Known issues may then need to be disclosed, which varies by state.

Also called: seller inspection, pre-inspection

A lender's rough estimate of how much you might borrow, often based on information you report without verification. It is a starting point, not a commitment, and carries less weight with sellers than a pre-approval.

Also called: prequal, pre-qual, prequalified

A fee for paying off a loan early, through a sale, refinance or large extra payments. It is rare and limited on most home loans today but common on investment and commercial loans.

Also called: prepay penalty, prepay, yield maintenance

The price divided by the home's finished living area. It is a quick way to compare homes, but condition, lot, and location can make it misleading on its own.

Also called: $/sqft, price per sq ft, PPSF

A cut to the list price after the home has been on the market. It usually signals the home was priced above what buyers would pay.

Also called: price drop, price cut, price improvement

The home you live in most of the year. Loans, tax breaks, and insurance are often better for a primary residence than for a second home or rental.

Also called: primary home, principal residence, owner-occupied

The amount you borrowed, or the part of it you still owe. Each payment covers interest first, and the rest pays down principal, which builds equity.

Also called: loan balance, loan amount

Insurance that protects the lender on a conventional loan when the down payment is under 20%. The borrower pays for it, usually monthly. It can be removed once equity reaches set levels, and ends automatically at 78% of the original value.

Also called: PMI, mortgage insurance, MI

The court process for settling a deceased person's estate, including selling real estate. Probate sales can take longer and may need court approval, depending on the state.

Also called: probate sale, probate court, estate settlement

How much an agent sells, counted in deals closed (units), dollar volume or GCI.

Also called: sales volume, units, closed volume, transactions

The signed promise to repay a loan, stating the amount, rate, payment schedule and what happens on default. The mortgage or deed of trust is the separate document that ties the debt to the property.

Also called: note, mortgage note

A person or company hired to run a rental, including finding tenants, collecting rent and handling repairs. Fees are often a percentage of rent plus leasing fees. Some states require a real estate license.

Also called: property management, PM, property management company

A yearly tax set by local governments based on a property's assessed value. Lenders usually collect it monthly through escrow, and rates vary widely by location.

Also called: real estate tax, taxes

Splitting ongoing costs like property taxes, HOA dues or rent between buyer and seller based on the closing date. Each side pays only for the days they own the property.

Also called: prorations, prorated, prorate

The signed contract between buyer and seller that sets the price, deadlines, contingencies and terms of a sale. Once both sides sign, the property is under contract.

Also called: purchase contract, sales contract, purchase and sale agreement, PSA, contract to buy

A deed that transfers whatever interest the signer has, if any, with no promise that the title is good. It is common between family members, in divorces or to fix title errors, not in typical sales.

Also called: quit claim deed, quick claim deed, quitclaim

An odorless radioactive gas from the ground that can build up indoors and raise lung cancer risk. A short test can measure it, and a mitigation system can lower it.

Also called: radon test, radon mitigation

A lender's promise to hold a specific interest rate and points for a set period while the loan closes. If the lock expires before closing, extending it can cost extra.

Also called: lock, locked rate, lock-in, float down

A follow-up visit to confirm that agreed repairs were completed. It usually happens shortly before closing or the final walk-through.

Also called: reinspection, repair verification

A licensed person who helps people buy, sell or rent property. Agents work under a broker and are paid by commission, not salary.

Also called: agent, salesperson, broker associate

A lawyer who reviews contracts, clears title issues and may run the closing. Some states require an attorney at closing; in others they are optional and hired for complex deals or disputes.

Also called: closing attorney, real estate lawyer, settlement attorney

The state license you need to be paid for helping people buy or sell property. You take pre-licensing classes, pass a state exam and work under a broker.

Also called: license, salesperson license, pre-licensing

An agent or broker who belongs to the National Association of Realtors (NAR) and agrees to its code of ethics. Every Realtor is an agent; not every agent is a Realtor.

Also called: REALTOR®

Paying a lump sum toward principal and having the lender recalculate your payment over the remaining term at the same rate. It costs far less than refinancing, but not every lender or loan type allows it.

Also called: mortgage recast, loan recast, re-amortization

A formal request, made through the lender, asking the appraiser to review the value using better comps or corrected facts. It does not guarantee a change.

Also called: ROV, appraisal rebuttal, appraisal dispute

Filing a deed, mortgage or other document with the county so it becomes public record. Recording gives notice of the new owner or lien and protects the buyer's claim against later ones.

Also called: recorded, record the deed, county recorder

A fee the county charges to record the deed, mortgage and other documents. It is usually small and set by the county, often by page or document.

Also called: recording charges, county recording fee

Denying or limiting loans or insurance in certain neighborhoods based on race or ethnicity. It is illegal, and its history still affects home values in many areas.

A share of the commission paid to an agent who sends a client to another agent, often 25% to 35%. It must be paid broker to broker.

Also called: referral, agent referral, referral agreement

Replacing your current mortgage with a new one, usually to get a lower rate, change the term, or drop mortgage insurance. It comes with new closing costs, so the savings need to outweigh them.

Also called: refi, rate and term refinance, refinancing

A company that owns or finances income-producing real estate and is traded like a stock or held privately. REITs must pay out most of their taxable income as dividends.

Also called: real estate investment trust, REITs

Moving to a new area, often for a job. Employers may pay for moving or home-sale costs through a relocation package or company.

Also called: relo, corporate relocation

A list of every unit or tenant in a property with rent, lease dates, deposits and other terms. Buyers and lenders use it to verify income and spot lease rollover risk.

Also called: tenant roll, rent schedule

An agreement letting the seller stay in the home for a set time after closing, usually paying rent or a daily fee. It helps sellers who need time to move.

Also called: leaseback, seller rent back, post-closing occupancy, seller possession after closing

A tenant's usable space plus its share of building common areas like lobbies, corridors and restrooms. Commercial rent is usually charged on rentable, not usable, square feet.

Also called: RSF, rentable area, rentable square footage

Real estate bought to rent to tenants for income rather than to live in. Lenders, insurers and tax rules treat it differently from a primary residence.

Also called: rental, investment property, income property, rental home

A written list from the buyer, after inspection, asking the seller to fix items, give a credit or lower the price. The seller can agree, refuse or counter.

Also called: repair addendum, inspection response, BINSR, request for repairs

Savings left over after closing, often measured in months of mortgage payments. Lenders may require reserves for jumbo, investment and multi-unit loans to show you can handle a setback.

Also called: cash reserves, months of reserves, post-closing reserves

Property used to sell goods or services to the public, from single storefronts to shopping centers. Visibility, traffic and co-tenants drive value, and leases are often net with CAM charges.

Also called: retail, storefront, shopping center, strip center

The total gain on an investment compared with what it cost, usually as a percentage. For real estate it can include cash flow, appreciation, loan paydown and tax effects.

Also called: ROI, return, total return

Money some brokerages pay you from the company's cut of deals closed by agents you sponsored. It doesn't come out of those agents' commissions.

Also called: rev share, revshare, residual income

A loan for homeowners 62 and older that turns equity into cash without monthly mortgage payments. The balance grows over time and is usually repaid when the owner sells, moves out or dies. Taxes and insurance must still be paid.

Also called: HECM, home equity conversion mortgage

A focused check of a roof's condition and remaining life. Insurers and lenders may ask for one on older roofs.

Also called: roof certification, roof cert

The price a home actually sells for at closing. It can differ from the list price and becomes public record in most states.

Also called: sold price, selling price, purchase price, contract price

A deal where a business sells property it uses and then leases it back from the buyer, usually on a long-term net lease. It frees up cash while the business keeps operating in place.

Also called: leaseback, sale and leaseback, sale-lease back

The main way homes are appraised: comparing the property to recent similar sales and adjusting for differences.

Also called: market approach, market data approach

A home you use part of the year in addition to your main residence. Lenders price it differently than a primary home or a rental and may limit renting it out.

Also called: vacation home, vacation property

A federal program where local housing authorities pay part of a qualified tenant's rent directly to the landlord. Properties must pass inspection, and some places bar refusing tenants for using vouchers.

Also called: Housing Choice Voucher, HCV, housing voucher

Money a tenant pays at move-in to cover unpaid rent or damage beyond normal wear. State law often caps the amount and sets deadlines for returning it.

Also called: damage deposit, rental deposit

Money the seller agrees to put toward the buyer's closing costs, prepaid items or rate buydown. Loan programs cap how much a seller can contribute.

Also called: seller credit, seller contributions, seller-paid closing costs, concessions

A form where the seller lists known problems with the property, such as leaks, repairs or defects. Requirements vary by state; a few states lean toward buyer-beware rules.

Also called: seller's disclosure, property disclosure, disclosure statement, SPDS, TDS

An arrangement where the seller lends the buyer some or all of the purchase price, and the buyer pays the seller over time. Terms are negotiated, often with a balloon payment, and the seller usually holds a lien until paid.

Also called: owner financing, seller carryback, owner carry, purchase money mortgage

An estimate of what a seller will walk away with after the loan payoff, commissions, closing costs, and other fees. Agents and title companies prepare it before listing or accepting an offer.

Also called: net sheet, estimated net proceeds

A market with more buyers than homes for sale. Homes sell fast, often with multiple offers, and buyers may need to offer above list or waive conditions.

Also called: sellers market, hot market

An itemized list of every charge and credit for the buyer and seller in a sale. It shows exactly where each dollar goes at closing and should match the Closing Disclosure.

Also called: HUD-1, ALTA, ALTA settlement statement, closing statement

A camera run through the main sewer line to check for cracks, roots, or collapses. Repairs can be costly and are not covered by a standard inspection.

Also called: sewer line inspection, sewer camera inspection

A sale where the lender agrees to accept less than the amount owed on the mortgage. It needs lender approval, can take months, and is usually an alternative to foreclosure.

Also called: short pay, short payoff

Renting a property for short stays, often under 30 days, through booking platforms. Income can be higher but costs vary more, and many cities restrict or license it.

Also called: STR, vacation rental, nightly rental

A scheduled visit to see a home that is for sale, usually with a buyer's agent. Sellers often set showing windows through a showing service.

Also called: tour, home tour, private showing

Software or a call center that books showings and collects feedback, so the listing agent doesn't schedule every one by hand.

Also called: ShowingTime, showing app, appointment center

A standalone house built for one household on its own lot. The owner typically owns both the building and the land.

Also called: SFH, SFR, detached home, house

Short for subordination, non-disturbance and attornment agreement. The tenant ranks its lease behind the lender's loan, the lender agrees not to end the lease after foreclosure, and the tenant agrees to recognize a new owner.

Also called: subordination non-disturbance and attornment, subordination agreement, non-disturbance agreement

A home whose sale has closed and ownership has transferred to the buyer. Sold prices are public in most states and are used as comps to price other homes.

Also called: closed, closed sale

A home a builder constructs before having a buyer, betting it will sell. Buyers usually get fewer custom choices but can move in sooner.

Also called: speculative home, spec build, inventory home

An extra charge from an HOA or local government to pay for a big project like a new roof or road. Buyers should ask whether one is planned before closing.

Also called: assessment

The people an agent already knows: friends, family, past clients, neighbors. It's where most repeat and referral business comes from.

Also called: SOI, sphere, database, past clients

The agent you name when you join a revenue-share brokerage. Your sponsor can earn revenue share from the company's cut of your deals. You keep your full split.

Also called: sponsoring agent, sponsorship, recruiter

Arranging furniture and decor so a home photographs and shows well. Virtual staging adds furniture digitally to listing photos.

Also called: home staging, virtual staging

Illegally guiding buyers or renters toward or away from neighborhoods based on a protected trait like race or religion. It violates fair housing law.

A lease where a current tenant rents all or part of its space to another party for some or all of the remaining term. The original tenant usually stays liable, and landlord consent is typically required.

Also called: sublet, subletting, sublessee, subtenant

A map made by a licensed surveyor showing the property's boundaries, buildings, easements and any encroachments. Some lenders or title companies require one; in other areas it is optional.

Also called: land survey, property survey, boundary survey, ALTA survey

A deal where a sponsor pools money from many investors to buy a larger property. Investors are usually passive, and these offerings fall under securities law.

Also called: real estate syndication, syndicate, GP/LP deal

A property's income and expense statement for the most recent 12 months, month by month. Buyers and lenders use it with the rent roll to judge actual net operating income.

Also called: T12, trailing 12, trailing twelve months, TTM, operating statement

A claim a government places on a property for unpaid property taxes. If not paid, the lien can be sold to investors or lead to a tax sale; rules vary widely by state.

Also called: property tax lien, tax lien certificate, tax sale

The agent who runs a team inside a brokerage. They usually supply leads and support, and take a team split from each member's deals.

Also called: team leader, rainmaker, real estate team

A split paid to a team on top of the brokerage split. A 50/50 team split means the team lead takes half of your side before the brokerage takes its share.

Also called: team fee, team commission split

A way for two or more people to own property together, each with a share that can be unequal. Each owner's share passes to their heirs, not automatically to the other owners.

Also called: TIC, tenants in common

A person or business that rents a property from a landlord under a lease.

Also called: renter, lessee, occupant

Changes made to a space to fit a tenant's needs, such as walls, flooring and wiring. Landlords often offer a TI allowance per square foot, which is negotiated as part of the lease.

Also called: TI, TIs, TI allowance, tenant improvement allowance, build-out

A commercial broker who represents a business looking to lease space, helping find locations and negotiate rent, concessions and TI. The tenant rep is usually paid by the landlord through the lease commission.

Also called: tenant representative, tenant representation, tenant broker

An inspection for termites and other wood-destroying insects or damage. Some loans, like VA loans in many areas, require it.

Also called: WDO, WDI, pest inspection, wood destroying organism report

A contract clause that makes every deadline strict. Missing a date, even by a day, can be a breach and can cost the late party their rights under the contract.

Also called: TOE, time of essence clause

The legal right to own and use a property. Title is not a single document; it is shown by the deed and public records, and must be clear for a sale to close smoothly.

Also called: property title, legal title, ownership

A company that searches title, issues title insurance and often handles closing and escrow. In attorney states, a lawyer may run the closing while the title company provides the policy.

Also called: title agency, title office

A one-time policy that covers losses from title problems missed by the search, such as forgery or unknown heirs. Lenders require a lender's policy; the owner's policy protects the buyer. Who pays varies by state and local custom.

Also called: owner's policy, lender's policy, owner's title policy

A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.

Also called: title exam, title examination, title report, preliminary title report, prelim

A multi-level home that shares one or more walls with neighbors. Depending on the legal setup it may be owned like a house with its own land or like a condo.

Also called: townhome, row house

An agent who helps both sides close a deal without representing either one. Allowed in some states, like Florida and Colorado.

Also called: facilitator, non-agency

The person who handles paperwork and deadlines from contract to closing so the agent can focus on clients. Paid per file or on salary.

Also called: TC, closing coordinator, transaction manager

A flat fee per closed deal, charged to the agent or the client depending on the brokerage. It's separate from the split.

Also called: admin fee, broker fee, compliance fee, processing fee

A tax charged by a state, county or city when property changes hands. Rates, names and who pays vary widely by location, and some states have none.

Also called: deed tax, documentary stamp tax, doc stamps, excise tax, conveyance tax

A lease where the tenant pays base rent plus its share of property taxes, insurance and maintenance. The landlord's income is more predictable, and the tenant takes on rising operating costs.

Also called: NNN, net lease, NNN lease, absolute net lease

The lender's review of your income, assets, credit and the property to decide whether to approve the loan. The underwriter often asks for more documents before issuing final approval.

Also called: underwriter, loan approval, conditional approval

The space a tenant actually occupies and uses inside its suite, not counting shared building areas. Comparing usable to rentable square feet shows how much of the rent pays for common space.

Also called: USF, usable area, usable square footage

A mortgage backed by the US Department of Agriculture for homes in eligible rural and some suburban areas. It can require no down payment, has income limits, and charges upfront and annual guarantee fees.

Also called: USDA, rural development loan, RD loan

A one-time fee on VA loans that helps fund the program, figured as a percentage of the loan and often added to the balance. The rate depends on down payment and prior VA use; veterans with service-connected disability are generally exempt.

Also called: funding fee, VA fee

A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. It usually needs no down payment and no monthly mortgage insurance, but most borrowers pay a one-time funding fee.

Also called: VA, VA mortgage, veterans loan

The share of time or units a property sits empty and earns no rent. Investors budget a vacancy allowance, often 5% to 10%, when estimating income.

Also called: vacancy, vacancy factor, occupancy rate

A members-only website where registered consumers can see more MLS data than IDX shows, like sold prices. Users must sign up and agree to terms.

Also called: virtual office website

A deed in which the seller promises they own the property and that the title is free of undisclosed claims. A general warranty covers all past owners; a special warranty covers only the seller's time of ownership.

Also called: general warranty deed, special warranty deed

Checks of a private water well and septic system, which a standard inspection usually does not cover. Lenders and some local rules may require them.

Also called: septic inspection, well inspection, water test, perc test

Putting a property under contract and then selling that contract to another buyer for a fee, usually without ever owning the property. Some states regulate or restrict it.

Also called: wholesale deal, wholesaler, real estate wholesaling

An inspection that documents features that help a home resist wind, like roof straps and impact windows. In hurricane-prone states it can lower insurance premiums.

Also called: wind mit, wind mitigation report

A scam where criminals send fake wiring instructions, often by spoofed email, to steal closing funds. Always confirm wire details by calling a known phone number before sending money.

Also called: closing scam, wire scam, email wire fraud

A listing the seller took off the market before it sold, while the listing agreement may still be in effect. Sellers do this to pause, make repairs, or rethink price.

Also called: withdrawn, temporarily off market, canceled listing

Local rules that control how land can be used, such as residential, commercial or mixed use, plus limits on density, height and setbacks. Zoning affects what you can build or rent.

Also called: zoning laws, zoning code, land use, rezoning