Seller’s Glossary

Adjustable Rate Mortgage (Arm)

Interest rates on this type of mortgage are periodically adjusted up or down depending on a specified financial index


The paying off of debt, such as a mortgage, in regular installments over a specified period of time.

Annual Percentage Rate (APR)

The actual finance charge for a loan, including points and fees, in addition to the stated interest rate.


An expert opinion of the value or worth of a property

Assessed Value

The value placed on a property by a municipality for purposes of levying taxes.  It may differ widely from appraised or market value


The deed to a property is legally transferred from seller to buyer and documents are recorded

Closing Costs

Expenses-over and above the price of the property- incurred by buyers and sellers in transferring ownership of a property.  Your lender will give you a good faith estimate of costs you pay at closing


A  fee, usually a percentage of the total transaction paid to an agent or broker for services performed

Comparative Market Analysis (CMA)

A survey of the attributes and selling process of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for seller’s property


A legal document that formally conveys ownership of a property from seller to buyer

Down Payment

A percentage of the purchase price that the buyer must pay in cash and may not borrow from the lender

Earnest Money Deposit

A deposit made by the potential buyer to show the sellers that you are serious about buying their home.


The value of the property actually owned by the homeowner-purchase price, plus appreciation, plus improvements, less mortgages and liens


A fund or account held by a third-party custodian until conditions of a contract are met

Fixed Rate Mortgage

Interest rates on this type or mortgage remain the same over the life of the loan.


A recognizable entity-such as a drape or light fixture-that is permanently attached to a property and belongs to the property when it is sold

Hazard Insurance

Compensates for property damage from specified hazards such as fire and wind


The cost of borrowing money, usually expressed as a percentage rate


A security claim on a property until a debt is satisfied

Listing Contract

An agreement whereby an owner engages a real estate company for a specified period of time to sell a property, for which, upon the sale, the agent receives a commission

Market Price

The actual price at which a property is sold

Market Value

The price that is established by present economic conditions, location and general trends


Security claim by a lender against a property until the debt is paid

Multiple listing Service (MLS)

A system that provides to its members detailed information about properties for sale

Origination Fee

An application fee(s) for processing a proposed mortgage loan


Principal, interest, taxes and insurance, forming the basis for monthly mortgage payments


One percent of the loan principal. It is charged in addition to interest and fees

Prepayment Penalty

A fee paid by a borrower who pays off the loan before it is due


One of the parties to a contract or the amount of money borrowed, for which interest is charged


Divide or assess proportionately

Purchase and Sale Agreement

A contract between buyer and seller that outlines the details of the property transfer


All financial transactions required to make the contract final


A document that indicates ownership of a specific property

Title Search

Detailed examination of the entire document history of a property title to make sure