Real Estate Glossary of Terms
Real estate glossary of terms is a list that describes the major terms that are used often in the real estate business. It is important for a client to be aware of the most frequently used terms in the real estate business since it will enable him to make good deals in the real estate business. The following are some major terms that are used in the real estate business.
An adjustment date is the date in which the interest, tax and utilities are calculated for either the seller or the buyer of the property. It is mostly the date that the property is transferred although not necessarily all the time.
Another major term in the real estate glossary of terms is conveyance which is the process in which the title of the property moves from the seller to the buyer. It is mostly done in the presence of a conveyance lawyer.
A property disclosure statement is a report by the seller that displays any known defects on the property. The law obliges a seller to disclose of any defects on the property that might significantly reduce its cost.
Another common term in the real estate glossary of terms is principle which is the mortgage amount that is initially borrowed or is still remaining to be paid. The interest to be accrued on the mortgage is calculated using this principle amount.
Closing is a term used in real estate that is used to describe the completion of the transaction after all the legal and financial obligations are met by both parties. After the closing, the title in the property is transferred from the seller to the buyer.
A high mortgage ration is a mortgage that exceeds 75% of the loan value ratio which always has to be insured. It always has to be insured so as to protect the mortgage lender from the borrower declining to pay back the loan.
Another term in the real estate glossary of terms is counters offer which is an offer made back to the seller by the buyer altering a condition on the original offer. A counter offer serves to dismiss the original offer and making a new offer by the seller which the buyer can either accept or reject.
A property transfer tax is a payment which is made to the local authority after a transfer of property has been made from the seller to the buyer. First time buyers are exempted from this tax as a tax incentive.
Foreclosure is a term used in real estate that describes the legal process in which a lender takes ownership of a property when the borrower does not pay back the mortgage as stated in the mortgage contract.
Rights of way are pieces of land that are used for utilities for the local authorities in order to lay pipes and cables. The law dictates that no permanent structure may be constructed on these rights of way.
Another major terms in the real estate glossary of terms is a title which is a legal document showing procession of a certain commodity or property. The transfer of the title from a seller to a buyer is what constitutes to a sale.
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