A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A
Absorption Rate
The rate at which available homes are sold in a specific market during a given time period.
Accessory Dwelling Unit (ADU)
A secondary residential unit on the same lot as a primary residence.
Active
A property that is currently listed for sale and available for purchase.
Active - First Right
A property under contract with a contingency, allowing the seller to continue accepting offers.
Addendum
An additional document attached to a real estate contract that modifies its terms.
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a benchmark index.
After Renovation Value (ARV)
The estimated value of a property after renovations are completed.
Amenity
A feature that enhances a property's value, such as a pool, gym, or clubhouse.
Amortization
The process of gradually paying off a loan through regular payments of principal and interest.
Annual Percentage Rate (APR)
The total cost of a loan, including interest and fees, expressed as a yearly percentage.
Appraisal
An expert assessment of a property’s value, typically required by lenders before approving a mortgage.
Appraiser
A licensed professional who estimates the value of a property.
Appreciation
The increase in a property's value over time due to market conditions or improvements.
Arm’s-Length Transaction
A deal where the buyer and seller act independently without pressure or influence from each other.
Assessment
The process of determining a property's value for taxation purposes.
Assessor
A government official who determines the assessed value of properties for taxation.
Assessor Parcel Number (APN)
A unique identifier assigned to a parcel of land by the tax assessor’s office.
Assumable Mortgage
A mortgage that allows a buyer to take over the seller’s loan under its existing terms.
Auction
A public sale where properties are sold to the highest bidder.
Average
A statistical measure representing the central value of a set of numbers, often used in real estate to compare property prices.
B
Backup Offer
An offer on a property that becomes active if the primary offer falls through.
Balloon Mortgage
A mortgage with low or interest-only payments for a set time, followed by a large lump-sum payment at the end.
Bridge Loan
A short-term loan used to finance a new home purchase while waiting for the sale of a current home.
Broker
A licensed professional who negotiates and arranges real estate transactions.
Broker Price Opinion (BPO)
An estimated property value provided by a real estate broker, often used by lenders instead of a full appraisal.
BRRRR Method
An investment strategy: Buy, Rehab, Rent, Refinance, Repeat.
Building Codes
Regulations that specify construction standards to ensure safety and compliance.
Buyer’s Agency Agreement
A contract between a buyer and an agent, outlining the agent’s responsibilities and compensation.
Buyer’s Agent
A real estate professional who represents the buyer in a transaction.
Buyer’s Market
A market condition where housing supply exceeds demand, favoring buyers.
C
Cap
A limit on the amount an adjustable-rate mortgage interest rate can increase or decrease during a specified period.
Capitalization Rate (Cap Rate)
A formula used to evaluate the return on investment of a real estate property, calculated as Net Operating Income divided by the property’s value.
Case-Shiller Index
A home price index that measures changes in residential real estate values in the U.S.
Cash-Out Refinancing
A refinancing option that allows homeowners to replace their mortgage with a new loan for more than they owe, receiving the difference in cash.
Certificate of Occupancy
A document issued by a local government certifying that a building complies with codes and is suitable for occupancy.
Closing Costs
Expenses incurred by buyers and sellers during a real estate transaction, such as loan fees, title insurance, and taxes.
Closing Disclosure (CD)
A form that provides final details about the mortgage loan, including fees and terms, given to borrowers before closing.
Coming Soon
A property that is not yet available for showings but will be listed on the market soon.
Comparables
Recently sold properties used to determine the value of a similar home.
Comparative Market Analysis (CMA)
A report comparing similar properties to help determine a home's market value.
Concession
A benefit or discount a seller offers to a buyer, such as paying closing costs.
Conditional Land Use
A zoning designation that allows specific uses subject to conditions set by local authorities.
Condominium
A type of property where individuals own their unit but share ownership of common areas.
Condominium Insurance (HO-6)
An insurance policy covering personal property and liability for condo owners.
Conforming Loan
A mortgage that meets the lending limits and guidelines set by Fannie Mae and Freddie Mac.
Contingency
A condition in a real estate contract that must be met for the transaction to proceed.
Contingent
A property under contract but with conditions that must be met before the sale is finalized.
Contingent Offer
An offer on a home that depends on certain conditions being met, such as financing or a home inspection.
Conventional Loan
A mortgage that is not insured or guaranteed by the government.
Cooperative (Co-op)
A type of housing where buyers purchase shares in a corporation that owns the building rather than owning individual units.
Correspondent Lender
A lender that funds home loans and then sells them to larger lenders or investors.
Covenants, Conditions & Restrictions (CC&Rs)
Rules governing the use of properties in a community, set by a homeowners' association or developer.
Credit Report
A summary of a person's credit history used by lenders to assess creditworthiness.
Credit Score
A numerical representation of a person's creditworthiness based on their financial history.
Cumulative Days on Market (CDOM)
The total number of days a property has been listed for sale, including previous listings.
D
Debt-to-Income Ratio (DTI)
A financial measure comparing a borrower’s total monthly debt payments to their gross monthly income.
Deed
A legal document that transfers property ownership from one party to another.
Deed-in-Lieu
A process where a homeowner voluntarily transfers their property deed to the lender to avoid foreclosure.
Department of Housing and Urban Development (HUD)
A U.S. government agency that oversees housing policies and programs, including FHA loans.
Depreciation
The decrease in a property’s value over time due to wear, age, or market conditions.
Discount Point
A fee paid at closing to lower the mortgage interest rate, typically one point equals 1% of the loan.
Down Payment
An upfront payment made when purchasing a home, usually a percentage of the purchase price.
E
Earnest Money
A deposit made by a buyer to demonstrate serious intent to purchase a property.
Easement
A legal right for someone to use another person's land for a specific purpose.
Encroachment
When a structure or improvement extends onto another property without permission.
Equity
The difference between a property’s market value and the amount still owed on the mortgage.
Escrow
A financial arrangement where a neutral third party holds funds or documents until contractual obligations are met.
Estate Sale
The sale of a deceased person’s property, often conducted by an estate executor.
Estoppel Certificate
A document confirming lease terms and conditions, typically used in property transactions.
Exclusive Agency Listing
A listing agreement where the seller hires one agent but retains the right to sell the property independently.
Exclusive Right to Sell Listing
A listing agreement where the hired agent has the exclusive right to sell and earn commission, regardless of who finds the buyer.
Expired
A property listing that has reached the end of its contract period without being sold.
F
Fair Housing Act
A federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, or national origin.
Fair Market Value
The price a property would sell for on the open market under normal conditions.
Fannie Mae
A government-sponsored enterprise that buys and guarantees mortgages to ensure liquidity in the housing market.
Fed (Federal Reserve)
The central banking system of the U.S., which regulates monetary policy, interest rates, and financial stability.
Fee Simple
The most complete form of property ownership, granting the owner full rights indefinitely.
FHA
The Federal Housing Administration, which insures mortgages to help borrowers with lower credit scores or smaller down payments qualify for loans.
FHA Loan
A government-backed mortgage insured by the Federal Housing Administration, designed for lower-income and first-time homebuyers.
Fiduciary
A legal obligation for an individual or entity to act in the best interest of another party, often seen in real estate agents and financial advisors.
First Right of Refusal
A contractual right allowing a party to match a purchase offer before the property is sold to another buyer.
Fixed-Rate Mortgage
A home loan with a constant interest rate and monthly payment throughout its term.
Fixer-Upper
A property that requires repairs or renovations but is typically sold at a lower price.
Flipping
The process of purchasing a property, renovating it, and selling it quickly for a profit.
Float-Down
A mortgage rate option allowing borrowers to secure a lower rate if market rates decrease before closing.
Flood Insurance
A policy that covers property damage caused by flooding, typically required for homes in high-risk flood zones.
For-Sale-By-Owner (FSBO)
A home sale in which the owner sells the property directly without using a real estate agent.
Foreclosed Home
A property taken back by a lender after the homeowner fails to make mortgage payments.
Foreclosure
A legal process where a lender repossesses and sells a home due to the borrower’s failure to make mortgage payments.
Freddie Mac
A government-sponsored enterprise that buys and securitizes home loans to provide stability and affordability in the mortgage market.
G
GreatSchools Rating
A score assigned to schools by GreatSchools.org based on academic performance, equity, and student outcomes, helping parents evaluate school quality.
H
Home Equity Line of Credit (HELOC)
A revolving line of credit secured by a homeowner's equity in their property, allowing them to borrow as needed up to a set limit.
Homeowners Association (HOA)
An organization in a community that enforces rules, maintains common areas, and manages fees for property owners.
Homeowners Association (HOA) Dues
Mandatory payments made by homeowners in an HOA community to cover maintenance, amenities, and management costs.
I
Improvement Location Certificate (ILC)
A document prepared by a surveyor that shows the approximate location of improvements on a property in relation to property boundaries.
Inspection
A thorough examination of a property's condition, typically conducted by a professional inspector before closing.
Interest Rate
The percentage charged by a lender for borrowing money, expressed as an annual percentage of the loan amount.
J
Joint Tenants
A form of property ownership where two or more individuals hold equal shares and have the right of survivorship, meaning if one owner passes away, their share automatically transfers to the remaining owner(s).
Jumbo Mortgage
A home loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA), often requiring higher credit scores and larger down payments.
L
Lead-Based Paint (LBP)
A hazardous type of paint that contains lead, commonly found in homes built before 1978.
Lead-Based Paint (LBP) Disclosure
A federally required disclosure that informs buyers and tenants of potential lead-based paint hazards in properties built before 1978.
Lien
A legal claim against a property used as collateral to satisfy a debt.
Lis Pendens
A public notice that a property is involved in a lawsuit, potentially affecting its title or ownership.
List Price
The price at which a property is publicly listed for sale.
Listing
A property that is publicly advertised for sale by a real estate agent.
Listing Agent
The real estate agent who represents the seller in a property transaction.
Loan Commitment Letter
A document from a lender stating that a borrower's mortgage loan has been approved under specific conditions.
Loan Estimate
A document provided by a lender detailing the estimated costs, interest rate, and terms of a mortgage loan.
Loan-to-Value Ratio (LTV)
A financial term comparing the amount of a mortgage to the appraised value of a property, expressed as a percentage.
Long Hold
A real estate investment strategy where a property is purchased and held for an extended period to maximize appreciation and rental income.
Loss Mitigation
Strategies used by lenders to help borrowers avoid foreclosure, such as loan modifications or repayment plans.
M
Median
The middle value in a set of home prices or market data, often used to analyze market trends.
Mid-Term Rental (MTR)
A rental property leased for a period typically between one and six months, often catering to traveling professionals or temporary relocations.
Months of Supply
The number of months it would take for the current inventory of homes on the market to sell at the current sales pace.
Mortgage Broker
A licensed professional who connects borrowers with mortgage lenders and helps secure home financing.
Mortgage Fees
Various costs associated with obtaining a mortgage, such as origination fees, appraisal fees, and closing costs.
Mortgage Insurance
A policy that protects lenders in case the borrower defaults on the loan, often required for loans with less than 20% down payment.
Mortgage Lender
A financial institution or individual that provides home loans to borrowers.
Mortgage Loan
A loan used to purchase real estate, secured by the property itself.
Mortgage Loan Originator (MLO)
A professional who assists borrowers in the mortgage application process and originates home loans.
Multi-Family
A type of residential property that contains multiple separate housing units, such as duplexes or apartment buildings.
Multi-Property Sale
A real estate transaction involving the sale of multiple properties in one deal.
Multiple Listing Service (MLS)
A database used by real estate professionals to share information about properties for sale.
Mutual Acceptance
The point in a real estate transaction when both the buyer and seller have signed and agreed to the terms of the contract.
N
National Association of REALTORS® (NAR)
A professional organization for real estate agents that sets industry standards and promotes ethical practices.
Natural Hazard Disclosure Act
A law requiring sellers to disclose if a property is in a hazardous area, such as a flood zone or wildfire-prone area.
Negative Amortization Loan
A type of loan where the monthly payment is not enough to cover the interest, causing the loan balance to increase over time.
Net Proceeds
The amount a seller receives after all expenses, such as agent commissions and closing costs, are deducted from the sale price.
New Construction
A home or building that has been recently built and has never been occupied.
Notice of Election and Demand (NED)
A formal document filed by a lender to begin the foreclosure process on a property due to loan default.
Notice to Terminate
A written notice from a buyer or seller to officially end a real estate contract under its specified terms.
O
Offer and Acceptance
A fundamental real estate contract principle where one party makes an offer and the other accepts, forming a legally binding agreement.
P
Par Rate
The standard interest rate a borrower qualifies for without the need for extra fees or lender credits.
Pending
A property status indicating an accepted offer is in place, but the sale is not yet finalized.
Per Diem
A daily charge applied when a buyer or seller does not close on the agreed date.
Permitted Land Use
The specific types of development or activities allowed on a property by zoning laws.
PITI
An acronym for Principal, Interest, Taxes, and Insurance—the four components of a mortgage payment.
Planned Unit Development (PUD)
A residential community with a homeowners association, mixed-use zoning, and shared amenities.
Pocket Listing
A property for sale that is not publicly listed on the MLS.
Possession
The point at which a buyer legally takes ownership and control of a property.
Pre-approval
A lender’s conditional approval stating the amount a buyer qualifies to borrow for a home loan.
Pre-Payment Penalty
A fee charged for paying off a mortgage loan early.
Pre-qualification
An informal assessment of how much a borrower may qualify for, based on self-reported financials.
Price Adjustment
A change in the asking price of a property due to market conditions or seller motivation.
Price/Square Foot ($/Sq. Ft.)
A calculation dividing a home’s price by its total square footage, used for value comparisons.
Private Mortgage Insurance (PMI)
Insurance required on conventional loans when the down payment is less than 20%, protecting the lender.
Probate Sale
A sale of property owned by a deceased person’s estate, requiring court approval.
Procuring Cause
The series of events leading to a buyer purchasing a property, determining agent commission rights.
Property Tax
A tax assessed by local governments based on a property’s value.
Purchase and Sale Agreement
A legally binding contract outlining the terms of a property transaction between buyer and seller.
Q
Quitclaim Deed
A deed transferring a property owner's interest without guaranteeing the title is clear of liens or claims.
R
Radon
A naturally occurring radioactive gas that can accumulate in homes, posing health risks.
Rate Lock
An agreement between a borrower and a lender to lock in a specific interest rate for a certain period.
Real Estate Agent
A licensed professional who assists buyers and sellers in real estate transactions.
Real-Estate-Owned Home (REO)
A property owned by a lender, typically after a foreclosure.
REALTOR®
A real estate professional who is a member of the National Association of REALTORS® and adheres to its Code of Ethics.
Refinancing
Replacing an existing mortgage with a new one, usually to secure better terms.
Rental Cap
A limit set by a homeowners association (HOA) or local government on the number of rental properties in a community.
Reserves
Funds set aside by a homeowner, lender, or HOA for future expenses or emergencies.
RESPA (Real Estate Settlement Procedures Act)
A federal law that governs real estate transactions, ensuring transparency in the home-buying process.
S
Sale-to-List Ratio
The final sale price of a home compared to its original listing price, expressed as a percentage.
Seasoning
The length of time an asset, such as a mortgage or loan, has been held before resale or refinancing.
Secondary Mortgage Market
The marketplace where lenders sell existing mortgages to investors to free up capital for new loans.
Self-Represented Buyer
A homebuyer who chooses to purchase a property without the assistance of a real estate agent.
Seller Property Disclosure
A document where a seller discloses known issues or defects with a property.
Seller’s Market
A market condition where demand for homes exceeds supply, favoring sellers.
Selling Agent and/or Office
The agent or brokerage representing the buyer in a real estate transaction.
Senior Exemption
A property tax reduction available to qualifying senior homeowners.
Setback
The minimum distance a structure must be from a property line or other designated area.
Settlement
The final step in a real estate transaction where the buyer and seller complete the closing process.
Short Hold
An investment strategy where a property is held for a short period before being sold.
Short Sale
A home sale where the seller's mortgage lender agrees to accept less than the amount owed.
Short-Term Rental (STR)
A property rented for a short duration, typically less than 30 days, such as an Airbnb.
Single Family Residence (SFR)
A standalone residential property designed for one family.
Sold
Indicates that a property has completed the sale process and ownership has transferred.
Special Assessments
Additional fees imposed by a homeowners association (HOA) or municipality for community improvements.
Survey
A detailed map of a property’s boundaries, structures, and legal descriptions.
Surveyor
A professional who measures land and property boundaries.
Sweat Equity
The value added to a property through labor, such as renovations and improvements.
T
Tenancy in Common
A form of property ownership where two or more individuals own a share of a property without the right of survivorship.
The Department of Regulatory Agencies' (DORA)
A state agency overseeing licensing and regulation of real estate professionals in Colorado.
Title
A legal document proving ownership of a property.
Title Company
A business that verifies legal ownership and issues title insurance to protect against ownership disputes.
Title Insurance
A policy protecting homebuyers and lenders from past ownership claims or title defects.
Title Search
A review of public records to confirm legal ownership and identify any liens on a property.
Townhouse
A multi-floor home that shares walls with neighboring properties but has its own entrance.
Transaction Broker
A real estate professional who facilitates a transaction without representing either party as a fiduciary.
Transaction Coordinator
An administrative professional who manages paperwork and deadlines in a real estate transaction.
Truth-in-Lending Act
A federal law requiring lenders to disclose loan terms, interest rates, and costs to borrowers.
Turn-Key
A fully renovated property ready for immediate use or rental with minimal additional work.
U
Under Contract
A status indicating that a seller has accepted an offer, but the sale has not yet closed.
Under Contract Short Sale
A property sale under contract where the seller owes more than the home’s value, requiring lender approval.
Underwriter
A financial professional who assesses loan applications to determine risk and approve or deny financing.
Upfront Costs
The initial expenses a buyer must pay before or at closing, including down payment, inspections, and fees.
V
VA Loan
A mortgage loan guaranteed by the U.S. Department of Veterans Affairs, available to eligible military service members and veterans.
Vacancy Rate
The percentage of unoccupied rental units in a specific market or property.
W
Walkthrough
A final inspection of a property before closing to ensure it is in the agreed-upon condition.
Withdrawn or Cancelled
A property listing that has been removed from the market before being sold.
Z
Zoning
Regulations that dictate how land and properties can be used in specific areas.