Attornment is the formal agreement by a tenant to recognize a new owner of the property as their landlord, typically due to a sale or foreclosure.
An auction is a method of selling property to the highest bidder. This process is utilized for a variety of real estate transactions and can involve different bidding procedures. The property is ultimately sold to the highest bidder.
A BID is the amount someone is willing to pay for a property. It is a proposal by a potential buyer in response to a seller's ASKING PRICE. It sets the stage for negotiating the purchase agreement.
The closing date in real estate is the date upon which the sale of a property is finalized and ownership is officially transferred from the seller to the buyer through the execution of associated legal documents.
Confirmation of Sale refers to the official recognition and approval of the sale of property by a court of law. This process validates that the sale was conducted properly according to legal standards.
A Contract of Sale, also known as an Agreement of Sale, is a legal document that outlines the terms and conditions under which a sale of property will be completed between a seller and a buyer.
A due-on-sale clause is a provision in a mortgage agreement that requires the full repayment of the loan when the property is sold.
An escrow agent is a neutral third party who holds funds or assets during a transaction until specified conditions are met, ensuring a secure process for the involved parties.
An estoppel certificate is a document used in real estate transactions to detail the current status and conditions of a lease agreement, providing verification of lease information to third parties, such as lenders or prospective buyers.
An exclusive (agency) listing is a written employment contract giving a single brokerage firm the right to sell a property within a specified time frame while also allowing the property owner to sell the property independently without paying a commission.
An employment contract that grants the broker the right to collect a commission if the property is sold by anyone, including the owner, during the term of the agreement.
Filing fees are charges associated with documents that are recorded in the courthouse in connection with a sale, including deed-recording, mortgage-recording, and mortgage-release charges.
A flat fee broker is a licensed real estate broker who charges a predetermined fixed fee for providing brokerage services instead of a conventional commission percentage based on the property's sales price.
Gazumping is a term used in real estate to describe the practice of reneging on an oral commitment to buy or sell a property when a better offer or opportunity arises before a legal sales contract is finalized.
An installment contract, also known as a land contract, is a legal agreement in real estate transactions where the buyer agrees to make regular payments to the seller in exchange for the right to occupy and use the property, with full ownership transferred only after all payments have been made.
Inventory in real estate refers to property held for sale or properties utilized in the development of goods destined for sale, which does not qualify for capital gains tax treatment.
Judicial foreclosure is a legal process in which a defaulted debtor’s property is sold under the supervision and ratification of a court, often resulting in a deficiency judgment against the debtor if the sale price does not cover the owed amount.
A Listing refers to the agreement between a real estate agent and a property owner that authorizes the agent to act as the owner's representative in the sale of the property.
A listing agreement, also known as a listing contract, is a legally binding contract between a property owner and a real estate broker or agent that details the terms and conditions under which the broker will market, promote, and sell the property.
Net proceeds from resale refer to the amount a seller receives from the sale of a property after all costs and expenses associated with the sale have been deducted. It is important to calculate these net proceeds as they determine the actual financial benefit the seller gains from the property sale.
A nonassumption clause, also known as a due-on-sale clause, is a clause in a mortgage contract that prevents the transfer of the mortgage terms to another borrower in the event of a sale. This clause is used to protect lenders from the potential risks of new borrowers who might be less creditworthy than the original borrower.
Nonjudicial foreclosure is a process used in certain states that allows lenders to sell a property directly without court involvement. This method is typically faster and less expensive.
A public sale refers to an auction sale of property with notice to the general public, usually carried out after foreclosure or other legal proceedings.
A Real Estate Commission is a fee charged by a real estate agent or broker for their services in facilitating a real estate transaction, typically a percentage of the property's sale price.
A real estate contract defines the terms agreed upon by a buyer and seller regarding a real estate transaction. This legal document ensures all parties understand their obligations and rights.
A Release Clause in a mortgage is a provision that allows the borrower to pay off a portion of the mortgage debt, thereby freeing a corresponding portion of the property from the mortgage lien. This is especially useful for subdivided properties or developments where individual parcels are intended to be sold separately.
Resale proceeds refer to the amount a seller receives from the sale of a property after deducting transaction costs, outstanding mortgage, and applicable taxes. Measuring the net financial benefit, it is essential for homeowners and investors alike.
The Right of First Refusal (ROFR) grants a party the opportunity to match the terms of a proposed contract before it is executed with an outside party.
A Sales Contract is a legally binding agreement between a buyer and seller that outlines the terms and conditions of the sale of property, including the price, closing date, type of deed, and other necessary details to complete the transaction.
A Sheriff's Deed is an evidence of ownership provided by a court or law enforcement agency following the auction or sale of a property due to the owner's unpaid taxes or a foreclosure. While it transfers ownership, it does not come with a personal guarantee of a clear title.
A termite inspection is an examination of a structure by qualified personnel to determine the presence of termite infestation. This is often a requirement stipulated in a real estate sales contract to protect the buyer from purchasing a property with termite-related damages.
A Title Binder is a temporary form of title insurance that signifies the intent to issue a title insurance policy at a later date. Typically used in real estate transactions, it offers interim coverage from the time the property sale contract is signed until the closing, when a full title insurance policy is issued.
A vendee's lien is a legal claim against a property that is given as security for a deposit paid by a purchaser under a contract of sale. This lien protects the buyer's interests should the seller attempt to breach the agreement.
In the context of real estate, a vendor is the seller of a property. Vendors are typically involved in various transactions including the sale of personal property, cash exchanges, and mortgage transfers. Vendors are integral to real estate transactions as they transfer ownership to the buyer, or vendee.
A Waiver of Tax Lien is a document issued by a taxing jurisdiction confirming that it will not file a lien on a particular property, often used during the sale of real estate by an estate to assure a clear title for the buyer.
