All appropriate costs generated by the sale of property which the parties must pay to complete the transaction. Costs may include appraisal fees, loan fees, title insurance, taxes and anything else negotiated in the deal.

A deed of trust is recorded at the time a loan is taken on the property and is used in place of a mortgage.

A deed of trust involves three parties. the borrower, or trustor, the lender as the beneficiary, and a neutral third party as the trustee, who holds title until the note is paid in full.

The deed of trust stays in place until the loan is paid. The trustee holds the power to foreclose on the property until the debt is paid in full.

The deed of trust system allows the trustee to foreclose on a property without going through the courts. This is often seen to be faster than recording a mortgage that requires court approval to foreclose.

When a home owner cannot make their mortgage payments, they offer the deed to the mortgage company to avoid going through foreclosure.

This is a document that a lender is required to give a prospective borrower when they apply for a mortgage loan. The "GFE" is a written estimate of all closing costs and fees required for the proposed mortgage loan.

• An acronym for the United States Governments department of Housing and Urban Development.
• A summary of the financial portion of the real estate transaction required by the Department of Housing and Urban Developme

Also known as a Home Inspection Report or a Property Inspection. This is a written report evaluating the condition of a property. It is provided by an inspector after a physical inspection of the property. The report usually covers mechanical, electrical, and structural aspects, and notes the items in need of repair.

Mortgage Insurance Premiums (MIPs) are fees by borrowers of an FHA loan in order to obtain the loan. MIPs can be both up-front and annual. This is often confused with PMI or Private Mortgage Insurance.

An insurance policy that lenders require on all loans that represent a loan to value ratio of over 80%.

A legal document that grants the power of one individual to act on behalf of another. These can be general or specific for a certain action or transaction. For a Real Estate Transaction a specific Power of Attorney is usually needed to purchase or sell a specific property.

A deed that transfers without warranty any interest the Grantor may have in a property to the Grantee. Commonly used to clear any "clouds" on the title.

A person or corporate entity licensed by the state to sponsor real estate salespersons. In most states, all money earned as a result of activities in real estate (sales, leasing, property management) must be paid to the broker, and the broker is ultimately responsible for the actions of their salespersons.

• The term realtor refers to the membership mark held by the national association of realtors and refers to any member of said organization.
• The term REALTOR® identifies a licensed professional in real estate who is a member of the National Association of REALTORS®. Not all licensed real estate brokers and salespersons are members of the National Association, and only those who are can identify themselves as REALTORS®. Realtors conduct their business and activities in accordance with a strict Code of Ethics. For example, as agents in a real estate transaction, licensed brokers and salespersons are prohibited by law from discriminating on the basis of race, color, religion, sex, handicap, familial status, or national origin. A request from the home seller or landlord to act in a discriminatory manner in the sale, lease or rental cannot legally be fulfilled by the real estate professional.

Seller concessions are buyer costs that the seller is willing to pay on behalf of the buyer like closing costs, points, house payments, etc. Also these could be extras they are willing to throw in for free like building the buyer a fence or providing window treatments.

see also HUD-1. A real estate document presented at or before the closing to both buyer and seller which explains the transaction and exactly who will receive all monies at the closing, including buyer, seller mortgage holders and any other parties to the transaction.

• A real estate sales transaction executed with the understanding that the seller will payoff their lender less than what is owed on the property.
• The lender may choose to issue an IRS 1099-A form that shows the deficiency as income which the borrower may have to pay income taxes on. A short sale can help a homeowner prevent foreclosure. A homeowner can continue to live in the property during the short sale. Most lenders do not allow a short sale unless the payments are at least two months behind. The homeowner usually is required to write a letter of financial hardship to the lender. Some lenders have pre-formatted Financial Hardship Packages
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A drawing that shows the precise measurements, boundaries, easements, improvements, and right of ways on a particular property.

Officially named a Wood Destroying Insect Report (WDI). This is a written report from a licensed inspector that indicates if wood destroying insects (i.e. termites) were found on a property and the location(s) on the property where the infestation was discovered.

Legal document showing the right of ownership of a particular property

• The insurance that covers loss of an interest in a property due to legal defects and that is required if the property has a mortgage.
• Title insurance is a police issued by title insurance company, assuring that the title is a clear in the name of title owner. That means if owner wish to sale the property, that time he don't have any problem to sell that. If any problem creates after selling the property to the new owner that time title insurance company will pay the damage for that or take action to solve that problem.

An examination of public records to determine and confirm a property's legal ownership, and find out what claims are on the property.

A state or local tax that is paid when property is transferred from one owner to another.

a real estate term describing when a person owes more on their home than what it is worth, making it difficult to sell without a short sale.

Commonly called a "Termite Report". This is a written report from a licensed inspector that indicates if wood destroying insects (i.e. termites) were found on a property and the location(s) on the property where the infestation was discovered.

• When a property owner submits a request to a planning commission or other body to use the property for a purpose outside of the zoning regulations.
• "Setbacks and right of ways" generally are the outside parameters of the owners land and cannot be utilized for permanent fixtures, homes, garages etc. Zoning Variance request may allow for such use of setback and right of way property in some cases.