DEFINITIONS
REAL ESTATE DEFINITIONS
Agency - term used to indicate the type of professional, fiduciary relationship that exists between buyers and sellers and their respective real estate agents
close of escrow - day on which the property is recorded at the county recorder's office in the buyer's name and become part of public record.
closing costs - various fees associated with the closing the escrow. Buyer and seller each have their respective costs to pay including, but not limited to title search, loan transfer, recording, and natural hazard disclosure searches.
CMA - competitive market analysis, performed by a real estate agent showing what price would be most apporpriate for any given home in the current market based on sales of similar homes during the previous six months
contingency - serious condition imposed upon a contract, usually by the buyer, which, if not fulfilled or waived, can cause the sale to cancel.
commission - a negotiable fee paid to a real estate broker for services perfomed in buying or selling of real estate. Paid from seller's proceeds at close of escrow
counter offer - offer subsequent to an original offer to purchase by a buyer. There may be more than one counter offer
disclosure - responsibility of a seller to state in writing, anything of a material nature that they are aware of regarding the property they are selling. The responsibility for complete disclosure also applies to the agent representing the seller
equity - value of a property after all fees, loans, liens, and commissions are paid
earnest money - initial monetary amount paid by the buyer when submitting an offer to purchase real estate
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