Whether you are a new buyer or passionate about investing in luxurious properties, you need to learn many things. Gathering information and educating yourself are the key factors to get success. However, the language and terms of real estate are confusing. In this article, you can learn a few common real estate glossary terms that help you to make a hassle-free purchase.
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List of some common real estate terms
Ad valorem tax
This tax is levied by the local government and the tax value varies depending on the property value.
Ohana
Generally, the term indicates extension of the house, that is vacation rental or guest house.
Agent
An individual who acts on behalf of another person is known as an agent. It may be anyone like an agent who represents a buyer, a listing agent who represents the seller, or the agent who represents both. Generally, these agents are licensed under state law.
Condominium
It is a building where people own some parts or units. Also, they share a few common areas like a swimming pool, golf courts, tennis courts, parking areas, and more.
Conveyance
Conveyance means transfer or passing of title from seller to buyer.
Counteroffer
The buyer or seller makes changes in the original offer after receiving it. Then the offer gets rejected and becomes a counteroffer.
Deed
It is a document, which buyer and seller sign when passing the title to the real estate. Legally, it transfers the property to the buyer from the seller. Then, it is recorded in the documents of the real estate agency.
Leasehold
The tenant or lessee holds the temporary rights of the property from the landlord in some form. Leasehold is considered personal property.
Lien
It is a financial claim against a property. It is paid when the property is sold to the new owner and then legally documented in the county records.
Offer
It is defined as a written promise of a buyer to the seller about purchasing the property.
Possession
When the buyer occupies the purchased property or the tenant occupies the leased property after giving their funds.
Purchase and sale agreement
It is a contract between the seller and buyer regarding the terms, sales price, conditions, and other details of the property purchased.
PITI
It is a combination of the principal amount, interest, tax, and insurance. When you pay a down payment of less than 20 %, the lender asks you for monthly payment, including 1/12 of annual insurance and 1/12 of annual tax along with principal amount and interest.
In addition to the above terms, learn regarding plat, open listing, no-doc loan, and more. Many real estate agents provide details of the best properties choose the best one and contact today to fulfill your dream of purchasing a new property in a beautiful like Kapalua.
