Real estate glossary

Plain-English definitions of 196 terms that home buyers, sellers and agents run into, from earnest money to IDX. Written and checked by our team, with the sources on every full guide.

196 terms

The full guides

Closing costs and taxes Closing costsClosing costs are the fees and taxes buyers and sellers pay to complete a home sale beyond the price itself, such as lender charges, title insurance, settlement and recording fees and transfer taxes. Who pays which depends on the contract and local custom.Transfer taxTransfer tax is a tax a state, county or city charges when real estate changes hands, usually a percentage of the sale price. Rates and who customarily pays vary by state, and some states charge none.Title insuranceTitle insurance protects against losses from problems with a property’s ownership history, such as unknown liens, forged signatures or recording errors, that weren’t found before the sale. You pay a one-time premium at closing.Property tax prorationProperty tax proration splits the year’s property tax between buyer and seller by the closing date, so each pays for the days they own the home. Depending on when taxes are paid, the seller credits the buyer or the buyer repays the seller.Home sale tax exclusionThe home sale tax exclusion lets you keep up to $250,000 of profit from selling your main home free of federal income tax, or $500,000 if married filing jointly, if you owned and lived in it 2 of the last 5 years.1031 exchangeA 1031 exchange lets an investor defer capital gains tax on the sale of business or investment real estate by reinvesting in like-kind property, identifying it within 45 days and closing within 180. Primary homes don’t qualify.Homestead exemptionA homestead exemption lowers the taxable value of the home you live in as your main residence, which reduces your property tax bill. Each state sets its own amounts, rules and deadlines, and you usually have to apply.
Contracts, agents and the MLS Buyer agency agreementA written contract between a home buyer and an agent’s brokerage that sets out the agent’s duties, how long it lasts and how the agent is paid. Since August 2024, agents who use the MLS need one before touring a home with you.Dual agencyWhen one agent or one brokerage represents both the buyer and the seller in the same sale. Some states ban it; where it’s allowed, both sides must give informed written consent, and the agent can’t fully advocate for either one.Real estate commissionThe fee a brokerage earns for helping you buy or sell a home, usually a percentage of the sale price or a flat amount. Commissions are negotiable and are not set by law or by any association.Multiple listing serviceA private database where member brokerages share listings so agents can find homes for their buyers. Each MLS covers a local or regional market and sets its own rules and statuses, and most home search websites show its listings.Pocket listingA home for sale that a listing agent markets privately instead of putting it in the MLS, so only selected agents and buyers hear about it. MLS rules limit when this is allowed, and it can shrink the pool of buyers.Listing agreementA contract between a home seller and a brokerage that gives the brokerage the right to market the home for a set period, and spells out the asking price, the commission, the agent’s duties and how the listing ends.PendingA listing status that means the seller has accepted an offer and the home is no longer on the market while the sale moves toward closing. Each MLS defines pending a little differently, and some pending sales still fall through.As-isA sale where the seller won’t make repairs or give credits for the home’s condition, and the buyer takes the property as it stands. It usually doesn’t excuse the seller from disclosure laws, and buyers can still inspect.Seller disclosureA form in which a home seller reports what they know about the property’s condition and history, such as leaks, repairs and defects. What must be disclosed depends on state law, plus a federal rule for lead paint in homes built before 1978.
For agents IDXInternet Data Exchange: the MLS program that lets member brokers and their agents show other brokerages’ active listings on their own websites and apps, under display rules set by each MLS.Real estate CRMCustomer relationship management software built for agents: one place for contacts, leads, conversations, follow-up and deals, so everyone in your database has a history and every lead gets a next step.Lead routingThe rules that decide which agent gets each new lead, by source, area, price or rotation, so every inquiry has an owner the moment it arrives.Speed to leadThe time between a new lead’s inquiry and your first real reply by call, text or email. The shorter it is, the more likely you reach the person before another agent does.Drip campaignA planned series of emails, texts or call reminders that goes out on a schedule after someone is enrolled, such as a new lead or a past client, until they reply or you stop it.A2P 10DLCThe U.S. carrier system for business texts sent through software from ordinary 10-digit phone numbers. Senders register a brand and a campaign through The Campaign Registry, and unregistered traffic is blocked or filtered.TCPA consentThe permission the Telephone Consumer Protection Act requires before marketing calls or texts sent with an autodialer or prerecorded voice: a signed written agreement, electronic signatures included, naming the number to contact.Transaction managementKeeping each deal organized from accepted offer to closing: contract dates and deadlines, documents and signatures, tasks and the people involved, usually in software the agent, team and brokerage share.

A to Z

#

1031 exchange Also like-kind exchange, Section 1031 exchange, tax-deferred exchange, Starker exchange

A 1031 exchange lets an investor defer capital gains tax on the sale of business or investment real estate by reinvesting in like-kind property, identifying it within 45 days and closing within 180. Primary homes don’t qualify.

Closing costs and taxes Capital gains taxCost basisHome sale tax exclusionForm 1099-S Full guide

A

A2P 10DLC Also 10DLC, A2P messaging, application-to-person texting, 10-digit long code

The U.S. carrier system for business texts sent through software from ordinary 10-digit phone numbers. Senders register a brand and a campaign through The Campaign Registry, and unregistered traffic is blocked or filtered.

For agents TCPA consentDrip campaignReal estate CRMSpeed to lead Full guide WorkspaceInbox and texting

Active under contract Also AUC, active with contract, active contingent

A listing status for a home where the seller has accepted an offer but the listing stays on the market, often because contingencies are still open and the seller is taking backup offers. Each MLS defines it in its own words.

Contracts, agents and the MLS PendingContingentContingencyKick-out clause

Addendum Also contract addendum, rider

An extra document attached to a purchase agreement or other contract that adds terms, such as a home sale contingency, HOA terms or a lead paint disclosure. It becomes part of the contract once both parties sign it.

Contracts, agents and the MLS Purchase agreementContingencyLead-based paint disclosureCounteroffer WorkspaceE-signature

Adjustable-rate mortgage Also ARM, 5/1 ARM, 7/6 ARM

An adjustable-rate mortgage has an interest rate that’s fixed for an initial period, such as five or seven years, then adjusts on a schedule with a market index, within caps set in the loan. Payments can rise or fall.

Mortgages and loans Fixed-rate mortgageInterest rateAnnual percentage rateRefinance

Agency disclosure Also agency disclosure form, brokerage relationship disclosure, Information About Brokerage Services

A written notice that explains the kinds of relationships you can have with a real estate agent, whom the agent represents and what duties they owe you. State law sets the form and when you get it, usually early on.

Contracts, agents and the MLS Dual agencyDesignated agencyTransaction brokerFiduciary duties

Amortization Also amortization schedule

Amortization is paying off a loan through regular, equal payments that cover the interest due and part of the principal. Early payments are mostly interest; over time, more of each payment goes to the balance.

Mortgages and loans Fixed-rate mortgagePITIInterest rateRefinance Free toolMortgage calculator

Annual percentage rate Also APR

Annual percentage rate is the yearly cost of a loan, combining the interest rate with certain fees such as points and origination charges. Because it includes fees, it’s usually higher than the interest rate and useful for comparing offers.

Mortgages and loans Interest rateLoan EstimateDiscount pointsClosing Disclosure

Appraisal

An appraisal is a licensed or certified appraiser’s written opinion of a home’s market value, based on its condition and recent comparable sales. Lenders require one on most mortgages to confirm the home supports the loan.

Buying a home Appraisal gapAppraisal contingencyComparablesLoan-to-value ratio

Appraisal contingency

An appraisal contingency lets a buyer renegotiate or cancel a home purchase and recover their earnest money if the home appraises for less than the agreed price, as long as they act by the deadline in the contract.

Buying a home AppraisalAppraisal gapContingencyFinancing contingency WorkspaceTransactions

Appraisal gap Also appraisal shortfall, low appraisal

An appraisal gap is the difference between the price a buyer agreed to pay and a lower appraised value. Lenders lend against the lower figure, so the buyer, the seller or both must cover the difference or renegotiate.

Buying a home AppraisalAppraisal contingencyLoan-to-value ratioEscalation clause Full guide

As-is Also sold as-is, as-is sale, as-is condition

A sale where the seller won’t make repairs or give credits for the home’s condition, and the buyer takes the property as it stands. It usually doesn’t excuse the seller from disclosure laws, and buyers can still inspect.

Contracts, agents and the MLS Seller disclosureHome inspectionInspection contingencyPre-listing inspection Full guide

Assessed value Also assessment, taxable value, appraised value for taxes

Assessed value is the value a local assessor assigns to a property for tax purposes. It can differ from market value, and your property tax is figured from it after any exemptions, such as a homestead exemption.

Closing costs and taxes Property taxMillage rateHomestead exemptionAppraisal

Assumable mortgage Also loan assumption

An assumable mortgage is one a buyer can take over from the seller, keeping its interest rate and remaining balance. FHA, VA and USDA loans are generally assumable with lender approval; most conventional loans aren’t.

Mortgages and loans FHA loanVA loanUSDA loanInterest rate

Audit trail Also activity log, certificate of completion

A time-stamped record of who did what to a document or record and when, such as who opened, signed or changed it, kept as proof if anyone questions it later.

For agents E-signatureESIGN ActUETATransaction management WorkspaceE-signature

Automated valuation model Also AVM, home value estimate, online home value

An automated valuation model (AVM) is software that estimates a home’s value from public records, recent sales and listing data. Online home value estimates are AVMs; they’re quick but can miss condition, upgrades and local detail.

Selling a home Comparative market analysisAppraisalComparablesList price

B

Back on market Also BOM, back on the market

A label for a home that was under contract and is listed as active again, usually because the deal fell through over financing, an inspection or a change of plans. It doesn’t always mean something is wrong with the home.

Contracts, agents and the MLS PendingActive under contractContingentDays on market

Broker reciprocity Also BR, IDX reciprocity

An older name, still used by some MLSs, for IDX: brokers in an MLS agree to let one another show their listings on their own websites, each listing credited to the brokerage that holds it.

For agents IDXListing attributionMultiple listing serviceIDX feed WebsitesIDX & map search

Brokerage cap Also cap, annual cap

The most an agent pays their brokerage in commission splits over a set year. After reaching it, the agent keeps more of each commission, sometimes all of it minus fees, until the cap year resets.

For agents Commission splitDesk feeReal estate brokerReal estate commission Custom projectsCustom software

Buyer agency agreement Also buyer representation agreement, buyer broker agreement, written buyer agreement, exclusive buyer agency agreement

A written contract between a home buyer and an agent’s brokerage that sets out the agent’s duties, how long it lasts and how the agent is paid. Since August 2024, agents who use the MLS need one before touring a home with you.

Contracts, agents and the MLS Buyer’s agentNAR settlementReal estate commissionCooperative compensation Full guide WorkspaceE-signature

Buyer’s agent Also buyer agent, buyer’s broker, selling agent, cooperating agent

The agent who represents the buyer in a home purchase: finding homes, arranging tours, writing and negotiating the offer, and guiding the deal to closing. Their pay and duties are set in a written agreement with the buyer.

Contracts, agents and the MLS Buyer agency agreementListing agentCooperative compensationDual agency

Buyer’s market Also buyers market, soft market

A market with more homes for sale than buyers ready to purchase them, so homes tend to sit longer, prices soften and buyers have more room to negotiate on price, repairs and closing costs.

Contracts, agents and the MLS Seller’s marketMonths of supplyDays on marketSeller concessions

C

CAN-SPAM Act Also CAN-SPAM

The federal law for commercial email: honest headers and subject lines, a clear notice that it’s an ad, your physical postal address and a working opt-out, honored within 10 business days.

For agents Drip campaignTCPA consentReal estate CRMLead magnet WorkspaceInbox and texting

Capital gains tax Also capital gains, long-term capital gains

Capital gains tax is income tax on the profit from selling an asset such as a home: the amount realized after selling costs, minus your cost basis. Gain on a main home may be partly or fully excluded.

Closing costs and taxes Home sale tax exclusionCost basis1031 exchangeForm 1099-S

Clear Cooperation Policy Also CCP, Clear Cooperation

An NAR policy, adopted in 2019, that requires a listing broker to put a home in the MLS within one business day of marketing it to the public, such as with a yard sign, website or email blast.

Contracts, agents and the MLS Multiple listing servicePocket listingComing soonListing agreement

Clear to close Also CTC

Clear to close means the lender’s underwriter has signed off on every condition of your mortgage and the loan is approved to fund. Closing can go ahead once you’ve had the Closing Disclosure for at least three business days.

Mortgages and loans UnderwritingClosing DisclosureClosingFinal walkthrough WorkspaceTransactions

Closing Also settlement, closing day, close of escrow

Closing is the final step of a real estate sale, when the buyer and seller sign the documents, the money changes hands and the deed is recorded, transferring ownership to the buyer.

Closing costs and taxes Closing costsSettlement statementSettlement agentFinal walkthrough Free toolClosing cost calculator

Closing attorney Also real estate attorney, settlement attorney

A closing attorney is a lawyer who conducts or oversees a real estate closing. In some states, such as New York, Georgia and Massachusetts, attorneys handle closings by law or custom; elsewhere title or escrow companies usually do.

Closing costs and taxes Settlement agentTitle companyClosingClosing costs

Closing costs Also settlement costs, closing fees, settlement charges

Closing costs are the fees and taxes buyers and sellers pay to complete a home sale beyond the price itself, such as lender charges, title insurance, settlement and recording fees and transfer taxes. Who pays which depends on the contract and local custom.

Closing costs and taxes Loan EstimateClosing DisclosureTransfer taxTitle insurance Full guide Free toolClosing cost calculator

Closing Disclosure Also CD

A Closing Disclosure is the five-page form showing your mortgage’s final terms, monthly payment and closing costs. Your lender must get it to you at least three business days before closing so you can compare it with your Loan Estimate.

Mortgages and loans Loan EstimateClosingSettlement statementClear to close Free toolClosing cost calculator

Coming soon Also coming soon listing, pre-market listing

A listing status for a home with a signed listing agreement that will go on the market soon and usually can’t be shown yet. Each MLS sets its own rules, such as how long the status can last and whether showings are allowed.

Contracts, agents and the MLS Clear Cooperation PolicyPocket listingMultiple listing serviceDays on market WebsitesIDX & map search

Commission split Also split, agent split

How a commission is divided between an agent and their brokerage, and sometimes their team. The share each side keeps varies widely by brokerage and is set in the agent’s agreement.

For agents Brokerage capDesk feeReal estate commissionReal estate broker Custom projectsCustom software

Community page Also neighborhood page, area guide

A page on an agent’s website about one neighborhood or town: what it’s like, the homes and prices, and a live search of listings there. Good ones are written from real local knowledge.

For agents Doorway pageGeographic farmingIDXSteering WebsitesArea & community pages

Comparables Also comps, comparable sales, sold comps

Recently sold homes similar to the one being priced in location, size, age and condition, used to estimate its market value. Agents use them in a comparative market analysis, and appraisers use them in an appraisal.

Contracts, agents and the MLS Comparative market analysisAppraisalList pricePrice per square foot WorkspaceStudio

Comparative market analysis Also CMA, comps report, market analysis, competitive market analysis

A comparative market analysis (CMA) is a report a real estate agent prepares to estimate a home’s market value from recent sales, pending deals and active listings of similar nearby homes. It guides a list price or an offer.

Selling a home ComparablesList priceAppraisalAutomated valuation model Full guide WorkspaceStudio

Conforming loan limit Also CLL, loan limit

The conforming loan limit is the largest mortgage Fannie Mae and Freddie Mac can buy, set each year by the FHFA. For 2026 it’s $832,750 for a one-unit home in most areas and up to $1,249,125 in high-cost areas.

Mortgages and loans Jumbo loanConventional loanFHA loanMortgage insurance premium

Contingency Also contingency clause

A contingency is a condition in a home purchase contract that must be met for the sale to go ahead, such as a satisfactory inspection, an appraisal at or above the price, or loan approval, each with its own deadline.

Buying a home Inspection contingencyFinancing contingencyAppraisal contingencyHome sale contingency Full guide WorkspaceTransactions

Contingency removal Also contingency release, removing contingencies, waiving contingencies

The point when a buyer gives up a contingency, either in writing or by letting its deadline pass, depending on the contract. After that, backing out for that reason can cost the buyer their earnest money.

Contracts, agents and the MLS ContingencyInspection contingencyFinancing contingencyEarnest money WorkspaceTransactions

Contingent Also contingent offer, contingent listing

A status for a home with an accepted offer that still depends on conditions, such as an inspection, financing, an appraisal or the sale of the buyer’s current home. Some MLSs use this word, others say active under contract.

Contracts, agents and the MLS ContingencyActive under contractPendingContingency removal

Conventional loan Also conventional mortgage

A conventional loan is a mortgage that isn’t insured or guaranteed by a government agency such as FHA, VA or USDA. Most follow Fannie Mae and Freddie Mac rules and require mortgage insurance with less than 20% down.

Mortgages and loans Conforming loan limitJumbo loanPrivate mortgage insuranceFHA loan Free toolMortgage calculator

Cooperative compensation Also co-op commission, buyer agent compensation, co-broke, offer of compensation

Pay that a listing brokerage or seller offers to the brokerage that brings the buyer. Since August 17, 2024, these offers can’t appear on the MLS, but sellers can still agree to them off the MLS or in the deal.

Contracts, agents and the MLS NAR settlementReal estate commissionBuyer’s agentBuyer agency agreement

Cost basis Also basis, adjusted basis, tax basis

Cost basis is what you’ve invested in a property for tax purposes: generally the purchase price plus certain buying costs and the cost of improvements. Subtracting it from what you realize on a sale gives your gain or loss.

Closing costs and taxes Capital gains taxHome sale tax exclusion1031 exchangeClosing costs

Counteroffer Also counter offer, counter

A counteroffer is a reply to an offer that changes one or more of its terms, such as the price, closing date or repairs. It replaces the original offer, and the other side can accept, reject or counter again.

Buying a home OfferPurchase agreementAddendumEscalation clause

Credit score Also FICO score, credit rating

A credit score is a three-digit number, usually from 300 to 850, that predicts how likely you are to repay debt based on your credit history. Mortgage lenders use it to decide whether to approve you and at what rate.

Mortgages and loans Pre-approvalInterest rateDebt-to-income ratioPrivate mortgage insurance

D

Days on market Also DOM, CDOM, cumulative days on market

Days on market (DOM) is how long a home has been listed for sale, usually counted from the day it goes active on the MLS until it goes under contract. A long count can point to a pricing problem.

Selling a home List pricePrice reductionMultiple listing serviceMonths of supply WebsitesIDX & map search

Debt-to-income ratio Also DTI, back-end ratio

Debt-to-income ratio is your total monthly debt payments, including the new housing payment, divided by your gross monthly income. Lenders use it to judge whether you can afford a mortgage, and each loan program sets its own limits.

Mortgages and loans Pre-approvalCredit scorePITIUnderwriting Full guide

Deed Also property deed, deed of conveyance

A deed is the signed legal document that transfers ownership of real estate from the seller, called the grantor, to the buyer, called the grantee. It’s recorded with the county so the public record shows the new owner.

Closing costs and taxes Warranty deedSpecial warranty deedQuitclaim deedRecording fee

Deed in lieu of foreclosure Also deed in lieu, DIL, mortgage release

A deed in lieu of foreclosure is an agreement in which a homeowner who can’t keep up with the mortgage signs the home over to the lender, which in return releases some or all of the remaining debt and stops a foreclosure.

Selling a home ForeclosureShort saleDeedMortgage payoff

Designated agency Also appointed agency, designated agent

An arrangement where one brokerage has both the buyer and the seller as clients, and the broker assigns a different agent to represent each side. It’s allowed only in some states, and the details and names vary.

Contracts, agents and the MLS Dual agencyTransaction brokerAgency disclosureManaging broker

Desk fee Also monthly brokerage fee, office fee

A flat fee an agent pays their brokerage, usually monthly, for office space, support and services, often in exchange for keeping a larger share of each commission. Amounts and terms vary by brokerage.

For agents Commission splitBrokerage capReal estate brokerManaging broker Custom projectsCustom software

Discount points Also mortgage points, points, buying down the rate

Discount points are an upfront fee paid at closing to lower a mortgage’s interest rate. One point costs 1% of the loan amount, and how much each point lowers the rate varies by lender and by day.

Mortgages and loans Interest rateAnnual percentage rateLoan EstimateRate lock

Documentary stamp tax Also doc stamps, deed stamps, documentary stamps, stamp tax

Documentary stamp tax is the name some states, including Florida, give the tax on deeds and other documents in a sale. Florida charges 70 cents per $100 of the price, or $2,800 on a $400,000 home, usually paid by the seller.

Closing costs and taxes Transfer taxClosing costsDeedSeller net sheet Free toolClosing cost calculator

Doorway page Also doorway, gateway page

A page made to rank for one search, often one of many near-copies that differ only by city name, that funnels visitors somewhere else. Google’s spam policies name doorway abuse.

For agents Community pageStructured dataGenerative engine optimizationGoogle Business Profile WebsitesArea & community pages

Down payment

A down payment is the part of a home’s price you pay in cash at closing instead of borrowing. It’s usually stated as a percentage of the price, and less than 20% down on a conventional loan typically means paying mortgage insurance.

Buying a home Earnest moneyPrivate mortgage insuranceLoan-to-value ratioDown payment assistance Free toolMortgage calculator

Down payment assistance Also DPA

Down payment assistance is help paying a buyer’s down payment or closing costs, given as a grant or as a second loan that may be forgiven or repaid later. State housing agencies, local governments and nonprofits run most programs.

Buying a home Down paymentFirst-time homebuyerGift letterFHA loan

Drip campaign Also drip marketing, nurture campaign, action plan, follow-up plan

A planned series of emails, texts or call reminders that goes out on a schedule after someone is enrolled, such as a new lead or a past client, until they reply or you stop it.

For agents Real estate CRMCAN-SPAM ActTCPA consentSpeed to lead Full guide WorkspaceAutomations and follow-up

Dual agency Also dual representation, disclosed dual agency, double-ending

When one agent or one brokerage represents both the buyer and the seller in the same sale. Some states ban it; where it’s allowed, both sides must give informed written consent, and the agent can’t fully advocate for either one.

Contracts, agents and the MLS Designated agencyTransaction brokerAgency disclosureFiduciary duties Full guide

E

E-signature Also electronic signature, e-sign

A signature made electronically, by typing, drawing or clicking to sign, that federal and state law generally give the same legal effect as ink, real estate contracts included, when the parties agree to sign electronically.

For agents ESIGN ActUETAAudit trailTransaction management WorkspaceE-signature

Earnest money Also EMD, earnest money deposit, good faith deposit

Earnest money is a deposit a buyer makes after a seller accepts their offer, held by a neutral third party until closing. It counts toward the down payment and closing costs, and the buyer can lose it by breaking the contract.

Buying a home ContingencyPurchase agreementEscrowDown payment Full guide WorkspaceTransactions

Escalation clause Also escalator clause

An escalation clause is part of an offer that automatically raises the buyer’s price above a competing offer by a set amount, up to a stated maximum. It usually requires the seller to show the competing offer that triggered it.

Buying a home OfferAppraisal gapCounterofferSeller’s market

Escrow Also escrow holder, close of escrow

Escrow is an arrangement in which a neutral third party holds money or documents, like the earnest money deposit or the deed, until the conditions of a sale are met. The word also names a lender’s account for taxes and insurance.

Closing costs and taxes Earnest moneyEscrow accountSettlement agentTitle company

Escrow account Also impound account

An escrow account is an account your mortgage servicer keeps to pay your property taxes and homeowners insurance. Part of each monthly payment goes into it, and the servicer pays those bills when they’re due.

Mortgages and loans PITIProperty taxHomeowners insuranceEscrow Free toolMortgage calculator

ESIGN Act Also ESIGN, Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001

The federal law, passed in 2000, saying a signature, contract or record can’t be denied legal effect just because it’s electronic, with consent and disclosure rules before consumers receive records electronically.

For agents UETAE-signatureAudit trailTransaction management WorkspaceE-signature

Exclusive agency listing Also exclusive agency agreement

A listing agreement where one brokerage markets the home, but the seller keeps the right to sell it themselves without owing that brokerage a commission. If any agent brings the buyer, the listing brokerage is paid.

Contracts, agents and the MLS Exclusive right to sellOpen listingListing agreementFor sale by owner

Exclusive right to sell Also exclusive right-to-sell listing, ERTS, exclusive listing

A listing agreement that gives one brokerage the sole right to sell a home for a set term and pays it the agreed fee if the home sells in that time, no matter who finds the buyer, including the seller.

Contracts, agents and the MLS Listing agreementExclusive agency listingOpen listingReal estate commission

Expired listing Also expired, expireds

A listing whose agreement reached its end date without a sale. The home comes off the MLS, and the seller is free to relist with the same agent, hire a different one or stop selling.

Contracts, agents and the MLS Listing agreementWithdrawnBack on marketPrice reduction WorkspaceStudio

F

Fair Housing Act Also Title VIII of the Civil Rights Act of 1968, fair housing law

The 1968 federal law that bans discrimination in selling, renting, financing and advertising housing because of race, color, religion, sex, national origin, familial status or disability. Many states and cities protect more groups.

Contracts, agents and the MLS SteeringRealtorReal estate agentBuyer’s agent WebsitesWebsite AI assistant

FHA loan Also FHA mortgage, Federal Housing Administration loan

An FHA loan is a mortgage insured by the Federal Housing Administration that allows as little as 3.5% down with a credit score of 580 or higher. Borrowers pay an upfront and an annual mortgage insurance premium.

Mortgages and loans Mortgage insurance premiumConventional loanFirst-time homebuyerDown payment Full guide Free toolMortgage calculator

Fiduciary duties Also fiduciary duty, OLD CAR

The legal duties an agent owes the client they represent, commonly listed as obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. State law sets the exact list, and some roles carry fewer duties.

Contracts, agents and the MLS Agency disclosureDual agencyTransaction brokerBuyer agency agreement

Final walkthrough Also final walk-through, walkthrough

A final walkthrough is the buyer’s visit to the home shortly before closing to confirm it’s in the agreed condition, that agreed repairs were made, and that included items such as appliances are still there.

Buying a home ClosingPossession dateHome inspectionPurchase agreement

Financing contingency Also mortgage contingency, loan contingency

A financing contingency lets a buyer cancel a home purchase contract and recover their earnest money if they can’t get the mortgage described in the contract by a set deadline.

Buying a home ContingencyPre-approvalUnderwritingEarnest money WorkspaceTransactions

FIRPTA Also Foreign Investment in Real Property Tax Act, FIRPTA withholding

FIRPTA, the Foreign Investment in Real Property Tax Act, generally requires a buyer to withhold 15% of the amount realized when buying U.S. real estate from a foreign seller and send it to the IRS. Some exceptions lower or remove it.

Closing costs and taxes Form 1099-SCapital gains taxSettlement agentClosing

First-time homebuyer Also first-time buyer

A first-time homebuyer, for many loan and assistance programs, is anyone who hasn’t owned a principal residence in the past three years, not only someone who has never owned. Each program sets its own definition.

Buying a home Down payment assistanceFHA loanDown paymentConventional loan

Fixed-rate mortgage Also fixed mortgage, FRM

A fixed-rate mortgage keeps the same interest rate for the life of the loan, so the principal-and-interest payment never changes. The most common terms are 30 and 15 years; taxes and insurance in the payment can still change.

Mortgages and loans Adjustable-rate mortgageAmortizationInterest rateRate lock Free toolMortgage calculator

Flood insurance

Flood insurance covers damage from flooding, which standard homeowners policies generally exclude. Lenders require it for homes in high-risk flood zones, and it’s sold through the National Flood Insurance Program and private insurers.

Buying a home Homeowners insuranceEscrow accountPITISeller disclosure

For sale by owner Also FSBO, owner-sold home

A home sale where the owner sells without a listing agent, handling pricing, marketing, showings and negotiation themselves. FSBO sellers can still agree to pay a buyer’s agent and can hire an attorney or title company for the paperwork.

Contracts, agents and the MLS Listing agreementExclusive agency listingComparative market analysisBuyer’s agent WorkspaceStudio

Foreclosure Also judicial foreclosure, nonjudicial foreclosure, REO, bank-owned

Foreclosure is the legal process a lender uses to take back and sell a home after the borrower stops making mortgage payments. Depending on the state, it runs through the courts or outside them under a power of sale.

Selling a home Short saleDeed in lieu of foreclosureLienSpecial warranty deed

Form 1099-S Also 1099-S, Proceeds From Real Estate Transactions

Form 1099-S is the IRS form that reports a real estate sale and its gross proceeds. The closing agent usually files it and gives the seller a copy; some main-home sales are exempt with the seller’s written certification.

Closing costs and taxes Home sale tax exclusionCapital gains taxSettlement agentFIRPTA

G

Generative engine optimization Also GEO, AI search optimization, answer engine optimization

Making your content easy for AI assistants and AI search results to find, understand and cite when people ask questions. It builds on good SEO, and nobody can guarantee a mention.

For agents Structured datallms.txtGoogle Business ProfileCommunity page WebsitesSEO & AI search

Geographic farming Also farming, farm area, neighborhood farming

Marketing to one neighborhood or area again and again, by mail, door knocking, events and local content, so homeowners there think of you when it’s time to sell.

For agents Sphere of influenceCommunity pageLead sourceComparative market analysis WebsitesArea & community pages

Gift letter

A gift letter is a signed statement from someone giving you money toward a home purchase, confirming the amount, your relationship and that it doesn’t have to be repaid. Lenders use it to document gifted funds.

Buying a home Down paymentUnderwritingDown payment assistanceEarnest money

Google Business Profile Also GBP, Google My Business

Google’s free business listing that appears in Search and Maps with your name, reviews, hours and service area. Agents without a public office can hide their address and show a service area instead.

For agents Structured dataGenerative engine optimizationCommunity pageLead source WebsitesSEO & AI search

H

HOA dues Also HOA fees, association dues, condo fees

HOA dues are the regular fees owners pay a homeowners association, usually monthly, quarterly or yearly, for shared costs like common-area upkeep, amenities, insurance and reserves. Lenders count them in your housing payment.

Buying a home Homeowners associationSpecial assessmentPITIDebt-to-income ratio Free toolMortgage calculator

Home inspection

A home inspection is a professional, mostly visual examination of a home’s structure and systems, such as the roof, foundation, plumbing, electrical and heating, usually paid for by the buyer during the inspection contingency period.

Buying a home Inspection contingencyFinal walkthroughSeller disclosureAs-is

Home sale contingency Also sale of home contingency

A home sale contingency makes a purchase depend on the buyer selling their current home by a set date. Sellers often accept one only with a kick-out clause that lets them keep taking other offers.

Buying a home ContingencyKick-out clauseOfferPossession date

Home sale tax exclusion Also Section 121 exclusion, capital gains exclusion, primary residence exclusion, 2-out-of-5-year rule, $250,000 exclusion

The home sale tax exclusion lets you keep up to $250,000 of profit from selling your main home free of federal income tax, or $500,000 if married filing jointly, if you owned and lived in it 2 of the last 5 years.

Closing costs and taxes Capital gains taxCost basisForm 1099-S1031 exchange Full guide

Home staging Also staging, virtual staging

Home staging is preparing a home for sale by arranging furniture, decor and lighting so rooms look their best in person and in listing photos. It can use the owner’s things, rented pieces or digital furniture added to photos.

Selling a home List priceDays on marketPre-listing inspectionOpen house

Home warranty Also home protection plan, home service contract

A home warranty is a service contract that covers repair or replacement of certain home systems and appliances, usually for one year, with a fee per service call. Sellers sometimes buy one for the buyer as a concession.

Selling a home Seller concessionsHomeowners insuranceHome inspectionClosing costs

Homeowners association Also HOA, property owners association

A homeowners association is the organization that runs a community’s shared areas and enforces its rules, often called covenants, conditions and restrictions. Owners are usually required to belong and to pay dues.

Buying a home HOA duesSpecial assessmentSeller disclosureDebt-to-income ratio

Homeowners insurance Also hazard insurance, home insurance

Homeowners insurance covers damage to your home and belongings from covered events such as fire or wind, plus liability if someone is hurt on your property. Mortgage lenders require it, and it’s often paid through escrow.

Buying a home Flood insuranceEscrow accountPITIPrivate mortgage insurance Free toolMortgage calculator

Homestead exemption Also homestead, residence homestead exemption, homestead tax exemption

A homestead exemption lowers the taxable value of the home you live in as your main residence, which reduces your property tax bill. Each state sets its own amounts, rules and deadlines, and you usually have to apply.

Closing costs and taxes Property taxAssessed valueMillage rateProperty tax proration Full guide

I

IDX Also Internet Data Exchange, IDX search

Internet Data Exchange: the MLS program that lets member brokers and their agents show other brokerages’ active listings on their own websites and apps, under display rules set by each MLS.

For agents IDX feedMultiple listing serviceVOWRESO Web API Full guide WebsitesIDX & map search

IDX feed Also IDX data feed, MLS feed, listing feed

The data connection an MLS licenses to a broker or an approved website vendor, delivering active listings, photos and updates so an IDX website can show the market and keep it current.

For agents IDXRESO Web APIRETSMultiple listing service WebsitesIDX & map search

Inside sales agent Also ISA

A team member who works new leads by phone, text and email, qualifies them and sets appointments, then hands them to an agent who meets the client in person.

For agents Speed to leadReal estate teamLead routingTCPA consent WorkspaceTeams and brokerages

Inspection contingency Also home inspection contingency

An inspection contingency lets a buyer have the home professionally inspected within a set period, then ask for repairs or a credit, or cancel and get their earnest money back if the findings are unacceptable.

Buying a home Home inspectionContingencyEarnest moneyContingency removal WorkspaceTransactions

Interest rate Also mortgage rate, note rate

A mortgage interest rate is the yearly percentage a lender charges to lend you money, applied to your loan balance. It sets your principal-and-interest payment and depends on the market, your credit, down payment, loan type and points.

Mortgages and loans Annual percentage rateRate lockDiscount pointsFixed-rate mortgage Free toolMortgage calculator

J

Jumbo loan Also jumbo mortgage, non-conforming loan

A jumbo loan is a mortgage larger than the conforming loan limit, so Fannie Mae and Freddie Mac can’t buy it. For 2026 that means more than $832,750 for a one-unit home in most U.S. counties, and more in high-cost areas.

Mortgages and loans Conforming loan limitConventional loanDown paymentDebt-to-income ratio

K

Kick-out clause Also kickout clause, escape clause, 72-hour clause

A clause that lets a seller keep marketing a home under contract with a home sale contingency. If another acceptable offer comes in, the first buyer gets a set time, such as 72 hours, to remove the contingency or step aside.

Contracts, agents and the MLS Home sale contingencyContingencyActive under contractRight of first refusal

L

Lead magnet Also opt-in offer

Something useful offered in exchange for contact details, such as a home value request, a buyer guide, a market report or new-listing alerts, that turns an anonymous visitor into a lead.

For agents Lead sourceDrip campaignCommunity pageTCPA consent WebsitesLead capture

Lead pond Also pond, shared lead pool

A shared list of leads that no single agent owns, where any teammate can claim a lead and take over the follow-up. Teams use ponds for unclaimed, returned or long-term leads.

For agents Lead routingRound robinReal estate teamReal estate CRM WorkspaceLeads and routing

Lead routing Also lead distribution, lead assignment

The rules that decide which agent gets each new lead, by source, area, price or rotation, so every inquiry has an owner the moment it arrives.

For agents Round robinLead pondLead sourceSpeed to lead Full guide WorkspaceLeads and routing

Lead scoring

Ranking leads by how likely they are to buy or sell soon, using what they do, like visiting your site, saving homes or replying, so you call the most active people first.

For agents Real estate CRMLead sourceSpeed to leadLead routing WorkspaceLeads and routing

Lead source Also source

Where a lead came from: your website, a portal, an open house, a referral, your sphere or an ad. Tracking it shows which channels bring in clients, not just names.

For agents Lead routingReal estate CRMLead scoringSphere of influence WorkspaceReports

Lead-based paint disclosure Also lead paint disclosure, lead-based paint addendum

A federal requirement for most homes built before 1978: sellers and landlords must share what they know about lead paint, hand over any reports and give a federal pamphlet, and buyers get 10 days to test.

Contracts, agents and the MLS Seller disclosureAddendumHome inspectionPurchase agreement WorkspaceTransactions

Lender’s title insurance Also loan policy, lender’s policy, mortgagee title policy

Lender’s title insurance protects the mortgage lender, not the buyer, against title problems up to the loan amount. Lenders require it on most home loans, and the buyer usually pays for it at closing.

Closing costs and taxes Title insuranceOwner’s title insuranceClosing costsLoan Estimate Free toolClosing cost calculator

Lien Also property lien, encumbrance

A lien is a legal claim against a property that secures a debt, such as a mortgage, unpaid property taxes, a contractor’s bill or a court judgment. Liens are usually paid off from the sale before the buyer takes title.

Closing costs and taxes Title searchMortgage payoffTitle insuranceSpecial assessment

List price Also asking price, listing price

List price is the price a seller asks for a home when it goes on the market. It’s the starting point for offers, not the final price, and it can change if the home doesn’t sell.

Selling a home Sale priceComparative market analysisPrice reductionOffer

Listing agent Also seller’s agent, listing broker

The agent who represents the seller: pricing the home, marketing it, putting it in the MLS, handling showings and offers, and negotiating for the seller through closing. Their duties and pay are set in the listing agreement.

Contracts, agents and the MLS Listing agreementBuyer’s agentComparative market analysisMultiple listing service

Listing agreement Also listing contract, seller representation agreement

A contract between a home seller and a brokerage that gives the brokerage the right to market the home for a set period, and spells out the asking price, the commission, the agent’s duties and how the listing ends.

Contracts, agents and the MLS Exclusive right to sellExclusive agency listingOpen listingListing agent Full guide WorkspaceE-signature

Listing attribution Also courtesy line, listing courtesy, listing credit

The credit line naming the brokerage, and often the agent, that holds a listing. MLS rules require it on listings shown through IDX, usually in a set place and a readable type size.

For agents IDXBroker reciprocityListing agentMultiple listing service WebsitesIDX & map search

llms.txt Also llms.txt file

A proposed convention for a plain Markdown file, usually at a website’s root, that lists its key pages for AI tools to read. No major AI company has confirmed that it uses the file.

For agents Generative engine optimizationStructured dataModel Context ProtocolWebsite chat assistant WebsitesSEO & AI search

Loan Estimate Also LE

A Loan Estimate is the standard three-page form a lender must give you within three business days of a mortgage application, showing the estimated rate, monthly payment, closing costs and cash to close so you can compare offers.

Mortgages and loans Closing DisclosureAnnual percentage rateRate lockDiscount points Full guide Free toolClosing cost calculator

Loan officer Also mortgage loan originator, MLO, loan originator

A loan officer is the person at a bank, credit union or mortgage company who helps you choose a loan, takes your application and guides it to closing. Loan officers must be licensed or registered under the federal SAFE Act.

Mortgages and loans Mortgage brokerPre-approvalUnderwritingLoan Estimate

Loan-to-value ratio Also LTV

Loan-to-value ratio is the mortgage amount divided by the home’s value, usually the lower of the price or the appraised value. A $360,000 loan on a $400,000 home is 90% LTV; a lower LTV generally means better terms.

Mortgages and loans Down paymentPrivate mortgage insuranceAppraisal gapAppraisal

M

Managing broker Also principal broker, designated broker, broker of record, supervising broker

The licensed broker responsible for a brokerage or office: supervising its agents, reviewing contracts, handling client trust money and answering to the state for compliance. States use different titles for the role.

Contracts, agents and the MLS Real estate brokerReal estate agentCommission splitTransaction coordinator

Mansion tax Also New York mansion tax, luxury transfer tax

A mansion tax is an extra tax on the sale of a higher-priced home. New York’s is 1% of the price on homes of $1 million or more, paid by the buyer, and New York City’s rate climbs in steps above $2 million.

Closing costs and taxes Transfer taxClosing costsJumbo loanDocumentary stamp tax Free toolClosing cost calculator

Median sale price Also median home price, median price

The middle price of all homes sold in an area and time period: half sold for more and half for less. It resists outliers better than an average, but it shifts when the mix of homes selling changes.

Contracts, agents and the MLS Sale priceMonths of supplyComparablesPrice per square foot

Millage rate Also mill rate, mill levy, mills

A millage rate is a property tax rate stated in mills. One mill is $1 of tax for every $1,000 of taxable value, so a 20-mill rate on $300,000 of taxable value comes to $6,000 a year.

Closing costs and taxes Property taxAssessed valueHomestead exemption

Model Context Protocol Also MCP

An open standard for connecting AI apps, such as chat assistants, to outside systems like files, databases and business software, so the AI can look things up and take actions.

For agents WebhookReal estate CRMllms.txtGenerative engine optimization WorkspaceClaude and ChatGPT

Months of supply Also months of inventory, housing inventory

How long the homes now for sale would take to sell at the current pace of sales, with no new listings. It’s the number of active listings divided by monthly sales; lower numbers favor sellers, higher numbers favor buyers.

Contracts, agents and the MLS Buyer’s marketSeller’s marketDays on marketMedian sale price

Mortgage broker

A mortgage broker is a licensed go-between who compares loans from several lenders and helps you apply, but doesn’t lend the money. The broker is paid either by you or by the lender, and the charge appears on your Loan Estimate.

Mortgages and loans Loan officerLoan EstimateInterest ratePre-approval

Mortgage insurance premium Also MIP, UFMIP, FHA mortgage insurance

A mortgage insurance premium is the insurance charge on an FHA loan: an upfront premium of 1.75% of the base loan, usually financed, plus an annual premium paid monthly that lasts the life of the loan with less than 10% down.

Mortgages and loans FHA loanPrivate mortgage insuranceLoan-to-value ratioRefinance Free toolMortgage calculator

Mortgage payoff Also loan payoff, payoff amount

A mortgage payoff is the full amount needed to retire a home loan on a given day: the remaining principal plus interest through the payoff date and any fees. In a sale it comes out of the seller’s proceeds at closing.

Selling a home Payoff statementNet proceedsSeller net sheetLien Free toolSeller net sheet calculator

Multiple listing service Also MLS, The MLS

A private database where member brokerages share listings so agents can find homes for their buyers. Each MLS covers a local or regional market and sets its own rules and statuses, and most home search websites show its listings.

Contracts, agents and the MLS IDXClear Cooperation PolicyPocket listingIDX feed Full guide WebsitesIDX & map search

N

NAR settlement Also Sitzer/Burnett settlement, realtor commission settlement, NAR commission lawsuit

NAR’s 2024 settlement of lawsuits over agent commission rules. Since August 17, 2024, offers of buyer-agent pay can’t be made on the MLS, and agents working with a buyer through the MLS need a written agreement before touring a home.

Contracts, agents and the MLS Cooperative compensationBuyer agency agreementReal estate commissionMultiple listing service

Net proceeds Also seller proceeds, net to seller, cash to seller

Net proceeds are the money a seller receives from a sale after the mortgage payoff, commissions, closing costs, taxes and any credits to the buyer come out of the sale price.

Selling a home Seller net sheetMortgage payoffClosing costsSeller concessions Free toolSeller net sheet calculator

O

Offer Also purchase offer

An offer is a buyer’s written proposal to buy a home at a stated price and terms, including the deposit, financing, contingencies and closing date. Once the seller accepts and both sign, it becomes a binding contract.

Buying a home CounterofferPurchase agreementEarnest moneyContingency

Open house

A scheduled window when a listed home is open for anyone to walk through without an appointment, usually hosted by the listing agent or a colleague, and a common way to meet new buyers.

For agents ShowingListing agentLead sourceGeographic farming WorkspaceCalendar and showings

Open listing Also non-exclusive listing, general listing

A non-exclusive listing agreement where a seller can work with several brokerages at once and pays only the one that brings the buyer. If the seller finds the buyer, no commission is owed.

Contracts, agents and the MLS Exclusive right to sellExclusive agency listingListing agreementFor sale by owner

Owner’s title insurance Also owner’s policy, owner’s title policy, homeowner’s title policy

Owner’s title insurance protects a buyer’s ownership against covered title problems from before the purchase, such as forged documents, unknown liens or public record errors. It costs a one-time premium at closing and lasts as long as you or your heirs own the home.

Closing costs and taxes Title insuranceLender’s title insuranceTitle searchTitle company Free toolClosing cost calculator

P

Payoff statement Also payoff letter, payoff quote, payoff demand

A payoff statement is the lender’s written figure for paying off a loan in full by a specific date, usually with a daily interest amount for later dates. The title or escrow company orders it before closing.

Selling a home Mortgage payoffSettlement agentTitle companyNet proceeds Free toolSeller net sheet calculator

Pending Also under contract, sale pending, pending sale

A listing status that means the seller has accepted an offer and the home is no longer on the market while the sale moves toward closing. Each MLS defines pending a little differently, and some pending sales still fall through.

Contracts, agents and the MLS Active under contractContingentBack on marketContingency removal Full guide WebsitesIDX & map search

PITI Also principal, interest, taxes and insurance

PITI stands for principal, interest, taxes and insurance, the four main parts of a monthly mortgage payment. Lenders add mortgage insurance and HOA dues where they apply to figure what you can afford.

Mortgages and loans Escrow accountDebt-to-income ratioProperty taxHomeowners insurance Free toolMortgage calculator

Pocket listing Also off-market listing, office exclusive, private listing, whisper listing

A home for sale that a listing agent markets privately instead of putting it in the MLS, so only selected agents and buyers hear about it. MLS rules limit when this is allowed, and it can shrink the pool of buyers.

Contracts, agents and the MLS Clear Cooperation PolicyMultiple listing serviceComing soonListing agreement Full guide

Possession date

The possession date is when the buyer gets the keys and the right to move in. It’s often the day of closing or recording, but the contract can set a later date, for example to give the seller time to move out.

Buying a home ClosingFinal walkthroughPurchase agreementHome sale contingency

Pre-approval Also preapproval, mortgage pre-approval, pre-approval letter

Pre-approval is a lender’s written statement of how much it is willing to lend you, based on income, assets and credit it has checked. It strengthens an offer, but it isn’t a guaranteed loan.

Buying a home Pre-qualificationDebt-to-income ratioCredit scoreUnderwriting Full guide

Pre-listing inspection Also seller’s inspection, pre-inspection

A pre-listing inspection is a home inspection a seller orders before listing, so problems can be fixed, priced in or disclosed up front instead of surfacing in the buyer’s inspection and reopening the price.

Selling a home Home inspectionSeller disclosureInspection contingencyAs-is

Pre-qualification Also prequalification, pre-qual

Pre-qualification is a lender’s early estimate of how much you might be able to borrow, often based on information you report rather than documents it has checked. It’s quicker than a pre-approval and carries less weight with sellers.

Buying a home Pre-approvalCredit scoreDebt-to-income ratioLoan officer

Prepayment penalty

A prepayment penalty is a fee some mortgages charge if you pay off the loan early, for example by selling or refinancing. Federal rules ban or limit them on most home loans, and your Loan Estimate shows whether one applies.

Mortgages and loans RefinanceLoan EstimateAmortizationFixed-rate mortgage

Price per square foot Also PPSF, cost per square foot, $/sq ft

Price per square foot is a home’s price divided by its finished living area. A $400,000 home with 2,000 square feet comes to $200 per square foot, a quick way to compare similar homes in the same area.

Selling a home Comparative market analysisComparablesList priceAppraisal WorkspaceStudio

Price reduction Also price cut, price drop, price improvement

A price reduction is a cut to a listing’s asking price after it hits the market, usually because showings or offers are slower than expected. Listing sites typically show the change along with the new price.

Selling a home List priceDays on marketComparative market analysisBuyer’s market

Private mortgage insurance Also PMI, conventional mortgage insurance

Private mortgage insurance is coverage that protects the lender if you stop paying a conventional loan. Lenders usually require it when you put less than 20% down, and it can be cancelled once you build enough equity.

Mortgages and loans Down paymentLoan-to-value ratioMortgage insurance premiumConventional loan Full guide Free toolMortgage calculator

Property tax Also real estate tax, ad valorem tax

Property tax is a yearly tax local governments charge on real estate, figured from the property’s assessed or taxable value and the local tax rate. It pays for schools, roads, public safety and other local services.

Closing costs and taxes Assessed valueMillage rateHomestead exemptionProperty tax proration Free toolMortgage calculator

Property tax proration Also tax proration, prorated property taxes, tax adjustment at closing

Property tax proration splits the year’s property tax between buyer and seller by the closing date, so each pays for the days they own the home. Depending on when taxes are paid, the seller credits the buyer or the buyer repays the seller.

Closing costs and taxes ProrationsPaid in arrearsProperty taxSettlement statement Full guide Free toolClosing cost calculator

Prorations Also proration, closing adjustments

Prorations divide ongoing costs such as property taxes, HOA dues and sometimes utilities between buyer and seller by the closing date, so each pays only for the days they own the home.

Closing costs and taxes Property tax prorationSettlement statementHOA duesPaid in arrears Free toolClosing cost calculator

Purchase agreement Also purchase contract, sales contract, contract of sale, purchase and sale agreement, offer to purchase

The signed contract between a buyer and a seller that sets the price, earnest money, contingencies, closing date and other terms of a home sale. Once both sides sign and deliver it, it’s binding, subject to its contingencies.

Contracts, agents and the MLS OfferCounterofferAddendumContingency WorkspaceTransactions

Q

Quitclaim deed Also quit claim deed, quick claim deed

A quitclaim deed transfers whatever interest the signer has in a property, if any, with no promise that the title is good. It’s used mostly between family members, in divorces or to fix title problems, not in typical sales.

Closing costs and taxes DeedWarranty deedSpecial warranty deedTitle search

R

Rate lock Also interest rate lock, lock-in, locked rate

A rate lock is a lender’s promise to hold your mortgage interest rate for a set period, typically 30 to 60 days, as long as you close in time and nothing in your application changes.

Mortgages and loans Interest rateLoan EstimateDiscount pointsClosing Disclosure Full guide

Real estate agent Also real estate salesperson, sales associate, licensee

A person licensed by the state to help people buy, sell or rent property, working under a supervising broker. Agents may represent buyers, sellers or both, depending on state law and the agreements signed.

Contracts, agents and the MLS Real estate brokerRealtorBuyer’s agentListing agent

Real estate broker Also broker, broker associate, brokerage

A real estate professional with a higher-level license than an agent, usually earned with more education and experience. Brokers can run a brokerage and supervise agents, and the contracts agents sign with clients belong to the brokerage.

Contracts, agents and the MLS Real estate agentManaging brokerRealtorCommission split

Real estate commission Also realtor fees, agent commission, broker fee, real estate agent fees

The fee a brokerage earns for helping you buy or sell a home, usually a percentage of the sale price or a flat amount. Commissions are negotiable and are not set by law or by any association.

Contracts, agents and the MLS Listing agreementBuyer agency agreementNAR settlementCooperative compensation Full guide Free toolSeller net sheet calculator

Real estate CRM Also CRM, customer relationship management, real estate CRM software

Customer relationship management software built for agents: one place for contacts, leads, conversations, follow-up and deals, so everyone in your database has a history and every lead gets a next step.

For agents Lead routingDrip campaignSpeed to leadTransaction management Full guide WorkspaceWorkspace

Real estate team Also team

A group of agents working under a team lead inside a brokerage, sharing leads, marketing and support staff, usually with each deal’s commission split between the agent, the team and the brokerage.

For agents Lead routingRound robinInside sales agentTransaction coordinator WorkspaceTeams and brokerages

Realtor Also REALTOR®, realtor®

A real estate professional who belongs to the National Association of Realtors and agrees to follow its Code of Ethics. Realtor is a registered trademark, so not every licensed agent or broker is a Realtor.

Contracts, agents and the MLS Real estate agentReal estate brokerNAR settlementFiduciary duties

Recording fee Also recording charges, county recording fee

A recording fee is what a county charges to enter the deed, the mortgage and other closing documents into the public record. The fees are set locally, often per document or per page.

Closing costs and taxes DeedTransfer taxClosing costsLien Free toolClosing cost calculator

Referral fee Also agent referral fee, referral commission

A share of a commission one brokerage pays another for sending it a client, usually agreed in writing beforehand. It’s generally paid broker to broker, and federal and state rules limit who can receive one.

Contracts, agents and the MLS Real estate commissionCommission splitReal estate brokerSphere of influence

Refinance Also refi, cash-out refinance

Refinancing replaces your current mortgage with a new one, usually to get a lower rate, change the loan term, drop mortgage insurance or take cash out of your equity. A refinance has its own closing costs.

Mortgages and loans Interest rateClosing costsPrivate mortgage insuranceLoan-to-value ratio

RESO Web API Also Web API, RESO API

The Real Estate Standards Organization’s modern standard for moving MLS data between systems over the web. It replaces the older RETS standard and uses the RESO Data Dictionary’s shared field names.

For agents RETSIDX feedIDXMultiple listing service Custom projectsWebsite solutions

RETS Also Real Estate Transaction Standard

Real Estate Transaction Standard: the older data format, built only for real estate, that MLSs used to send listings to brokers and vendors. RESO has deprecated it, and the industry is moving to the RESO Web API.

For agents RESO Web APIIDX feedIDXMultiple listing service

Right of first refusal Also ROFR, first right of refusal

A right, usually set by contract, that lets a person buy a property by matching an offer the owner is ready to accept. It shows up in leases, some HOA and co-op rules, and deals between family members or co-owners.

Contracts, agents and the MLS Kick-out clausePurchase agreementHomeowners associationOffer

Round robin Also lead rotation, rotation

A lead routing method that hands new leads to agents in turn, one after another through a set list, so leads are shared evenly instead of going to whoever grabs them first.

For agents Lead routingLead pondReal estate teamSpeed to lead WorkspaceLeads and routing

S

Sale price Also sold price, sales price, closing price

Sale price is what a buyer actually pays for a home, as set in the final contract and shown on the settlement statement. It can land above or below the list price, and later comparisons and appraisals rely on it.

Selling a home List priceComparablesMedian sale priceNet proceeds

Seller concessions Also seller credit, seller assist, closing cost credit, seller-paid closing costs, interested party contributions

Seller concessions are costs a seller agrees to pay for the buyer, most often a credit toward the buyer’s closing costs, prepaid items or repairs. They lower what the seller nets without changing the contract price.

Selling a home Closing costsSeller net sheetNet proceedsLoan-to-value ratio Full guide Free toolSeller net sheet calculator

Seller disclosure Also seller’s disclosure, property disclosure statement, seller disclosure form, transfer disclosure statement

A form in which a home seller reports what they know about the property’s condition and history, such as leaks, repairs and defects. What must be disclosed depends on state law, plus a federal rule for lead paint in homes built before 1978.

Contracts, agents and the MLS As-isLead-based paint disclosureHome inspectionPre-listing inspection Full guide WorkspaceTransactions

Seller net sheet Also net sheet, seller’s estimated net proceeds, seller proceeds estimate

A seller net sheet is an estimate of what a home seller walks away with after the sale: the price minus commissions, the mortgage payoff, closing costs, taxes and any credits to the buyer.

Selling a home Net proceedsClosing costsMortgage payoffTransfer tax Full guide Free toolSeller net sheet calculator

Seller’s market Also sellers market, hot market, tight market

A market with more buyers than homes for sale, so listings sell quickly, often near or above the asking price, and sellers have more say over terms like repairs, contingencies and closing dates.

Contracts, agents and the MLS Buyer’s marketMonths of supplyEscalation clauseAppraisal gap

Settlement agent Also closing agent, escrow officer, escrow agent

A settlement agent is the neutral party who runs the closing: collecting and paying out the money, preparing the settlement statement and recording documents. It may be a title company, an escrow company or an attorney.

Closing costs and taxes Title companyClosing attorneyEscrowSettlement statement

Settlement statement Also closing statement, ALTA settlement statement, ALTA statement, HUD-1

A settlement statement is the itemized record of every charge and credit for the buyer and seller at closing, ending in the cash each brings or receives. Most mortgage closings use the Closing Disclosure; many others use an ALTA statement.

Closing costs and taxes Closing DisclosureClosing costsProrationsSettlement agent Free toolClosing cost calculator

Short sale Also short pay, pre-foreclosure sale

A short sale is a home sale in which the price won’t cover what the seller owes on the mortgage, and the lender agrees to accept less than the full payoff. The lender must approve the sale and its terms.

Selling a home ForeclosureDeed in lieu of foreclosureMortgage payoffLien

Showing Also tour, home tour, private showing

A private, scheduled visit to a home for sale, set up through the listing side and attended by a buyer and their agent. Under NAR’s settlement rules, an agent working with a buyer needs a written agreement before touring.

For agents Open houseBuyer’s agentListing agentBuyer agency agreement WorkspaceCalendar and showings

Special assessment Also HOA special assessment, assessment lien

A special assessment is an extra charge, on top of regular taxes or HOA dues, to pay for a specific project like new sewers, road work or a condo building’s roof. It can be one payment or spread over years.

Closing costs and taxes HOA duesHomeowners associationProperty taxLien

Special warranty deed Also limited warranty deed

A special warranty deed is a deed in which the seller guarantees the title only against problems that arose while they owned the property, not before. It’s common in bank-owned and commercial sales.

Closing costs and taxes DeedWarranty deedQuitclaim deedOwner’s title insurance

Speed to lead Also lead response time, first response time

The time between a new lead’s inquiry and your first real reply by call, text or email. The shorter it is, the more likely you reach the person before another agent does.

For agents Lead routingReal estate CRMWebsite chat assistantInside sales agent Full guide WorkspaceLeads and routing

Sphere of influence Also SOI, sphere

The people you already know: friends, family, neighbors, past clients and business contacts. For many agents it’s the steadiest source of repeat business and referrals.

For agents Real estate CRMDrip campaignLead sourceGeographic farming WorkspaceAutomations and follow-up

Steering Also racial steering, housing steering

Guiding home buyers or renters toward or away from neighborhoods because of race, religion, national origin or another protected trait. It’s illegal under the Fair Housing Act, even when it’s framed as helpful advice.

Contracts, agents and the MLS Fair Housing ActBuyer’s agentRealtorCommunity page WebsitesWebsite AI assistant

Structured data Also schema markup, schema.org, JSON-LD

Code added to a web page in a standard format, usually JSON-LD with schema.org types, that tells search engines what the page describes, such as a business, a listing or an article. It can qualify pages for rich results.

For agents Google Business ProfileGenerative engine optimizationllms.txtCommunity page WebsitesSEO & AI search

T

TCPA consent Also TCPA, Telephone Consumer Protection Act, prior express written consent

The permission the Telephone Consumer Protection Act requires before marketing calls or texts sent with an autodialer or prerecorded voice: a signed written agreement, electronic signatures included, naming the number to contact.

For agents A2P 10DLCCAN-SPAM ActDrip campaignESIGN Act Full guide WorkspaceInbox and texting

Title company Also title agency, title agent, title and escrow company

A title company researches a property’s title, issues title insurance and, in many states, runs the closing: holding funds in escrow, preparing the settlement statement, paying off liens and recording the deed.

Closing costs and taxes Title searchTitle insuranceSettlement agentEscrow WorkspaceTransactions

Title insurance Also title policy, owner’s policy, loan policy

Title insurance protects against losses from problems with a property’s ownership history, such as unknown liens, forged signatures or recording errors, that weren’t found before the sale. You pay a one-time premium at closing.

Closing costs and taxes Owner’s title insuranceLender’s title insuranceTitle searchTitle company Full guide Free toolClosing cost calculator

Title search Also title examination, title report, title commitment

A title search is a review of public records on a property, such as deeds, mortgages, liens, judgments and unpaid taxes, to confirm the seller can transfer clear ownership and find anything that must be paid off first.

Closing costs and taxes Title insuranceTitle companyLienDeed

Transaction broker Also transaction brokerage, facilitator, non-agency broker

A licensee who helps a buyer, a seller or both complete a sale without acting as either party’s advocate. They owe limited duties such as honesty, care and accounting for money. Only some states use this role, and rules vary.

Contracts, agents and the MLS Dual agencyDesignated agencyFiduciary dutiesAgency disclosure

Transaction coordinator Also TC

The person who manages a deal’s paperwork and deadlines from contract to closing: collecting signatures and documents, tracking dates, and keeping the lender, title company and agents on schedule.

For agents Transaction managementReal estate teamE-signatureTitle company WorkspaceTransactions

Transaction management Also transaction management software, deal management

Keeping each deal organized from accepted offer to closing: contract dates and deadlines, documents and signatures, tasks and the people involved, usually in software the agent, team and brokerage share.

For agents Transaction coordinatorE-signatureAudit trailPurchase agreement Full guide WorkspaceTransactions

Transfer tax Also real estate transfer tax, deed tax, conveyance tax, real estate excise tax, REET, realty transfer tax, deed stamps

Transfer tax is a tax a state, county or city charges when real estate changes hands, usually a percentage of the sale price. Rates and who customarily pays vary by state, and some states charge none.

Closing costs and taxes Documentary stamp taxMansion taxClosing costsRecording fee Full guide Free toolClosing cost calculator

U

UETA Also Uniform Electronic Transactions Act

Uniform Electronic Transactions Act: a model law adopted by nearly every state that gives electronic records and signatures the same effect as paper and ink when the parties agree to do business electronically.

For agents ESIGN ActE-signatureAudit trailPurchase agreement WorkspaceE-signature

Underwriting

Underwriting is the lender’s review of a mortgage application to decide whether to approve it. An underwriter verifies income, assets, debts and credit and checks the appraisal and title before giving final approval.

Mortgages and loans Pre-approvalClear to closeDebt-to-income ratioAppraisal

USDA loan Also USDA Rural Development loan, Section 502 loan, RD loan

A USDA loan is a mortgage backed by the U.S. Department of Agriculture’s rural housing program for homes in eligible rural and some suburban areas. It can require no down payment, but household income limits apply.

Mortgages and loans FHA loanVA loanDown paymentDown payment assistance

V

VA funding fee

The VA funding fee is a one-time charge on most VA loans, from 1.25% to 3.3% of the loan on a purchase, depending on the down payment and prior use. It can be financed, and veterans receiving VA disability compensation are exempt.

Mortgages and loans VA loanMortgage insurance premiumClosing costsDown payment

VA loan Also VA mortgage, VA home loan

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible service members, veterans and some surviving spouses. Most borrowers can buy with no down payment and no mortgage insurance but pay a one-time funding fee.

Mortgages and loans VA funding feeFHA loanUSDA loanDown payment Full guide Free toolMortgage calculator

VOW Also Virtual Office Website

Virtual Office Website: a brokerage website where consumers register, accept terms of use and form a relationship with the broker before searching MLS data, which can include more detail than a public IDX search shows.

For agents IDXMultiple listing serviceIDX feedReal estate broker

W

Warranty deed Also general warranty deed, full warranty deed

A warranty deed is a deed in which the seller guarantees they hold clear title and the right to sell, and promises to defend the buyer against claims to the property, including ones from before the seller owned it.

Closing costs and taxes DeedSpecial warranty deedQuitclaim deedTitle insurance

Webhook

A message one app sends automatically to another the moment something happens, like a new lead or a signed document, so the second app can act on it without checking.

For agents Model Context ProtocolReal estate CRMRESO Web APILead routing

Website chat assistant Also chatbot, AI chatbot, website chat

A chat window on a website, run by AI, by a person or both, that answers visitors’ questions, collects contact details and hands real conversations to the agent.

For agents Speed to leadLead sourceTCPA consentFair Housing Act WebsitesWebsite AI assistant

Wire fraud Also real estate wire fraud, closing wire fraud, business email compromise

Real estate wire fraud is a scam in which criminals pose as a title company, agent or lender, usually by email, and send fake wiring instructions so closing money goes to their account. Always confirm instructions by phone at a known number.

Closing costs and taxes ClosingTitle companySettlement agentEarnest money

Withdrawn Also withdrawn listing, temporarily off market

A listing status for a home taken off the market while the listing agreement is still in effect, so the same agent can bring it back later. A canceled listing, by contrast, ends the agreement. Wording varies by MLS.

Contracts, agents and the MLS Expired listingBack on marketListing agreementDays on market

Run the numbers.

Our free calculators use every state’s taxes and closing customs: what a seller walks away with, what a buyer brings to closing, and the monthly payment.