Much of the terminology associated with real estate can leave buyers and sellers confused and anxious, especially when navigating contracts without the representation of a professional agent.
To aid in understanding, the following is part two of a basic list of common real estate terms:
- FSBO - For Sale By Owner, meaning there is no real estate agent associated with the sale of the home.
- HOA - Homeowners' Association. With condominiums or planned developments, the common areas are managed by a nonprofit association. Typically the fees for an HOA are paid monthly in addition to a mortgage.
- Inspection - A home inspection is an important contingency often listed in the purchase contract. It allows the buyers the opportunity to have the property thoroughly examined by a professional to assess the mechanical and structural integrity before signing ownership documents.
- Realtor® - A real estate professional who has the Realtor® affiliation holds an active membership with the National Affiliation of Realtors.
- Settlement date - The day when the property records under the new ownership.
- Title - A legal document showing an individual's right to ownership. A title insurance company specializes in examining and insuring titles in case of ownership disputes.