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: 

  1. FSBO - For Sale By Owner, meaning there is no real estate agent associated with the sale of the home. 
  2. 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. 
  3. 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. 
  4. Realtor® - A real estate professional who has the Realtor® affiliation holds an active membership with the National Affiliation of Realtors. 
  5. Settlement date - The day when the property records under the new ownership. 
  6. 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.
Hopefully, this handful of terms will serve to make real estate less complicated for all who are entering the buying or selling market.