Common Real Estate Terms Defined
June 2, 2010 · Written by Brock Dunda · Filed under General, Helpful Tips

Want to get familiar with the plethora of Real Estate terminology? Here are some commonly used terms to hopefully help define and clarify some meanings for you and to alleviate some confusion.

• Multiple Listing Service (MLS) – The MLS is an enormous database that organizes home that have been listed by real estate agents. The MLS acts as a portal for all licensed real estate agents to find and list homes for home buyers and home sellers.
• Real Estate Agent – A real estate agent is a real estate professional who’s job it is to make sure a person looking to buy a home, or a person looking to sell a home is represented.
• Seller’s Agent – A seller’s agent will make sure that information posted on the MLS is accurate and complete. He/she will ensure that images of the property or home are taken in a way that showcases the best aspects of a home in order to entice a potential buyer’s agent to view the home.
• Buyer’s Agent – A buyer’s agent represents a potential home buyer. The buyer’s agent will take into account the parameters set by the buyer and endeavor to find homes that meet the qualifications of the buyer. A buyer’s agent will work with and negotiate with the selling agent on the buyers behalf.
• Escrow – Escrow is money that is held by a third party, (usually an escrow agent) who works for both the lender and the borrower. The escrow agents role is to carry out instructions agreed upon by both parties. The money is released when all terms of the agreement are met.
• Lender – Any company or bank that provides money on loan to a borrower.
• Borrower – Any individual or group entity that contracts money from a lender.
• Equity – The market value of a real estate property less the amount of existing liens.
• Lien – A lien is a legal claim against an asset which is used to secure a loan and must be paid when the property is sold.
• Mortgage – A mortgage is a loan that is secured against a real property. Usually placed on a schedule of repayment.

If there are any more real estate related terms that you may want defined, please let us know.