COMMON
REAL ESTATE TERMS: |
| EARNEST
MONEY: |
A deposit made by a purchaser of
real estate to evidence good faith, usually held in an escrow account. |
| ESCROW: |
An agreement between two or more
parties providing certain instruments or property be placed with a third party for
safekeeping, pending the fulfillment or performance of a specified act or condition. |
| OFFER: |
An expression of willingness to
purchase a property at a specified price. |
| COUNTER
OFFER: |
Rejection of an offer to buy or
sell, with a simultaneous substitute offer. |
| CLOSING
COSTS: |
Various fees payable by the seller
and buyer at the time of a real estate closing. |
| TITLE
INSURANCE: |
An insurance policy that protects
the holder from loss sustained by defects in the title to the property. |
| HAZARD
INSURANCE: |
A form of insurance that protects
against certain risks; such as, fires and storms. |
| ORIGINATION
FEE: |
Charges to a borrower to cover the
lender's cost of issuing a loan. |
| PMI: |
(Private Mortgage Insurance) --
Default insurance on conventional loans, provided by private insurance companies in the
event of default or foreclosure. |
| MIP: |
(Mortgage Insurance Premium) -- The
fee paid by the mortgagor to obtain mortgage insurance on an FHA loan. |
