Just what do you mean by THAT ???

Real estate definitely has its own "lingo". Walking into a real estate office can make you feel like you're in a different country. Hopefully, this will help translate for you.

ACCEPTANCE: When all parties have signed the purchase contract and that fact has been communicated to or acknowledged by all parties.

A.R.M.: Adjustable Rate Mortgage, where the interest rate changes periodically (as opposed to a Fixed Rate Mortgage where the interest rate is the same for the entire loan).

AMENITY: Any feature of a property that adds to its value, desirability or usefulness.

ASSESSMENTS; also BONDS; also MELLO ROOS : A lien (usually proportional - based on home size) on a property that is repaid through additional payments collected with your tax payments for some service or facility (sewer, water, schools, parks, etc.). There are different types - some are perpetual (will stay with the property forever - like community lighting & landscaping) and others have a termination (like 20 years or 30 years - once the original debt is repaid - such a a finite amount for having built a new school or adding a water district).

CLOSE OF ESCROW: The day the deed records in the buyers name at the county recorders office. Once that recording is verified by the escrow company, the sellers proceeds from the sale are released to them and the buyers are now the legal owners of the property.

CLOSING COSTS: Any and all costs a buyer pays above and beyond the purchase price to purchase a property, such as loan fees, inspection fees, insurance, etc. Also, all costs associated with a sale (pest inspection, title insurance, document fees, commissions) that a seller will pay, usually from their proceeds/equity.

COMPARABLES or COMPS: Properties that are similar or comparable to your property or to the property you want to purchase. This is information that an agent or appraiser will use to determine the value of your property or the property you want to purchase.

CONTINGENCY; also CONDITION: Terms or circumstances that must be met in order to have a contract at all or to proceed with a sale. There can be many contingencies and you can ask for any contingency in your offer. The most common ones are the selling of an existing home in order to proceed with buying the new home, qualifying for the new loan, appraisal of the property for at least the purchase price and approving inspection reports or recommended repairs.

DEPOSIT; also EARNEST MONEY DEPOSIT; also GOOD FAITH MONEY: The money a buyer puts towards the purchase price when they make their initial offer. The deposit is usually credited towards the price at closing or is returned to the buyer if their offer is not accepted.

EASEMENT: The right of way a property owner grants to someone else to go over their property. Most people think this applies only in the country, but in subdivisions in town you have easements for city services such as sewer & water lines and for utilities, so that SMUD or PG&E can access power lines on your property without having to ask you every time.

ESCROW: A neutral third person depository who can act for the parties in a transaction on written approval of all parties. They collect all loan documents, loan funds, inspection reports, inspection certifications, grant deeds, loan payoff information, etc. Escrow instructions tell the escrow officer to record the deed to the new buyer and release the proceeds to the seller when all the sale conditions are met. Escrow cannot act without fully agreed to and signed instructions from the buyer and seller.

ESCROW ACCOUNT; also IMPOUND ACCOUNT: Not related to escrow described above in that this is the funds paid by you each month (if pre arranged with your lender) and held by your loan company to pay your taxes and insurance each year when it becomes due.

FHA: Federal Housing Administration. This is a federal agency under H.U.D. (U.S. Dept. of Housing and Urban Development). FHA helps insure and administer loan programs mainly aimed at first time home buyers. They do not lend money, but insure private loan companies against excessive loss for granting FHA loans. FHA loans all have mortgage insurance premiums you pay with your payment every month. It goes into a pool to insure the lenders (not you) against loss on FHA loans. This is why lenders are willing to make FHA loans with only a small down payment.

HOME INSPECTION: A formal or informal inspection done by the buyer or an inspector hired by the buyer to determine the condition of the property and any repairs or maintenance items that will need to be addressed. Home inspections are a very common contingency of the sale.

HOME WARRANTY: An insurance policy that covers some of the major components of a house for a period of one year after close of escrow. The Home Warranty companies will repair or replace a covered item or system for a $35.00 service call fee. (So, for example, the dishwasher quits working 60 days after you move into your new home. You call the home warranty company you selected and they will either repair or replace the dishwasher according to their company policies.) This policy can be paid for by the buyer or the seller. It can also be renewed after the first year at the discretion of the home warranty company.
(To be continued............)