In this real estate glossary page, you will find all the important terms and jargon in the real estate industry. If you want to learn about the real estate industry or want to improve your real estate marketing, these glossary terms will help you.

 

Real Estate	Real estate consists of the land and any structures built on or permanently affixed to the ground. It might be a structure or a new road that has been constructed.
Personal Property	Personal property is essentially property that can be moved. It is commonly referred to as movable property or movables, which refers to any property that can be transported from one location to another.
Apartment	An apartment is a self-contained living quarter inside a larger home or a distinct structure for living in as part of a larger complex. It is common for apartments to be ground-floor dwellings inside a larger complex.
Multi-Family House	Multi-family housing is a kind of housing that has more than one unit for people to live in. These units could be in one building or in many buildings in the same community.
Tenement	The traditional use of “tenement” refers to a certain kind of long-term rental building. The term “tenement” refers to a building, a plot of land, or both and the associated legal rights.
Housing Cooperative	A licensed real estate agent facilitates real estate transactions by bringing together buyers and vendors and functioning as their representatives during negotiations.
Site Assessments (ESAs)	A thorough evaluation of the environmental state of a certain site is called an Environmental Site Assessment (ESA).
Real Estate Agent	A licensed real estate agent facilitates real estate transactions by bringing together buyers and vendors and functioning as their representative during negotiations.
Real Estate Broker	A real estate broker is an agent who keeps learning and gets a real estate broker license from the state. Brokers are different from real estate agents because they can work independently, start their own businesses, and hire other real estate agents.
Real Estate Transaction	A real estate transaction is when a homeowner determines to sell their property and finds a willing buyer. Buying a home is a complex process involving several phases, some of which may be unique to your transaction or state’s laws.
Brokerage	In the context of real estate, brokerage is the practice of mediating real estate sales on behalf of buyers and sellers. A real estate brokerage business acts as a go-between for buyers and sellers, facilitating transactions between them.
Adjustable Rate Mortgage (ARM)	ARM is an abbreviation for Adjustable Rate Mortgage in real estate. An Adjustable Rate Mortgage is a form of mortgage loan in which the interest rate is not set for the duration of the loan but varies regularly depending on a predetermined index.
Amortization	In real estate, amortization refers to progressively repaying debt over time via monthly payments. When a person or institution acquires a mortgage or loan to fund the purchase of a property, the loan amount is usually repaid in installments over a certain period, known as the amortization term.
Capitalization Rate	The cap rate, also known as the capitalization rate, is a financial statistic used in real estate investment research to assess the prospective return on an investment property.
Down Payment	A down payment is the first payment made by a buyer or borrower when acquiring a big-ticket item like a home, vehicle, or pricey gadget. It is a fraction of the overall purchase cost settled in cash at the time of the transaction, with the remainder often financed via a loan or mortgage.
Fixed Rate Mortgage	A fixed-rate mortgage is a type of house loan in which the interest rate remains steady, or “fixed,” during the duration of the loan. This means that nevertheless of developments in the bigger financial market, the interest rate you get at the beginning of the mortgage term will not alter over time.
Property Listing	A property listing is a thorough advertising or report of a property for sale or rent in real estate. It is a marketing strategy that real estate agents, brokers, or homeowners use to attract prospective buyers or renters.
Net Operating Income (NOI)	Net Operating Income (NOI) is a financial statistic used to analyze real estate investments. It denotes a property’s revenue after subtracting operational expenditures before deducting taxes and interest payments.
Bridge Loan	A bridge loan, often called interim finance or gap financing, is a brief loan frequently used to fill a short-term financial gap when purchasing a new home before selling an older one.
Community Property	The legal concept of community property controls the ownership of property obtained during a wedding or domestic relationship.
Earnest Money Deposit	A good faith deposit, also known as an earnest money deposit, is an amount of money a buyer pays a seller as proof of their sincere desire to acquire a property.
Home Equity	Home equity refers to a homeowner’s ownership share, representing the difference between the property’s current market value and any outstanding mortgages or liens.
Lease Option	A lease option, also known as a rent-to-own or lease-purchase option, is a contract between a lessor (or landlord) and a lessee (or tenant) that gives the renter the right, but not the responsibility, to buy the property they are leasing at a later date.
Lender	A lender is a person, organization, or financial institution that lends money or resources to another person, organization, or borrower with the idea that the money will be returned, generally with interest or other fees.
Quitclaim Deed	A quitclaim deed is a legal tool that transfers a person’s or entity’s interest or claims in real estate to another person or organization.
Real Estate Settlement Procedures Act	The Real Estate Settlement Procedures Act (RESPA) is a United States federal legislation that controls and oversees the processes and procedures involved in residential real estate transactions.
Appraised Value	The estimated monetary worth of a property or item, as established by a competent appraiser, is called appraised value.
Assumable Mortgage	An assumable mortgage is a house loan that permits a new buyer to assume the previous borrower’s existing mortgage terms and conditions.