Real Estate Glossary
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Agent
An authorized person who manages or transacts business for another. Laws governing real estate--especially
relating to agents--vary considerably from state to state. While some standardization has been achieved,
it is best to check the particulars in each state.
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Amenities
Features that enhance the value or desirability of a property.
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Amortize
To pay a debt in periodic amounts until the total amount, including any interest, is paid.
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Appraisal
A qualified party's opinion of the value of a property.
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Appreciation
An increase in value.
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ARM (Adjustable Rate Mortgage)
A financing technique in which the lender can raise or lower the mortgage interest rate according to a set
index, such as six-month Treasury bills.
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Assessment
An official valuation of property for tax purposes. Payments made by condominium or cooperative owners
for their share of building maintenance expenses.
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Broker
An independent business person who sets real estate office policies, hires employees, determines their
compensation, and supervises their activities.
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Buyer Agent
An agent who represents the buyer in a real estate transaction. A buyer agent may be paid by the buyer,
seller, or listing agent at closing, provided all parties consent.
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CLO (Computerized Loan Origination)
A computer network of major lenders that allows agents to initiate mortgage applications in their office.
HUD has approved the procedure as long as 1) full disclosure is made of the fee; 2) multiple lenders are
displayed on the computer screen to give borrowers a basis for comparison; 3) the fee charged is a dollar
amount rather than a percentage of the loan.
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Closing
The point at which real estate formally changes ownership. Closing costs are fees paid for services
associated with a home's closing such as title insurance, surveying fees, recording fees, deeds, and
affidavits.
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CMA (Competitive Market Analysis)
A method of determining the value of a property by comparing the prices paid for similar properties.Code of
Ethics A written standard of ethical conduct embraced by the NATIONAL ASSOCIATION OF REALTORS®, a trade
organization of more than 700,000 members representing all branches of the real estate industry.
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Commission
Compensation paid to a real estate agent (usually by the seller) for services rendered in connection with the
sale, exchange, or lease of property.
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Condominium (Condo)
Individual ownership of a portion of a building, with common areas shared by all owners. Maintenance fees
called "assessments" are paid to the condominium association to maintain, repair, or improve the property.
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Conventional Loan
A fixed-rate, fixed term loan that is not insured by the government.
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CRS (Certified Residential Specialist)
A professional designation awarded to experienced agents who complete an advanced course of study in
residential real estate and demonstrate proficiency in sales and production. CRS Designees are members
of the Residential Sales Council, a not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®.
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Dual Agent
An agent representing both parties in a transaction. In almost every state, dual agency is illegal and
unethical without the written consent of both the buyer and the seller.
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Listing Agent
The agent who represents the seller.
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Selling Agent
The agent who obtains a buyer. A selling agent may represent the buyer, or may be a subagent of the seller.
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Subagent
A salesperson who works for an agent.
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REALTOR®
A registered trade name that may only be used by members of the NATIONAL ASSOCIATION OF REALTORS®, an
organization with over 700,000 members who represent all branches of the real estate industry. REALTORS®
subscribe to a strict Code of Ethics which governs their conduct.
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Refinance
Obtaining a new loan to pay off an existing loan. Refinancing is a popular practice when interest rates drop.
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CMA (Competitive Market Analysis)
A method of determining the value of a property by comparing the prices paid for similar properties.Code of
Ethics A written standard of ethical conduct embraced by the NATIONAL ASSOCIATION OF REALTORS®, a trade
organization of more than 700,000 members representing all branches of the real estate industry.
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Conventional Loan
A fixed-rate, fixed term loan that is not insured by the government.
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