Real Estate Glossary

Listed below are brief descriptions of some common terms used in real estate transactions. These are general terms and definitions and are not intended to apply to all possible uses of a term. Please let us know if you have any questions regarding these items.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Earnest Money: The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

Easement: A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another.

Equity: A homeowner’s financial interest in a property. Also can mean the difference between the market value of your home and how much you owe on the property.

Escrow: A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties’ instructions and assuming responsibility for handling all of the paperwork and distribution of funds.

Exclusive listing: A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time, but reserving the owner’s right to sell the property himself without the payment of a commission.

Courtesy of Sonata Realty