1) Appraisal - Written explanation of the fair market value of a property. Usually based on comparable home sales in the same area.

2) Title - The right to, or ownership of, something. Represented by evidence of ownership such as a deed or bill of sale.

3) Closing – The meeting between the buyer, seller, and the agents to finalize a home sale. This is where the documents are signed, and money is exchanged.

4) Closing Cost - Payments that must be paid at closing. Closing costs consist of non-recurring costs and prepaid items. Non-recurring costs include things that are paid only at the time of closing such as mortgage application fee & origination fee, appraisal fee, inspection cost, and survey. Prepaid items include costs such as property tax and insurance premiums.

5) Common Areas – Areas of a condominium, co-op, or another multi-family establishment that are used by all residents. Ex. Swimming pools, tennis courts, parking areas, etc.

6) Deed – The legal document used to show title to property.

7) Earnest Money Deposit - The money that accompanies an offer to purchase, as evidence of good faith.

8) Escrow - The money collected by a lender each month to pay for property taxes and property insurance when each comes due.

9) Home Inspection – Thorough inspection of a property by a professional who evaluates the structural and mechanical condition of the home. Inspections are generally a requirement in the closing contract.

10) Homeowners' Association – Organization that oversees neighborhoods, PUDs, and Condos. Used to manage common areas and to ensure that covenants are not broken.

11) P.I.T.I. – Principle, Interest, Taxes, and Insurance. Everything covered on monthly mortgage payments when the loan requires an escrow.

12) Private Mortgage Insurance (P.M.I.) – insurance taken out by the lender to protect itself from loss in the event of default by the borrower. P.M.I. is generally required on conventional loans greater than 80% Loan to Value.

13) Purchase Agreement – written agreement between the buyer and seller explaining the details of the home purchase arrangement.

14) Recording – noting the details of legal transactions, such as real estate sales, mortgage notes, etc, making them a matter of public record.

15) Survey - map of a property outlining the boundaries of a property, location of improvements, easements, and encroachments.