This is the initial price offered by a prospective buyer to the seller. A seller may accept the offer reject it or counter with a different offer.

Buyers make a formal offer on the home they want to purchase. The offer can be the full list price, or what you and your agent deem a fair market value.

The buyer’s agent puts the offer in writing, asks you to sign it, and then submits it to the seller’s agent. The seller might immediately accept it, in which case it becomes the parties’ purchase contract, or may make what’s known as a counter offer. It’s the art of negotiation, recorded in paperwork. Read our blog post on how to determine what to offer on a house.

The two components of a valid contract; a “meeting of the minds.”

A deed by sheriffs, trustees, guardians, etc.

A salesperson compensation plan by which the salesperson pays his or her broker a monthly service charge to cover the costs of office expenses and receives 100% of the commissions from the sales that he or she negotiates.

A mortgage loan expandable by increments up to maximum dollar amount, all of which is secured by the same original mortgage.

A listing contract under which the broker’s commission is contingent on the broker producing a “ready, willing, and able” buyer before the property is sold by the seller or another broker; the principal (owner) reserves the right to list the property with other brokers.

The right to purchase property within a definite time at a specified price. No obligation to purchase exists, but the seller is obligated to sell if the option holder exercises the right to purchase.

The party that receives and holds an option.

The party that grants or gives an option.

The exclusive right to hold, possess or control, and dispose of a tangible or intangible thing. Ownerships may be held by a person, corporation, or governmental entity. Real estate terms that begin with P

A processing fee issued by a lender during the creation of the loan.