What does this word mean?

Appraisal

A professional’s estimate of what the home is worth. If the buyer has a loan, the lender orders one to make sure the home is worth what it’s lending.

As is

The seller won’t make repairs. In California the seller must still disclose problems they know about.

Buyer’s agent

A licensed agent who works for the buyer. Their pay is set by the agreement they sign with the buyer; a seller may agree to pay some of it, but doesn’t have to.

Closing (close of escrow)

The day the sale becomes official: the deed is recorded with the county, the seller gets paid, and the buyer gets the keys.

Closing costs

Fees paid to finish the sale, like escrow, title insurance, transfer tax and recording. Buyer and seller each pay some.

Closing Disclosure

The buyer’s final loan terms and costs from the lender. The buyer gets it at least 3 business days before closing.

Commission

What a real estate agent is paid, usually a percentage of the price. Commissions are negotiable.

Contingency

A condition in the contract that lets the buyer back out without losing their deposit, for example if the inspection, appraisal or loan doesn’t work out. Each one has a deadline.

Contingency removal

The buyer’s signed paper saying they’re done with a check (like the inspection). After that, backing out can cost them their deposit.

Counteroffer

A written reply to an offer that changes some of its terms. It’s a deal when both sides sign the same version.

Deed (grant deed)

The document that transfers ownership from the seller to the buyer. It’s signed in front of a notary and recorded with the county.

Deposit (earnest money)

Money the buyer puts in escrow to show they’re serious. It counts toward the price. It goes to escrow, never to the seller directly.

Disclosures

Forms where the seller tells the buyer about the home’s condition, hazards and other facts. California requires several.

Escrow

A neutral company that holds the money and papers until everything in the contract is done, then pays everyone and records the deed.

Escrow officer

The person at the escrow company who handles your sale. Your main contact for paperwork, money and closing dates.

Fair housing

Laws that forbid treating buyers or renters differently because of who they are, such as race, religion, disability, family status and other protected traits.

FSBO (for sale by owner)

A home the owner sells without a listing agent.

HOA

Homeowners association: a group that sets rules and collects monthly dues in many condos and planned neighborhoods.

Inspection

A professional check of the home’s condition (roof, plumbing, electrical and more), usually paid for by the buyer.

Lien

A legal claim on the home for money owed, like a mortgage or unpaid taxes. Liens are paid off at closing.

Listing agent

A licensed agent who works for the seller. When you sell by owner, you do this job yourself.

Loan Estimate

A standard form a lender gives within 3 business days of a loan application, showing the rate and costs. Useful for comparing lenders.

Mello-Roos

An extra special tax on the property tax bill in some newer neighborhoods, used to pay for things like roads and schools.

MLS

Multiple Listing Service: the database agents use to share homes for sale. Only licensed brokers can put a home on it.

NHD (Natural Hazard Disclosure)

A report and form showing whether a home is in a flood, fire, earthquake or other state-mapped hazard zone.

Notary

A person licensed to confirm who is signing a document. The deed must be notarized before it can be recorded.

Payoff

The exact amount needed to pay off a loan on a certain day. Escrow gets it from your lender and pays it from the sale money.

Pre-approval

A lender’s letter saying how much it will likely lend a buyer, after checking their income and credit. Sellers like to see it with an offer.

Preliminary title report

The title company’s early report on who owns the home and what loans or claims are on it.

Proration

Splitting bills like property tax or HOA dues between buyer and seller by the closing date.

Purchase agreement

The written contract for the sale: price, deposit, deadlines and who pays what. California home sales must be in writing.

Recording

Filing the deed with the County Recorder, which makes the sale official and public.

Seller credit

Money the seller gives the buyer at closing, usually toward the buyer’s closing costs. It must be in the contract, and lenders limit it.

TDS (Transfer Disclosure Statement)

California’s main form where the seller describes the home’s condition and known problems.

Title insurance

Insurance that protects against problems with ownership, like an unknown claim or a forged document. In Riverside County the seller usually pays for the buyer’s owner’s policy.

Transfer tax

A tax paid when the deed is recorded. Riverside County charges $0.55 per $500 of the price; the City of Riverside adds the same again.

Wire fraud

A scam where criminals send fake emails pretending to be escrow, with new bank details. Always confirm wiring instructions by calling escrow at a number you looked up yourself.

General information, not legal advice. Ready to start? Selling guide · Buying guide