When you are selling your first house, you may run into terminology that you aren’t familiar with. Look over and become familiar with the common terms so you know what everyone is referring to.
Northumberland Pennsylvania: Selling your house may be something entirely new to you. Perhaps you’ve never done this before and could use some help in translating all those words that keep coming up. The more you understand about the wording in the contracts and other paperwork, the better armed you’ll be to make good decisions. Here are a few of the most common terms used in today’s real estate market. It’s not a complete list by any means, but it should get you started.
Appraisal – this is the inspection and evaluation conducted by the lender that will be writing the mortgage to your buyer. The lender wants to know exactly what the house is worth before making the loan.
Bill of Sale – the final bill used to transfer the property to the buyer. It contains the final details and the price paid for your house.
Clear Title – the assurance to the buyer that your home is owned by only you and there are no liens, mortgages, or other items that might cloud their ability to become full owners of the property. Property lines in dispute is an example of something that might cloud a title.
Closing – the final meeting between seller and buyer in which the sale becomes final. You will both sign the appropriate paperwork, money will be exchanged (usually virtual), and the keys will be turned over to your buyer.
Deed – the document that proves ownership of the property. It is a legal instrument.
Deposit or Earnest Money – a deposit to hold interest in your property. Earnest money shows you that the buyer is serious about buying your house.
Home Inspection – conducted by a professional and licensed inspector that tells you the condition of the house and all of its working systems. This is a good thing to have and the buyer usually pays for it.
Legal Description – this is the way the property is described with the county in precise terms. The address alone is invalid and not legal for use in property transfers.
Real Property – all land, trees, plants, fences, and buildings on the land included in the sale.
Survey – a professionally conducted precise measurement taken of your property to within inches of the true boundary lines. This is recorded with the county along with the property’s legal description.
Title Insurance – this is insurance that the buyer can purchase to protect him or her and the mortgage lender from any disputes that occur on the property title.