When buying a condominium, it is essential to know the industry jargon that agents and brokers may use. You can better negotiate with them and get the best deal for your property investment by learning what these terms mean. Some of the most commonly used terms in real estate include "collateral," "down payment," and "closing costs." Understanding these terms will help you be more confident when discussing your purchase with professionals in the industry.
When speaking with a real estate agent or broker, take the time to ask them what each term means. This will help ensure that you are both on the same page and fully understand the process. Additionally, ensure you have a realistic idea of what you can afford. Don't get caught up in the excitement of buying a property and end up overspending. Work with your agent to find a property within your budget that meets your needs.
Now, to give you a leg up, here are some commonly used terminologies in real estate that may sound familiar but have extended meaning in real estate.
Real Estate Agent
A personal representative of the buyer (buyer’s agent) or that of the seller (listing’s agent), whether a property developer, brokerage firm or a person.
A reference contains a list of real estate for sale, lease, or foreclosed.
A property’s current market value (real) is proportional to other properties sold in the area and the property’s actual status itself. It’s also called the Comparative Market Analysis (CMA).
Regular payment scheme aimed at paying both the principal value of the property and its interest due to a loan.
A loan is typically employed by property buyers to raise funds and put a lien on it.
A legal claim on another person’s property.
The money left for the buyer after paying off all expenses, including the down payment and other closing costs.
When a deal is closed, the buyer and sometimes the seller shoulder the expenses.
A legally binding agreement between the buyer and the seller in completing a deal.
A clause in the agreement prevents matters from being legal unless a specific condition is met, as agreed by both parties.
An act created to define the term “condominium” lays out the requirements for its creation and handling of any incidents. The act also separates the condominium as an entity from a residential, commercial, or industrial building.
A neutral third-party involved in the mortgage, which ensures safe transactions involving payments and documents.
An offer is presented after rejecting the original, which superseded the latter if an agreement is made.
Money typically handed over by the buyer to the seller to signify good intent and faith in the transaction.
The legal transfer of ownership of a property to the buyer.
Over time, the decrease in value of a property is affected by several factors, including deterioration, loss of utility, and terrible marketing conditions.
The difference between the property’s selling price and the amount of money to be loaned.
Power of Attorney
A legal document that empowers a person (the attorney) to represent a person (the principal) at his discretion in business and property matters.
These are just a few real estate terms that hopefully help boost your confidence in your real estate dealings.
Bottom line – ASK. There’s nothing wrong with asking and ensuring that you are on the same page and that everything is clear. But your hard-earned money is getting invested in a property you rightfully deserve, ensuring there’ll be no after-sales drama resulting from technicalities that you had understood differently.