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Glossary
To help make the process of buying or selling a home easier, here is a list of common names and terms used in real estate:
Appraisers
A professional who estimates the value of a home to be purchased. During the purchase of a home, the appraiser is usually hired by the mortgage lender to determine whether the price paid is in line with fair market value and therefore justifies the mortgage amount.
Buyers Attorney
A real estate attorney who represents the buyer(s) in a real estate transaction.
Buyers Representative
A real estate professional who represents the buyer(s) in a real estate transaction.
Client
People with whom have established a contractual relationship to represent them in the buying or selling of a home.
Customer
Buyers and sellers who are not represented by a real estate professional.
Home Inspector
Most purchase contracts allow a buyer to have a home inspected within five days of signing the purchase contract. A home inspector performs an inspection of the home to be purchased on behalf of the buyers in the transaction. The inspector examines the home for structural soundness and identifies recommended repairs in his or her report. Depending on the area of the country where you sell, common practice may include other types of inspections, including a pest inspection and a radon inspection.
Insurance Agent
A person who sells insurance policies, such as homeowners and automobile insurance. Typically, homebuyers need to show proof of homeowners insurance before or at the time of closing on the purchased property. Without this, some closings cannot move forward as planned. If you represent buyers, make sure they have secured a homeowners policy prior to closing.
Loan Officer
An employee of a mortgage lender who helps borrowers secure financing for a home purchase.
Mortgage Broker
An independent contractor who helps bring borrowers and lenders together by originating residential and/or commercial loans offered by multiple wholesale lenders.
Mortgage Lender
A mortgage loan company that originates, services, and sells loans to investors or purchasers.
Sellers Agent
The real estate professional who represents the seller(s), also commonly know as a "listing agent."
Sellers Attorney
A real estate attorney who represents the seller(s) in a real estate transaction.
Surveyor
Usually on land deals, this person takes a legal description of the property and maps out the exact boundaries. The legal description in many cases refers to physical landmarks. Those landmarks can change over timeand there may be unintentional or intentional encroachment by neighbors over time. Neighbors may have even been given permission, for example, to put a driveway on a neighbors property, but when the house is sold, the driveway can become a point of contention.
Title Companies
Once the purchase contract on a property is completed, terms are agreed upon, and financing arrangements have been made, the lender orders a title search of the property to be purchased. Depending on the region, a title company or practicing attorney can conduct this search. A title search is the examination of public records to determine that the person selling the property has the right to sell it and the buyer is getting all the rights to the property. The title search seeks to uncover any liens or other problems with the title. The title company then works to fix any problems with the title before issuing lenders title insurance, or the loan policy. The loan policy protects the lenders interests in the property. Buyers also may obtain an owners policy to protect their interests. In some parts of the country, the seller would purchase the owners title policy for the buyer, in effect telling them the house they are buying has a clear title. In other areas, the buyer must obtain the owners policy on his/her own. It is a matter of custom, so ask your local title professional how it is handled in your area.
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