REAL ESTATE TERMS AND ACRONYMS
Posted by Gary Bild on 21 May 2013 05:11 PM
REAL ESTATE TERMS AND ACRONYMS
Agency: The legal relationship between a principal and an agent. In real estate transactions, usually the seller is the principal, and the broker is the agent: however, a buyer represented by a broker (i.e., buyer as principal is a growing trend. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf in business transactions and to exercise some discretion while so acting. The agent has a fiduciary relationship with the principal and owes to that principal the duties of accounting, care, loyalty, and obedience.
Assessors Parcel Number (APN): A ten digit numerical sequence assigned to a property by the local government.
Arbitration: The term used to describe a form of dispute resolution that occurs outside of the court system, usually by private agreement between parties. Basically, arbitration is a dispute resolution system where the parties submit arguments and evidence to a neutral person, known as the arbitrator, who then renders a decision, called an award, based upon the evidence and arguments presented.
Brick and Mortar Office: This term refers to a traditional "street-side" business that deals with its customers face-to-face in an office or store the business owns or rents.
Broker: A person, who for compensation or in expectation of compensation, acts for another in a real estate or related transaction.
California Association of REALTORSÒ (CAR): whose purpose is to serve its membership in developing and promoting programs and services that will enhance the members' freedom and ability to conduct their individual businesses successfully with integrity and competency, and through collective action, to promote the preservation of real property rights.
Caravans: Common term used to describe an organized tour of properties available for sale. Also known as tours and open houses.
CMA: Comparative Market Analysis (CMA): A report that shows prices of properties that are comparable to a subject property and that were recently sold, are on currently on the market or were on the market, but not sold within the listing period.
Commission Variable Rate (CVR): A commission arrangement in which the seller agrees to pay a specified commission if the property is sold by the listing broker without assistance and a different commission if the sale results through the efforts of a cooperating broker or the efforts of a seller.
Compensation to Buyer’s Broker (CBB) or Commission: A fixed dollar amount or percentage of a sales transaction that is being offered to the listing broker who secures a buyer.
Contingency: A future event or condition upon which a valid contract is dependent.
Counteroffer: An offer in response to an original offer.
Deed of Trust: A type of security instrument where the borrower conveys the property’s title to a third party (trustee) to be held “in trust” as security for the note.
Bureau of Real Estate (BRE) : whose purpose is to protect the public in real estate transactions and provide related services to the real estate industry.
Dual Agency: A situation where one agent represents both sides with consent of all parties.
Exclusive Agency Listing: A contract giving the broker the right to market an owner‘s property for a certain period of time, but also allowing the owner to sell the property during that period without paying a commission.
Exclusive Right to Sell Listing: A contract giving an agent the exclusive right to market a property during a certain timeframe.
Federal Home Loan Mortgage Corporation (FHLMC): Also called "Freddie Mac," is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers.
Federal National Mortgage Association (FNMA): Also known as "Fannie Mae." A tax-paying corporation created by Congress that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA. This institution, which provided funds for one in seven mortgages, makes mortgage money more available and more affordable.
Fee-for-Service: A method of conducting real estate business in which homebuyers and sellers are offered specific services (i.e. listing a home, escrow coordination, selling a home) on an individual basis for a specified price.
For Sale By Owner (FSBO): The owner sells his or her home without an agent to avoid paying a sales commission. Sandicor does not accept listings directly from owners and does not permit FSBOs to be placed in the MLS.
Foreclosure: A legal procedure by which mortgage property is sold, upon default, in order to satisfy a debt. Foreclosures generally are governed by state law and rules may vary between states.
Ginnie Mae: Government National Mortgage Association
Home MLS: The MLS to which a participant or subscriber belongs and has full rights as a participant or subscriber, respectively.
Housing and Urban Development (HUD): A government agency created in 1965 to ensure decent, safe, and sanitary home and suitable living environment for every American.
Internet Data Exchange (IDX): Internet data exchange also referred to as Broker Reciprocity.
Known To Broker (KTB): A common acronym used in the occupant name and occupant phone number fields of a listing.
Lis Penden (LIS): Notification of pending lawsuit. The initial document (judicial) filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD (Notice of Default) are part of the PRE-foreclosure process.
MLS Database: The compilation of current listings of an MLS maintained as an electronic database and made available to MLS participants and subscribers.
Mediation: A process used to resolve disputes. In mediation, the parties to the dispute are assisted by a neutral third person called a mediator. The mediator is not empowered to impose a settlement or decision on the parties; rather, the mediator facilitates discussions and negotiation between the parties with the goal of assisting the parties in reaching a mutually acceptable settlement of their dispute.
Mortgage: A conveyance of interest in real property, given as security for the payment of a debt. An agreement between two parties: borrower and lender.
National Association of REALTORSÒ (NAR): An association that strives to be the collective force influencing and shaping the real estate industry. It seeks to be the leading advocate of the right to own, use, and transfer real property; the acknowledged leader in developing standards for efficient, effective, and ethical real estate business practices; and valued by highly skilled real estate professionals and viewed by them as crucial to their success.
Notice of Default (NOD): The initial document (non-judicial) filed by a trustee that starts the foreclosure process, usually after the occurrence of a default under the deed of trust or mortgage. Both NOD and LIS (Lis Penden) are part of the PRE-foreclosure process.
Open Listing: A listing distinguished by the fact that the owner retains the right to revoke the listing at any time, to sell the property himself, or to list the property with another broker.
Out of Area Listing: A listing on a property located out of the jurisdiction of the participant’s or subscriber’s home MLS or regional MLS to which the participant or subscriber has access.
REALTOR®: A real estate broker or agent who, as a member of a local association of REALTORS®, a state association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®), adheres to high standards of professionalism and a strict code of ethics.
Reciprocal Agreement: An agreement among various multiple listing services that allows participants and subscribers access to an MLS other than that which is their home-based.
Reciprocal Listing: A listing submitted to an MLS by a person who is not a participant or subscriber of that MLS, but it entitled to submit the listing pursuant to signing the California Master Reciprocal Agreement.
Variance: An authorization granted by Sandicor through its Service Centers that permits a participant or subscriber to perform a task in the MLS that is otherwise considered a violation of the rules and regulations.
Variable Range Listing (VRL): An acronym for a method of pricing when determining the listing price of a property. This type of pricing gives a prospective buyer a range from which the sellers will entertain offers.
Virtual Office Website (VOW): A common acronym for a real estate firm practicing brokerage on the Internet.