ARM (Adjustable Rate Mortgage)
A financing technique in which the lender can raise or lower the
mortgage interest rate according to a set index, such as six-month
Treasury bills.
Agent
An authorized person who manages or transacts business for another. Laws
governing real estate--especially relating to agents--vary considerably
from state to state. While some standardization has been achieved, it is
best to check the particulars in each state.
Buyer Agent:
An agent who represents the buyer in a real estate transaction. A buyer
agent may be paid by the buyer, seller, or listing agent at closing,
provided all parties consent.
Dual Agent:
An agent representing both parties in a transaction. In almost every
state, dual agency is illegal and unethical without the written consent
of both the buyer and the seller.
Listing Agent:
The agent who represents the seller.
Selling Agent:
The agent who obtains a buyer. A selling agent may represent the buyer,
or may be a subagent of the seller.
Subagent:
A salesperson who works for an agent.
Amenities
Features that enhance the value or desirability of a property.
Amortize
To pay a debt in periodic amounts until the total amount, including any
interest, is paid.
Appraisal
A qualified party's opinion of the value of a property.
Appreciation
An increase in value
.Assessment
An official valuation of property for tax purposes. Payments made by
condominium or cooperative owners for their share of building
maintenance expenses.
Broker
An independent business person who sets real estate office policies,
hires employees, determines their compensation, and supervises their
activities.
CRS (Certified Residential Specialist)
A professional designation awarded to experienced agents who complete an
advanced course of study in residential real estate and demonstrate
proficiency in sales and production. CRS Designees are members of the
Residential Sales Council, a not-for-profit affiliate of the NATIONAL
ASSOCIATION OF REALTORS�.
CLO (Computerized Loan Origination)
A computer network of major lenders that allows agents to initiate
mortgage applications in their office. HUD has approved the procedure as
long as 1) full disclosure is made of the fee; 2) multiple lenders are
displayed on the computer screen to give borrowers a basis for
comparison; 3) the fee charged is a dollar amount rather than a
percentage of the loan.
Closing
The point at which real estate formally changes ownership. Closing costs
are fees paid for services associated with a home's closing such as
title insurance, surveying fees, recording fees, deeds, and affidavits.
CMA (Competitive Market Analysis)
A method of determining the value of a property by comparing the prices
paid for similar properties.Code of Ethics A written standard of
ethical conduct embraced by the NATIONAL ASSOCIATION OF REALTORS�, a
trade organization of more than 700,000 members representing all
branches of the real estate industry.
Commission
Compensation paid to a real estate agent (usually by the seller) for
services rendered in connection with the sale, exchange, or lease of
property.
Condominium (Condo)
Individual ownership of a portion of a building, with common areas
shared by all owners. Maintenance fees called "assessments"
are paid to the condominium association to maintain, repair, or improve
the property.
Conventional Loan
A fixed-rate, fixed term loan that is not insured by the government.
Co-operative (Co-op)
An arrangement in which a corporation made up of residents owns a
building. The buyer owns a proprietary lease, rather than real property,
and a corresponding number of shares in the corporation.
Counter Offer
A new offer as to price, terms, and conditions, made in response to a
prior, unacceptable offer. A counter offer terminates an original offer.
A legal document transferring ownership of a property from one party
to another.
Disclosure
Revealing what previously was private knowledge. Any statement of fact
that is required by law.
Down Payment
A percentage of the purchase price the buyer pays in cash.
Earnest Money
A buyer's partial payment to the seller as a show of good faith in
completing the transaction.
Equity
The difference between the current market value of a property and the
claims--such as the unpaid portion of a mortgage--that exist against it.
Escrow
The closing of a real estate transaction through a neutral third party
who holds funds and/or documents for delivery after specific conditions
have been met.
Exclusive Listing
A written agreement in which the seller appoints only one agent to
market the property for a specific period of time. If the owner sells
the property himself, he is not required to pay a commission.
Exclusive Right of Sale Listing
A written agreement between an agent and a property owner stating that
the owner will pay a commission to the agent if the property is sold
during a specific time period--whether or not the agent is responsible
for the sale.
Fannie Mae (Federal National Mortgage Association)
Fannie Mae purchases home mortgages, thus serving as a source of funds
for mortgage lenders. It is a privately owned corporation whose shares
are traded on the New York Stock Exchange, but it is subject to the
strict supervision of the secretary of the U.S. Department of Housing
and Urban Development (HUD).Federal Fair Housing Law Refers to
Title VIII of the Civil Rights Act, and stipulates that discrimination
based on race, color, sex, familial status, handicap, religion, or
national origin is illegal in connection with the sale or rental of most
dwellings.
FHA (Federal Housing Administration)
A federal agency established to improve housing standards and
conditions. The FHA provides mortgage insurance to approved lending
institutions.
Freddie Mac (Federal Home Loan Mortgage Corporation)
A federally chartered corporation established to purchase mortgages in
the secondary, or resale, market. Freddie Mac's policies are designed to
serve the needs of savings and loan associations. It is subject to
oversight by the U.S. Department of Housing and Urban Development (HUD).
Guaranty
A pledge made by one person (the guarantor) to ensure that another
person (the obligor) will fulfill an obligation to a third party (the
obligee).
HUD (U.S. Department of Housing and Urban Development
A federal department active in a variety of national housing programs
including urban renewal and public housing.
Improvements
Additions intended to increase the value of a property.
Inspection
An examination of a property by the buyer, agent, title insurance
company, or other interested party.
Lien
A charge or claim by one party on the property of another as security
for the payment of a debt.
Listing
A written agreement between a property owner and a real estate broker
authorizing the broker to find a buyer.
Market Value
The price a property will command on the open market.
MLS (Multiple Listing Service)
A means by which agents are informed of the properties offered for sale
by other agents.
Mortgage
A legal document pledging property as security for the payment of a
loan.
Mortgage Insurance
An insurance plan that protects the lender if the borrower does not
repay a loan. Mortgage insurance is required when a home buyer makes
less than a 20% down payment at the time of purchase. Private mortgage
insurance (PMI) covers conventional (fixed-year, fixed-rate) loans. The
Federal Housing Administration charges a mortgage insurance premium
(MIP) on FHA loans.
NATIONAL ASSOCIATION OF REALTORS �
A trade organization serving over 700,000 members from all branches of
the real estate industry. Members subscribe to a strict Code of Ethics
which governs their conduct.
Offer
A proposal to purchase property at a specified price and terms.
Open House
The common real estate practice of showing "For Sale" homes to
the public during established hours.
Origination Fee
A lender's charge for establishing and processing a new mortgage loan.
It is generally computed as a percentage of the loan and may be tax
deductible.
Owner of Record
The person named in the public record as the owner of a property or
mortgage.
Points
A one-time charge paid to the lender for issuing a loan. Each point
equals one percent of the loan amount and is used to obtain revenue in
addition to the interest rate.
Principal
The amount of money upon which interest is paid.
Qualified Buyer
A buyer who has demonstrated the financial ability to afford the asking
price of a home. Prequalifying with a lender can expedite the home
buying transaction.
REALTOR�
A registered trade name that may only be used by members of the NATIONAL
ASSOCIATION OF REALTORS�, an organization with over 700,000 members who
represent all branches of the real estate industry. REALTORS� subscribe
to a strict Code of Ethics which governs their conduct.
Refinance
Obtaining a new loan to pay off an existing loan. Refinancing is a
popular practice when interest rates drop.
Residential Sales Council
A not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS�.
The Council awards the Certified Residential Specialist (CRS)
Designation, to experienced members who have completed an advanced
course of study in residential real estate.
Title
Lawful ownership of property.
Title Insurance
An insurance policy that protects against losses arising from title
defects such as forged or misfiled documents
.Title Search
An examination of the public records to determine whether the current
title is clear or defective.
Town House
Also known as a row house, generally refers to a type of dwelling having
two floors, with the living area and kitchen on the first floor, and the
bedrooms on the second. Town houses share a common wall between units.
VA (Veterans Administration)
A federal agency designed to
help veterans enter the housing market.
VA Loan
A loan guaranteed by the U.S. Department of Veterans Affairs (VA). VA
loans are made to honorably discharged veterans or their unremarried
widows or widowers. Such loans require a minimal or no down payment and
offer lower interest rates.
Walk-Through
A final inspection of a property before it changes ownership.
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Contact Information
Bob Schwartz
Cell:
619-300-8819 Home
office: 619-286-5604
Postal address:
Bob Schwartz c/o
Brokerforyou 7966 Laurelridge Road San Diego, CA 92120
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