Earnest Money
A deposit made by a buyer to demonstrate good faith and commitment when entering into a purchase contract. It is typically held in escrow until closing.
Real Estate
Sales Comparison Approach (SCA)
When figuring out what a home is worth, appraisers usually use one of three main methods: For regular houses, the Sales Comparison Approach is the most common. It works by looking at what similar homes in the area have recently sold for and using that to estimate the value of the property in question. The
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Listing Agreement
A contract between a property owner and a real estate broker granting the broker the right to market and sell the property, typically in exchange for a commission.
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Encumbrance
Any claim or restriction on a property that may limit its use or affect its transfer, including mortgages, liens, easements, and deed restrictions.
Easement
A legal right for one party to use another’s property for a specific purpose, such as access to a road or utility installation.
Leasehold Estate
The right to occupy or use a property for a specified term, as granted by a lease. Ownership remains with the landlord.
Freehold Estate
Ownership of real property for an indefinite period. The owner has full rights of possession, use, and disposition, subject to laws and restrictions.
Deed
The legal instrument used to transfer property ownership from one party to another. Unlike the title (which is a concept of ownership), the deed is the physical record.
Title
A legal document that proves ownership of a property. It establishes the rights of the owner and can reveal encumbrances, such as liens or easements.