Real Estate - Understanding Terms

Whether you are in the process of buying or selling your home, real estate terms and techniques can seem quite confusing. For sure you don’t want to get lost in the confusing paperwork of legal terms. This article will help you easily understand your real estate broker.

Exclusive Rights to Sell - you are agreeing that your Real Estate broker is the one that will list and show your property to potential buyers. In return you are agreeing to his commission terms for his services, these conditions are agreed upon before the listing contract is signed.

Multiple Listing - this is the database that your home will be listed in. All details of your listing will appear along with taxes and the amount of closing time you require. These listings will appear locally and nationally allowing perspective buyers from across the country to look at your home details. Many of these listings now have virtual tours, allowing a buyer a good look before deciding if it is worth viewing in person.

Escrow - is simply a neutral third party hired by the buyer and seller to see the transaction through. It is not always necessarily one person.

Initial Deposit - a deposit that the buyer is willing to put down at the time of making the offer on the home. This proves how serious he is about his offer, knowing that if he forfeits any of the terms, he could lose the whole amount back to the seller.

Contingencies - these are conditions that allow the buyer to back out of the contract without losing his initial deposit. Included in these are home inspections, provision upon selling their own home or upon approved appraisals or mortgage approval.

Disclosures - these are factors that could affect the final outcome of the offer. Factors such as new construction in the area, a death in the house, noise factors and any know plumbing or electrical problems.

Counter Offer - is when the seller comes back to the buyers original offer with additional terms and/or conditions. Possible counter offers are more money, more of an initial deposit or a longer closing date or escrow. Wanting you to leave items in your home such as drapes and lighting fixtures.

Close of Escrow - is the day when the final offer is closed and money is transferred and the home becomes the legal property of the new buyer, now known as the home owner.

Paul has been writing articles online for many years now. Spanning a whole range of subjects such as fitness, finance, insurance, real estate and weight loss. You can also check out his most recent website http://www.CompareEreaders.net which reviews and provides information to assist you with buying Electronic Book Readers.