Classified advertisements Advertisements that are separated by type and listed accordingly.

Closing Closing escrow, settlement; the final phase of a real estate transaction that involves signing loan documents, paying closing costs, and delivering the deed.

Closing costs Costs of sale; the additional expenses over and above the purchase price of buying and selling real estate.

Closing escrow See Closing.

Closing fee See Closing.

Closing statement A written, itemized account given to both seller and buyers at closing by the escrow holder and detailing receipts, disbursements, charges, credits, and prorations.

Commission Payments to an agent, such as a real estate broker, for services in the selling or buying of a home.

Commitment An oral or written agreement to make a loan made by a lender to a potential buyer.

Competent person A person who meets certain criteria set by a state for competency. These laws often include being a natural person who is an adult or an emancipated minor, mentally competent, and not a felon deprived of civil rights.

Conditions Requirements that must precede the performance or effectiveness of something else. Provisions or qualifications in a deed that if violated or not performed nullify the deed.

Condominium An undivided ownership in common in a portion of a piece of real property plus a separate interest in space in a building.

Consideration Anything of value that influences a person to enter into a contract, including money, a deed, an item of personal property, an act (including the payment of money), a service, or a promise (such as to pay on a loan). Acts or services must be performed after the seller and the buyers enter into the contract.

Contingency A condition on which a valid contract depends.

Contingency release Wipe-out clause, kick-out provision; provisions providing that the sellers will continue to market their home until they receive another offer to purchase their home that does not contain the

contingencies the sellers indicated or buyers remove those contingencies the sellers specified. After the sellers receive a contract without the detailed contingencies, the original buyers have the specified time agreed on to remove the contingencies or the sellers may sell their home to the buyers who offered them a contract without the contingencies.

Contract for deed See Land sales contract.

Controllers deed See Tax deed.

Conventional loan A loan that is not guaranteed or insured by a government agency.

Convey Transfer.

Costs of sale See Closing costs.

Counteroffer A statement by a person to whom an offer is made proposing a new offer to the original offeror.

Covenants Agreements or promises contained in and conveyed by a deed that are inseparable from the property. Pledges or the performance or nonperformance of certain acts or the use or nonuse of property.

Cram down See Short Sale.

Credit report A detailed report of a persons credit history and rating.

Deed A document containing a detailed written description of the property that transfers property ownership.

Deed of trust See Trust deed.

Default Failure of a person to fulfill an obligation or perform a duty; failure to make a loan payment when it is due.

Deficiency judgment A court decision making an individual personally liable for payoff of a remaining amount due because the full amount was not obtained by foreclosure.

Delinquent payment A payment that was not paid when it was due.

Demand fee Demand for payoff charge; a fee for a written request to a lender for lenders demand for payment of the loan in full and the supporting documents necessary for release of the lien against the property.

Deposit Money that buyers submit with a purchase offer as evidence of their intention and ability to buy.

Depreciation Loss in value from any cause.

Disclosure Making known things that were previously unknown. Discount points See Points.

Discovery Disclosure of things previously unknown.

Divided agency Agents action in representing both parties in a transaction without the knowledge and consent of both.

Down payment Money that the sellers and buyers agree on, or that a lender requires, that buyers pay toward the purchase price before escrow can close.

Dual agent A broker acting either directly or through an associate licensee as agent for both seller and buyer.

Due-on-sale clause Alienation clause; an acceleration clause in a loan giving the lender the right to demand all sums owed due at once and payable if the property owner transfers title.

Earnest money See Deposit.

Emancipated minor A person who is under the age to legally be an adult in the state in which they live but who has some other criteria that allow them to function as adults. The criteria may include being lawfully married or divorced, duty in the armed forces, or emancipated by court order.

Eminent domain Governments power that allows them to take private property for public use after paying what they feel to be a fair price.

Encumbrance A charge, claim, or lien against a property or personal right or interest in a property that affects or limits the title but does not prevent transfer.

Equity The part of a propertys current value that is owned and on which no money is owed; the propertys value minus the liens owed against the property.

Escrow A process in the transfer of real property in which buyers and sellers deposit documents or money with a neutral third party (the escrow holder). Buyers and sellers give instructions to the escrow holder to hold and deliver documents and money if certain conditions are met.