Escrow instructions A written agreement between seller and buyers that extrapolates the purchase contract into a form used as directions on how to conduct and close the escrow.

Exclusive agency listing A listing with only one agency that provides that if the real estate professional obtains the buyer, the seller must pay the broker the commission. If you sell your home yourself, you are not liable for the commission.

Exclusive right to sell listing A listing providing that during the time listed only that broker has the right to sell your home and earn the commission, no matter who makes the sale.

Extended coverage title insurance This coverage protects against numerous risks that are not a matter of record.

FHA Federal Housing Administration; a federal governmental agency that manages FHA-insured loans to protect lenders in case of default by buyers.

FHA loan Financing by having a conventional loan made by a lender and insured by the FHA.

Fiduciary A person who is in a position of trust who must act in the best interest of clients.

Fire insurance See Hazard insurance.

Fixed-rate loan A loan on which the percentage of interest remains at the same rate over the life of the loan. The payments of principal remain equal during the entire period.

Fixture Items permanently attached to or for which special openings were made in a home and its associated structures.

Fix-up costs The expenses of improvements, repairs, and attractiveness items.

Foreclosure The process by which a property on which a borrower has not paid is sold to satisfy a loan against the property.

Fraud Willfully concealing or misrepresenting a material fact to influence another person to take action. The action results in the persons loss of property or legal rights.

FSBO For sale by owner; a phrase describing a homeowner selling property without using a real estate broker.

Gift deed A deed given for love and affection.

Grant deed A deed using the word grant in the clause that transfers ownership.

Grantee Buyer; receiver of a title to a property. Grantor Seller; holder of a title to a property.

Guarantee of title A warranty that title is vested in the party shown on the deed.

Hazard insurance Casualty insurance, fire insurance; insurance protection against stated specific hazards, such as fire, hail, windstorms, earthquakes, floods, civil disturbances, explosions, riots, theft, and vandalism.

Home equity line of credit Credit given by a lender based on the amount of ones equity in a property. The line of credit becomes a loan secured by a mortgage or trust deed when the borrower uses some or all of the credit.

Home inspection See Physical inspection.

Home inspector A qualified person who examines and reports on the general condition of a homes site and structures.

Homeowner association dues Monthly fees owners of homes pay to their homeowner association for the items it provides.

Homeowners insurance A policy protecting a homeowner from liability and casualty hazards listed in the policy.

Impounds Reserve fund; funds held by the lender to ensure payment in the future of recurring expenses. These expenses can include insurance premiums and taxes.

Improper delivery Delivery of a deed that has not passed out of sellers control and/or was not delivered to buyers during the sellers lifetime.

Improvement costs Expenses for permanent additions.

Imputed interest rate The minimum rate the IRS requires for a seller-financed loan. If the seller charges less than the minimum rate, the IRS taxes the seller on the minimum.

Index A measurement of interest rates on which changes in interest charges on adjustable rate loans are based.

Inspection records Notices indicating that inspections have been conducted by the proper local authorities at certain specified points in the building process.

Inspection reports Reports by inspectors about the condition of various aspects of your property, including defects and repairs considered necessary.

Installment note A loan paid back in at least two payments of principal on different dates.

Installment sale A sale that allows the seller to receive payments in more than one tax year.

Interest A charge or rate paid in arrears (after incurred) to a lender for borrowing money.

Interest-only loan A loan for which only the interest is paid and no principal is repaid until the final installment.

Jointly and severally liable Liable along with other parties and personally liable.

Joint tenancy Vesting wherein two or more parties acquire title at the same time. Each party has an equal, undivided interest and equal right to possess the property, including automatic right of survivorship.

Judgment Final determination by a court of a matter presented to it. A general monetary obligation on all property of the person who owes the money. This obligation applies in each county where an abstract of the court judgment was recorded.

Lack of capacity Inability to enter into a contract because one is not a competent person by his or her states criteria.

Landlord The owner or lessor of real property.

Land sales contract Contract for deed, real property sales contract; an agreement in which the seller retains title to property until the buyer performs all contract conditions.

Lease A contract that transfers possession and use of designated property for a limited, stated time under specified conditions.

Lease option A contract that stipulates that potential buyers are leasing a property for an agreed-on rental payment. These buyers have