Buying a home can prove difficult for first-time home buyers. The process of real estate deal is a long run event. Having a basic understanding of important real estate concepts before you start the buying process will not only help you save a fortune in the future but also give you a peace of mind.
There are many abbreviations used in real estate listings, as well as a lot of terminology that is used for real estate, let’s check out some to get the better understanding of a real estate sector – (in alphabetical order).
Amenities
Amenities are the enhancements that buildings offer its owners or tenants. These usually include a doorman, health club, garage, children’s playroom, common lounge, etc.
Capital Gain
Capital gain is the seller’s gain on an asset used in a trade or business or for investment, including real estate.
Cash Flow
Cash flow is the income produced by an investment property after deducting operating expenses and debt.
Certificate of Occupancy
The Certificate of Occupancy is a certificate issued by a local governmental entity responsible for the use of land in the community where the property is located stating that the structures on the property or any improvements made to these structures comply with the codes, ordinances and regulations of that governmental entity and that they may be occupied.
Chain of Title
Chain of Title is a successive conveyance of title to a specific parcel of land.
Commission
The commission is the payment to the broker for his or her efforts on marketing and selling the property, and is usually a percentage of the total purchase price.
Common Area or Common Elements
The common area is the area in the property or in the building that is available for use by all owners and tenants.
Conveyance
Conveyance is the transfer of title to real property.
Cooperative
A cooperative is a building owned by a corporation in which each apartment is allocated shares of stock as well as a proprietary lease.
Co-ownership
Co-ownership occurs when title to real property is held by two or more persons at the same time; also called concurrent ownership
Credit Score
A credit score is a numerical rating provided on a credit report that establishes creditworthiness based upon a person’s past credit/payment history and their current credit standing.
Down Payment
The down payment is the amount of money a buyer pays upfront in order to purchase a property.
Part 2 – Real Estate Basic Terms & Concepts
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