Real Estate Glossary
Real Estate Terms Every Home Seller Should Know
Plain-English definitions of the cash-sale, foreclosure, probate, title, and distressed-property terms you'll run into when selling a house — written for real people, not lawyers.
Cash Sale & Pricing
After-Repair Value (ARV)
After-Repair Value (ARV) is what a home would sell for on the open market after it has been ful…
As-Is Sale
An as-is sale means the seller sells the property in its current condition and makes no repairs…
Cash Offer
A cash offer is an offer to buy a home using the buyer's own funds, with no mortgage financing …
Closing Costs
Closing costs are the fees and charges required to finalize a real estate transaction — includi…
Comparable Sales (Comps)
Comparable sales, or 'comps,' are recently sold homes similar to yours in size, condition, age,…
Contract Assignment
A contract assignment is when someone puts your house under contract and then transfers (assign…
Double Close
A double close is a transaction where an investor buys a property and resells it almost immedia…
Earnest Money
Earnest money is a deposit a buyer puts down after a purchase agreement is signed to show they'…
Fair Market Value (FMV)
Fair market value is the price a property would sell for on the open market between a willing b…
Holding Costs (Carrying Costs)
Holding costs, or carrying costs, are the ongoing expenses of owning a property while it sits u…
iBuyer
An iBuyer is a company that uses algorithms to make near-instant cash offers on homes, typicall…
Proof of Funds (POF)
Proof of funds is documentation — typically a bank statement or a letter from a financial insti…
Wholesaling (Real Estate)
Real estate wholesaling is when an investor puts a property under contract and then assigns tha…
Foreclosure
Certificate of Sale
In a Florida foreclosure, the Certificate of Sale is the document the court clerk files after t…
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is when a homeowner voluntarily transfers ownership of the proper…
Deficiency Judgment
A deficiency judgment is a court order making a borrower personally liable for the remaining de…
Foreclosure
Foreclosure is the legal process a lender uses to take back and sell a property when the borrow…
Judicial Foreclosure
Judicial foreclosure is a court-supervised process where the lender must file a lawsuit to fore…
Lis Pendens
Lis pendens is Latin for 'suit pending.' It's a public notice filed in the county records annou…
Non-Judicial Foreclosure
Non-judicial foreclosure lets a lender foreclose without going to court, following procedures s…
Notice of Default (NOD)
A Notice of Default is a formal notification from a lender that a borrower has fallen behind on…
Redemption Period
A redemption period is a window after a foreclosure sale during which the former owner can recl…
Reinstatement
Reinstatement is bringing a defaulted mortgage current by paying all missed payments, late fees…
Sheriff's Sale
A sheriff's sale is a public auction of a foreclosed property, conducted by the county sheriff.…
Short Sale
A short sale is when a lender agrees to let a homeowner sell the property for less than the amo…
Trustee's Sale
A trustee's sale is the public auction that completes a non-judicial foreclosure in Tennessee. …
Probate & Inheritance
Executor / Personal Representative
An executor (also called a personal representative) is the person legally authorized to manage …
Heir Property
Heir property is real estate inherited by multiple people, often without a clear will, leaving …
Intestate
Intestate means a person died without a valid will. State intestacy laws then determine who inh…
Letters Testamentary
Letters Testamentary are the court document that grants an executor named in a will the legal a…
Partition Action
A partition action is a lawsuit that forces the sale or division of property owned by multiple …
Probate
Probate is the court-supervised legal process of settling a deceased person's estate — validati…
Stepped-Up Basis
Stepped-up basis is a tax rule that resets the cost basis of inherited property to its fair mar…
Title & Liens
Clouded Title
A clouded title is one with unresolved issues — such as liens, errors in past deeds, or competi…
Escrow
Escrow is a neutral third-party arrangement where a title or escrow company holds funds and doc…
HOA Super-Lien
An HOA super-lien is a homeowners association's claim for unpaid dues that, in some states like…
Lien
A lien is a legal claim against a property for an unpaid debt, such as a mortgage, unpaid taxes…
Mechanic's Lien
A mechanic's lien is a claim filed by a contractor, subcontractor, or supplier who wasn't paid …
Quitclaim Deed
A quitclaim deed transfers whatever ownership interest a person has in a property without guara…
Tax Lien
A tax lien is a claim placed on a property by a government for unpaid property or income taxes.…
Title
Title is the legal right to own and use a property. 'Clear title' means ownership is undisputed…
Title Insurance
Title insurance is a policy that protects the buyer (and lender) against financial loss from de…
Title Search
A title search is an examination of public records to verify a property's legal ownership and u…
Warranty Deed
A warranty deed transfers property ownership with a guarantee that the title is clear and the s…
Property Condition
Absentee Owner
An absentee owner is someone who owns a property but doesn't live in it — often an out-of-state…
Cash for Keys
Cash for keys is an arrangement where a property owner or buyer pays an occupant — often a tena…
Code Violation
A code violation is a finding by a local government that a property doesn't meet building, safe…
Distressed Property
A distressed property is a home under financial or physical strain — facing foreclosure, badly …
Equity
Equity is the portion of a property's value that the owner actually owns outright — the market …
Motivated Seller
A motivated seller is a homeowner with a pressing reason to sell quickly — such as foreclosure,…
Seller Disclosure
Seller disclosure is the legal requirement to inform a buyer of known material defects in a pro…
Underwater Mortgage
An underwater mortgage (also called negative equity) is when a homeowner owes more on the mortg…
Vacant Property
A vacant property is a home that's unoccupied. Vacancy raises risks of vandalism, code violatio…