North County San Diego Real Estate Terms
Real estate comes with its own language. This glossary explains common terms buyers and sellers may encounter while purchasing or selling a home in North County San Diego. Select a term to view its definition.
A
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that may change after an initial period.
Future adjustments are generally based on an index, a lender margin and the
limits described in the loan documents.
Agency Disclosure
A written disclosure explaining whether a real estate professional represents
the buyer, the seller or both parties in the transaction.
Annual Percentage Rate (APR)
A broader measure of borrowing cost than the interest rate alone. APR generally
includes the interest rate and certain loan fees and charges.
Appraisal
An independent opinion of a property’s value prepared by a qualified appraiser.
Lenders commonly require an appraisal before approving a mortgage.
As-Is Sale
A sale in which the seller is generally not agreeing in advance to make repairs.
Selling as-is does not automatically remove applicable disclosure obligations.
B
Broker
A real estate professional licensed to operate a brokerage, negotiate real
estate transactions and supervise licensed salespersons working under the broker.
Buyer’s Agent
A licensed real estate professional who represents the buyer’s interests during
the property search, offer, investigation, negotiation and closing process.
C
Closing Costs
Expenses associated with completing a purchase or mortgage. These may include
lender charges, appraisal fees, escrow fees, title costs, recording fees,
insurance and prepaid expenses.
Comparative Market Analysis (CMA)
An estimate of a property’s likely market position prepared by a real estate
professional using recent comparable sales, current competition and property
characteristics. A CMA is not an appraisal.
Comparable Sale
A recently sold property with relevant similarities to the property being
evaluated. Comparable sales are commonly called “comps.”
Contingency
A condition in a purchase agreement that must be satisfied or removed according
to the contract. Common examples involve financing, appraisal and property
investigations.
Counteroffer
A response to an offer that proposes different price, timing or other terms.
The receiving party may accept, reject or counter those terms.
D
Days on Market
The number of days a property has been marketed through the listing service.
Calculation methods may vary depending on MLS rules and changes to listing status.
Deed
A legal document used to transfer an ownership interest in real property from
one party to another.
Down Payment
The portion of the purchase price paid by the buyer that is not financed through
the primary mortgage.
Dual Agency
A disclosed agency relationship in which the same brokerage represents both the
buyer and seller. California requires disclosure and consent from both parties.
E
Earnest Money Deposit
A buyer’s good-faith deposit submitted in connection with a purchase agreement.
The funds are typically held in escrow and handled according to the contract.
Equity
The difference between a property’s current value and the debts or liens secured
by that property.
Escrow
A neutral process in which funds, documents and instructions are held while the
parties complete the conditions of the transaction. Escrow coordinates the final
transfer of funds and documents.
F
FHA Loan
A mortgage made by an approved lender and insured by the Federal Housing
Administration. Eligibility, property and loan requirements apply.
Final Walk-Through
A buyer’s final visit before closing to confirm the property’s condition and
check that agreed-upon repairs or other contractual items have been addressed.
It is not a replacement for a home inspection.
Fixed-Rate Mortgage
A mortgage whose interest rate remains unchanged for the stated term of the loan.
Taxes, insurance or other portions of the total monthly payment may still change.
H
Home Inspection
A visual examination of a property’s accessible systems and components by a
qualified inspector. The resulting report helps a buyer evaluate condition and
consider additional investigation.
Homeowners Association (HOA)
An organization that manages and enforces rules for a condominium or planned
community. Owners may be responsible for dues, assessments and compliance with
governing documents.
L
Listing Agreement
A contract between a property owner and a real estate broker describing the
broker’s authority, services, compensation, listing period and other terms.
Loan Estimate
A standardized form provided by a mortgage lender that summarizes proposed loan
terms, projected payments and estimated closing costs.
Loan-to-Value Ratio (LTV)
The loan amount expressed as a percentage of the property’s value or purchase
price, as determined under the lender’s guidelines.
M
Mortgage Preapproval
A lender’s preliminary assessment of how much a buyer may be qualified to borrow
based on reviewed financial information. It is not a final loan commitment.
Multiple Listing Service (MLS)
A cooperative database used by real estate professionals to share property
listings, status information and transaction data under applicable MLS rules.
N
Natural Hazard Disclosure (NHD)
A California disclosure identifying whether a property is located within certain
legally designated natural-hazard zones. Buyers should review the disclosure and
conduct any additional investigations they consider appropriate.
P
PITI
An abbreviation for principal, interest, taxes and insurance, four common
components used when estimating a homeowner’s monthly housing payment.
Preliminary Title Report
A report describing the current ownership of a property and the conditions,
exceptions, liens or other matters that may affect the title insurance policy.
Principal
The amount borrowed or the remaining unpaid balance of a loan, excluding interest
and other charges.
R
Recording
The filing of a deed or other document with the county recorder so it becomes
part of the public record.
S
Seller Credit
An amount the seller agrees to contribute toward specified buyer costs, subject
to the purchase agreement and any lender restrictions.
Seller’s Agent
A licensed real estate professional who represents the seller’s interests in
pricing, marketing, negotiating and completing the sale.
T
Title Insurance
Insurance that protects against certain covered title defects, liens or ownership
claims. Lenders commonly require a lender’s policy, while an owner’s policy
protects the buyer subject to its terms and exclusions.
Transfer Disclosure Statement (TDS)
A California seller disclosure addressing the property’s condition, systems and
known defects. Requirements and exemptions depend on the type of transaction.
V
VA Loan
A mortgage made by a private lender and guaranteed in part by the U.S. Department
of Veterans Affairs for eligible borrowers. Program and property requirements apply.