Below, is a comprehensive list of Real Estate terms, which will be updated regularly. Readers are encouraged to become familiar with the terminologies used in context of Real Estate Transactions.
Title to a property that is free of any hindrances or encumbrances. Absolute title gives undisputable right of ownership to the owner, and cannot be disputed or challenged by anyone else. This is opposed to titles with liens, attachments or judgements against them. It is also known as perfect title or clear title.
A title search is usually conducted at the local registry office and can unearth any problems with regard to the title of a property.
A document provided by the seller of a property that clearly states the status of potential legal issues involving the property or the seller. The affidavit is a sworn statement of fact. For example, someone looking to sell a piece of real estate would have to provide an affidavit of title indicating that the property is truly owned by the seller, that the property is not being sold to another party, that there are no liens against the property and that the seller is not in bankruptcy proceedings.
An affidavit of title is designed to protect the buyer from outstanding legal issues that might be facing the seller
An agreement between the buyer and the seller that details the price and terms of the transaction. This Agreement should not be confused with Sale Deed/ Conveyance Deed. It precedes the execution of Sale Deed and acts as the basic document on which a Sale Deed is drafted. It is also referred to as Agreement for Sale.
A letter issued by the developer or city development agency allotting a particular plot or unit in an under development or under construction project. It includes all details regarding the unit, payment options and any extra charges that the buyer will have to pay in case of maintenance or additional facilities. It also includes construction schedule, house plans, delivery date and other booking terms. This letter is generally superseded by builder-buyer agreement once that is signed.
Facilities or structures of real estate that enhances its attractiveness and increases the occupant or user’s satisfaction. For example, Parks, swimming pools, clubhouses, gyms, party rooms, and other facilities offered by builders of planned developments.
The loan payment consists of a portion, which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off in the specified time.
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.