Terms to Know When Buying or Selling a Los Angeles Home
When you are a home buyer or seller, you will hear different real estate terms used during the process. We have listed some of the common real estate terms and their definition that will help you when buying or selling a Los Angeles home.
“CLOSING DATE” – The closing date refers to the date title transfers from the seller to the buyer via recording of a Grant Deed.
“CLOSING STATEMENT” – Required by the Department of Housing and Urban Development (HUD) to ensure accountability of all finances relating to the sale and purchase of a home. Real estate commission, escrow securities and deposits, lender fees, title fees, and any other fees and charges or credits must be outlined in this document. The buyer and seller will each receive a copy of the “Closing Statement” per the Real Estate Settlement Procedures Act prior to “closing.”
“CLOSING COSTS” – These are the actual costs of “closing” and closing costs are different for the home buyer and home seller. These costs may include, but not be limited to, such costs as securing title insurance, loans, appraisals, credit reports, inspections, brokers commission, home warranty plan, taxes, notary fees, homeowner’s association document preparation fees, recording fees, and document preparation.
“CONTINGENCIES” – Contingencies are requirements outlined in the contract that must be fulfilled prior to a certain date, and in any event, prior to “closing,” often relating to financing or the house inspection. Contingencies generally last for a certain number of days, as agreed upon between the buyer and seller.
“CONTRACT” – When both parties agree to all conditions, the “contract” is then created. The contract is a legal and binding document which guarantees the buyer will purchase the property when all contingencies and conditions are met. Transaction details are included in the contract, such as the property selling price and description, any important dates and contingency clauses.
“DEPOSIT” – The “deposit” or earnest money pledged with an “offer,” illustrates a commitment from the buyer to the seller. Generally the “deposit” amount is determined based on a percent of the home’s purchase price and applies to the final purchase price of the home for sale. This deposit is held “in trust” until the purchase is completed, usually by the escrow company. As a potential home buyer, your “deposit” will only be accepted if your “offer” is accepted.
“OFFER” – Buyers “offer” a contracted rate on a home for sale. A seller may receive many “offers”. There are several variables to discuss with a knowledgeable real estate agent before submitting an offer. Comparing a home to others in the local market and recognizing the length other homes have been listed are helpful to consider prior to submitting or accepting any “offer” in real estate.
We have a more extensive list on our website here: Real estate terms and abbreviations
Now that you know the real estate terms, let’s find you a Los Angeles home!
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(all data current as of 3/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.