Real estate, like every other sector, has a few terms of its own that can be quite confusing to anyone new to the world of real estate. When dealing with the real estate sector, it’s important to be familiar with such real estate terms to avoid any complications or misunderstandings. Wondering what these terms are? We’ll help you out! We’ve listed a few important terms that you should be aware of:
● Contract: This might seem a bit familiar as it is a commonly used term. A contract is a legal document that binds the deal between two or more parties involved in the same.
● Buyer agent: Also known as a real estate agent, this personnel usually represents the buyer in a real estate deal, whereas a seller agent represents the seller side.
● Interest: Another familiar term, interest is the amount that the loan lender adds to your principal amount (which is usually a certain percentage of the borrowed amount) that you have to pay along with your EMI.
● Closing and closing costs: Closing is the process where the sold real estate property is being transferred from the Seller to the Buyer, and closing costs are the fees (loan origination fees, attorney fees, appraisal fees, recording fees, etc.) paid during the property transfer.
● Appraisal: The process of evaluating a real estate property or Flats to determine its property value is termed appraisal. This process is usually carried out by a professional appraiser.
● Mortgage: There are quite a few types of mortgages – adjustable-rate mortgage refers to the type of loan in which interests tend to change often during the course of the entire tenure. A fixed-rate mortgage, however, has a constant interest rate despite the variations and the ups and downs in the market.
● Due diligence: This refers to a specific time allotted by the Seller to the Buyer to carry out a thorough inspection of the property they’re buying.
● Refinancing: Availing another loan to fill in previous mortgages is termed refinancing.
