Real Estate Editorial

I have come up with part 3 to my real estate definitions, key words and definitions. Now I realize that a lot of people know what real estate is and generally know the terms and phrases related to Real Estate, but for those of you that would like a little more information or definition. I’ve decided to write a regular post defining real estate key words and terms.

Please refer to my series of posts for further definitions:

The Definitions of Real Estate - Part 1
The Definitions of Real Estate - Part 2
The Definitions of Real Estate - Part 3

Appraisal: An opinion of value reached by an appraiser based upon recent sales information for similar properties, the condition of the property and the neighborhood’s impact on future property value.

Closing Costs: All costs incurred during the purchasing of the property, not including the sale price itself. This may include (but is not limited to) points, origination fees, attorney’s fees and title insurance.

Easement: A right to use another person’s real estate for a specific purpose. The most common type of easement is the right to travel over another person’s land, knows as a right of way. In addition, property owners commonly grant easements for the placement of utility poles, utility trenches, water lines or sewer lines.

Foreclosure: The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

Market Value: The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Refinance: Replacing an existing loan with a new one to get a lower rate, switch from one loan type to another or convert equity to cash.

Strata Fee: A charge (usually monthly) by a Strata Corporation to cover the costs of maintenance, repair, cleaning etc. of common areas. This fee will usually include a reserve to cover major repairs such as reroofing and heating system replacement.

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