Legal Terms in Real Estate -Terminologies & Words(C1)

C. Real Estate Process Terms

C1. Real Estate Terms Related to Buying and Selling

65. Real Estate Agent

Real estate agent, often referred to as a real estate broker, is a licensed professional who represents buyers or sellers in real estate transactions.

66. Listing

Listing is a public announcement showcasing a property that’s available for sale or rent.

67. Listing Agreement

A written contract where the property owner grants rights to a broker to represent the seller and find a buyer to whom they can sell or lease the property. There are generally three types of listing agreements.

67a. Open Listing

A property listing agreement where the owner may hire multiple brokers. The broker who successfully finds a buyer earns the commission. If the owner sells the property themselves, no commission is owed to any broker.

67b. Exclusive Agency Listing

An agreement where one broker is authorised to act as the exclusive agent of the property owner, but the owner retains the right to sell the property directly without paying a commission.

67c. Exclusive Right-to-Sell Listing

A contract granting one broker the sole rights to represent and sell a property. Regardless of who finds the buyer, the broker earns the commission. This is the most common type of listing agreement.

68. Multiple Listing Service (MLS)

A collaborative database where brokers list properties for sale. The MLS helps ensure broad exposure of properties for sale in their localities and facilitates selling by boosting the ability to find a buyer by sharing information among brokers.

69. Ready to Move vs Under Construction

'Ready to Move' properties are completed, and buyers can move in immediately. 'Under Construction' properties are in the process of being built and are not yet complete.

70. Comparative Market Analysis (CMA)

A comparative market analysis assists in determining an appropriate value of a property by evaluating similar properties that were recently sold in the area.

71. Home Inspection

Home inspection is a professional assessment of a property's structural and functional condition, to identify potential issues, often carried out before finalising the property purchase.

72. Asking Price

Asking price is the initial price set by the seller for the property. It's the starting point for price negotiations between buyers and sellers.

73. Offer

A formal proposal by a potential buyer detailing the terms and price at which they're willing to purchase a property.

74. Counter-offer

A reply to an initial offer, suggesting modifications, usually related to price, closing date, or contingencies.

75. Closing

The final step in property sales when ownership legally transfers from seller to buyer after all conditions are met and documents are signed.

76. Closing Costs

Additional charges incurred during a property sale, such as taxes, attorney fees, and loan processing costs, paid at the closing of the transaction.

77. Escrow

An account held by a neutral third party (often a lawyer or title company) during a transaction. Funds or a deed are held in escrow until all contractual obligations are met, at which point they are released to the appropriate party.

78. Bayana (Token Amount)

Bayana is a partial payment made by a buyer to the seller to secure the property and initiate or freeze the sale, signifying serious intent to purchase. The term “Bayana” is generally used in Delhi, Punjab, Haryana, Rajasthan, Jharkhand, Uttar Pradesh, and Bihar,

79. Possession Certificate

A document issued by the local municipal authority that confirms a builder's completion of a project as per approved plans, allowing the buyer to take possession.

80. Property Verification

The process of verifying a property's legal status by checking its title, ensuring there are no disputes, and confirming ownership.

81. Due Diligence

A thorough investigation into a property's details and legalities before purchasing, ensuring the buyer is getting what they're paying for.

Courtesy: ASSURE SHIFT

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