KEY TERMS
APPRAISAL Assessment of the property’s market value, typically done for the purpose of obtaining a mortgage. COMMON CHARGE A monthly maintenance fee paid by condo owners. Property taxes are not included in monthly condominium fees. CONTRACT DEPOSIT A percentage of the agreed-upon purchase price paid by the buyer at the time of signing the purchase and sale agreement. DEBT-TO-INCOME-RATIO The percentage of an individual’s monthly gross income relative to the amount of debt owed. ESCROW DEPOSIT Deposit of funds into a federally insured account, to be transferred upon completion of the deal. OFFER ACCEPTED The point in time when a seller accepts all the terms of a buyer’s offer for a property. PIED-À-TERRE A small amount maintained by someone who resides in another area. The unit allows the owner to avoid the daily commute or to spend occasional late nights in town to access cultural events. PRE-APPROVAL Potential buyers provide a complete fnancial picture to mortgage brokers, who provide preliminary approval of the buyer’s loan. TITLE SEARCH A background check on the property to ensure there are no outstanding debts or claims upon the property. UNDER AGREEMENT (IN CONTRACT) Refers to the time between the signing of the purchase and sale agreement by the buyer and seller, and the closing.
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