Archives: Glossary Terms

A debtor or borrower who gives a mortgage on his or her property to a mortgagee to secure a loan or assure performance of an obligation.

A party who urgently needs to dispose of his or her property. Examples:
Seller desperate for cash.
Seller who has been transferred to another location and must sell in order to buy another house.
Seller who can’t meet payments.
Seller who needs to pay other expenses.
Seller who has become unemployed.

In most cases this is an exclusive-right-to-sell listing taken by a member of a cooperative organization of real estate licensees and shared in a pool with all of its members who have agreed to cooperate so the property will receive the greatest market exposure and so the members will have the opportunity to try to find an interested buyer and share in any commissions or fees earned.

A provision in an exclusive listing giving the the listing broker the authority and obligation to distribute the listing to other brokers in the Multiple-Listing System.

(MLS) An association of real estate licensees that provides for a pooling of listings and the sharing of commissions on a specified basis.

The agreement of the provisions of a contract by the parties involved along with a mutual willingness to enter into a contract

The bargaining process that precedes a successful contractual agreement and generally creates a win-win situation for all of the parties. Example: Nelson wishes to purchase a property from Newman. Nelson is willing to pay up to a certain price and desires certain conditions placed on the sale. Newman will accept anything over a certain price and may be willing to help finance the purchase for a higher price. In negotiation Nelson and Newman attempt to come to an agreement over the price and conditions. When they agree, a sales contract is EXECUTED.

An area within a larger community with similar type occupants, buildings and business enterprises.

A source of real estate loan funds other than a bank or similar institution such as mortgage companies, pension funds, individuals and finance companies.

A wall used as a divider that does not carry any load.