Real Estate Terms, in Plain English

A municipal sign-off confirming a building is legally safe and ready to live in.

The fees and charges required to finalize a home purchase or sale, paid at closing.

The final federal itemized statement of your loan terms and costs, delivered about 3 days before closing.

A condition that must be met for the sale to proceed.

The legal document that transfers ownership of a property from seller to buyer.

The good-faith deposit a buyer puts down with an offer.

A neutral third party that holds funds or documents until agreed conditions are met.

The first binding written offer in Massachusetts, signed before the Purchase and Sale Agreement.

The binding contract that sets the full terms of a home sale.

Protects you against hidden ownership defects, liens, or claims on the property you buy.

A short-term deal letting the buyer or seller occupy the home before or after closing.

A licensed appraiser's independent opinion of a home's value, ordered by the lender.

The share of your monthly gross income that goes toward debt payments.

An upfront fee you pay at closing to lower your mortgage interest rate.

A government-backed loan with a low down payment, popular with first-time buyers.

A clause letting a buyer exit and recover the deposit if financing falls through.

A lender's conditional loan commitment based on your verified finances.

Insurance that protects the lender when your down payment is under 20 percent.

A lender guarantee holding your interest rate for a set period before closing.

A condo that meets lender rules for standard financing.

An underground heating-oil tank that can leak and become an environmental liability.

A legal right allowing someone to use part of a property they do not own.

When a structure crosses over onto a neighboring property's line.

A FEMA-mapped area where flood insurance may be required to get a mortgage.

A buyer's professional, top-to-bottom evaluation of a home's condition before closing.

An outdated early-1900s electrical system still found in some old New England homes.

Rhode Island's term and rules for private septic systems.

A licensed surveyor's map of a property's boundaries and structures.

A naturally occurring radioactive gas that can build up in basements and lower levels.

The Massachusetts rule requiring a septic inspection at sale.

The agent who represents the buyer's interests through the purchase.

An agent's data-driven estimate of a home's market value.

How long a listing has been active, a signal of demand and pricing.

One agent representing both buyer and seller in the same transaction.

An offer term that auto-raises your bid up to a cap to beat rival offers.

An organization that governs and charges fees in a condo or community.

The agent who represents the seller and markets the home for sale.

Status when a signed contract exists but the sale has not yet closed.

Lets investors defer capital gains tax by rolling into a like-kind property.

The value a town assigns your home for tax purposes, not always market value.

Excludes up to 250k single or 500k married of gain when you sell your home.

A state tax on transferring real estate, customarily paid by the seller.

A separate property tax some RI districts levy on top of town tax.

A tax break that lowers taxable value for owner-occupants.

The tax charged per 1,000 dollars of assessed value that sets your tax bill.

Annual town tax on your home, based on assessed value times the local rate.

Money a seller credits the buyer at closing, often toward closing costs.

Resets a property's cost basis to market value at the owner's death.