List of Important Real Estate Terms

When you purchase, sell or refinance a home, you’ll likely hear real estate terms from your loan officer and realtor that you aren’t familiar with. Understanding these terms can ease your confusion and help the loan transfer process go more smoothly.

Mechanic’s Lien

A mechanic’s lien is an encumbrance placed against a property to compensate builders or other workers who participated in construction or improvements on the home. If you have a mechanic’s lien against your property, you cannot obtain a clear title until you pay off the debt to the builder who applied the lien.

Acceleration Clause

An acceleration clause in a mortgage contract gives the lender the right to demand payment in full on the mortgage loan under certain circumstances. Common incidents that may trigger an acceleration clause are the transfer of a home’s title, the sale of a home or missed mortgage payments.

Survey

A survey is the results of a property assessment that accurately define the boundaries of a piece of land.

Escrow

An objective third party that holds and distributes funds and documents for parties involved in a property transfer is known as the “escrow holder.” The third-party account holding the funds is called the “escrow account.”

Title Search

During property transfers, a title search alerts a buyer or lender to any public records that directly affect the property in question. For example, a title search may alert you to a tax lien present on the home you wish to buy.

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