Glossary

Multifamily is a duplex or fourplex structure that connects more than one residence via walls or a floor/ ceiling. A duplex is considered to be two homes connected by one main wall, or by a ceiling / floor. A fourplex is considered to be a home connected by walls and floors. 

Single family house is a dwelling that is not connected to anything else. No walls are shared with another home, and the structure stands alone, usually surrounded by land that can be described as a front and backyard.

A mother-in-law unit is on the property of a single family home, but may be separated or connected by a wall with a private entrance. Sometimes a detached garage has been renovated into a small apartment, or a home is built with an attached unit to the house.

Townhouse or Condo: For a condominium, only the structure is owned, not the land the structure sits upon. Typically, condos may share a wall, or a floor/ ceiling. For a townhome or townhouse, the structure and the land are owned by the proprietor. Usually, a townhouse doesn’t share walls with another structure, though that depends upon the location of the townhouse.

What is the Common Area Fee? (Glossary)

It is a fee that a business tenant pays to maintain common areas, shared landscaping, parking lot maintenance and snow removal. The owner usually determines the fee amount, though the property manager will provide information that may change those fee amounts. 

What are Comps? 

The price per square foot that is added to the rent or leasing payments to cover commercial property insurance, garbage pick-up, and building maintenance. 

What is Triple Net?

Items such as water and power are a part of something known as triple net. It’s the amount that is leased or rented at a specific amount per square foot. 

What is an Appraisal?

An appraisal is a true assessment of the property based on various criteria that determines the monetary value of the property. Appraisals are provided by licensed individuals who review the structure, location, and other factors to determine the value of a property. Appraisals directly impact the price point of a property. 

What is a Property Inspection?

A document provided by a licensed professional, who is trained in structure inspections, be they home or commercial. The inspector is trained to identify any risk or liability that involves a structure, such as damage to a roof, or a leaky water heater, an uneven foundation, or proper electrical wiring etc. A property inspection report allows the seller and the buyer to understand the risk and liability of selling a home or building and buying it. 

What are Short-Term Rentals?

Typically, short-term rentals are for vacation purposes. The length of stay can vary from a few days to six months.

What does In-Contract Mean?

When a buyer offers a monetary amount, and a seller accepts that amount, then the sale of the property can move closer toward escrow to complete the transaction. 

Close of Escrow Means?

When a sales transaction has been funded, which means the monies have been transferred to the seller from the buyer, then the transaction has moved into close escrow. Once escrow closes, the transaction becomes part of the public record and is posted at the county’s assessor's office, and often online as well. 

Listing Means?

When a property (a home, or buildings) is listed that means it is officially on the market and is actively for sale through the MLS.

What is a Net Sheet?

A preliminary itemized financial document that provides net proceeds to the seller. The Net Sheet shows all of the fees owed by the seller, as well as the financial amount the seller receives from the sale of the property. Essentially, it is a list of the fees and any monies owed that have to be paid to a creditor. 

What Does a Title Company Do?

Title companies are the detectives in the real estate market. They ensure that the title of the property is clear. Through research and document review they check information connected to the property. If there is a legal issue with the property, they bring it to the seller’s attention. Title companies are the legal gatekeepers, making sure that the property is free of liens and able to be sold.

MLS

Multiple Listing Service--everybody who is anybody will list a home or property for sale. Realtors belong to the MLS, so they have access to the vast majority of properties for sale. Please note that For Sale By Owners properties may not appear on the MLS. 

The Meaning of Pre-Approval

Pre-approval requires a meeting with a licensed loan officer. Financial documents will be required to show that the buyer is able to purchase a property up to a specific amount. The financial information shared with the loan officer include employment and credit information. The loan officer processes the information and finds a lending institution to pre-approve a loan amount. This is one of the most important steps before buyers begin looking for a property. 

Types of Contracts: 

Buyer/ Brokerage Agreement: a contract that legally allows a realtor to represent a buyer.

Exclusive Right to Sell: a contract that legally allows a realtor to represent a seller.

Property Management Agreement: a contract between the property owner and the property manager that allows the property manager to oversee all aspects of the property, such as tenant placement, property maintenance, rent collection, evictions.