Definitions2021-07-16T12:45:04+00:00

Sell Your Home: Definitions

Selling your home is all about financial transactions and legalities. Bottom line, you need to understand the lingo. Here is an abbreviated list of terms you should know

acceleration clause
A clause in your mortgage that allows your lender to demand payment of the remaining balance of your loan. A lender may accelerate your loan if you default on your payments or if you transfer title to someone else without properly informing the lender.
amortization
The process of paying off a loan over a predetermined period of time. It refers to the reduction of the outstanding principal balance of the loan.
appraised value
An estimate of a property’s fair market value at a specific time, based on a professional analysis that includes examples of sales of similar properties.
assessed value
The value placed on property by a public tax assessor for purposes of taxation.
assignment
Transfer of ownership of your mortgage from one company or individual to another.
assumable mortgage
An existing mortgage loan that can be taken over by a new buyer when the home is sold.
bankruptcy
A way of managing debt by filing for relief in federal court. Under the court’s supervision, individuals can restructure or eliminate debts and liabilities. Two types of bankruptcy are most common for individuals: Chapter 7 bankruptcy relieves a borrower with no assets of most types of debts. Under Chapter 13, for individuals with a regular income, the court approves a plan for repayment of debts over a three-to-five-year period; this may allow the borrower to keep such property as a mortgaged house or car.
broker
Anyone who earns a fee for bringing two parties together for any type of transaction; an agent.
chain of title
The history of all of the documents that have transferred title to a parcel of real property, starting with the earliest existing document and ending with the most recent.
clear title
A title that has no liens or legal questions as to ownership of the property.
closing
The point when buyer and seller sign all documents legally required to complete the sales transaction and transfer ownership of a property, including mortgage loan and title or deed transfers and payment of closing costs. In some states, a real estate transaction is not considered to be closed until the documents are recorded at the local government recorder’s office. In others, the transaction is closed when all documents are signed and money has changed hands.
closing costs
Fees, in addition to the sale price of the property, that are required to complete the real estate transaction. They include points, taxes, financing costs (including the appraisal and credit report) and items that must be escrowed. Buyers and sellers both usually pay some of these costs.
cloud on title
Any condition that adversely affects the title to a property. Usually, such clouds cannot be removed, except by deed, release, or court action.
collateral
Property pledged for the repayment of a loan. For a home loan, the home itself is the collateral. If the loan is not repaid according to the terms of the mortgage or deed of trust, the lender can take possession of the property.
collection
If a borrower falls behind on payments, the lender tries to collect the amount due. As part of the collection effort, the lender must mail and record certain documents, in case they are eventually required to legally foreclose on the property.
commission
A fee for services rendered, based on a percentage of the amount received or agreed to be paid. Real estate agents, mortgage brokers, loan officers, title representatives, attorneys, escrow representatives, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more, all receive commissions when a house is sold. The commissions are paid by the seller or the buyer in the purchase transaction.
comparable sales, “comps”
Recent sales of similar properties in nearby areas. These are used to help determine the market value of a property.
contingency
A condition that must be met for a real estate sale to proceed or a contract to become legally binding. For example, a potential buyer may state in an offer to purchase that his own property must be sold before he is able to purchase the new property, or the buyer may stipulate that the contract is not binding until a satisfactory home-inspection report is obtained from a qualified home inspector.
contract
An oral or written agreement to do or not to do a certain thing.
conventional mortgage
A mortgage loan that is not insured or guaranteed by the federal government or one of its agencies, such as the Federal Housing Administration (FHA), the US Department of Veterans Affairs (VA), or the Rural Housing Service (RHS).
deed
The legal document that conveys ownership or title to a property.
deed-in-lieu of foreclosure
The transfer of title, from a borrower to the lender, to satisfy a mortgage debt and avoid foreclosure. Also called a voluntary conveyance. The lender may or may not stop foreclosure activities if the borrower offers to provide a deed-in-lieu.
default
Failure to fulfill a legal obligation. A default includes failure to pay a financial obligation, but it also may be a failure to perform some action or service that is not monetary. For first mortgages or first trust deeds, if a payment is not made within 30 days of the due date, the loan is considered to be in default.
delinquency
Failure to make a payment when it is due. The condition of a loan when a scheduled payment has not been received by the due date, but generally used to refer to a loan for which payment is 30 or more days past due.
depreciation
A decline in the value of property; it may be due to changing market conditions or lack of maintenance. Depreciation is also an accounting term that indicates the declining monetary value of an asset; it is used as an expense, to reduce taxable income. Since it is not a true expense, involving actual payment of money, lenders will add back the depreciation expense for self-employed borrowers and count it as income.
due-on-sale provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.
earnest money
A deposit made by a potential buyer to demonstrate sincerity about buying a property.
effective age
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
equity
A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
escrow
An item of value, a piece of property, money, or documents, held in trust by a third party, to be delivered upon the fulfillment of a condition. For example, earnest money is deposited in escrow and is not delivered to the seller until the transaction is closed.
estate
All of an individual’s assets (both real property and personal property) and liabilities, especially at death. Also, an individual’s interest in land and other real property.
eviction
The lawful expulsion of an occupant from real property.
examination of title
A report of the title of a property, taken from public records, or an abstract of the title.
exclusive listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
exclusive right-to-sell listing
The traditional agreement under which a property owner appoints a real estate broker as exclusive agent to sell the property on the owner’s stated terms, and agrees to pay the listing broker a commission when the property is sold, regardless of whether the buyer is found by the broker, the owner, or another broker. If a second real estate broker finds the buyer for the property, then some commission will be paid to that broker.
exclusive agency listing
A listing agreement under which a real estate broker acts as an exclusive agent to sell a property but may be paid a reduced or no commission if the property owner rather than the listing broker finds the buyer. If a second real estate broker finds the buyer for the property, then some commission will be paid to that broker.
executor
A person named in a will and approved by a probate court to administer the deposition of an estate in accordance with the instructions of the will.. The court will appoint an administrator if no executor is named.
fair market value
The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell.
fee simple
A fee without limitation to any class of heirs and without restrictions on transfer of ownership; the private ownership of property, in which the owner has the right to control, use, and transfer the property at will.
fixture
Personal property that becomes real property when it is attached to real estate in a permanent manner.
foreclosure
A legal action that terminates all ownership rights of the home buyer due to failure to make mortgage payments or meet other terms of the mortgage loan. This usually involves a forced sale of the property at public auction, with proceeds of the sale being applied to the mortgage debt.
grantee
The person to whom an interest in real property is conveyed.
grantor
The person who conveys an interest in real property.
home inspection
A professional inspection that evaluates the structural and mechanical condition of a property, including the plumbing, heating and cooling systems, roof, wiring, foundation, and pest infestation. A satisfactory home inspection is often included as a contingency by the purchaser.
homeowner’s warranty
Insurance offered by a seller that covers certain home repairs and fixtures for a specified period of time. Buyers often ask the seller to pay for this coverage as a condition of the sale, but either party can pay.
interest
The fee charged for borrowing money.
joint tenancy
A form of ownership in which each party owns the whole property; ownership is not separate. If one of the parties dies, the survivor still owns the entire property.
judgment
A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor’s real property, as collateral for the judgment’s creditor.
legal description
A property description, recognized by law, that is sufficient to locate and identify a property.
liabilities
Debts and other financial obligations.
lien
A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.
liquid asset
A cash asset or an asset that is easily converted into cash.
maturity
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
mortgage
A legal document or loan that pledges a property to the lender as security for payment of the debt. Instead of mortgages, some states use first trust deeds.
mortgage broker
An independent finance professional who, for a fee, brings together borrowers and lenders to facilitate real estate mortgages. In Ohio, mortgage brokers must be registered and their loan officers must be licensed.
mortgagee
The lender in a mortgage agreement.
mortgage insurance (MI)
Insurance that protects lenders against losses resulting from a borrower’s default on a home loan. MI is usually required if the borrower’s down payment is less than 20 percent of the purchase price.
mortgage insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency, such as the Federal Housing Administration (FHA), or to a private mortgage insurance (PMI) company.
mortgagor
The borrower in a mortgage agreement
Multiple Listing Service (MLS)
A clearinghouse through which member real estate brokers exchange information about properties and share commissions with members who locate buyers.
notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.
offer
A formal bid from a prospective buyer to purchase a property. It may stipulate any concessions the buyer wants, appliances that are expected to be included in the sale, and other factors that the buyer wants the seller to consider.
personal property
Any property that is not real property, consisting of things that are temporary or movable..
PITI
Acronym for the four primary components of a monthly mortgage payment: principal, interest, taxes, and insurance.
PITI reserves
A cash amount that a borrower has available after making a down payment and paying closing costs for the purchase of a home. The reserves for payment of principal, interest, taxes, and insurance (PITI) must be enough to cover PITI for a predefined number of months.
point
One percent of the amount of a mortgage loan.
power of attorney
A legal document that authorizes an individual to act on another’s behalf. Power of attorney can grant complete authority or can be limited to certain acts or periods of time.
prepayment
Any amount paid to reduce the principal balance of a loan before the scheduled due date. Prepayment in full on a mortgage may be triggered by sale of the property, a foreclosure, or winning the lottery, but in any case, it means that payment is completed before the loan has been fully amortized.
prepayment penalty
A fee that may be charged to a borrower for paying off a loan before it is due.
principal
The amount borrowed or remaining unpaid, not including interest. The part of the monthly payment that reduces the remaining balance of a mortgage.
principal balance
The amount owed on a loan minus the amount already repaid; sometimes called the outstanding or unpaid principal balance. The principal balance does not include interest or any other charges.
purchase agreement
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
quitclaim deed
A deed that releases a person’s interest in a property without stating the nature of that person’s interest or rights and making no warranty of ownership. Though a quitclaim does not validate the grantor’s current claim to the property, it does prevent the grantor from claiming any interest in the property in the future.
real estate agent
A person licensed to negotiate and transact the sale of real estate.
real property
Land and anything permanently attached to it, such as buildings and other structures, trees, and minerals.
Realtor®
A real estate agent, broker, or associate, who holds active membership in the National Association of REALTORS®
right of first refusal
A provision in an agreement that requires the owner of a property to give another party the opportunity to purchase or lease the property before it is offered for sale or lease to anyone else.
sale-leaseback
A transaction in which the buyer leases a property back to the seller for a specified period of time.
survey
A precise measurement of a property that delineates its legal boundaries and shows the location of improvements, easements, rights of way, encroachments, and other physical features.
sweat equity
Contribution to the value of a property in the form of labor or services rather than cash; also, a borrower’s contribution to the down payment for a property in the form of labor or services rather than cash.
title
The right to, and ownership of, property. Title to real estate is usually conveyed by a written document, known as a deed, that transfers ownership from the seller to the buyer. Title is sometimes used to mean the evidence of proof of ownership of land.
title company
A company that specializes in examining and insuring titles to real estate.
title insurance
Insurance that protects lenders or buyers against loss arising from legal problems that were not discovered during a title search and from disputes over ownership of a property. Typically, only the lender is protected by the insurance issued at closing. Borrowers may purchase similar insurance to protect themselves.
title search
A check of public records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding against the property.
transfer of ownership
Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be transfer of ownership: purchase of a property subject to a mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.
transfer tax
State or local tax payable when title passes from one owner to another.

Words of Encouragement from Mitch for Sellers of Cincinnati Properties that Need Plenty of TLC

mitch and matt painter cincinnati house buyer

“We buy houses Cincinnati “as is.” As a result, there are no modifications required. The Painters are committed to rejuvenating Cincinnati houses and believe in making the selling process as simple as possible for homeowners. As a result, the Painters were able to put an end to their worries about lengthy closings. Mitch and Matt are well aware of your desire for a quick response. If you’re looking for an actual property buyer, these cash home buyers are ready to help.”

GET OFFER

or simply call/text 513-360-8120

Why owners who say “I need to sell my house fast for cash” choose Cincinnati House Buyer twins Mitch and Matt Painter.

“It was a relief that I didn’t have to deal with a realtor who often pressures you. (This was) much easier. I felt very comfortable knowing that there was somebody with me every step of the way. Cincinnati House Buyer and their team members are really experienced. Highly recommended”

bob hamm cincinnati house buyer
– Bob Hamm

“I had a lot of stuff and didn’t want to put things in storage while strangers rummaged through my house. A tremendous advantage was not paying a broker commission. It was a cash deal without bureaucratic stuff. I had a great experience. (The Painters) stay with their word.”

tony phillips cincinnati house buyer
– Tony Phillips

“The experience was great. One meeting with Matt and it was obvious he was a straight shooter. Working with him was a pleasure. The fact that they were local was a big deal. If I had another property, I’d show it to the Painters before I did anything.”

 lou peerless cincinnati house buyer
– Lou Peerless

Complete This Easy Form to Get Your Guaranteed Ballpark Offer

Complete This Easy Form to Get Your Guaranteed Ballpark Offer


    Regardless of your property’s current condition, we guarantee to send you a ballpark offer via phone, text, or email within as little as 24 hours. Matt Painter is a licensed real estate agent, but the Painter twins aren’t hoping to get your listing. They want to buy your property.

    Why Sell To Us?

    We buy houses “as is.” You don’t need to make any improvements. Revitalizing Cincinnati houses is a passion of the Painters, who also believe in making it super easy for sellers to sell. The Painters end worries about lengthy closings. Mitch and Matt understand your need for fast execution. If you’re looking for a direct house buyer, these cash home buyers are ready to help.
    Learn more

    Frequently Asked Questions

    Why Don’t You Care if My House is a Mess?2021-11-20T06:23:20+00:00

    In almost all cases, the houses the Painters buy are going to be renovated. As we said on our home page, we buy the good and the bad. Room dimensions and the overall layout of the house are among the most important factors. Other major considerations are the age of major systems, including plumbing, electricity, and HVAC. Cosmetic repairs are of no concern; we simply expect to clean out and repair any property we buy. We often suggest sellers take only the belongings they wish to keep and leave the stuff they don’t want to make the home selling process as easy as possible for them.

    What If My Property Is In Probate?2021-11-20T06:16:25+00:00

    The Painter twins specialize in probate property. We’re very familiar with the process and can work through it with you. We can easily make our purchase contingent upon approval by a probate court, to relieve you of worries about being held to the contract if the probate court doesn’t release the property. We’re very flexible with our timing as well. If your probate case takes longer than expected, or you need more time for any reason, no problem. Call or text us at 513-360-8120 or respond here to begin the process of having the Cincinnati House Buyer buy your probate house.

    Is We Buy Houses A Scam2021-11-20T06:28:58+00:00

    Many “We Buy Houses” and “Sell Your House Fast For Cash” companies are operating these days. But unlike the majority of house buyers, the Painter twins use cash or an existing line of credit to buy houses. Because of this, they can close in as little as 10 days. Mitch and Matt Painter make it easy for Cincinnati property owners to sell a house “as is” – fast! They have a proven track record of buying houses for cash and the reviews to back it up. So if you want to fastest way to sell your home, the Cincinnati House Buyer twins make it easy.

    I Need to Sell My House Fast, For a Fair Market Price. What’s in it For You?2021-11-20T06:34:04+00:00

    The Painter twins are Cincinnati real estate investors who buy houses needing renovation – and TLC. They buy at a fair price and have partners make each property “like new.” From there, the house is sold at a reasonable profit. Each renovation project takes significant capital, risk, and hard work. The average project takes 3-5 months to complete. The Painters tend to pay more than other buyers and are able to buy homes without having to get a loan.

    How Does Your Property Selling Process Work?2021-11-20T06:39:29+00:00

    The Painter twins make it easy for Cincinnati property owners to selling a house “as is” – fast! Call or text us at 513-445-2274 or respond here to give us some basic information about your property. From there, we’ll typically be able to make a ballpark offer with 24 hours, even if we don’t initially get the chance to see the inside of your house. Once we agree on a price, we’ll sign a simple one-page purchase contract and set up the closing. All you have to do is show up to add your signature on the day of closing. That’s all there is to selling your house for cash!

    How Come You Don’t Need to Get Financing to Buy My House?2021-11-20T06:43:11+00:00

    Unlike the majority of buyers, the Painter twins use cash or an existing line of credit to buy Cincinnati houses. Because of this, they can close in as little as 10 days. This means sellers avoid surprises – like a problem securing financing, and thus, a deal falling through – and receive their cash very fast. Since the Great Recession, it’s become more difficult for buyers to get financing. That’s why it’s often risky to sell to a buyer who needs to get a loan.

    Go to Top