Common vocabulary used in real estate 2
Practice real estate vocabulary with this exercise. The terms here reflect the language of property sales, leasing, and the professional communications of the real estate industry.
📚 Key vocabulary
appraisal — a professional assessment of a property's market value conducted by a licensed appraiser
closing costs — fees and expenses paid at the finalization of a real estate transaction, beyond the property's purchase price
equity — the difference between a property's market value and the outstanding mortgage balance owed on it
easement — a legal right to use another person's land for a specific and limited purpose
escrow — a financial arrangement where a third party holds funds until specific conditions of a transaction are met
title insurance — an insurance policy protecting property buyers and lenders against losses from disputes over property ownership
capitalization rate — the expected rate of return on a real estate investment, calculated by dividing net income by property value
listing agent — a real estate agent who represents the seller and markets the property for sale
buyer's agent — a real estate professional who represents the interests of the person purchasing a property
deed — a legal document that transfers ownership of real estate from one party to another
appraisal — a professional assessment of a property's market value conducted by a licensed appraiser
closing costs — fees and expenses paid at the finalization of a real estate transaction, beyond the property's purchase price
equity — the difference between a property's market value and the outstanding mortgage balance owed on it
easement — a legal right to use another person's land for a specific and limited purpose
escrow — a financial arrangement where a third party holds funds until specific conditions of a transaction are met
title insurance — an insurance policy protecting property buyers and lenders against losses from disputes over property ownership
capitalization rate — the expected rate of return on a real estate investment, calculated by dividing net income by property value
listing agent — a real estate agent who represents the seller and markets the property for sale
buyer's agent — a real estate professional who represents the interests of the person purchasing a property
deed — a legal document that transfers ownership of real estate from one party to another
READY TO PRACTICE? LET’S GO!
Choose the correct response to complete each sentence.
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VOCABULARY REVIEW: Real estate
Need to review common English terms relating to (and used) by real estate agents? We've got you covered!
Equity
Definition:
Equity is the difference between a property's market value and the amount still owed on the mortgage.
Example:
After several years of payments, the homeowner built significant equity.
Appraisal
Definition:
An appraisal is a professional evaluation of a property's value.
Example:
The bank required an appraisal before approving the loan.
Inspection
Definition:
An inspection is a detailed examination of a property's condition.
Example:
The inspection revealed problems with the roof.
Title
Definition:
Title refers to the legal ownership of a property.
Example:
The title must be clear before the sale can be completed.
Escrow
Definition:
Escrow is a financial arrangement in which a third party holds money or documents until conditions are met.
Example:
The buyer's deposit was held in escrow until closing.
Lease
Definition:
A lease is a legal agreement allowing a tenant to use a property for a specific period.
Example:
They signed a one-year lease for the apartment.
Tenant
Definition:
A tenant is a person who rents property from a landlord.
Example:
The tenant pays rent on the first of every month.
Landlord
Definition:
A landlord is the owner of a property that is rented to tenants.
Example:
The landlord is responsible for major repairs.
Zoning
Definition:
Zoning refers to laws that regulate how land and buildings can be used.
Example:
Zoning rules prevent factories from being built in residential areas.
Return on investment (ROI)
Definition:
Return on investment measures how profitable a real estate investment is.
Example:
Rental income and property value growth improved the ROI.
Need to review common English terms relating to (and used) by real estate agents? We've got you covered!
Equity
Definition:
Equity is the difference between a property's market value and the amount still owed on the mortgage.
Example:
After several years of payments, the homeowner built significant equity.
Appraisal
Definition:
An appraisal is a professional evaluation of a property's value.
Example:
The bank required an appraisal before approving the loan.
Inspection
Definition:
An inspection is a detailed examination of a property's condition.
Example:
The inspection revealed problems with the roof.
Title
Definition:
Title refers to the legal ownership of a property.
Example:
The title must be clear before the sale can be completed.
Escrow
Definition:
Escrow is a financial arrangement in which a third party holds money or documents until conditions are met.
Example:
The buyer's deposit was held in escrow until closing.
Lease
Definition:
A lease is a legal agreement allowing a tenant to use a property for a specific period.
Example:
They signed a one-year lease for the apartment.
Tenant
Definition:
A tenant is a person who rents property from a landlord.
Example:
The tenant pays rent on the first of every month.
Landlord
Definition:
A landlord is the owner of a property that is rented to tenants.
Example:
The landlord is responsible for major repairs.
Zoning
Definition:
Zoning refers to laws that regulate how land and buildings can be used.
Example:
Zoning rules prevent factories from being built in residential areas.
Return on investment (ROI)
Definition:
Return on investment measures how profitable a real estate investment is.
Example:
Rental income and property value growth improved the ROI.
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