Common vocabulary used in real estate 2

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.

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