Where cozy means tiny and charming means needs work.
Foreign Investment in Real Property Tax Act—IRS rules requiring withholding from foreign sellers of US real estate. Because Uncle Sam doesn't trust foreigners to voluntarily pay capital gains taxes after they've left the country with the money.
Money or perks the seller agrees to provide the buyer at closing, typically covering closing costs or repairs. It's the real estate equivalent of throwing in floor mats when buying a car.
Any mortgage that doesn't meet Fannie Mae or Freddie Mac guidelines, whether due to size, property type, or borrower qualifications. It's the misfit toy of lending, typically more expensive and harder to get.
Funds set aside for replacing building components and systems that wear out over time, essential for multifamily and commercial property management. The 'we know the roof will eventually die' savings account.
Real Estate Owned—a property that reverted to a lender's ownership after a failed foreclosure auction. These are the banking industry's participation trophies, proving they're now reluctant landlords who just want their money back.
The official legal document that proves you actually own that property you're paying a mortgage on, featuring enough archaic language to make Shakespeare jealous. This formal instrument transfers title from one party to another and gets recorded with the county, because if it's not written down in triplicate, did it really happen? It's essentially a receipt, but for houses and with more 'heretofore's.
The legal process of forcibly removing tenants from a property, typically because they stopped paying rent or violated the lease in creative ways. It's the landlord's nuclear option, requiring court proceedings and often resulting in awkward encounters with sheriffs and moving trucks. Essentially, it's the formal way of saying "get out" with paperwork.
A limitation written into a deed that controls how property can be used, from prohibiting commercial activity to dictating paint colors. It's your previous owner reaching from the grave to tell you what to do.
A retail lease provision letting tenants break the lease or pay reduced rent if an anchor store closes or occupancy drops below a threshold. It's the commercial tenant's escape hatch from a dying mall.
Buying property while leaving the existing mortgage in place under the original borrower's name. It's legally questionable, financially risky, and somehow still happens regularly.
Discounted Cash Flow analysis—a valuation method projecting future cash flows and discounting them to present value; the quantitative investor's favorite way to prove their thesis.
Buying a property exactly as it is without repairs—the seller's way of saying 'don't say I didn't warn you.'
The fancy legal term for transferring property ownership from one party to another, complete with all the paperwork that makes it official. It's both the act of moving title and the document that proves you now own that thing. Real estate's way of saying 'this is yours now' in the most formal way possible.
Real estate euphemism for a building that's either foreclosed, about to be foreclosed, or looks like it should be condemned. The fixer-upper's troubled cousin who really needs an intervention.
The painful difference between what a buyer offered and what the property actually appraised for, requiring either price renegotiation or the buyer coughing up extra cash. It's the financial buzzkill of hot markets where emotions outbid mathematics.
A deep dive into public records to verify legal ownership and uncover liens, judgments, or claims. Property background check revealing whether you're buying real estate or a lawsuit.
Industry slang for properties with minor cosmetic issues that scare away typical buyers but are catnip to investors and DIYers. Think ugly carpet and dated wallpaper, not structural disasters—though agents sometimes blur that line.
Someone who purchases property on behalf of another party who can't or won't reveal their identity, ranging from perfectly legal privacy plays to outright mortgage fraud. The real estate equivalent of a burner phone.
A mortgage exceeding conforming loan limits set by Fannie Mae and Freddie Mac, typically requiring better credit and larger down payments. It's called 'jumbo' because both the loan and the payments are supersized.
A public notice that legal action affecting a property's title has been filed, essentially a warning sign that there's drama ahead. Latin for 'suit pending' and headaches imminent.
The charge lenders levy for processing your loan application and creating your mortgage. It's basically an admission fee to the debt party, typically 0.5-1% of the loan amount.
Upfront fees paid to the lender at closing to reduce your interest rate, where one point equals 1% of the loan amount. It's buying a discount on money you're borrowing—capitalism at its finest.
A hybrid property that functions as both a condominium and a hotel, where owners can occupy their units part-time while renting them out through hotel operations. It's vacation ownership that pretends to be a legitimate investment strategy.
The ethically questionable act of accepting a higher offer on a property after already agreeing to sell to someone else but before contracts are signed. It's the real estate equivalent of leaving someone at the altar for a richer suitor.