Real estate week 3 - Running head REAL ESTATE TERMINOLOGY...

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Running head: REAL ESTATE TERMINOLOGY HJORT 1 Common Real Estate Terminology Joshua Hjort APUS BUSN120 D001 Win 16 Karin Conradson 03/28/2016 Executive Summary
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REAL ESTATE TERMINOLOGY 2 The real estate sale process can be a confusing time. The term mortgage is one that is not fully understood. It means the use of a lender, giving money to the buyer to purchase real property, that is then the security for the lender to get their investment back. Another term that is hard to understand is the deed. The deed for real property is the document that legally represents the ownership of real property, and is transferred at the sale of property. Another term is closing costs, which is a catchall term for all of the costs borne by the buyer in the purchase of real property. The last term is transfer taxes. These are taxes that are borne by the transfer of the property, usually paid by the seller at closing. The rates for these taxes can vary widely by geographic location.
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REAL ESTATE TERMINOLOGY 3 Common Real Estate Terminology The real estate buying and selling process can include many confusing terms that are unfamiliar to an uninformed person. Some of these terms would include the deed, the mortgage, the closing costs, and the transfer tax. These terms are often included in real estate transactions but with little to no definition or actual knowledge of what they are. A basic understanding of the definition and meaning of these terms will help a real estate transaction move more smoothly and have all parties involved feel more comfortable with the process. The first term that is extremely important to understand in the real estate process is the term mortgage. The term mortgage is a common term used, typically in the sense of securing money to buy real estate. It is important to look at why mortgages are required to understand the term. A mortgage is basically a way for someone to purchase real property without having the financial resources to pay the full amount at the time of the sale. In this case the buyer looks to a lender to lend them the money to pay the purchase price in full, and is expected to pay back the purchase price, with interest, within the term of the mortgage loan. The term is a little more complicated than that. A mortgage in a sense is a loan secured by the real property obtained by the buyer in a real estate transaction (Tsintsadze, 2015). The term mortgage encompasses a loan that has security behind it, in many places this can only apply to land and real estate (Tsintsadze, 2015).
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