Agency
A written contract that states that a specific person (usually a real estate
agent/broker) has authority to act on behalf of someone else (usually either the buyer or seller).
The value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting
from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against
the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the
mortgage and all other debts against the property are paid in full, the homeowner has 100 percent equity in the property.
The property is then known as free and clear.
Appraisal
An estimate of the value of a property as of a particular date,
generally done by a professional appraiser.
Mortgage
A written pledge of property that is used as security for the repayment of a loan. A claim against
real property given by the buyer to the lender as security for money borrowed.
Lis Pendens
A recorded notice of a pending lawsuit usually in association with the non-payment of mortgage. Also
referred to a “Notice of Pendency.
Title
A legal document that is evidence as to the right to and ownership of real property.
Certificate of Occupancy (C of O):
Each building in New York City possesses a Certificate of Occupancy which outlines the legal uses
of the piece of property. The Certificate of Occupancy may allow a building owner to enjoy certain uses not allowed
by the particular zoning in which the property falls.
Escrow
The procedure of placing money in an account where neither buyer nor seller can access the money
without the consent of an escrow agent
Foreclosure
The process by which a lending institution takes back a property because the property owner can no
longer meet his/her monthly mortgage payment.
Broker Commission
When a property is leased or sold, the agents/brokers involved in the transaction are entitled to
payment in the form of a commission.
