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Earnest Money

Funds deposited into escrow by the buyer to demonstrate the buyer’s commitment to the contract.  The buyer breaches the contract if he fails to complete the purchase without some legal excuse for not doing so. The most common excuse is due to an unsatisfied contingency. In most instances, if the buyer breaches the contract then the buyer [...]

By | April 5th, 2017|Glossary|1 Comment

Escrow

Generally, a person or company that holds money or other property on behalf of other people who each have an interest in or claim to the property.  Real estate transactions require escrow because of the many parties (buyer, seller, lender, title insurance) and the many moving parts. Escrow does a lot: it holds the buyer's earnest [...]

By | April 5th, 2017|Glossary|2 Comments

Financing Contingency

A contractual term - a contingency - that requires a buyer to secure financing before the contract becomes binding.  So if the buyer’s financing fails, the buyer gets the Earnest Money back. However, most contracts require the Buyer to take certain steps in order to retain this protection, such as applying within a certain number of [...]

By | April 5th, 2017|Glossary|1 Comment

Inspection Contingency

A term in the contract - a contingency - that allows the buyer to inspect the property before the contract becomes binding.  It is common for a buyer to seek concessions from a seller in exchange for satisfaction of the contingency, whether making certain repairs, or paying closing costs, or reducing the price, or whatever is [...]

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Listing Agent

The Real Estate Broker who represents the seller.  The Listing Agent in most instances - but not all! - lists the property on the Multiple Listing Service. There are a handful of real estate firms, like Added Equity in Seattle, that "list" properties on other web sites but not the MLS. By skipping the MLS, these brokers don't [...]

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Managing Broker

A real estate broker who is licensed to supervise other real estate brokers, Every real estate firm must have a managing broker who is responsible for supervising the firm's agents. Here in Washington, the legal term is Managing Broker and is defined by statute.

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Multiple Listing Service

A database of the properties for sale in a particular market.  This database is maintained by an organization associated with the local Designated Brokers.  The relationship between the organization and the local brokers differs from state to state and even within states, from a cooperative ownership of all, to ownership by the local chapter of [...]

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Offer

An offer is simply a proposed contract, signed by one party (usually the buyer). If the other party (usually the seller) signs it as written and without any changes - and before the offer expiration date - then a contract is created. If the seller makes any changes, then it goes back to the buyer as [...]

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Offer Expiration Date

The date on which an offer will expire.  Until that date, the seller has the right to accept the offer, which creates a binding contract.  After that date, the buyer has the right to approve the contract before it is binding.  In other words, if the seller signs the offer after the expiration date, it [...]

By | April 5th, 2017|Glossary|2 Comments

Pocket Listing

The listing of an MLS-member real estate agent that has yet to be listed on the MLS. The agent keeps the listing "in his pocket" instead of posting it to the MLS database. The agent looks for buyers via his connections - hoping to keep the entire 6% commission, no doubt. Agents claim that sellers can [...]

By | April 5th, 2017|Glossary|0 Comments