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Pre MLS Listing

A recent innovation in the marketing of residential real estate, courtesy of Added Equity and its founder's vision for the future of real estate. The key is to use a true single broker listing, and NOT an MLS "pocket listing." With a pre MLS listing, the seller first markets the home outside of the MLS [...]

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

Pre-Approval Letter

The letter issued by a lender stating that a buyer is "pre-approved" for a particular loan amount and purchase price. To get a pre-approval letter, you need to submit some basic documentation of your financial situation. Contrast this with a "pre-qualified" letter, which only requires your self-reporting. Needless to say, a "pre-qualified" letter isn't given [...]

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

Preliminary Title Report (or Title Commitment)

The initial document generated when a policy of Title Insurance is ordered.  The Title Report shows all of the existing encumbrances on the title to the property.  This includes liens, as well as any other interest in the property held by someone else, such as an easement. A prudent buyer will have the Title Report reviewed by [...]

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

Prepaids

Money that must be paid in advance at Closing, such as homeowner insurance premiums and real estate taxes.  Only a buyer pays prepaids. If you are a buyer getting a rebate, make sure you max out your prepaids as much as possible. Lenders limit them, but you may be able to pay up to a year's [...]

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

Quit Claim Deed

A deed is the legal document that transfers ownership of real property.  A Quit Claim Deed conveys ownership and nothing else.  The person conveying (the seller) makes no promises of any sort concerning the conveyor's actual ownership or right to possession. If you've ever purchased the Brooklyn Bridge, it was likely by Quit Claim Deed. Contrast [...]

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

Real Estate Broker

Real Estate Agent is the most commonly used term to describe a person licensed to provide the services associated with the purchase or sale of real estate.  The legal term in WA is “Broker.”  Most agents are also members of the National Association of Realtors.  Members of that organization (membership is voluntary) can call themselves [...]

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

Selling Agent

The Real Estate Broker who represents the buyer – not the seller – in the transaction.  The term originated back when all brokers worked for the seller.  Thus the broker who actually brought the buyer to the transaction was the “selling broker.”  The term is still used today. And of course the the Selling Agent [...]

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

Selling Office Commission

The seller-paid commission offered to the buyer’s agent.  The commission is technically paid to the real estate firm where the agent works, and that firm then splits the commission in some fashion with the agent. That split can be a percentage, or simply paid via a flat monthly fee (a "desk fee"). Most people assume [...]

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

Settlement Statement

The formal spreadsheet issued by the Closing Agent at Closing showing the origination and disposition of all funds.  If there is a lender, the Closing Agent will use the form required by federal law. Formerly called the HUD-1 (the designation of the federal government), this is now known as the TRID (a really complicated acronym for the [...]

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

Title Contingency

A contractual term - a contingency - that allows a buyer to inspect and approve the Preliminary Title Report before the contract becomes binding. The buyer doesn't have the right to simply rescind the contract, though. First, the seller is given an opportunity to fix the defect. If the seller can do so prior to closing, [...]

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