Selling a home means running into terms nobody explains — escrow, contingency, milestone inspection, DSCR loan. This glossary defines every one in plain English, organized A to Z, so you know exactly what you're signing and hearing at every step.
Updated August 4, 2026
A licensed appraiser's independent estimate of a home's market value, usually ordered by the buyer's lender to confirm the loan amount is justified.
A sale where the seller won't make repairs before closing. It changes repair obligations, not disclosure obligations — known defects still must be disclosed. See what your home is worth as-is →
A non-QM mortgage that qualifies self-employed borrowers using bank deposit history instead of tax returns.
An upfront payment, often from the seller, that temporarily or permanently lowers a buyer's mortgage interest rate — sometimes used as a concession to help a sale close.
A real estate agent who represents the buyer's interests in a transaction, separate from the agent representing the seller.
A recurring charge in Community Development District neighborhoods that funds infrastructure like roads, utilities, and amenities — separate from HOA fees.
Ownership free of liens, disputes, or legal claims, confirmed through a title search before closing.
Fees paid at closing beyond the sale price — title insurance, recording fees, prorated taxes, and lender fees for a financed buyer.
A federally required form a buyer's lender provides at least three days before closing, listing final loan terms and costs.
Recently sold homes similar in size, condition, and location, used to estimate a property's market value.
A form a lender sends to a condo association to check financial health, insurance, and reserves — a building that fails it becomes non-warrantable for conventional financing.
A condition that must be met for a contract to move forward — common ones cover financing, inspection, and appraisal.
A senior housing community offering independent living through skilled nursing care in one location as needs change.
A response to an offer that changes one or more terms — price, closing date, or contingencies — sent back for the other party to accept, reject, or revise.
The number of days a listing has been actively for sale, a key signal of local buyer demand.
A lender's comparison of a borrower's monthly debt payments to their gross monthly income, used to qualify buyers for financing.
A required form where the seller discloses known material defects to the buyer, regardless of whether the home is sold as-is.
Moving to a smaller, lower-maintenance home — common after retirement, an empty nest, or when stairs and upkeep become harder to manage. See what your current home could sell for →
Debt Service Coverage Ratio loan — a non-QM mortgage qualified on a property's rental income rather than the borrower's personal income.
When one agent or brokerage represents both the buyer and seller in the same transaction, subject to disclosure requirements.
A deposit a buyer puts down to show good faith when making an offer, applied toward the purchase at closing.
The portion of a home's value the owner actually owns — market value minus what's still owed on the mortgage.
A contract term that automatically raises a buyer's offer up to a set maximum if a competing offer comes in higher.
A neutral third party that holds funds and documents during a transaction until all conditions of the sale are met.
The sale of a property owned by a deceased person's estate, often requiring executor authority or court approval. Talk through your options →
A property that was on the market but didn't sell before the listing agreement ended — often relisted with a different agent, price, or strategy. Find out why it didn't sell →
A mortgage insured by the Federal Housing Administration, allowing lower down payments and more flexible credit requirements.
A FEMA classification of a property's flood risk, which determines whether flood insurance is required by the lender.
Home Equity Conversion Mortgage — a loan for homeowners 62+ that converts home equity into cash without monthly mortgage payments.
A Florida property tax reduction available to owners who use the home as their permanent primary residence.
An organization that governs a community, collects dues, and enforces rules — fees and restrictions transfer to the new owner at sale.
A service contract covering repair or replacement of major home systems and appliances, sometimes offered as a seller concession.
A window in the contract during which the buyer can have the home professionally inspected and negotiate or exit based on findings.
A contract between a seller and a real estate brokerage authorizing the brokerage to market and sell the property.
The loan amount as a percentage of the property's appraised value — a key factor in loan approval and mortgage insurance requirements.
A Florida-mandated structural inspection for condo buildings three stories or taller once they reach a set age, tied to the post-Surfside safety law.
The database real estate agents use to list properties for sale and share information with other agents and buyers.
A situation where more than one buyer submits an offer on the same property at the same time, often driving price up.
A mortgage that doesn't meet standard "qualified mortgage" underwriting rules — used for self-employed borrowers, investors, or unwarrantable condos.
A scheduled window when a listed property is open for the public to walk through without an appointment.
A property under contract where all contingencies have been resolved and the sale is awaiting closing.
Insurance required on conventional loans with a down payment under 20%, protecting the lender if the borrower defaults.
A Florida provision letting homeowners transfer accumulated homestead tax savings to a new primary residence.
A lender's conditional commitment to loan a specific amount after verifying a buyer's income, credit, and assets.
An informal, unverified estimate of what a buyer might be able to borrow, based on self-reported financial information.
The sale of a deceased owner's property through the probate court process, typically requiring an appointed personal representative. Get help navigating a probate sale →
A lender's guarantee to hold a specific interest rate for a set period while the loan is processed.
A property that reverted to lender ownership after failing to sell at foreclosure auction, typically resold through a listing agent as a lender-owned sale.
Funds a condo association sets aside for major future repairs — Florida law now requires fully funded reserves for buildings subject to SIRS, which can mean special assessments if a building was underfunded.
A Florida-required engineering study for condo associations that determines mandatory reserve funding for major structural components.
A review of public records to confirm a seller's legal ownership and check for liens, judgments, or claims against the property.
A property with an accepted offer where contingencies are still being worked through before closing.
A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and service members, often with no down payment required.
An inspection documenting a home's storm-resistant features, often used to qualify for Florida homeowners insurance discounts.
No. Your mortgage payoff is settled directly out of sale proceeds at closing — you don't need to pay it off yourself beforehand.
Only through the probate process, which appoints someone with legal authority to sell on the estate's behalf — you can't sign a contract as an heir alone until that authority is granted. Get help navigating a probate sale →
It varies with how the estate is being administered, but expect probate authority to take longer to establish than a typical sale timeline — marketing the home can often start before the process fully closes, depending on the case.
The listing agreement ends and the property comes off active market status. The seller is free to relist — often with a different price, agent, or strategy — once the reason it didn't sell is addressed. Find out why it didn't sell →
Usually one of three things: it's priced above what current comps support, the condition is holding back buyers who'd rather see move-in-ready, or it isn't getting seen by enough qualified buyers. Get a straight answer on yours →
Yes, with both parties' agreement — many couples sell during the process rather than waiting, since it simplifies dividing the proceeds. Court involvement may be required if the parties don't agree.
Usually yes, at least to open probate and establish who has legal authority to sign the sale contract — a real estate agent can market and sell it, but can't grant that legal authority.
Yes — as-is affects who handles repairs, not what buyers are willing to pay. A well-priced as-is home in a desirable area can still draw strong offers, especially from buyers planning to renovate anyway.
Typically, yes — cash and investor buyers price in speed and certainty, which usually means a lower number than a fully marketed MLS listing would bring. The tradeoff is a faster, more certain close.
For homeowners 62+, a reverse mortgage (HECM) can convert home equity into cash while staying in the home — a different option than selling, worth comparing against downsizing based on your goals.
Outstanding dues are typically settled at closing, and the new owner takes over regular fees going forward. Any pending or upcoming special assessment should be disclosed to buyers before they make an offer.
Not to list it, but buyers and their lenders will ask about it — an overdue or failed milestone inspection can scare off financed buyers and is worth addressing or disclosing upfront.