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Intermediate1.5 hours15 terms

Real Estate Escrow Terminology Guide

Navigate the complexities of real estate transactions with this curated collection of key escrow terms. This guide provides clear explanations of concepts you might encounter, from initial agreements to final disbursements. It's designed to support your learning and provide quick reference for commonly discussed terminology.

Term Collection

1

Deed

A deed is a legal document that formally transfers ownership of real property from one party (grantor) to another (grantee), serving as tangible evidence of title transfer.

Intermediate14-15 min
2

Contingencies

Contingencies are conditions in a real estate contract that must be met for the agreement to be legally binding, protecting buyers and sellers from unforeseen issues.

Intermediate13-16 min
3

Title Company

A title company is an impartial third party that ensures clear legal ownership of a property, conducts title searches, issues title insurance, and facilitates the closing of real estate transactions.

Beginner14-15 min
4

Title Insurance

Title insurance protects real estate owners and lenders against financial loss from defects in a property's title, ensuring clear ownership and safeguarding against past claims.

Intermediate13-14 min
5

Lien

A lien is a legal claim or right against a property, granted to a creditor, which serves as security for a debt or obligation until it is satisfied.

Intermediate18-20 min
6

Clear Title

A clear title signifies undisputed legal ownership of a property, free from any liens, claims, or other legal encumbrances, ensuring the seller has the full right to transfer ownership to a buyer.

Beginner15-18 min
7

Purchase Agreement

A Purchase Agreement is a legally binding contract that outlines the terms and conditions of a real estate transaction, formalizing the buyer's offer and the seller's acceptance.

Intermediate12-13 min
8

Escrow Agreement

An escrow agreement is a legal document outlining the terms and conditions under which a neutral third party, known as an escrow agent, holds assets or funds on behalf of two or more parties until specific contractual obligations are met.

Intermediate8-9 min
9

Mortgage

A mortgage is a loan obtained from a lender to purchase real estate, where the property itself serves as collateral for the debt. Borrowers make regular payments, including principal and interest, over a set period until the loan is fully repaid.

Beginner15-18 min
10

Escrow

A legal arrangement where a neutral third party holds funds and documents until specific conditions of a contract are met, ensuring a secure and fair transaction, especially in real estate.

Intermediate15-18 min
11

Closing Disclosure

The Closing Disclosure (CD) is a five-page document outlining the final terms of a mortgage loan, including the loan amount, interest rate, monthly payments, and all closing costs, provided to the borrower at least three business days before closing.

Intermediate14-17 min
12

Deed Recording

Deed recording is the official process of filing a legal document, such as a deed, with the county recorder's office to provide public notice of property ownership transfer and establish legal priority.

Intermediate13-14 min
13

Earnest Money

Earnest money is a deposit made by a buyer to a seller, held in escrow, demonstrating the buyer's serious intent to purchase a property and serving as security against buyer default.

Intermediate13-14 min
14

Closing Day

Closing Day is the official date when a real estate transaction is finalized, ownership is transferred, and all necessary documents are signed and funds exchanged between the buyer and seller.

Beginner2-3 min
15

Due Diligence

Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.

Intermediate14-15 min

Common Questions