Resources
Glossary
Terms that get used as though everyone already knows them.
| Appraisal | A licensed appraiser's opinion of a property's value, ordered by the lender. If it comes in below the contract price, the lender lends against the lower figure and the gap has to be resolved. |
| Association (HOA) | An owners association that governs a development, collects assessments and enforces rules. Its governing documents and financial condition are worth reading during your contingency period. |
| Close of escrow | The point at which the deed records and ownership transfers. Recording, not signing, is when the property is yours. |
| Comparable sales | Recently sold properties similar to the subject in location, size and condition, adjusted for differences. The evidentiary basis for a listing price. |
| Contingency | A condition in the contract that must be satisfied by a deadline, such as inspection, appraisal or loan approval. Contingencies protect you, and letting one lapse without acting weakens your position. |
| Days on market | How long a listing has been active. A high number usually signals a pricing problem rather than a property problem. |
| Disclosure package | The documents a California seller provides about the property's condition and history. Dense, and where the most useful information usually is. |
| Earnest money deposit | Funds a buyer places into escrow to demonstrate commitment. Generally credited toward the purchase at closing, and at risk if the buyer defaults outside their contingencies. |
| Escrow | A neutral third party that holds funds and documents and carries out the closing according to the parties' instructions. |
| Loan conditions | Items an underwriter requires before final loan approval. Late-arriving conditions are a common cause of delayed closings. |
| Pre-approval | A lender's assessment after reviewing your actual income, asset and credit documentation. Distinct from a prequalification, which is based on stated information. |
| Title insurance | Insurance protecting against defects in the chain of ownership. Standard in California transactions. |
Definitions are general explanations for orientation and are not legal, tax or financial advice. Practice varies by transaction.
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