Guides & resources

Real Estate Glossary.

Every term Paul demystifies for clients, in plain language and alphabetized so you can check it fast: loan terms, closing costs, inspection vocabulary, title and tax words, and the market-report jargon that shows up in monthly data. Definitions stay neutral and accurate for both Oregon and Idaho, where rules can differ.

Financing terms Mortgage and loan vocabulary, explained simply for first-time buyers. Title & escrow terms Title, escrow, and closing vocabulary, explained simply for first-time buyers.

1 A B C D E F G H L M N O P R S T U V W Z Top

1 1 term

1031 exchange: A provision of federal tax law that lets an investor defer capital gains tax by reinvesting the proceeds of a sale into a like-kind property within strict time limits. It applies to investment or business property, not a primary residence.

A 7 terms

Addendum: A document attached to a real estate contract that adds, changes, or clarifies terms. Signed addenda become part of the binding agreement.
Adjustable-rate mortgage (ARM): A home loan whose interest rate changes on a set schedule after an initial fixed period. ARMs can start with lower payments than fixed-rate loans, but the payment can rise when the rate adjusts.
Amortization: The schedule by which a loan is paid off through regular payments that cover both interest and principal. Early payments go mostly to interest; later payments go mostly to principal.
Appraisal: An independent estimate of a property's value ordered by the lender and completed by a licensed appraiser. If the appraisal comes in below the contract price, the price and terms get renegotiated.
APR (annual percentage rate): The yearly cost of a loan expressed as a single rate, combining the interest rate with the loan's fees. APR makes it easier to compare offers with different points and closing costs.
Assessed value: The value a county assessor assigns to a property for tax purposes. It can differ from market value, and property tax bills are based on it, subject to local levies and exemptions.
Assignment: The transfer of a contract's rights and obligations to another party. In real estate it can refer to assigning a purchase contract or a lease.

B 1 term

Buyer's market: A market with more homes for sale than active buyers, giving buyers negotiating room on price and terms. In monthly-supply terms, more than six months of inventory often marks one.

C 10 terms

Cap rate: A shorthand return measure for income property: net operating income divided by purchase price. It lets investors compare properties on return rather than on absolute price.
Capital gains exclusion: The federal rule that lets a homeowner exclude up to a set amount of profit from the sale of a primary residence from taxable income, subject to ownership and use tests. Amounts and conditions are set by federal law and change over time.
Certificate of occupancy: A document issued by the local jurisdiction confirming that a building meets code and is safe to occupy. New construction needs one before the home can be lived in.
Closing costs: The one-time fees paid at closing: loan fees, title insurance, escrow, recording, and prepaid taxes. Planning for 2 to 5 percent of the purchase price covers the common range in Oregon and Idaho.
Comparable sales (comps): Recently sold homes similar to the subject property in area, size, condition, and features. Comps are the evidence behind pricing and appraisals.
Contingency: A condition that must be met for the deal to proceed, such as financing, appraisal, or inspection. It is your exit lane when something is wrong, and removal is documented in writing.
Contingency removal: The written step where a buyer formally releases a contingency, such as the inspection or financing contingency. Once removed, the buyer generally loses the right to cancel for that reason.
Conventional loan: A mortgage not insured or guaranteed by a government agency, typically conforming to Fannie Mae or Freddie Mac limits. Down payment and credit requirements vary by lender.
Counteroffer: A response to an offer that changes its terms rather than accepting them. The original offer is dead once a counter is made, and the other party can accept, reject, or counter again.
Covenant: A rule recorded against a property that limits how it can be used, often part of a subdivision's governing documents. Commonly enforced by a homeowners association.

D 4 terms

Days on market: How long a listing has been on the market, typically counted from list date to contract date. It is a headline signal of pace when you read a monthly market report.
Deed: The legal document that transfers ownership of real property from one party to another. Recording the deed gives public notice of the transfer.
Dual agency: A situation where one agent or brokerage represents both buyer and seller in the same transaction. It is tightly regulated and requires informed written consent in Oregon and Idaho.
Due diligence: The research period after an offer is accepted, covering title, inspections, disclosures, and any conditions that could change the deal. Your protection window before you are fully committed.

E 6 terms

Earnest money: The deposit you put down with your offer to show you are serious. It is credited toward your purchase and returned if the deal falls apart for an allowed reason.
Earnest money release: The written agreement, or court order, that decides where the earnest money goes when a deal falls apart. Neither side can simply keep it without a signed release.
Easement: A legal right for someone else to use part of your property for a specific purpose, such as a utility line or driveway. Easements run with the land and survive a sale.
Escrow: The neutral arrangement that holds funds and documents while both sides complete their obligations. It is not the same as the escrow account a lender keeps for taxes and insurance.
Escrow account (impound): An account the lender maintains to collect property tax and insurance payments with each mortgage payment. Also called an impound account depending on the region.
Escrow holdback: A portion of the seller's proceeds held after closing to cover agreed work or repairs that have not been completed yet. It is released when the work is done and verified.

F 5 terms

FHA loan: A mortgage insured by the Federal Housing Administration, offering lower down payments and more flexible credit requirements for qualified buyers. It carries a mortgage insurance premium.
Fiduciary: A legal duty to act in someone else's best interest ahead of your own. Real estate agents owe fiduciary duties to their clients, including care, loyalty, and disclosure.
Fixed-rate mortgage: A home loan whose interest rate stays the same for the full term, so the principal and interest payment does not change. The standard choice for predictable payments.
Flood zone: A mapped area with a defined flood risk used to set flood insurance requirements. Lenders require flood insurance for homes in high-risk zones, so check the FEMA map for any property before you offer.
Foreclosure: The legal process a lender uses to take back a property when the borrower defaults on the mortgage. Foreclosed homes are sold to recover the loan balance.

G 1 term

Gross vs finished square footage: Gross square footage counts the full footprint of the building; finished square footage counts only livable, finished space. Comparisons and pricing should use finished square footage, and the two should never be mixed.

H 3 terms

HOA (homeowners association): An organization that manages common areas and enforces a subdivision's rules, funded by member dues. Read the budget, reserve study, and rules before you offer on an HOA property.
Home inspection: A licensed inspector's examination of a property's systems and structure, delivered as a written report. It is your protection, and the findings are negotiated before closing.
Homestead exemption: A state benefit that reduces the taxable value of an owner-occupied primary residence, or protects it in bankruptcy. Idaho offers a homestead exemption on property tax; eligibility rules vary by state.

L 4 terms

Lien: A legal claim against a property as security for a debt, such as unpaid taxes or contractor bills. Liens must generally be paid or released before a sale can close.
Listing agreement: The contract authorizing a broker to market and sell your home, setting the price, term, and broker compensation. It defines the relationship for the sale.
Loan estimate: The standardized form lenders must give buyers showing the loan terms, projected payments, and closing costs. Compare Loan Estimates side by side to compare offers honestly.
Lot size: The land area of a property, usually stated in square feet or acres. Lot size and usable yard area can differ, so confirm what is buildable and usable, not just the plat number.

M 3 terms

Mill rate: The property tax rate expressed in mills, where one mill equals one dollar of tax per thousand dollars of assessed value. The assessed value times the mill rate produces the bill.
MLS: Multiple Listing Service, the database agents use to share and search listings, which feeds most public home-search portals. Paul is a member of RMLS, IMLS, WVMLS, LCMLS, SOMLS, COAR, and Tillamook MLS.
Mortgage: The loan used to purchase property, secured by the property itself. The property is collateral, and the mortgage is repaid in regular installments.

N 1 term

Notarization: The act of a licensed notary verifying your identity and witnessing your signature on a document. Many closing documents require notarization before recording.

O 1 term

Origination fee: The fee a lender charges for processing and creating your loan, usually a percentage of the loan amount. It appears as a line item on your Loan Estimate.

P 6 terms

PMI (private mortgage insurance): Insurance a lender requires on conventional loans with a down payment below a common threshold, protecting the lender if you default. It is typically dropped once you build enough equity.
Points: Upfront interest paid to the lender at closing to lower your interest rate, with one point equal to 1 percent of the loan amount. Paying points lowers the rate; the Loan Estimate shows the trade-off.
Pre-approval: Verified financing: the lender reviews your income, credit, and assets and commits to a loan amount before you shop. It is the number that makes your offer competitive.
Pre-qualification: A quick estimate of what you might borrow based on figures you provide, without full verification. It is a starting point; a pre-approval is the document sellers trust.
Principal: The loan balance itself, not the interest or fees, or in a different context, the brokerage owner who supervises the firm's agents.
Property tax: An annual tax levied on real property by local governments, typically calculated from assessed value and local mill rates. Rates and exemptions differ sharply between Oregon and Idaho.

R 4 terms

Recording: Filing a deed or other document with the county so it becomes part of the public record. Recording establishes legal notice of ownership and claims.
Remote online notarization: A notarization performed over live audio-video where identity is verified electronically. Oregon and Idaho each permit it under specific rules, including where the notary must be located.
Rental yield: Annual rental income expressed as a percentage of property value, a quick gauge of an investment property's cash return before expenses. Gross yield ignores costs; net yield subtracts them.
REO (real estate owned): A property that a bank owns after a foreclosure auction did not produce a buyer. REO homes are sold by the lender, usually through a listing agent and as-is.

S 5 terms

Sale-to-list ratio: The closing price divided by the listing price, averaged across sales. Above 100 percent means homes are going over asking; below means buyers are negotiating down.
Seller's market: A market with more active buyers than homes for sale, favoring sellers on price and terms. Under four months of inventory often marks one.
Septic system: An on-site wastewater treatment system used where public sewer is not available, composed of a tank and drain field. Septic condition and maintenance records matter in rural and some suburban properties.
Short sale: A sale where the lender agrees to accept less than the full mortgage balance because the home is worth less than the debt. It requires the lender's approval and takes longer than a normal sale.
Survey: A licensed surveyor's map of a property's boundaries, improvements, and easements. A current survey can reveal encroachments or boundary issues before they become yours.

T 4 terms

Tax assessment: The county's periodic valuation of a property for tax purposes plus any new construction review. It sets the base for your property tax bill until the next cycle.
Title insurance: An insurance policy that protects against losses from title defects, such as undiscovered liens or signature problems. Owner's and lender's policies cover different interests.
Title report: A document summarizing the public records search on a property: ownership, liens, easements, and encumbrances. The title company issues it early in escrow so problems surface before closing.
Title search: The examination of public records to verify a property's ownership chain and identify liens or other claims. It is the research behind the title report and title insurance.

U 2 terms

Underwriting: The lender's final verification of your income, assets, credit, and the appraisal before approving the loan. It happens after an offer is accepted, so keep your finances unchanged until closing.
USDA loan: A mortgage backed by the U.S. Department of Agriculture for homes in eligible rural and some suburban areas, offering zero-down financing to qualifying buyers. Eligibility is by property location and income.

V 1 term

VA loan: A mortgage guaranteed by the Department of Veterans Affairs for eligible service members and veterans, often with zero down payment and no private mortgage insurance.

W 2 terms

Walkthrough: The buyer's final inspection of the property just before closing to confirm it is in the agreed condition. Any problems found here are raised before funds are released.
Well: A private water source drilled on the property, common on acreage and rural homes. Well yield, water quality testing, and pump condition should be verified before you commit.

Z 1 term

Zoning: Local land-use rules that control what a property can be used for, from single-family homes to commercial use. Confirm the zoning and any planned changes before buying, especially for investment or rural property.

One note

Definitions are neutral. The details are state-specific.

Some terms behave differently in Oregon and Idaho, from homestead exemptions to remote online notarization rules. When a rule matters to your transaction, Paul confirms the current Oregon or Idaho requirement with the official source before you rely on it.

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