Real Estate Contract Terminology

Below are some common real estate contract terms that every home buyer and seller should know.

Appraisal: An “opinion” of a home’s market value by a licensed appraiser.

BINSR: (Buyer’s Inspection Notice, Seller’s Response.) This is the contract used for the buyer to tell the seller what they are requesting to be fixed on the property in order for them to go forward with the purchase agreement.

Closing Costs: All the costs associated with processing the sale of your home.

Closing Disclosure: A 5-page form that provides final details regarding your mortgage loan including the terms, estimated monthly payment, fees and closing costs. Your lender is required to supply you with a copy of all of the closing costs a minimum of 3 days before closing.

Escrow Officer: An unbiased third party who ensures the real estate transaction is correctly carried out by all involved.

Escrow Company: Oversees the terms of a contract and handles all funds, bills and liens related the the transaction.

Insurance Claims History Report: A written report that describes a property’s past insurance claims. Often required by lenders.

MLS (Multiple Listing Service):

PreQualification and Verification of Funds:

Property Disclosures:

Settlement Statement:

Title Company: