Real Estate And Mortgage Glossary

Standard Glossary of Terms

Understanding real estate terminology can be of great assistance in buying or selling a home, commercial property, or investment property. In order to help you understand words commonly used in a real estate transaction, I have prepared a list of real estate terms you should become familiar with. Thanks again and be sure to contact me for any of your Honolulu real estate needs.

Term
Description
Average DOM
Derived by adding all the days on market of each listing and dividing by the number of listings.
Closing Costs
Expenses (over and above the price of the property) incurred by the Buyers and Sellers in transferring ownership of the property. Also called the “settlement costs.”
Condotel
A condominium hotel project that has rental and reservation desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the complex is owned by a small number of people.
Coop or Cooperative
A form of multiple ownership in which a corporation or business trust holds entity to the property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.
Counter Offer
Document used by the Seller to reply to the Buyer on the Seller's desired terms of the purchase of their property.
Diamond Head
Its English name was given by British sailors in the 19th century, who mistook calcite crystals embedded in the rock for diamonds.   It is located on the coast east of Waikiki, Honolulu.
DOM "Days On Market"
DOM or "Days On Market" is the number of days a property has been available for sale. (Be aware that the actual DOM can be reset back to zero DOM if the listing agent re-lists the property with a new MLS number.)
Down Payment
The part of the purchase price with the Buyer pays in cash and does not finance with the mortgage.
Earnest Money
A deposit made by the potential home buyer to show that he or she is serious about buying the house.
Escrow
The holding of documents and money by a neutral third party prior to closing; also. An account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance
Ewa
Along much of the South Shore of Oahu, Ewa is a reference to the direction of Ewa Beach.
Fee Simple
An estate in which the owner has unrestricted power to dispose of the property as he wishes, including by will or inheritance.
Good-Faith Estimate
Document disclosing the approximate closing costs a mortgage applicant will pay at or before the mortgage settlement date, based on prevailing practices in the applicants' region. The mortgage lender is required by the Real Estate Settlement Procedures Act (RESPA) to mail or deliver the GFE to the loan applicant.
Grandfathered
An exception that allows an old rule to continue to apply to some existing situations, when a new rule will apply to all future situations
Home Showing
An appointment set up by the Real Estate Sales Associate for a Buyer to physically see a prospective property to purchase.
Inspection
An inspection of a prospective home done by a professional, soon after an "Offer" is made, to establish the structural and mechanical integrity of the house.
Leasehold
An estate or right in real property held under a lease by the lessee.
Leeward
The side of the island that is facing from the prevailing trade winds. (West of Pearl Harbor, then Waipahu to Kahe Point.)
Lender
Institution who lends money or gives credit for the purchase.
List Price
The price of the property on MLS.
Loan Commitment
A formal offer by the lender stating the terms under which it agrees to lend money to a home buyer.
Makai
Towards the sea.
Mauka  
Towards the mountain.
Median Sales Price
Median Sales Price means the midpoint of sales prices, where half of the sales
were at prices above the given amount and half were below.
North Shore
The North Shore of Oahu stretches from Kaena Point in the west 17 miles east to Kahuku Point. Fifty-one beaches occupy 11 miles or 66% of the shoreline.
Ohana Dwellings
Second dwelling units on certain residentially zoned lots are allowed.
Ohana Zoned
Amends the Comprehensive Zoning Code by permitting a second dwelling unit on a certain residential zoned lots, thus providing immediate and less expensive housing alternatives.
Pet Friendly
A place that allows pets.
Pre-Approval
The practice by a lender of approving a borrower for a certain loan amount. This allows prospective homebuyers to shop with the knowledge, likely to be shared with a seller and broker to demonstrate their financial capability, that the loan will be approved.
Pre-Qualification
The process of determining how much a prospective home buyer will be eligible to borrow before a loan is applied for.
Purchase Agreement
"Offer"
Document used by the Buyer to specify the terms of the offer to purchase real estate.
Sales Price
The price of which the house was purchase at.
Short Sale
Sale of property will not realize enough proceeds to cover the cost to sell. Either Seller has to bring cash to close or lien holder(s) must agree to accept less than is owed.
South Shore
A 14 mile drive from Waikiki to Makapu Point.
Survey
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and the other physical features.
Title
A legal document evidencing a person’s right to or ownership of a property.
Windward
The side of the island facing the prevailing trade winds. (Between Makapu Point and the town of Kahulu about 37 miles, the steep Koolau Mountain parallels the highway.
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