Glossary of Real Estate Terms & AI Tools
Plain-English definitions for 100+ essential terms and AI-powered selling tools, curated from 20 years of real estate experience.
Address Coverage Checker
A free tool that checks any U.S. property address and shows which FlatFeeMLS.ai pricing tier applies to that location.
Try the tool →Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that periodically changes based on a benchmark index, after an initial fixed period.
Agent
A licensed professional who represents buyers or sellers in a real estate transaction under a sponsoring broker.
AI Contract Analyzer
An AI-powered tool that reviews real estate contracts and highlights key terms, deadlines, and potential red flags before you sign.
Try the tool →AI Inspection Report Analyzer
An AI tool that summarizes home inspection reports into clear sections covering major issues, maintenance items, and recommended next steps.
Try the tool →AI Seller Disclosure Assistant
An AI tool that reviews seller disclosure forms and flags missing items, unclear statements, and potential red flags.
Try the tool →Amortization
The process of paying off a loan over time through scheduled payments of principal and interest.
Appraisal
A professional, unbiased estimate of a property's market value, typically required by lenders before closing.
Appreciation
An increase in a property's value over time due to market conditions or improvements.
Artificial Intelligence (AI)
Technology that enables software to perform tasks, generate insights, or assist with decisions that typically require human intelligence. On FlatFeeMLS.ai, AI powers tools like the listing description generator, home valuation, and seller disclosure assistant.
Assessed Value
The dollar value assigned to a property by a public tax assessor for property tax purposes.
Assumable Mortgage
A loan that allows a buyer to take over the seller's existing mortgage terms.
Backup Offer
A secondary offer accepted by the seller in case the primary offer falls through.
Balloon Payment
A large, lump-sum payment due at the end of certain loan terms after smaller periodic payments.
Bill of Sale
A document that transfers ownership of personal property included in a real estate sale.
Broker
A licensed real estate professional who can own a brokerage and supervise agents and transactions.
Brokerage
A firm or office where real estate brokers and agents conduct business.
Buyer's Agent
A real estate agent who represents the buyer's interests during a transaction.
Capital Gains
Profit earned from the sale of a property above its original purchase price, often subject to tax.
Cash Offer
A purchase offer made without financing contingencies, paid in full at closing.
Closing
The final step of a real estate transaction where ownership is officially transferred from seller to buyer.
Closing Costs
Fees and expenses paid by buyer and seller at closing, separate from the purchase price.
Closing Disclosure
A federally required document detailing the final terms and costs of a mortgage loan.
Cloud on Title
Any claim, lien, or encumbrance that may affect the marketability of a property's title.
Commission
The fee paid to real estate agents, typically a percentage of the sale price.
Comparative Market Analysis (CMA)
An evaluation of similar recently sold properties used to estimate a home's market value.
Concession
A credit or allowance offered by the seller to the buyer, often to cover closing costs or repairs.
Contingency
A condition in a purchase contract that must be met for the deal to close, such as inspection or financing.
Conventional Loan
A mortgage not insured or guaranteed by a government agency.
Counteroffer
A response to an offer that proposes different terms, effectively rejecting the original.
Curb Appeal
The visual attractiveness of a property as seen from the street.
Days on Market (DOM)
The number of days a property has been actively listed for sale on the MLS.
Deed
A legal document that transfers property ownership from one party to another.
Deed of Trust
A document used in some states to secure a loan with real property as collateral.
Default
Failure to meet the legal obligations of a loan, such as missing mortgage payments.
Depreciation
A decrease in property value over time due to wear, age, or market conditions.
Disclosure
A seller's legally required statement revealing known issues or defects with a property.
Down Payment
The upfront cash a buyer pays toward the purchase price, separate from the mortgage.
Dual Agency
When one agent or brokerage represents both buyer and seller in the same transaction.
Due Diligence
The buyer's investigation period to inspect, research, and verify property details before closing.
Earnest Money
A deposit made by the buyer to show good faith when submitting an offer.
Easement
A legal right to use part of another person's property for a specific purpose.
Encumbrance
Any claim or liability attached to a property, such as a lien or easement.
Equity
The difference between a property's market value and the outstanding loan balance.
Escrow
A neutral third party that holds funds and documents until all conditions of a sale are met.
Escrow Account
An account held by a lender to pay property taxes and insurance on the borrower's behalf.
FHA Loan
A mortgage insured by the Federal Housing Administration, often with lower down payment requirements.
Fixed-Rate Mortgage
A loan with an interest rate that remains constant for the entire term.
Flat Fee MLS
A listing service that publishes a property on the MLS for a one-time flat fee instead of a percentage commission.
Try the tool →For Sale By Owner (FSBO)
A property sold directly by the owner without a traditional listing agent.
Foreclosure
The legal process by which a lender repossesses a property after the borrower defaults on the loan.
HOA (Homeowners Association)
An organization that manages a community and enforces rules, often charging members monthly dues.
Home Inspection
A professional evaluation of a property's condition, typically done before closing.
Home Valuation
An AI-assisted estimate of a property's market value based on public data, comparable sales, and market patterns. Useful as a starting point for pricing discussions.
Try the tool →Home Warranty
A service contract covering repair or replacement of major home systems and appliances.
HUD (Department of Housing and Urban Development)
A U.S. federal agency that oversees housing policy, fair housing enforcement, and programs affecting homebuyers and sellers.
IDX (Internet Data Exchange)
Technology that allows MLS listings to be displayed on real estate websites.
Inspection Contingency
A clause allowing the buyer to back out or renegotiate based on inspection findings.
Joint Tenancy
A form of co-ownership where two or more people share equal property rights with survivorship.
Jumbo Loan
A mortgage that exceeds the conforming loan limits set by federal housing agencies.
Lien
A legal claim against a property used as security for a debt.
Listing Agent
The real estate agent who represents the seller and markets the property.
Listing Agreement
A contract between a seller and a brokerage authorizing the sale of a property.
Listing Description Generator
An AI tool that turns basic property details into polished, MLS-ready listing descriptions with proper character limits and formatting.
Try the tool →Listing Photo Uploader
A free tool to upload, convert, and resize listing photos to MLS-ready JPGs, then generate a shareable link with the property address.
Try the tool →Listing Price
The price at which a property is offered for sale on the market.
Loan Estimate
A document from a lender outlining the estimated terms and costs of a mortgage.
Loan-to-Value Ratio (LTV)
The ratio of the loan amount to the appraised value of the property, expressed as a percentage.
Lockbox
A secure container holding the property's key, allowing licensed agents to access for showings.
Market Value
The most likely price a property would sell for under normal market conditions.
MLS (Multiple Listing Service)
A regional database where licensed brokers share property listings with each other and syndication partners. Sellers can use a flat fee MLS service to gain MLS exposure without paying a percentage commission.
Try the tool →Mortgage
A loan used to purchase real estate, secured by the property itself.
Mortgage Broker
A licensed professional who connects borrowers with lenders to find suitable mortgage products.
Mortgage Insurance (PMI)
Insurance protecting lenders if a borrower defaults, typically required when down payment is below 20%.
Multiple Offer Situation
When a seller receives more than one purchase offer at the same time.
NAR (National Association of Realtors)
The largest trade association in the United States for real estate professionals, including members who are licensed Realtors®.
Net Proceeds
The amount a seller receives after all closing costs, commissions, and loan payoffs.
Net Sheet Calculator
A free tool that estimates a seller's net proceeds after closing costs, mortgage payoff, and the flat-fee MLS listing charge.
Try the tool →Offer
A formal proposal from a buyer to purchase a property at a specified price and terms.
Open House
A scheduled period when a property is open for public viewing without an appointment.
Origination Fee
A charge by the lender for processing a new loan application.
Pending
A status indicating an offer has been accepted but the sale has not yet closed.
Pre-Approval
A lender's conditional commitment for a specific loan amount based on a buyer's verified financials.
Pre-Qualification
An informal estimate of how much a buyer may be able to borrow, based on self-reported information.
Principal
The original loan amount or the remaining balance owed, excluding interest.
Property Tax
An annual tax paid by property owners to local governments based on assessed value.
Purchase Agreement
A legally binding contract outlining the terms of a real estate sale.
Quitclaim Deed
A deed that transfers any ownership interest the grantor has, without warranties of title.
Real Estate Agent
A licensed individual who helps clients buy, sell, or rent property under a broker's supervision.
Realtor®
A real estate professional who is a member of the National Association of Realtors.
Refinance
Replacing an existing mortgage with a new loan, typically to obtain better terms.
REO (Real Estate Owned)
Property owned by a lender after an unsuccessful foreclosure auction.
Sale-Leaseback
An arrangement where the seller continues to occupy the property as a tenant after closing.
Seller Concession
Money or credit a seller agrees to provide the buyer at closing.
Seller Disclosure
A legal document where the seller reveals known property defects and conditions.
Settlement Statement
A document detailing the final financial transactions at closing for both buyer and seller.
Short Sale
A sale where the property sells for less than the outstanding mortgage balance, with lender approval.
Showing
A scheduled appointment for prospective buyers to tour a property.
Survey
A measurement and mapping of property boundaries and structures, used to confirm legal descriptions.
Tenancy in Common
A form of co-ownership where each owner holds an individual interest that can be sold or inherited.
Title
The legal right to own, use, and transfer a property.
Title Company
A company that researches title history, issues title insurance, and often handles closing.
Title Insurance
Insurance protecting against losses from defects, liens, or disputes over property ownership.
Title Search
A review of public records to confirm a property's legal ownership and identify any claims.
Transfer Tax
A tax imposed by a state or municipality when ownership of real estate changes hands.
Underwriting
The lender's process of evaluating a borrower's risk and approving a loan.
VA Loan
A mortgage backed by the U.S. Department of Veterans Affairs, available to eligible service members and veterans.
Walk-Through
A buyer's final inspection of the property shortly before closing to confirm its condition.
Warranty Deed
A deed that guarantees the seller holds clear title and has the right to transfer it.
Zero-Lot-Line
A property where the structure is built directly on or very close to the property boundary.
Zoning
Local government regulations that dictate how land in a specific area can be used.
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