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Real Estate Dictionary

Word Meaning
Agency A document that defines the meaning of Agency Representation and is required in California Real Estate Transactions. See our page on Agency for more details.
Buyer Brokerage (or Buyer Representation) Agreement A contract between the Buyer(s) and the Brokerage and Real Estate Agent that Hires the Agent to find a home for them.  This may be restricted to just homes the Agent shows the Buyer or may be any home the Buyer buys.  See our Buyer Representation page for more info.
Brokerage The Real Estate Company your Agent or the other side’s agent works for.  Not to be confused with a Real Estate Broker.  Your Agent may be a Broker herself and have the legal right to run her own brokerage but chooses not to and instead works for another Broker under their Brokerage umbrella.  Lauren Perreault is a licensed Broker.
Escrow Generally, the period between an accepted offer and the transfer of the property.  You are “in escrow” during this time period.  Funds are held by a neutral third party, the Escrow company, which is governed by an Escrow Officer, who must have a special license and is audited by the State of California.  In California, Escrow managed title transfers take the place of “table closings” that you may be used to from other states.
Fiduciary A relationship which implies a position of trust or confidence wherein one is usually entrusted to hold or manage property or money for another. Among the obligations a fiduciary owes to the principal are duties of loyalty; obedience; full disclosure; the duty to use skill, care and diligence; and the duty to account for all monies.  A Realtor has a Fiduciary duty to her client; this is spelled out in the Agency document for example.
Foreclosure A process wherein the holder of the Trust Deed (often called a mortgage in many other states)  gives the property owner 90 days to bring payments up to date or else lose the property in a legal process called Non-Judicial Foreclosure.  There will be an auction held at the end of the Foreclosure Process.   If it does not sell at Auction, it will become an REO property.
Notice of Default (NOD) A Notice of Default is given to a Property owner when their payments are 90 days in arrears. It starts the next 90 days in the Non-Judicial Foreclosure clock.
Real-Estate Owned (REO) Bank-owned property that has been reclaimed by the bank or other Trust Deed holder and is now on the “books” of the bank.  It is usually priced to sell quickly, but only to very qualified buyers.
Statute of Frauds A piece of the law that says that ALL ASPECTS of a California Real Estate Transaction MUST be in writing to be binding.  There is no such thing as a verbal agreement.  It is important to have a Real Estate Agent or Broker who pays attention to the details and ensures that every detail is documented so that you do get the deal you intended.
Short Sale The step before Notice of Default; this is when a homeowner knows a sale will not clear enough to pay off the Deed of Trust and attempts to negotiate a settlement with the bank in advance.  The banks will often accept a small loss in exchange for a fast turn around and the avoidance of the lengthy and expensive foreclosure process.
REALTOR® A registered word which may only be used by an active real estate broker or agnet who is a member of the state and local real estate board affiliated with the National Association of Realtors®. The use of the name REALTOR® and the distinctive seal in advertising is strictly governed by the rules and regulations of the National Association of Realtors®.
Title Company A company that issues Title Insurance
Title Insurance Insurance, backed by detailed research, that the people selling the house you are buying or that you do indeed have the right to sell it unencumbered by any liens or claims by other people that they have ownership rights to the property.  If such a claim were to arise, Title Insurance would protect you and would be used to defend you in court.
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