Agent - One who is authorized to perform an action or duty for, or in the stead of another.

Amortization - A chart or log showing details of paying off the principal and interest of a loan. Equal monthly payments over a chosen number of years with periodic principal balances indicated are a standard form.

Buyer's Agent - A licensed real estate professional that practices single agency representation exclusively for the buyer in a real estate transaction.

Choice - The exercise of one's right and ability to select one option from two or more options. No choice is a choice to take whatever happens!

Close of Escrow - "Close of escrow" is, signing of all pertinent documents, payment of all costs incurred and recording of the title and loan documents.

Commission (Fee:) - That portion of a "full purchase price" that is designated by a seller, in Its listing agreement, as the money to be paid to licensed and qualified real estate marketing professionals to perform agency services for the seller and the buyer.  Any bona fide appraisal performed by a certified appraiser, for HUD, FHA, VA, FNMA, or conventional lending purposes includes a brokerage or marketing fee.  That fee is set by negotiations between principals and agents and neither by the government nor any of its agencies, nor by any Realtor® association.

Conflict of interest -  (as in "Agency"); Where an agent must choose between options that would solely benefit an agent's principle or, try to serve two masters in the non-fiduciary capacity of dual-agency.  Porpoising and waffling to find an acceptable meeting of the minds.  Dual-agents either work in the "conflict of interest" environment or "disclaim agency and/or representation" to either party.  Neither party wins!  The double-agent does this in order to reap payment of commission for both selling and buying activities in the same real estate transaction.

Contract - A legally binding written agreement by and between principals.

Counter Proposal - A seller's legally written response to an Offer to Buy stating acceptance of the Offer ith certain exceptions stated, under which if accepted by the buyer, a legally binding contract would exist.

Limited-Dual-Agency - Where the agent (or agent's office) is authorized by both the seller and the buyer in a transaction, to be a non-fiduciary.  A Limited-Dual-Agent may waffle between seller and buyer trying to find a middle-ground where each party is persuaded by the Limited-Dual-Agent that it's a "fair-deal".  The Limited-Dual-Agent's goal might result in the Agent being paid both sides of the commission -- and not necessairly working for the best interest of the buyer!

Deed of Trust / Mortgage - A security and foreclosure document used to take back the property that is being pledged as security for the note, in the event of default on the note.  If you don't pay, you can't stay!

Earnest Money - An amount of dollars that accompanies a serious Offer to Buy, that demonstrates sincere intent on the part of the offeror. This is usually applied toward the purchase price of the property at closing of the escrow.  A buyer could loose money if the buyer defaults on the contract.

Escrow - A legal entity set up for a specific (usually a one-time) event, directed by an impartial, licensed escrow officer, whose purpose is: to accept, hold and disburse funds; and accept, develop, secure signatures upon, record and deliver documents in accordance with mutually signed instructions as established by the principals to a transaction.

Escrow Officer - An impartial, licensed, legally authorized natural person who directs an escrow.

Exclusive or Single Agency - Where the principal has the Agent in his or her corner working exclusively for the principal.  A truly fiduciary relationship where the Agent performs all responsibilities and duties for the Agent's principal with 100% full and complete Confidentiality, Accountability, Reasonable Care, Loyalty, Obedience, Advocacy and Due Diligence, keeping the principal fully informed.  Directed by the principal.  The Agent experiences zero conflict of interests and zero dual-agency herein.

House/Home - A structure, usually situated on land that provides a specific location for human shelter, creature comforts, functions and body benefits.  This does not exclude psychological benefits.

Lifestyle - What and how one lives with respect to environment, habitat, patterns of behavior, community, comfort level of design, facade and floor plan of a structure (not always a house); That which compliments and enhances one's values.

Market Value - Worth expressed in terms of dollars with respect to a specific property.  This is usually done by a bona fide, certified appraiser.  An EBA will determine for the buyer that amount of dollars that would be the top of the market.  Offering usually starts lower than that amount and skillful negotiations ensue to a meeting of the minds and opening of escrow with a mutually signed contract.

Offer to Buy - A buyer's legally written document stating price, terms and conditions under which the ready, willing and able buyer will buy a specific property and close the transaction by a certain date.  If an Offer to Buy is accepted by a seller, as written, it becomes a legally binding contract.

Parties - Principals in a real estate transaction (a buyer; a seller).

Physical Inspection - Buyer usually pays for a qualified home-inspector to make a general inspection of the physical aspects of the property being purchased.  Buyer pays to avoid "conflict of interest" by allowing the seller to engage and pay for the inspection.  When deficiencies are discovered in the inspection, proper documentation should pass between the parties resolving such matters.  It is time for negotiations between the parties to get the deficiencies cured, the price adjusted or get the contract dissolved and parties restored to their prior state before the offer became a contract.  Inspections are a very common occurrence in most states today.

Possession - The Keys to the property are usually not delivered to the buyer until "confirmation of funding" and "confirmation of recording" have been communicated to the people involved.

Principal or Client - The director and chief performer in a real estate transaction; One who engages the contract services of, and authorizes an agent to carry out the principal's decisions.

Promissory Note - A loan document for an amount of money borrowed by the buyer, usually evidenced by a "promissory note" bearing the loan amount needed to complete the purchase price for acquisition of a property.  The down payment and the loan amount together with all loan closing, escrow, title and one-time non-recurring prepaid costs, equal the amount of funds needed to "close escrow" and get the keys to the home.  The promissory note is usually secured by a mortgage or a deed of trust against the subject property.  Your promise to pay.

Qualification - One's ability to pay for a house with one's own funds, or to generate the funds needed, through meeting lender requirements of credit, employment or assets held.

Retainer Fee - A dollar amount paid as good faith money to secure the contract services of an EBA at the signing of an Exclusive Buyer Agency Agreement.  Such money is usually designated to be credited toward any commission or fee earned in the transaction defined in the contract.  It is not uncommon for a portion, if not all, of the retainer fee to be returned to the buyer at close of escrow.  When buyer's agent fees are established by contract, and the agent receives more than the contract amount at closing, the surplus goes to the buyer on the HUD-1 Settlement Sheet.

Contact APL Properties LLC today at 520-747-4747 or 1-800-900-5327 or browse our website for more information regarding Property Management or Brokerage Services.