Appraisal
A licensed appraiser's opinion of a property's market value, commonly ordered by a lender during financing.
Plain-language definitions
California real estate glossary
Use these definitions as a starting point when reading listings, disclosures, contracts, loan information, HOA documents, and closing statements.
Closing costs
Transaction expenses beyond the purchase price or loan payoff, such as lender, escrow, title, recording, tax, and prepaid charges.
Comparable sale
A recently sold property used to help evaluate another property's market position, ideally similar in location, type, condition, and size.
Contingency
A contract condition that gives a party defined rights while investigating matters such as financing, appraisal, disclosures, or inspections.
Counteroffer
A response that rejects an existing offer while proposing different terms. It creates a new offer for the other party to accept, reject, or counter.
CRMLS
California Regional Multiple Listing Service, a cooperative MLS providing property information to participating real estate professionals.
Days on market
The number of days a listing has been marketed under the MLS calculation rules. Relisting and status changes can affect how it is displayed.
Earnest money deposit
Funds a buyer places into escrow after acceptance as required by the contract. The final disposition depends on the agreement and transaction outcome.
Escrow
A neutral process in which an escrow holder follows written instructions, handles funds and documents, and coordinates requirements for closing.
Final walkthrough
A buyer's pre-closing visit to confirm the property's expected condition and completion of agreed work; it is not a substitute for inspection.
HOA assessment
A charge levied by a homeowners association, either through regular dues or a special assessment for expenses not covered by the operating budget.
HOA reserves
Funds an association accumulates for major repair and replacement projects. Reserve studies estimate future needs and current funding adequacy.
Inspection
A property examination by a qualified professional. Buyers may choose general and specialized inspections based on the property and disclosures.
Loan-to-value ratio
The loan amount divided by the property's value or purchase price under the lender's rules. It can affect loan terms and mortgage insurance.
Mello-Roos
A commonly used name for Community Facilities District special taxes that finance public facilities or services and appear on a property's tax bill.
Mortgage insurance
Insurance that protects a lender against certain borrower defaults. It may apply depending on the loan program and down payment.
Natural Hazard Disclosure
A California disclosure report identifying whether a property lies within specified natural-hazard zones, such as flood, fire, or seismic areas.
Preapproval
A lender's conditional evaluation of a borrower's financing capacity based on reviewed information. It is not a guarantee of final loan approval.
Preliminary title report
A title company's report describing ownership, recorded liens, easements, restrictions, and exceptions expected to affect title insurance.
Property tax reassessment
A change in assessed value following a change in ownership or new construction, subject to California law and available exclusions.
Seller credit
A negotiated amount a seller agrees to contribute toward specified buyer costs, subject to the contract and any lender limits.
Title insurance
Insurance addressing covered title defects, liens, or ownership claims under the terms and exceptions of the issued policy.
Transfer tax
A county or city tax associated with transferring real property. Rates and local requirements vary by jurisdiction.
Underwriting
A lender's review of borrower, property, appraisal, title, insurance, and loan information before issuing final approval.
These definitions provide general real estate information, not legal, tax, lending, insurance, or inspection advice. Contract language and professional guidance control in a specific transaction.