Common Real Estate Terms - Part 2


Welcome back to part 2 of common real estate terms used in the home buying process. Review Part 1 here. At Cedarwood Cooperative, we encourage responsible, educated home ownership. We want you to understand the entire process from viewing available homes to learning about types of home ownership to securing financing. While the following terms aren't always used when buying into a housing cooperative membership, they are all used during the decision making process for which type of home ownership you'd like to pursue.

Hopefully, familiarizing yourself with the terms and concepts below (and in part 1 of this blog), will assist you during the process. When you are ready to enjoy the benefits of home ownership without the hassle of having to maintain a home, call us at 708-747-3833 to explore how our housing cooperative works!

Common Real Estate Terms

General Real Estate Tax

A tax that is made up of the taxes levied on the real estate by government agencies and municipalities.

Habitability

A property that is suitable for living in or on.

Income Property

Property held for current income as well as potential profit upon its sale.

Inflation

The gradual reduction of the purchasing power of the dollar, usually related directly to the increases in the money supply by the federal government.

Interest

A charge made by a lender for the use of money.

Investment

Money directed toward the purchase, improvement, and development of an asset in expectation of income or profit.

Listing Agreement

A contract made between an owner and a real estate broker to employ a real estate agent to sell the owner's home. In exchange for the realtor's services, a commission equal to an agreed upon percentage of the home sale is paid.

Market Value

The most probable price property would bring in under normal conditions on the open market.

Operating Budget

A guide of the property's financial performance in the present and future. Also, a tool used in any business, including the management of Cedarwood Cooperative.

Personal Property

Items that do not fit into the definition of real property; moveable objects.

Real Property

The interests, benefits, and rights inherent in real estate ownership.

Routine Maintenance

Day-to-day duties such as cleaning common areas, performing minor carpentry and plumbing adjustments, and providing regularly scheduled upkeep of heating, air-conditioning, and landscaping. (Something Cedarwood Cooperative does for its Members.)

Security Deposit

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default, or on destruction of the premises by the tenant.

Town House

A type of residential dwelling with two floors that is connected to one or more dwellings by a common wall or walls. Title to the unit and lot vests in the owner who shares a fractional interest with other owners for the common areas.

Zoning

A regulatory tool that helps communities regulate and control how land is used.

This is not an exhaustive list and should be explored in more detail prior to making any commitments. These terms have been provided by reference from the book Modern Real Estate Practice by Galaty, Allaway, and Kyle (18th edition).


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