Your guide to common closing terms
The largest trade association in the US, representing 1.4 million members including both residential and commercial real estate representatives. NAR provides education, advocacy, and a Code of Ethics for the industry and its membership.
A notary is a person who is certified and authorized by a governmental body to attest to signatures, certify deeds, or otherwise serve as an impartial witness in the disposition of legal matters and preparation of documents.
A legal document that conveys specific legal rights to one person on behalf of another person. While there are many types of POAs, the most common one for real estate is a Limited Power of Attorney, which allows someone to sign real estate-related documents or conduct related real-estate transactions on another’s behalf in the event that the principal is unable to be present.
What is a preliminary title? A preliminary title provides buyers with information regarding ownership, liens, encroachments, and encumbrances on the property they are purchasing. Preliminary titles are prepared during the escrow process in order to allow for the issuing of title insurance.
Proceeds are the monies anticipated to go to the seller upon completion of the real estate purchase. Net proceeds from a property sale refer to the amount the seller receives after all fees, commissions, concessions, and other charges have been deducted from the profits of the sale.