Your guide to common closing terms
The term "borrower" is commonly used to refer to the person completing a refinance transaction. They are a "borrower" because they have an existing mortgage that is being refinanced for a lower interest rate, equity in the house, or both.
A real estate broker is a real estate representative who works on behalf of a buyer or seller in a real estate transaction and has completed advanced broker training. Brokers are allowed to own a real estate firm and may employ one or more real estate agents to work for them as client representatives.
The term buyer generally refers to a person or persons who are in the process of buying a home or other piece of property. A buyer may include both those who are looking for a primary residence and those who are buying for the purposes of investment or development.
A buyer’s agent is the real estate agent engaged by someone who is looking for a home or other real property. Although often used synonymously with the term selling agent, technically a buyer’s agent provides guidance for buyers throughout the search for a property to purchase, prior to the contract phase. A buyer’s agent generally works on a commission basis; their commission is normally paid out of the seller’s funds at settlement.
What is a clear title? A clear title is a title to a property that is owned free and clear of any liens, levies, or encumbrances and which can be successfully conveyed to a new owner by the current owner. A clear title means that there are no questions as to ownership, otherwise called “clouds on title.”