Glossary of
Real Estate Terms

Your guide to common closing terms

Deed

A legal document regarding the ownership of real property and the legal rights to the property. A deed can be used to transfer or confirm property rights from a seller to a buyer or through inheritance.

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Deed of Trust

A deed of trust transfers legal title in real property to a Trustee, who holds the title as security until the repayment of a debt between a borrower and a lender. This differs from a mortgage wherein the lender gives legal title directly to the borrower.

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Disruptive Negotiation

Disruptive negotiation is a tactic wherein one side gives up dominance in order to better understand what is important to the other side. By comprehending the goals of the opponent in a negotiation, a disruptive negotiator may be able to give an otherwise meaningless negotiable added weight and achieve the primary objective.

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Dower and Curtsey

Under the Dower and Curtsey legal theory, Ohio and Arkansas provide a portion of a deceased spouse’s property to his or her surviving spouse in order to provide financial support for the rest of his or her life. Mortgage lenders require spouses to sign away these rights in order to protect their stake in the property in the event of the death of the borrower.

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Down Payment

A down payment is a portion of the purchase price for a home that must be paid upon settlement of the purchase contract. Down payment amounts can range from 0% on a VA mortgage to 20% or more on a conventional mortgage. A low down payment may result in a requirement by the lender to carry private mortgage insurance (PMI) to offset the risk to the lender caused by the lack of equity in the home.

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