Closing Terms Glossary

Real Estate Terms It Helps to Know

These are a few real estate terms that you may want to understand when it comes time for closing.

Adverse Possession
The technical term for squatting, or occupying a property without the owner’s consent. Title of the land could vest in the squatter after a certain number of years of peaceful occupancy have passed.
APR
Annual Percentage Rate- The yearly rate of interest paid on a loan.
Appraisal
An educated property value estimation based on facts about the property.
Broker
Someone acting as agent for another to negotiate sale or purchase of a property.
Closing Disclosure
A document disclosing any issues with the property that the seller should know. See our previous post on disclosure laws here in Colorado.
Closing Statement
A balance sheet showing the assets and debts accrued by each party to a real estate transaction.
Conditions
Contingencies in deeds or other real estate instruments required to allow a deal to occur. See our earlier post on how kick-out clauses in contingencies work.
Covenants
Promises and assurances made as part of a transaction.
Default
Failure to live up to an agreement by either not paying or not performing by the covenants.
Defective Title
An irregular or faulty title due to a lien, judgment, mortgage or other obstacle to the property’s transfer.
Depreciation
Loss of property value over time from normal wear and tear, natural disaster, or neglect.
Egress
The right to a path of exit from a property.
Eminent Domain
The government’s right to take private property for public use in exchange for reasonable market value.

For Title Insurance in Highlands Ranch

Before you get to your closing, you will want to have the best closing services and title insurance coverage in Colorado. Contact Colorado Professionals Title at (303) 268-4278 or visit us online to find out more.