Five Town Homes Real Estate Glossary & Home Buying Terms (A-Z)
Clear, simple definitions written for real buyers & sellers — not textbook jargon.
A
Addendum — A legal addition or change to a contract.
Adjustable‑Rate Mortgage (ARM) — A loan with an interest rate that can change over time.
Appraisal — A licensed professional’s estimate of a home’s market value.
Assessed Value — The value the county assigns for property taxes.
Attorney Review — The period when lawyers review and finalize the contract (common in NY).
B
Buyer’s Agent — The agent representing the buyer’s interests.
Bridge Loan — Short‑term financing used when buying before selling.
Broker Fee — A fee paid to a real estate broker (more common in rentals).
C
Closing Costs — Fees paid at closing (taxes, title, lender fees, etc.).
Closing Disclosure (CD) — A final breakdown of loan terms and closing costs.
Co‑op — A building where you buy shares in a corporation instead of real property.
Contingency — A condition that must be met for the deal to proceed (inspection, appraisal, financing).
Condo — A property where you own the unit itself plus shared common areas.
D
Deed — The legal document transferring ownership.
Down Payment — The upfront amount paid toward the purchase price.
Dual Agency — When one agent represents both buyer and seller (allowed in NY with disclosure).
E
Earnest Money Deposit (EMD) — A deposit showing the buyer is serious; held in escrow.
Equity — The portion of the home you truly “own” (value minus mortgage).
Escrow — A neutral third party holding funds until closing.
F
Fixed‑Rate Mortgage — A loan with the same interest rate for the entire term.
Flood Zone — FEMA‑designated areas requiring flood insurance (relevant in Long Beach & South Shore).
Foreclosure — When a lender takes back a property due to missed payments.
G
Good Faith Estimate (GFE) — An older term for estimated closing costs; replaced by the Loan Estimate.
Grievance — A challenge to reduce your property tax assessment (common in Nassau County).
H
HOA (Homeowners Association) — Governs rules and fees for condos/townhomes.
Home Inspection — A professional evaluation of the home’s condition.
Homestead Exemption — A tax benefit for primary residences (varies by state).
I
Interest Rate — The cost of borrowing money.
Inspection Contingency — Allows the buyer to renegotiate or walk away after inspection.
Inventory — The number of homes available for sale.
J
Jumbo Loan — A mortgage above conforming loan limits (common in Five Towns due to high prices).
K
Kick‑Out Clause — Allows a seller to accept another offer if the buyer doesn’t remove contingencies.
L
Lien — A legal claim against a property for unpaid debt.
Listing Agreement — Contract between seller and listing agent.
Loan Estimate (LE) — A breakdown of loan terms and closing costs.
M
MLS (Multiple Listing Service) — The database agents use to list and find homes.
Mortgage Insurance (PMI) — Insurance required when putting less than 20% down.
Market Value — What a home is worth based on current market conditions.
N
Net Sheet — A seller’s estimate of how much money they’ll walk away with after closing.
Notary — A licensed witness who verifies signatures on legal documents.
O
Offer — A buyer’s proposed price and terms.
Open House — A scheduled time for buyers to view the home.
P
Pre‑Approval — A lender’s confirmation of how much you can borrow.
Pre‑Qualification — A quick estimate of borrowing power (less reliable than pre‑approval).
Property Tax — Taxes paid to the county/town based on assessed value.
Q
Qualifying Ratios — Debt‑to‑income calculations lenders use to approve loans.
R
Real Property — Land and anything permanently attached to it.
Realtor® — A licensed agent who is a member of NAR.
Refinance — Replacing your mortgage with a new one for better terms.
S
Seller’s Agent — Represents the seller’s interests.
Survey — A map showing property boundaries.
Short Sale — Selling a home for less than the mortgage balance (requires lender approval).
T
Title Insurance — Protects against ownership disputes or past liens.
Transfer Tax — A tax paid when property changes hands (NY has state + county).
Townhouse — A multi‑level home sharing walls with neighbors.
U
Underwriting — The lender’s final approval process for a mortgage.
Utilities — Essential services like water, gas, electric, sewer.
V
Variable Rate — An interest rate that can change over time.
Verification of Employment (VOE) — Lender confirmation of your job status.
W
Walkthrough — Final inspection before closing to confirm condition.
Warranty Deed — Guarantees the seller has clear title.
Z
Zoning — Local rules determining how land can be used (residential, commercial, etc.).
This glossary is provided for general informational purposes only and is not intended as legal, financial, or tax advice. Real estate laws and practices in New York — including Nassau County and the Five Towns — may vary by municipality and change over time. Buyers and sellers should consult a licensed real estate professional, attorney, or financial advisor for guidance specific to their situation.
Sources & References:
Definitions are based on standard real estate terminology used by New York State, the National Association of REALTORS®, local MLS guidelines, and common industry practices in Nassau County and the Five Towns. Additional inspiration was taken from public real estate glossaries and educational resources.