What Does That Mean? Real Estate Terms Explained

I am sure you have found yourself on a real estate site and seen abbreviations and terms that you just don’t understand.  Maybe you have Googled them or asked someone.  I will like to take a little time to explain some of them for you so you can be better informed.  Have a term that I missed?  Contact me and I will be happy to help.

ARIP – Attorney Review in Progress – When an offer is accepted and a contract is signed by the buyer and seller we enter a period known as attorney review.  It typically lasts 3 business days and it consists of the attorneys for both parties reviewing the contract and making changes.  They will send riders back and forth until a final agreement is reached.  they may change deposits, closing date, language, and terms.  At the end of the process both sides will sign a new rider and the home will be considered under contract.  During attorney review the home may still be shown to prospective buyers and new offers may be presented and accepted.

UC – Under Contract – As stated above this follows the attorney review period.  During this time the buyer will apply for a mortgage, have an inspection done, have an appraisal (if the buyer is getting a mortgage), a title search will be done, and many other steps to be able to legally transfer ownership of the property.  A home will be under contract until the closing day unless issues arise leading to the voiding of the contract.  This can happen for a variety of reasons including but not limited to inspection issues, financing, or employment issues.

Mortgage – According to Principles and Practices of New Jersey Real Estate a mortgage is “an instrument in writing which, when recorded, creates a lien upon property pledged as security for the repayment of a debt or obligation.”  Simply put, it is an agreement to repay the loan you have taken from the bank.  There are many types of mortgage including conventional loans, FHA, VA, purchase money mortgage, and blanket mortgage.  Who actually gives the mortgage?  The borrower does and thus becomes the mortgager and the lender becomes the mortgagee.

Appraisal – This is ordered by the lender to establish the market value of the property.  A licensed appraiser will visit the property, take pictures, and measurements.  They will also look at comparable properties that have recently closed to establish the market for the area the home is in.  This will be used to determine if the the bank is willing to lend the mortgage amount.

EF=Entry Foyer
LR=Living Room
BR=Bed Room
EIK=Eat in Kitchen
MEIK=Modern Eat in Kitchen
DR=Dining Room
FDR=Formal Dining Room
FB=Full Bathroom
FPL=Fireplace

Certainly there are more real estate abbreviations so look out for future posts that will help to explain them.