Lesson 7

Contract and Closing vocabulary… sometimes a word gets mentioned and you just scratch your head, well…..scratch no more!!

1. Contract

– A binding agreement between two or more persons or parties.

2. Earnest Money (a.k.a. Escrow Deposit)

– A deposit made by the potential property buyer to show that he or she is serious about purchasing said property.

3. Closing

– A meeting where all of the documents are signed and money changes hands.

4. Addendum

– A supplement to any document that contains additional information pertinent to the subject. An addition or change to a contract.

5. Prorate

– To allocate between seller and buyer their proportionate share of an obligation paid or due.

6. Deed

– A written document by which the ownership of land is transferred from one person to another.

7. HUD-1

– A form settlement (closing) statement required by the U.S. Department of Housing and Urban Development (HUD), where federally related mortgages are made on residential properties. It is a balance sheet showing the source of funds and the distribution of funds in connection with the purchase and/or mortgaging of residential property.

8. Mortgage

– An instrument used to encumber land as security for a debt.

Look for lesson 8 coming soon…you will not want to miss these!!!

Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.

Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or http://www.title-junction.com