Here we go again with the next edition of the ABCs of Real Estate! These blogs are designed to make terms often used in Real Estate easy to understand for those that may not be in the industry.
This week we cover letters K through O:
K: Kick-out: The process of disqualifying a prior contract (for purchasing a property) by allowing a certain time period (usually 72 hours) for the buyer to remove any contingencies. If the buyer is unable to remove the contingencies, the contract is then null and void, and the seller may accept a subsequent contract.
L: Listing agent: An individual that represents the seller of a property. The listing agent negotiates with the selling agent to come to a price agreed upon by both the buyer and seller, and works with escrow or the attorney handling closing to ensure that the deal closes in time.
M: Mortgage: A legal document signed by the borrower that promises a property to the lender in return for payment of a debt. It is also known as a deed of trust.
N: Note: A legal written agreement that borrowers sign at closing obligating them to repay a mortgage loan in a stated period of time at a specified interest rate.
O: Origination fee: A fee charged by most lenders for the work involved in originating a loan (including evaluation, preparation, and submission), which is typically one percent of the loan amount.