Appraisal

An expert evaluation of a property's market value, typically conducted by a licensed appraiser, to determine its worth for purposes like sales, mortgages, or insurance.

Cash Deal

A home purchase made entirely with the buyer's own funds, no mortgage involved. Often faster to close and more attractive to sellers.

Closing

The final step where ownership officially transfers. The buyer signs loan documents (if financing), pays closing costs, and receives keys. The seller receives their proceeds.

Commission

The fee paid to real estate agents and brokers for facilitating the sale. In the flat-fee model ($5,495 full-service listing), the seller pays a fixed amount for listing services. Commission rules and agency agreements have been changing significantly in recent years.

Contingency

A condition in the contract that must be met for the sale to proceed (e.g., inspection, appraisal, financing, or home sale contingency). If not met, the buyer can usually exit without penalty.

Contract

The legally binding purchase agreement between buyer and seller outlining price, terms, contingencies, and timelines.

Conventional Loan

A mortgage not backed by the government. Typically requires higher credit scores and larger down payments than FHA or VA loans.

Counter Offer

A response to an initial offer with different terms (price, closing date, contingencies, etc.). Negotiation continues until agreement is reached or one party walks away.

Deed

The legal document that transfers ownership of the property from seller to buyer. Signed at closing and recorded with the county. Common types in Illinois include the Warranty Deed (seller guarantees clear title) and the Quitclaim Deed (transfers whatever interest the seller has, with no guarantees).

Disclosures

Required forms where the seller reveals known issues about the property (lead paint, past repairs, flooding, etc.). Illinois has specific disclosure requirements.

Equity

The portion of a property's value that the owner actually owns outright, calculated as the current market value minus any outstanding mortgage or liens.

Escrow

A neutral third-party account where funds such as a buyer's deposit are held until specific conditions of the transaction are met, ensuring security for both parties.

FHA Loan

Government-backed mortgage with lower down payment requirements (as low as 3.5%) and more flexible credit guidelines. Popular with first-time buyers.

Foreclosure

A legal process in which a lender takes possession of a property due to the borrower's failure to keep up with mortgage payments.

Inspection

Professional examination of the home's condition (structure, systems, roof, etc.). Common types include general home, radon, termite and wood-destroying insects, sewer line, and chimney.

Lease

A contractual agreement between a property owner (lessor) and a tenant (lessee) that grants the tenant the right to use the property for a specified period in exchange for rent.

Lien

A legal claim or encumbrance placed on a property by a creditor, often to secure repayment of a debt, which can affect the property's transferability until resolved.

Mortgage

A loan secured by real estate, where the property serves as collateral, requiring the borrower to make regular payments of principal and interest to the lender.

Offer

The buyer's formal proposal to purchase, including price, contingencies, earnest money, and closing date.

Parcel

The legal description of the land (lot) the home sits on, identified by tax ID or parcel number.

Radon Inspection

Test for radon gas, which occurs naturally and can be harmful at elevated levels. Common in Illinois. Mitigation systems can be installed if levels are high.

Sewer Inspection

Camera scope of the sewer line from the house to the street or main line, checking for damage, roots, or collapse. Especially important in older homes.

Showings

Scheduled visits for potential buyers to tour the property.

Termite / Wood-Destroying Insect Inspection

Checks for evidence of termites, carpenter ants, powder post beetles, and similar pests. Often required by lenders.

Title

Legal ownership of the property.

Title Company

Neutral third party that researches title history, issues title insurance, and facilitates closing.

Title Insurance

Protection against future claims or defects in the property's title (e.g., undisclosed liens, forgery, errors in public records). Two policies are common: an Owner's policy (protects the buyer) and a Lender's policy (protects the mortgage company). Usually paid at closing. The buyer typically pays for the owner's policy and the seller for the lender's.

VA Loan

Zero-down-payment mortgage available to eligible veterans, active-duty service members, and certain surviving spouses. No private mortgage insurance required.

Zoning

Local government regulations that dictate how land and properties in specific areas can be used, such as residential, commercial, or industrial purposes.