Resources · Glossary
Real Estate Glossary for Home Sellers
Why This Page Exists
Plain-English Definitions for Real Estate Terms
Selling a house comes with its own vocabulary, and a lot of it only shows up when you actually need it — usually in the middle of a stressful situation like probate, a divorce, a foreclosure notice, or a pile of unpaid property taxes. We put together this glossary so you can look up a term in plain English instead of digging through a title company's fine print or a county website.
Every definition below is written the way we'd explain it in a phone call, not the way a textbook would. If a term connects to a specific situation we cover in more depth, we've linked to that guide.
1099-S
- 1099-S (Proceeds From Real Estate Transactions)
- An IRS form used to report the proceeds from a real estate sale to the seller and the IRS. The title or escrow company usually files it, and the reported amount factors into how any capital gains tax on the sale is calculated. Talk to a tax professional about how it applies to your specific sale.
A
- Administrator
- The court-appointed person who manages a deceased person's estate — including selling real estate — when there's no will naming an executor. See our guide on probate real estate in Texas and Georgia.
- As-Is Sale
- A sale in which the buyer agrees to purchase the property in its current condition — no repairs, updates, or cleanup performed or requested by the seller before closing. This is how we buy every house, whether it needs a fresh coat of paint or a full renovation.
C
- Cash Offer
- A purchase offer that doesn't depend on mortgage financing. Without a lender's underwriting or appraisal contingency in the way, a cash sale typically closes faster and is far less likely to fall through at the last minute. See how much cash home buyers typically pay.
- Capital Gains Tax
- A federal tax on the profit from selling a property, calculated as the sale price minus your cost basis. Primary residences often qualify for an exclusion, and inherited property frequently benefits from stepped-up basis, which can significantly reduce the tax owed.
- Closing Costs
- Fees paid when a sale is finalized — title work, recording fees, transfer taxes, prorated property taxes, and similar items. When you sell to an investor buyer like us, these are typically covered by the buyer rather than the seller.
- Closing Disclosure
- A standardized form that itemizes the final terms and costs of a real estate transaction, provided to both parties before closing so there are no surprises at the table.
- Code Violation
- A notice from a city or county stating that a property fails to meet local building, safety, or property-maintenance standards. Unresolved violations can carry fines and make a home difficult to finance or list traditionally. See selling a house with code violations.
- Community Property (Marital Property)
- In Texas, property acquired during a marriage generally belongs equally to both spouses. Georgia is an equitable-distribution state, where marital property is divided fairly but not necessarily equally. Either way, a home bought during the marriage usually needs both spouses' agreement to sell. See selling a house during divorce in Texas.
- Comparative Market Analysis (CMA)
- An estimate of a property's value based on recent sale prices of similar nearby homes, used by agents and buyers to price or evaluate a property.
- Contingency
- A condition that must be satisfied before a sale can close, such as a financing, inspection, or appraisal contingency. Cash sales typically remove most of the contingencies that cause financed deals to collapse.
D
- Deed
- The legal document that transfers ownership of real property from seller to buyer and is recorded with the county.
E
- Earnest Money
- A good-faith deposit a buyer puts down when a purchase agreement is signed, showing serious intent to complete the purchase. It's typically credited toward the purchase price at closing.
- Equity
- The portion of a property's value the owner actually owns outright — the market value minus any outstanding mortgage balance or liens.
- Escrow
- A neutral third party that holds funds and documents during a transaction until all conditions of the sale are met, then disburses them at closing.
- Executor
- The person named in a will to carry out its instructions, including settling debts and selling or distributing real estate that belongs to the estate.
F
- Fair Market Value
- The price a property would likely sell for on the open market between a willing buyer and seller. Cash investor offers are typically a percentage of fair market value, reflecting the repairs, holding time, and resale risk the buyer takes on. See how cash offers are actually calculated.
- Foreclosure
- The legal process by which a lender takes ownership of a property after the owner fails to make mortgage payments, usually ending in a forced sale to recover the loan balance. See how to avoid foreclosure in Texas.
H
- Heir Property
- Real estate inherited by multiple family members, often without a will or clear title, which can make the property difficult to sell, finance, or improve until ownership is resolved. See selling a partial interest in inherited property.
- HOA Lien
- A legal claim a homeowners association places on a property for unpaid dues or assessments, which typically must be paid off before or at closing. See selling a house with liens.
- Homestead Exemption
- A reduction in a property's taxable value available to owners who use the home as their primary residence, which lowers the annual property tax bill.
I
- iBuyer
- A company that uses automated valuation models to make fast cash offers on homes, typically for well-maintained properties in good condition, and usually charges a service fee similar to an agent's commission.
L
- Lien
- A legal claim against a property, filed by a lender, contractor, government agency, or HOA, that generally must be satisfied before clear title can transfer to a new owner. See selling a house with liens.
- Lis Pendens
- A public notice recorded against a property indicating that a lawsuit affecting its title or ownership is pending, such as a foreclosure or partition action.
N
- Net Proceeds
- The amount a seller actually walks away with after closing — sale price minus mortgage payoff, liens, closing costs, and any commissions.
- Notice of Default
- A formal notice a lender files when a borrower has missed mortgage payments, marking the start of the foreclosure process. See avoiding foreclosure in Texas.
P
- Pre-Foreclosure
- The period after a Notice of Default is filed but before the property is foreclosed on, during which the homeowner may still be able to sell, refinance, or otherwise resolve the default.
- Probate
- The court process of administering a deceased person's estate, including validating a will, appointing an executor or administrator, and authorizing the sale or transfer of real estate. See probate real estate in Texas and Georgia.
Q
- Quitclaim Deed
- A deed that transfers whatever ownership interest the signer has in a property, without guaranteeing the title is clear. Common between family members — during a divorce or an heir-property transfer, for example — but riskier for buyers than a warranty deed.
S
- Short Sale
- A sale in which the lender agrees to accept less than the full mortgage balance owed, typically to help a homeowner avoid foreclosure.
- Stepped-Up Basis
- A tax rule that resets an inherited property's cost basis to its fair market value on the date the original owner died, which can significantly reduce or eliminate capital gains tax when the heir later sells. See selling an inherited home in Georgia.
T
- Tax Delinquency
- The status of a property with unpaid property taxes. Left unresolved long enough, it can lead to tax liens, penalties, and eventually a tax sale by the county. See selling a house with delinquent property taxes.
- Title
- The legal right to own and use a property. "Clear title" means ownership is free of liens, disputes, or competing claims.
- Title Search
- A review of public records performed before closing to confirm the seller has legal ownership and to identify any liens, judgments, or other claims against the property.
- Transfer Tax
- A tax charged by some state or local governments when real property changes ownership, usually calculated as a percentage of the sale price.
V
- Vacant Dwelling Insurance
- A specialized insurance policy for homes that have been unoccupied for an extended period, since standard homeowners policies often exclude or limit coverage on vacant properties.
W
- Wholesaling (Real Estate)
- A strategy in which an investor puts a property under contract at a below-market price, then sells or assigns that contract to another buyer for a fee, without ever taking ownership themselves. We buy directly and close in our own name — we don't wholesale.
💡 Don't see a term you're looking for? Call or text us at 469-665-8481 and we'll explain it — no obligation, no sales pitch.