Buyer & seller guides · Plain English
Real Estate Terms in Plain English
Buying or selling a home comes with a lot of new words. Here's what the common ones mean, in simple terms. Each one links to a guide with more detail. If something still isn't clear, just ask me.
As-is sale
You sell the home in its current condition and don't promise to make repairs. You still have to disclose known problems. Read the guide
Bluff-top home
A home built at the top of an ocean cliff. These often have extra rules for building and setbacks from the edge. Read the guide
Closing costs
The fees paid to finish a sale, such as escrow, title insurance, and recording fees. Buyers and sellers each pay some of them. Read the guide
Coastal development permit
Permission needed for many building projects near the coast. In La Jolla, some projects need it before work can start. Read the guide
Comparable sales (comps)
Recent sales of similar nearby homes. They're the main way to estimate what a home is worth. Read the guide
Contingency
A condition in the purchase contract, like a passing inspection or loan approval. If it isn't met, the buyer can usually cancel without losing their deposit. Read the guide
Counteroffer
The seller's reply to an offer with changed terms, such as a different price or closing date. Read the guide
Disclosures
Forms where the seller tells the buyer what they know about the home's condition and history. California requires many of them. Read the guide
Documentary transfer tax
A tax charged when a property changes hands. In San Diego County it's figured from the sale price and is usually paid by the seller. Read the guide
Earnest money deposit
Money the buyer puts into escrow early to show they're serious. It's credited toward the price at closing. Read the guide
Escrow
A neutral company holds the money and paperwork until every part of the deal is done, then releases them to the right people. Read the guide
Fire hazard severity zone
An area the state of California maps by wildfire risk. It can affect insurance and what a seller must disclose. Read the guide
Historic review
The city looks at whether an older home has historic value before major changes or demolition. In San Diego it often applies to homes 45 years or older. Read the guide
HOA
A homeowners association. It runs a shared community, such as a condo building, and charges owners regular dues. Read the guide
Home inspection
A professional checks the home's structure and systems and writes a report on what they find. Buyers usually order it. Read the guide
Net proceeds
The money the seller actually takes home after the loan payoff, fees, and taxes are paid. Read the guide
Offer
A written proposal to buy a home at a set price and terms. The seller can accept it, reject it, or counter. Read the guide
Probate
The court process for handling a person's property after they die. Some inherited homes have to go through it before they can be sold. Read the guide
Selling with tenants
Selling a home while a renter still lives there. Tenant rights affect showings and timing. Read the guide
Staging
Arranging furniture and decor so a home photographs and shows at its best. Read the guide
Title insurance
A policy that protects the owner or lender if someone later claims a right to the property that wasn't found before the sale. Read the guide