Seller's Guide

Assessed Value: The value placed on a home by municipal assessors for the purposes of determining property taxes.

Closing: The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.

Closing Costs: Closing costs refer to the fees and expenses associated with finalizing a transaction, including but not limited to loan processing fees, title insurance, appraisal charges, and other administrative costs.

Contingency: A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.

Counter-Offer: An offer, made in response to a previous offer, that rejects all or part of it while enabling negotiations to continue towards a mutually-acceptable sales contract.

Title Search: A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.

Transfer: The act by which the title to property is conveyed from one person to another.

Transfer Tax: City/ County tax on the transfer of real property. Based on purchase price or money changing hands. Also called documentary transfer tax.

Trust: A fiduciary relationship under which one holds property (real or personal) for the benefit of another. The party creating the trust is called the settler, the party holding the property is the trustee, and the party for whose benefit the property is held is called the beneficiary.

Trustee: (1) One who is appointed, or required by law, to execute a trust. (2) One who holds title to real property under the terms of a deed of trust.