Language of Real Estate

Foreclosure vs. Forfeiture

Foreclosure vs. Forfeiture A foreclosure action extinguishes any claim the mortgagor may have to the real property securing a defaulted loan, whereas a forfeiture refers generally to the loss of a right to something as a result of nonperformance of an obligation or...

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Deposit vs. Down payment

Deposit vs. Down payment The down payment is the amount of cash offered by a buyer or purchaser at the time of purchase. Even though the down payment usually includes the earnest money deposit, the terms are not synonymous. Earnest money is applied toward the total...

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Covenants vs. Conditions

Covenants vs. Conditions A covenant is a promise to do something (as in a covenant of quiet enjoyment in a deed), whereas a condition is a contingency that must be met, otherwise a particular property right could be gained or lost. A covenant is an agreement or...

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Using the Right Word

Mark Twain once said: The difference between the right word and the almost right word is the  difference between lightning and a lightning bug. Here's a few words we commonly see misused in real estate parlance: Selling agent vs. Seller's agent -- The selling agent...

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