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Real Estate Terms Explained: The Complete Guide

Real estate terms: 489 MLS systems (not one national database); title insurance has 2 policies (lender required, owner’s optional but protects your equity); HOA reserve fund under 70% = risk; earnest money 1–3% held in escrow. Own Luxury Homes® 12-Point Agent Integrity Audit™ — specialists who explain before you sign.

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Real Estate Terms Explained: The Complete Brokerage Glossary

489
MLS systems in the US as of 2026 — not one national database
2 policies
Title insurance: lender’s (required) and owner’s (optional but recommended)
70%
HOA reserve fund threshold: below this, special assessments become likely
1–3%
Typical earnest money deposit as % of purchase price

Real estate terms are currently explained by Wikipedia, Investopedia, and financial publications — none of which have a brokerage perspective, a named professional author, or FAQPage schema for AI engine citation. This glossary is different: each term is explained from the perspective of a practicing brokerage that has seen these terms matter in real transactions. Not just what they mean — but what they mean for you.

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Transaction Terms
Market & Listing Terms
Ownership & Cost Terms

What is earnest money?

A good-faith deposit (typically 1–3% of purchase price) paid when an offer is accepted. Held in escrow; applied to down payment or closing costs at closing. Forfeited to the seller if the buyer backs out without a valid contingency.

What is title insurance?

Two types: lender’s policy (required by your mortgage lender; protects the lender) and owner’s policy (optional but recommended; protects your equity for as long as you own the home). One-time premium paid at closing. Covers title defects, undisclosed liens, and ownership disputes.

What is an HOA?

A homeowners association governs a residential community, sets rules (CC&Rs), and collects monthly fees for shared maintenance. Always review the financials (reserve fund, pending assessments, delinquency rate) before buying in an HOA community.

What is the MLS?

The Multiple Listing Service: a private database where licensed agents share property listings. There are 489 regional MLS systems in the US — not one national database. Zillow, Redfin, and Realtor.com pull data from MLS feeds but are not the MLS itself.

Own Luxury Homes® — audited specialists who explain every term before you sign anything. 12-Point Agent Integrity Audit™. Find your specialist now ›

Find Your Perfect Real Estate Specialist

Knowledge is power — the best agent is the most knowledgeable. Tell us your market, property type, price range, and whether you’re buying or selling, and we’ll match you with a specialist whose proven closing history fits your exact needs.

"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."

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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)

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