Broker Sub-Glossary

Glossary | Broker | Investor | Legal | Mortgage | Owner | Renter

Broker

An accepted offer is a meeting of the minds, and is the first step in the process of purchasing a property.

 

The achieve is the amount a property can command.

 

Agency is the fiduciary responsibility a broker assumes once appointed by an owner.

 

App. is an application to rent; the term is not applied to an application to purchase.

 

Best and final indicates that a buyer will not again raise the offer.

 

A bidding war takes place when two or more buyers make offers on the same property.

 

A board of directors’ interview is a formal meeting between a prospective buyer and a delegation of co-owners; one owner, a committee, or an entire board of directors.

 

Board-passable describes a qualified bidder, or one whose application to a board of directors will be approved.

 

A broker is anyone acting as an agent in bringing two parties together in order for a real-estate transaction to take place, thereby receiving a commission or fee—but only if and when such a transaction actuates.

 

Brokerage is the act or continuous actions that bring a buyer and seller to a meeting of the minds, especially through assistance in negotiating the terms in order to convey real property; also, the commission derived from brokerage activity.

 

A brokerage firm is a group of real-estate salespersons or associate real-estate brokers.

 

A buyer’s agent is a real-estate salesperson or broker responsible for protecting a buyer’s best interest; a buyer-brokerage agreement is the written or implied undertaking to protect a buyer.

 

Buyer’s remorse is the reluctance—or second thoughts—to move forward after an offer has been accepted by an owner.

client is the principal, or owner, in a real-estate transaction.

A co-broke is an agreement by a brokerage firm representing a seller or landlord to pay 50 percent of the commission due at closing or lease-signing to a brokerage firm bringing a buyer or renter to a property; a co-exclusive involves two brokerage firms.

A co-exclusive right to sell or to rent is an agreement allowing two brokerage firms to represent the same property.

Collect your own fee takes place when a landlord pays only its broker’s commission; the corresponding, or co-broker, is paid their entire commission by the renter.

A commission is the fee, as the percentage of a purchase price, received by a firm, for their services in the reaching of a meeting of the minds.

A condition to a sales contract is a stipulation restricting, limiting, or modifying a point; the condition, abbreviated as cond., of a property ranges from triple-mint— perfect in all ways—to estate—a wreck in every way—while the commonly used designations in between are more subjective: excellent, good, fair, and poor.

Contract out designates that a buyer and seller have agreed to the purchase price and terms for a property; contract signed refers to a fully executed contract.

The corresponding broker, among brokers, represents the other party.

The cost-approach method is used to estimate property value if comparables for a comparative market analysis are not available.

A counteroffer, or counter, is a buyer’s revised offer in response to a seller’s asking-price reduction.

A deal memo, generated by a seller or their representative, is provided to the seller’s attorney, the buyer’s attorney, and the buyer’s representative, and contains information identical to an agreement to purchase.

Direct is dual agency.

The disclosure and informed consent is a written statement by a buyer and seller consenting to a dual-agency relationship.

 

A disclosure statement is a required accounting of all financial aspects of a mortgage.

A dual agency is a salesperson or broker representing both the buyer and seller in the same transaction.

Duty of disclosure requires the revealing of all information affecting an agency relationship between a seller and their broker.

An exclusive agency agreement permits an owner to find an interested party on their own, with no obligation to pay a brokerage commission.

 

An exclusive right to sell or to rent is a binding contract between a landlord or owner and one salesperson or broker, giving the latter party the right to represent a property and to solicit the co-operation of other brokerage firms; referred to as an exclusive.

 

An executed contract has been signed by both buyer and seller; the act of signing is execution.

A fiduciary assumes the responsibility of trust for the benefit of another individual, which is then referred to as their fiduciary responsibility.

Firm indicates that a seller will not compromise further on the asking price.

Fraud refers to an intentional misstatement of material fact.

Holding hands describes a broker’s careful oversight of a buyer or seller, once an offer is accepted.

To identify a property is to have narrowed a dwelling quest and now be targeting a specific property.

In contract means that a property has a binding, fully executed agreement in place.

Informed consent is the accepting of a broker’s services in exchange for a fee by a renter or seller.

Isolating a property connotes sufficient interest to make an offer.

A listing is a property on the market for sale or available for rent.

 

Marketing is a brokerage firm’s promoting its exclusive listings.

 

An agreeable meeting of the minds is the object of all real-estate negotiations.

 

A misrepresentation is a false oral representation or written statement, or an intentional omission of fact.

 

A multiple-listing service, abbreviated as mls, is sponsored by a real-estate organization and allows property listings to be shared among brokers.

 

A net listing allows a broker to illegally share proceeds of a sale above a specified amount in lieu of a commission.

 

An offer, or promise, to another party—the offeree—is conditional upon acceptance and a promise in return (to the offeror).

 

Offer and acceptance indicates that two parties are ready, willing, and able to enter into a contract, and the price, closing date, and conditions have been agreed upon.

 

On-site brokers represent a builder or management company at a particular building.

 

An open house is a practical promotional tool that allows multiple interested purchasers the opportunity to inspect a property at a single time.

 

An open listing is a property for sale or rent without broker representation, and without written commitment from the owner—whether an individual, developer, or management company—to pay the broker’s commission for procuring the buyer or renter.

 

An opening offer is an initial bid.

 

Positive misrepresentation is the act of making a false statement.

 

Possession is the occupancy of a property, with the legal right to do so; in broker’s parlance, it refers to the time a purchaser or tenant may occupy a property.

 

Price is the amount a seller agrees to accept for solicited property.

 

A principal is either an individual appointing a representative, or an amount of money paid or received.

 

Property refers to an apartment, row house, or loft listing for sale or rent.

 

A real-estate broker—whether an organization, an individual broker, or a salesperson associated with a brokerage firm—acts as an agent for others who seek to sell or purchase real property.

 

Real-estate market is the general term for local real-property-sales activity.

 

Relocation, abbreviated as relo, refers to a corporate-sponsored move to Manhattan from another locale.

 

A rental commission is a broker’s fee for procuring a tenant for a landlord.

 

Representation is the equivalent of agency.

 

Self-dealing activity, especially disclosure of an interest in a property, is illegal.

 

A seller’s agent or broker holds fiduciary responsibility and works for the best interests of a property owner; a buyer’s agent or broker works for the best interests of a purchaser; dual agency connotes a single broker working for both the buyer and seller, rather than acting as a single agent working for a single party.

 

A setup comprises the pertinent information, photographs, and house plan of a property.

 

Staging is the cosmetic preparation of a property that is to be shown for sale; a professional stager may be engaged to ensure that the property’s best features are highlighted and its flaws downplayed.

 

A transaction is a sale.

 

Triple-mint condition applies to properties whose overall conditions are excellent (X), with kitchens in excellent condition (XX), as well as their bathrooms (XXX).

 

Unintentional misrepresentation is an innocent false statement regarding material fact.