Common Terminology Used in Knoxville Real Estate Transactions

Common Terminology Used in Knoxville Real Estate Transactions

Real estate is a complex business, and the many terms used in property transactions can be confusing to people who are not familiar with them. As a title company in Knoxville, TN, we work with homeowners and businesses every day to help them navigate the buying, selling, and refinancing of property. This blog will define some of the most common terminology used in real estate transactions to help our clients better understand the process.

Real Estate Terminology

1. Closing Costs: Closing costs are fees associated with the purchase of a property. These fees need to be paid at the time of closing. They can include appraisal fees, loan origination fees, title search fees, and more. The buyer is typically responsible for paying closing costs. Costs can be anywhere from 2% to 5% of the purchase price.
2. Title Search: A title search is a review of public records ensuring the seller is the legal owner of the property. It evaluates that there are no liens or claims against the property. This is typically conducted by a title company, and the results are used to issue a title insurance policy.
3. Home Inspection: A home inspection is an evaluation of a property to determine its condition and to identify any necessary repairs or safety issues. Buyers often hire a professional home inspector to conduct the inspection, which can cost several hundred dollars.
4. Appraisal: An appraisal evaluates a property’s value, conducted by a licensed appraiser. This is used by the lender to determine how much money they are willing to loan the buyer to purchase the property. The buyer typically pays the appraisal cost.
5. Mortgage: A mortgage is a loan used to purchase a property. The loan is secured by the property itself. If the buyer fails to make payments, the lender can foreclose on the property and sell it to recoup their losses. A mortgage typically requires a down payment, and the buyer makes monthly payments toward the principal and interest.
6. Property Taxes: Property taxes are a recurring expense that homeowners must pay to their local government. The taxes are based on the assessed value of their property. These taxes go toward funding public services such as schools, roads, and emergency services. Property taxes can vary greatly depending on the location and value of the property.
7. Homeowners Insurance: Homeowners insurance is a type of insurance that provides coverage for damages or losses to a home and its contents. This can include protection against natural disasters, theft, and liability for accidents on the property. Lenders often require borrowers to have homeowners insurance to secure a mortgage.

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These are just a few examples of the many terms used in real estate transactions. As a title company in Knoxville, TN, we understand the process of buying, selling, or refinancing a property can be overwhelming. We hope that this blog has helped to clarify some of the terminology used in real estate transactions. We also hope it provided our clients with a better understanding of the process. At Crossland Title Co., we are committed to providing excellent customer service. Lastly, we are known for making the real estate transaction process as smooth and stress-free for our clients as possible. Contact us for all your title and closing needs.