Glossary of Terms

• Closing

  In real estate sales, the procedure in which documents are executed and delivered in return for the payment of the sales price, and the sale (or loan) is completed.
  
  
• Commission

  Compensation earned by a licensee for negotiating a purchase or sale of property or otherwise complying with his agency contract.
  
  
• Conventional Financing

  A mortgage or deed of trust not obtained under a government program (i.e., FHA, VA, WHEDA, HUD Sec. 8).
  
  
• Conveyance

  Transfer of title to land. Includes most instruments by which interest in real estate is created, mortgaged or assigned.
  
  
  
  

• Closing Costs

  One-time costs that must be paid before the loan can be "closed" or funded. These costs may include such things as property taxes, insurance, broker's fees, escrow fees, title insurance premium, deed recording fee, title insurance premium, title transfer tax, etc. Escrow instructions will stipulate which portion of the fees are to be paid by Buyer or Seller. An estimate of closing costs will be given to Buyer by the lender within a few days after receiving the loan application. (All or a portion of the closing costs may be financed. Ask lender.)
  
  
• Condominium

  A structure of two or more units, the interior spaces of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units.
  
  
• Convertible Mortgage Loan

  An adjustable mortgage loan on which, for a fee and after an initial waiting period, the interest rate can be converted to the prevailing fixed rate. Availability of this type of loan varies from time to time.