This jargon isn’t difficult to master, but there is real danger of
hearing and using words you don’t fully understand.

Following are some basic terms that are often misunderstood:

MLS—Multiple Listing Service
An organization that collects, compiles, and distributes information about properties listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites. MLS’s can be local or regional. There is no “one” MLS covering the entire nation.

PITI
Principle, interest, taxes and insurance (PITI) are the four
components of a monthly mortgage payment. Principal refers
to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing
the money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and
mortgage and hazard insurance.

CMA
Comparative Market Analysis. A CMA is a report that shows prices
of properties that are comparable to a subject property and that were recently sold, are currently on the market or were on the market,
but not sold within the listing period.

Closing Costs
The entire package of miscellaneous expenses paid by the buyer
and seller when the transaction closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s charges, recording fees, title insurance, etc. Closing costs generally are paid through escrow.

Contingency
provision of an agreement that keeps the agreement from being
fully legally binding until a certain condition is met. One common example is a buyer’s contractual right to obtain a professional
home inspection before purchasing the home.

Title Insurance
An insurance policy that protects a lender’s or owner’s interest in
real property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s
title insurance policy.