Real Estate Terms A–Z

Professional terminology explained in simple English, with examples you can use with clients. Notes show British and American differences.

Asking price B1: The price the seller wants for a property. The final price may be lower after negotiation.
“The asking price is €420,000, but the seller is open to offers.”
Closing costs B2: Fees paid when a purchase is completed, in addition to the price: taxes, legal fees, registration and bank fees. Mainly US English.
“Closing costs are usually a few percent of the purchase price.”
Commission B1: The fee paid to a real estate agent, often a percentage of the sale price.
“Our commission is 2% of the sale price.”
Completion B2: The final stage of a purchase, when the money is paid and ownership passes to the buyer. In US English: closing.
“Completion is expected in March.”
Conveyancing C1: The legal work of transferring ownership of a property from the seller to the buyer. Mainly British English.
“Your lawyer will handle the conveyancing.”
Deposit A2: Money paid in advance to reserve a property or to secure a rental.
“A 10% deposit is required to reserve the apartment.”
Down payment B2: The part of the price the buyer pays upfront; the rest is usually covered by a mortgage.
“The bank requires a down payment of at least 30% for non-residents.”
Due diligence C1: Careful checks before buying: legal status, debts, permits and the condition of the property.
“We recommend completing due diligence before signing the contract.”
Escrow C1: An arrangement where a neutral third party holds money or documents until all conditions of the deal are met.
“In off-plan projects, payments often go into an escrow account.”
Freehold B2: Ownership of the property and the land it stands on, with no time limit.
“This villa is freehold, so you own the land as well.”
Leasehold B2: Ownership of a property for a fixed number of years under a lease; the land belongs to someone else.
“The apartment is leasehold with 99 years remaining.”
Listing B1: A property advertised for sale or rent, or the agreement that allows an agent to sell it.
“The new listing has already had ten enquiries.”
Mortgage B1: A loan from a bank to buy a property. The property is security for the loan.
“Are you planning to buy with a mortgage or in cash?”
Off-plan B2: Bought before construction is finished, based on plans and a show unit.
“Off-plan buyers usually pay in instalments during construction.”
Power of attorney C1: A legal document that lets someone act on your behalf, often used by buyers who live abroad.
“You can sign by power of attorney if you can’t travel.”
Rental yield C1: Yearly rental income as a percentage of the property price.
“A gross rental yield of 6% is typical for this area.”
Service charge B1: A regular fee for maintaining the building and shared areas. In the US, similar fees are often called HOA fees.
“The service charge covers cleaning, security and the pool.”
Title deed B2: The official document that proves who owns a property.
“The title deed will be issued in your name after completion.”
Valuation B2: A professional estimate of how much a property is worth.
“The valuation came in slightly above the asking price.”
Viewing A2: A visit to see a property. In US English: showing.
“I can arrange a viewing for Saturday morning.”

Real Estate Terms A–Z

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