Real Estate Glossary · Narqix Academy

For every Narqix team member on a real estate campaign. Use this page as your dictionary: more than 150 US real estate and investing terms, explained in plain English, from A to Z.

Track: Real Estate · Role: All roles · Time to complete: Reference page (45 min to read fully)

Coach's note: You do not need to memorise this page on day one. Read it once, then come back whenever a seller, buyer or client uses a word you do not know. Never pretend to understand a term on a call. Say, "Let me make sure I understand that correctly," and check here afterwards.

A

Absentee owner: An owner whose mailing address is different from the property's address. Often a landlord or an heir.
Acquisitions: The part of an investing business that finds sellers, makes offers and signs purchase agreements.
Addendum: An extra signed page that adds to or changes a contract, for example to extend the closing date.
Affidavit of heirship: A sworn statement that identifies the legal heirs of a person who died. In some states it can help transfer a property without full probate.
After Repair Value (ARV): The estimated market value of a property after all planned repairs are done. The starting point of every offer.
Appraisal: A licensed appraiser's professional opinion of value, usually required by a lender before it approves a loan.
Arm's-length sale: A normal sale between unrelated parties, each acting in their own interest. Only arm's-length sales are good comps.
As-is: Sold in its current condition. The seller makes no repairs. If the condition changes badly before closing (for example a fire), the contract usually allows the buyer to renegotiate or cancel.
Assignee: The person or company that receives an assigned contract (usually the end buyer).
Assignment contract (assignment agreement): The agreement in which a wholesaler transfers its rights in a purchase contract to another buyer for a fee.
Assignment fee: What the end buyer pays the wholesaler to take over the purchase contract. It usually appears on the settlement statement.
Assignor: The person or company assigning the contract (usually our client).
Automated valuation model (AVM): A computer-generated value estimate from an online site or data platform. Useful as a rough hint, never as an ARV.

B

Backup offer: An offer that will take effect only if the first accepted contract falls through.
Bird dog: A person who finds possible deals or motivated sellers and passes them to an investor, usually for a finder's fee. Some states regulate paying finder's fees.
Blind offer: An offer made on a property the buyer has not seen in person.
Broker: A licensed real estate professional who can run a brokerage and supervise agents.
BRRRR: Buy, Rehab, Rent, Refinance, Repeat. A long-term strategy where an investor fixes a home, rents it, refinances to pull cash back out, and buys again.
Buy and hold: Buying a property to keep and rent out, rather than resell quickly.
Buy box: The exact type of property a buyer wants: areas, price range, condition, property type and strategy.
Buyer representation agreement: A contract between a home buyer and their agent describing the agent's duties and pay.

C

Cancellation period (rescission period): A window after signing when one party may cancel without penalty. Several states now require one for wholesale contracts.
Cash buyer: An investor who can buy without a traditional mortgage, using their own funds or short-term private or hard money loans.
Cash buyers list: A wholesaler's list of qualified investors, organised by buy box.
Clear to close: The point where the title company confirms every requirement is met and closing can happen.
Closing: The final step of a sale: documents signed, money paid, and the deed recorded. Ownership transfers.
Closing costs: Fees paid at closing, such as title insurance, escrow fees, recording fees, transfer taxes, and loan fees.
Code violation: A city or county notice that a property breaks local building, safety or upkeep rules.
Comparative market analysis (CMA): An agent's report estimating a home's value from recent nearby sales.
Comps (comparable sales): Recent sales of similar nearby homes used to estimate value.
Contingency: A condition in a contract that must be met for the sale to go ahead, such as inspection, financing or appraisal.
Counteroffer: A response to an offer that changes one or more terms, such as price or closing date.
Creative finance: Any way of buying that does not rely on a standard bank loan for the full price, such as seller financing, subject-to, or lease options.
Curative title (title curative): The work of fixing problems in a property's title so it can be sold, such as clearing liens or getting missing signatures.

D

Days on market (DOM): How long a listed property has been for sale. High DOM often means overpriced or a slow market.
Decision maker: Anyone whose agreement is needed to sell: every owner on the deed, an estate representative, a spouse in some states, or someone with power of attorney.
Deed: The legal document that transfers ownership of real estate.
Deed in lieu of foreclosure: When an owner gives the property to the lender to avoid foreclosure.
Default: Failing to meet a duty in a loan or contract, such as missing mortgage payments.
Dispositions (dispo): The work of selling or assigning a contracted deal to an end buyer.
Disposition code: The single label a caller gives each call outcome, such as HOT, NI or DNC.
Do Not Call list (DNC): A list of phone numbers that must not receive sales calls. There is a national list, some state lists, and each company's internal list.
Double close (double escrow): Two back-to-back closings. The wholesaler buys from the seller, then sells to the end buyer, often on the same day.
Driving for dollars: Finding distressed or vacant properties by driving or walking through neighborhoods.
DSCR loan: A rental property loan based mainly on whether the property's rent covers its payments, not on the borrower's personal income.
Due diligence period (inspection period): Time in the contract for the buyer to inspect and research the property before fully committing.

E

Earnest money deposit (EMD): A good-faith deposit a buyer pays after a contract is signed, usually held by the title or escrow company. Often 1% to 5% of the price in retail sales; often a fixed amount in investor deals.
Easement: A right for someone else to use part of a property for a purpose, such as utility lines.
Encumbrance: Anything that limits a property's title, such as a lien or easement.
End buyer: The investor or person who finally buys the property from a wholesaler.
Equitable interest: The rights a buyer holds after signing a purchase contract but before closing. A wholesaler assigns this interest.
Equity: Market value minus everything owed on the property. A house worth 200,000 with 120,000 owed has 80,000 of equity.
Escrow: A neutral third party holds money and documents until every condition of the sale is met. Also used for the period before closing.
Estate: Everything a person owned when they died, managed through probate or another legal process.
Eviction: The legal process a landlord uses to remove a tenant.
Executor: The person named in a will to manage the estate. Called a personal representative or administrator in some states.
Expired listing: A listing that ended without a sale.

F

Fair Housing Act: The US federal law that bans housing discrimination based on race, color, religion, sex, national origin, disability or family status. It applies to everything we say and do.
FHA loan: A government-insured mortgage with a low down payment. FHA rules limit buying a home that was resold within 90 days, which can affect double closes.
Fix and flip: Buying a property, renovating it, and selling it for a profit.
Foreclosure: The legal process a lender uses to take and sell a property when the borrower stops paying.
Free and clear: A property with no mortgage.
For sale by owner (FSBO): A home the owner is selling without an agent.

H

Hard money loan: A short-term, higher-cost loan based mainly on the property's value, often used by flippers.
Heirs: People legally entitled to inherit a deceased person's property.
High equity: A property where the owner owes little compared with its value (for example more than 50% equity).
Holding costs: Costs of owning a property while it is being fixed or sold: taxes, insurance, utilities, loan interest.
Homeowners association (HOA): An organisation that manages a community and charges dues. Unpaid dues can become a lien.
HUD-approved housing counselor: A free or low-cost counselor approved by the US housing department who helps homeowners facing foreclosure.
HVAC: Heating, ventilation and air conditioning.

I

Inspection: A professional check of a property's condition.
Internal do-not-call list: A company's own list of people who asked not to be contacted. Narqix honors it across all campaigns.

J

Judgment lien: A lien placed on property after a court rules that the owner owes money.

L

Lead: A property owner record that may become a deal. Leads are rated Hot, Warm, Nurture or Dead.
Lease option: An agreement to rent a property with the right to buy it later at a set price.
Lien: A legal claim against a property for a debt. Liens are usually paid from the sale proceeds at closing.
Lis pendens: A public notice that a lawsuit involving the property has been filed. Often the first sign of foreclosure in some states.
Listing agreement: A contract that hires an agent to sell a property.
List stacking: Combining several distress lists to find owners who appear on more than one.
Litigator (serial plaintiff): A person who often sues companies over calls or texts. Lists of known litigators are scrubbed before outreach.
Lockbox: A secure box holding a property key for showings.

M

Market Compliance Card: The Narqix checklist for a state: license or registration, disclosure and timing, cancellation window, marketing permission, recording rules.
Market rent: The rent a property would earn today, based on similar nearby rentals.
Maximum Allowable Offer (MAO): The highest price the client can pay and still leave room for the buyer's margin and the client's fee. MAO = (ARV × percentage) − repairs − fee.
Mechanic's lien: A lien filed by a contractor or supplier who was not paid for work on the property.
Memorandum of contract: A short recorded notice that a purchase contract exists. Prohibited for wholesale contracts in Connecticut; rules vary by state.
Motivated seller: An owner with a real reason to sell soon, such as inheritance, relocation, debt, repairs or tenant problems.
Multi-family: A building with two or more homes, such as a duplex or fourplex.
Multiple Listing Service (MLS): The database agents use to list and search homes for sale and past sales.
Municipal lien: A lien from the city for unpaid water, sewer, fines or demolition costs. Often found only through a separate search.

N

Net proceeds: What the seller actually receives at closing after payoffs and costs.
Non-owner-occupied: A property where the owner does not live, such as a rental.
Notice of default: A recorded notice that a borrower is behind on a mortgage. Starts foreclosure in some states.
Novation: In general contract law, replacing an old agreement with a new one. In investing, the term is often used for a listing partnership where an investor sells a home on the open market under an agreement with the owner. At Narqix we call this the Retail Partnership Option.
Nurture: Long-term follow-up for owners who are not ready now but did not ask to stop.

O

Off-market: A property that is not listed for sale.
Opt-out: A request to stop calls or texts. STOP, QUIT, END, REVOKE, OPT OUT, CANCEL and UNSUBSCRIBE always count, and so does any reasonable wording.
Owner financing (seller financing): The seller lets the buyer pay over time, acting like the bank.
Owner-occupied: The owner lives in the property.

P

Personal representative: The person appointed by a probate court to manage an estate.
PITI: Principal, interest, taxes and insurance: the parts of a typical monthly mortgage payment.
Power of attorney (POA): A document allowing one person to sign for another. Title companies check these carefully.
PPSF (price per square foot): Sale price divided by living area. Used to compare homes of different sizes.
Pre-foreclosure: The period after a lender starts foreclosure but before the property is sold.
Private money: Loans from individuals rather than banks.
Probate: The court process that settles a deceased person's estate and authorises someone to sell their property.
Proof of funds (POF): Evidence a buyer can pay, such as a recent bank statement or lender letter.
Property taxes: Yearly taxes charged by local government based on a property's assessed value.
Purchase and sale agreement (PSA, purchase agreement): The written contract between buyer and seller for the sale of a property.

Q

Quiet title action: A lawsuit that settles who legally owns a property when the title is unclear.
Quitclaim deed: A deed that transfers whatever interest the signer has, with no promises about the title.

R

Realtor: A licensed agent who is a member of the national association of realtors and follows its code of ethics. Not every agent is a Realtor.
Real estate agent: A person licensed by a state to help buy or sell property for others.
Recording: Filing a document (deed, mortgage, lien) with the county so it becomes public record.
Redemption period: A period in some states when an owner can reclaim a property after a foreclosure or tax sale by paying what is owed.
Rehab: Renovation work on a property.
Rental comps: Similar nearby rentals used to estimate market rent.
Repair tiers: The Narqix planning tiers: Easy, Needs Work, Full Cosmetic, Full Gut.
Retail buyer: A regular buyer who will live in the home, usually with a mortgage.
Retail Partnership Option: The Narqix name for a novation-style partnership where the client, with a licensed agent, sells the home on the open market and the seller nets an agreed amount, in exchange for a longer timeline and access.

S

Settlement statement (closing statement, Closing Disclosure): The document listing every amount paid and received at closing.
Short sale: A sale where the lender agrees to accept less than the loan balance.
Single family residence (SFR): A house built for one household.
Skip tracing: Finding current contact details for a property owner using data providers.
Spread: The difference between the contract price with the seller and the price the end buyer pays.
Subject property: The property being valued or bought.
Subject-to: Buying a property "subject to" the existing mortgage. The loan stays in the seller's name and the buyer makes the payments. It carries real risks and needs counsel's review.
Survey: A professional measurement of the property's boundaries.

T

Tax delinquent: Behind on property taxes.
Tax lien: A lien for unpaid taxes. In some states, the county sells tax liens to investors.
Tax sale: A public sale of a property (or its tax debt) to recover unpaid taxes.
TCPA: The US Telephone Consumer Protection Act, the main federal law on telemarketing calls and texts.
Tenant-occupied: A renter lives in the property.
Title: Legal ownership of a property.
Title commitment (preliminary title report): The title company's report listing what must be done before it will insure the title.
Title company: A neutral company that checks the title, holds the money, runs the closing and records the deed. In some states, attorneys do this work.
Title insurance: Insurance that protects the buyer or lender against hidden title problems.
Title search: A review of public records for the property's ownership history, liens and claims.
Transaction coordinator (TC): The person who manages a deal from signed contract to closing.
Transactional funding: A very short-term loan that funds the first purchase in a double close, often at about 1% to 3%.
Transfer tax: A state or local tax charged when property changes hands.

U

Under contract: A buyer and seller have signed a purchase agreement but have not yet closed.
Underwriting: Analysing a property and deal to decide what it is worth and what to offer.

V

VA loan: A government-backed mortgage for eligible veterans, service members and some spouses.
Vacant property: A property no one lives in.
Vesting: How owners hold title (for example jointly, as a trust, or as a company). Names must match exactly at closing.

W

Walkthrough: An in-person visit to see the property's condition, often before an offer or before closing.
Warranty deed: A deed in which the seller promises the title is clear.
Wholesaling: Signing a purchase contract with an owner and assigning that contract (or double closing) to an end buyer for a fee. Regulated in a growing number of states.
Wholetailing: Buying a property, doing light cleanup, and selling it on the open market close to retail price without a full rehab.
Wire fraud: Criminals sending fake wiring instructions to steal closing money. Only the title company gives wiring instructions, and every change is confirmed by phone with a known number.

Z

Zoning: Local rules about how land may be used (for example single family, multi-family or commercial).

Check yourself

What is the difference between an assignment and a double close?
What does "equitable interest" mean, and why does it matter to a wholesaler?
Explain "subject-to" in one sentence.
What is a lis pendens?
Why should an AVM never be used as an ARV?

Answers

In an assignment, the client transfers its contract rights to the end buyer for a fee. In a double close, the client buys the property and resells it, usually the same day, so there are two closings.
It is the buyer's right in a property after signing a purchase contract. A wholesaler assigns this interest, and several states now regulate how it is disclosed and marketed.
The buyer takes over the existing mortgage payments while the loan stays in the seller's name.
A public notice that a lawsuit involving the property has been filed, often the first sign of foreclosure.
It is a rough computer estimate that does not see the property's condition or the quality of renovated comps.