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← US Real Estate Fundamentals for VAs

Glossary — national and regional terms

How to use this glossary: Read it once cover-to-cover. Then keep it open while you read Foundation Lessons 2–4. Then quiz yourself by covering the right column and defining each term. You should be able to define the bolded terms from memory by the end of week 1.

Terms are grouped by category, not alphabetically, because related concepts are easier to learn together.

A — Agents and Roles

Realtor® — A real estate agent who is a member of the National Association of Realtors (NAR). Subject to the NAR Code of Ethics. Note: not all agents are Realtors — only those who pay NAR dues. Often used loosely to mean any agent.

Real Estate Agent — Generic term for a licensed person who helps people buy or sell real estate. Held to the regulations of the state where they're licensed. In Minnesota, licensing is through the Minnesota Department of Commerce.

Real Estate Broker — A higher level of license than agent. Brokers can run a brokerage and supervise agents. Every agent must be sponsored by a broker.

Managing Broker / Broker of Record — The broker legally responsible for the actions of all agents in a brokerage.

Brokerage — The company that holds the licenses of all its agents.

Listing Agent / Seller's Agent / Seller's Representative — The agent representing the seller.

Buyer's Agent / Buyer's Representative / Selling Agent — The agent representing the buyer. (Confusing: "selling agent" historically means the agent who sold the property to the buyer — i.e., the buyer's agent. Industry uses both terms. Use buyer's agent or buyer's representative for clarity.)

Dual Agent — A single agent representing both the buyer and seller in the same transaction. Allowed in MN with written consent.

Designated Agent / Designated Representative — Two agents from the same brokerage representing the buyer and seller separately. Written disclosure required.

Facilitator — A non-agency relationship in MN where the licensee facilitates a transaction without representing either party. Rare.

Sub-Agent — A buyer's agent who is technically representing the seller. A relic of pre-1990s real estate. Functionally extinct.

Transaction Coordinator (TC) — The person who manages the paperwork and deadlines from contract to close. Could be in-house, outsourced, or a REVA.

Listing Coordinator — Owns the launch process for new listings.

Inside Sales Agent (ISA) — Calls and qualifies leads, sets appointments. Often a VA.

Outside Sales Agent (OSA) / Showing Agent — A licensed agent (not a VA) who handles showings on behalf of a busy lead agent.

Operations Manager / Director of Operations (DO) — The senior back-office role that runs the team's systems.

Lead Agent / Rainmaker — The principal agent in a small team. The one who originates business.

B — Listing and the MLS

MLS (Multiple Listing Service) — The database where licensed agents share property listings. Northstar MLS is the dominant MLS in Minnesota.

Listing — A property formally put up for sale through an agent.

Listing Agreement — The contract between a seller and a listing brokerage.

Exclusive Right to Sell — The most common listing agreement type. Seller pays the listing brokerage a commission no matter who finds the buyer.

Open Listing — A listing where the seller can list with multiple brokerages. Rare.

Pocket Listing / Off-Market Listing — A property being sold without a public MLS listing. Now restricted by NAR's Clear Cooperation Policy.

Coming Soon — A property listed on MLS but not yet available for showings.

Active — A listing currently on the market and showing.

Active Contingent (Active CR) — A listing under contract but with contingencies pending. Often "continue to show" — backup offers welcome.

Pending — A listing under contract with contingencies cleared. Usually no longer showing.

Sold — Closed.

Withdrawn — Removed from market without closing.

Expired — Listing agreement period ended without a sale.

DOM (Days on Market) — How long a listing has been active.

CDOM (Cumulative Days on Market) — How long the property has been listed across all listing periods.

Comp / Comparable — A recently sold property used to estimate value.

CMA (Comparative Market Analysis) — A document estimating a property's market value, prepared by a listing agent.

Open House — An event where the property is open to public tours, no appointment needed.

Broker Open / Broker Tour — Same as an open house but for agents only.

C — The Buyer Side

Pre-qualification — A lender's informal estimate of how much a buyer can afford, based on a verbal conversation. Weakest form of lender confirmation.

Pre-approval — A lender's formal letter confirming the buyer is approved for a specific loan amount, based on submitted documents and credit. Strong.

Underwriter Approval / Fully Underwritten Pre-approval / TBD Approval — The lender has fully underwritten the buyer; only the property is "TBD." Strongest form of buyer financing.

Loan-to-Value (LTV) — The loan amount divided by the property value. A 20% down payment yields an 80% LTV.

Conventional Loan — A loan not backed by a government program. Most common.

FHA Loan — Federal Housing Administration loan. Lower down payment requirements (3.5%); has mortgage insurance.

VA Loan — Veterans Affairs loan. For eligible veterans. No down payment, no mortgage insurance.

USDA Loan — Loan for rural properties. No down payment.

Jumbo Loan — A loan above the conforming loan limit (currently $766,550 for most areas; higher in some).

Cash Buyer — No financing. No appraisal contingency typically. Closes faster.

Buyer Representation Agreement (BRA / BBA) — The contract between buyer and buyer's brokerage. Mandatory before showing in 2026.

Earnest Money — A good-faith deposit from the buyer at the time of contract execution. Held in escrow. Typically 1–2% of price in MN.

Down Payment — The buyer's cash contribution at closing, separate from earnest money.

Closing Costs — Fees paid by buyer and seller at closing. Buyer side: 2–5% of price. Seller side: 6–8%.

Seller Concession — Money the seller credits to the buyer at closing for closing costs, repairs, rate buy-down, or buyer agent commission.

Rate Buy-Down — Using credits to lower the buyer's mortgage interest rate. Temporary or permanent.

D — The Contract

Purchase Agreement / Purchase Contract — The offer-and-acceptance contract between buyer and seller.

Counteroffer — A response that modifies the original offer.

Amendment — A modification to a fully-executed Purchase Agreement.

Addendum — An additional document attached to the Purchase Agreement specifying additional terms.

Contingency — A condition that must be met for the contract to proceed.

Inspection Contingency — Buyer can back out if the inspection is unsatisfactory, within a defined period.

Financing Contingency / Loan Contingency — Buyer can back out if they can't get financing.

Appraisal Contingency — Buyer can back out if appraisal comes in below contract price.

Sale of Buyer's Home Contingency — Buyer's offer is contingent on selling their current home. Weakens the offer.

Title Contingency — Buyer can back out if title is defective.

Inspection Period / Due Diligence Period — The window (typically 5–10 days in MN) for the buyer to complete inspections.

Inspection Response / Inspection Amendment — The buyer's request for repairs or credits based on inspection findings.

As-Is — Seller is making no representations about condition; buyer accepts as-is. Doesn't waive disclosure obligations.

Contingent Offer — An offer with one or more contingencies still active.

Backup Offer — A second offer accepted in case the first falls through.

Multiple Offers / Multiple Offer Situation — When multiple buyers are bidding on the same property.

Highest and Best — A request from the listing agent for buyers to submit their best offer in a multiple-offer situation.

Escalation Clause — A clause in an offer that automatically increases the buyer's price up to a cap if other offers come in higher.

Time Is of the Essence — Standard contract phrase meaning all deadlines must be met strictly.

Force Majeure — A clause covering acts of God, government, war, etc.

E — Inspection, Appraisal, and Title

Home Inspection — A licensed inspector's report on the property's condition. Buyer's expense, typically $400–$600 in MN.

TISH (Truth-in-Sale of Housing) — Mandatory inspection report in Minneapolis and Saint Paul for older homes. Seller's expense.

Sewer Scope — A camera inspection of the sewer line. Common add-on inspection.

Radon Test — Tests for radon gas. Common in MN.

Mold Test — Tests for mold. Done if visible mold or suspicions exist.

Pest Inspection / WDI — Wood-destroying insect inspection. Sometimes lender-required (especially VA loans).

Structural Engineer — Specialist hired when the inspector finds foundation or framing concerns.

Appraisal — A licensed appraiser's opinion of value. Required for any financed purchase.

Comp — See above.

Reconsideration of Value (ROV) — A formal request to reconsider an appraisal that came in low.

Appraisal Gap — The difference when an appraisal comes in below contract price.

Title — The legal record of property ownership.

Title Search — The investigation of the property's ownership history.

Title Insurance — Insurance protecting against defects in title. Buyer's policy and lender's policy are separate.

Title Commitment — The title company's promise to issue title insurance, with conditions.

Lien — A claim against the property for unpaid debt (taxes, contractor work, judgments, mortgages).

Encumbrance — Any claim or restriction on the title.

Easement — A right granted to a third party to use part of the property (utility easement, driveway easement, etc.).

Deed — The legal instrument transferring ownership.

Warranty Deed — A deed where the seller warrants clear title. Most common in MN.

Quitclaim Deed — A deed transferring whatever interest the seller has (without warranty). Common between family members or in divorce.

Fee Simple — Full ownership of land and improvements. The standard.

Leasehold — Holding the land via a long-term lease. Rare in MN.

Torrens System / Abstract System — Two ways MN counties record property. Most counties use Abstract; some use Torrens. Affects how title is conveyed.

F — Closing

Closing / Settlement — The final transaction meeting where ownership transfers and money moves.

Closing Date — The agreed-upon date for closing.

Closing Disclosure (CD) — Federal form given to buyer 3 business days before closing. Lists all costs and money flow.

Loan Estimate (LE) — Federal form given to buyer within 3 business days of loan application. Estimates costs.

TRID — TILA-RESPA Integrated Disclosure rule. Federal regulation requiring CD and LE.

Clear to Close (CTC) — The lender's announcement that the loan is fully approved and ready to fund.

Final Walk-Through — Buyer's final inspection 1–3 days before closing.

Recording — Filing the deed at the county after closing.

Possession Date — When the buyer can occupy the property. Usually closing day; sometimes negotiated.

Settlement Statement — Older term for the document showing closing money flow. Mostly replaced by the CD.

Wire Fraud / Real Estate Wire Fraud — Fraudsters impersonating title companies to redirect closing funds. High risk — always verify wire instructions by phone using a number from a separate source.

G — Money and Taxes

Commission — The fee paid to brokerages for selling a property.

Cooperating Compensation / Offer of Compensation — What the listing brokerage offers a buyer brokerage. Post-Settlement, advertised off-MLS.

Concession — Money credited from one party to the other at closing.

Property Tax — Tax paid to the county/city based on assessed value.

Assessed Value — The value the county uses for property tax. Different from market value.

Mill Rate / Tax Rate — The rate per $1,000 of assessed value.

Deed Tax (MN) — State tax of $3.30 per $1,000 of consideration, paid by seller at closing.

Mortgage Registration Tax (MN) — $0.23 per $100 of mortgage amount, paid at closing.

Homestead Classification (MN) — Tax classification for owner-occupied primary residences. Lowers property tax.

Special Assessment — Tax for a local improvement (street, sewer). Can run multiple years.

Property Tax Proration — At closing, splitting property tax obligations between buyer and seller based on the closing date.

HOA Dues — Homeowners Association fees for shared amenities or maintenance.

PMI (Private Mortgage Insurance) — Insurance buyers pay when down payment is less than 20%.

Mortgage Insurance Premium (MIP) — FHA loan equivalent.

Escrow Account — A reserve held by the lender to pay property tax and insurance.

Prepaid Items — Closing costs paid upfront (homeowners insurance, taxes, etc.).

H — Disclosures (Minnesota)

Seller's Property Disclosure Statement — Mandatory MN seller disclosure form.

Disclosure Alternatives — Limited disclosure alternative for estate, foreclosure, or trust sales.

Lead-Based Paint Disclosure — Required for homes built before 1978. Federal law.

Well Disclosure Certificate — Required for properties with wells in MN.

Subsurface Sewage Treatment System (SSTS) Disclosure — Required for properties with septic systems.

Methamphetamine Disclosure — Required for properties on the state contamination list.

TISH (Truth-in-Sale of Housing) — Minneapolis/Saint Paul mandatory inspection report.

Radon Disclosure / Minnesota Radon Awareness Form — Required disclosure on radon.

Wetlands Disclosure — Required if applicable.

Floodplain Disclosure — Required if applicable.

I — Tools and Tech

CRM (Customer Relationship Management) — Software for managing leads and contacts. Common in real estate: Follow Up Boss, kvCORE, BoomTown, LionDesk, Salesforce, HubSpot.

ShowingTime — The dominant showing-scheduling tool integrated with Northstar MLS.

DocuSign / dotloop / SkySlope / Brokermint — E-signature and transaction management platforms.

Lockbox — A combination or electronic-key device on the property's front door for agent access. Common in MN: Supra eKey lockboxes (electronic) or Sentrilock.

Sentrilock / Supra — Electronic lockbox systems used by MN agents.

IDX (Internet Data Exchange) — The MLS data feed that powers brokerage websites.

Coming Soon Site / Listing Site — Single-property websites built to market a listing.

Loom — Screen recording tool. Agents use it constantly to record explanations.

Slack — Team chat. Common in modern small teams.

Zillow / Redfin / Realtor.com / Trulia / Homes.com — Consumer-facing real estate portals.

J — Other Terms You'll Hear

Pending Sale — Same as Pending status above.

Contract-to-Close — The period between a fully-executed Purchase Agreement and the closing.

Short Sale — A sale where the seller's mortgage exceeds the sale price; the lender accepts the short payoff. Slow.

Foreclosure / REO (Real Estate Owned) — Bank-owned property after foreclosure.

Pre-foreclosure — A property in the foreclosure process but not yet sold to the bank.

Probate Sale — Sale of an estate property through court oversight.

1031 Exchange — A tax-deferred swap of investment property for another investment property.

HUD Statement — Older closing form, replaced by the CD for residential.

Punch List — A list of remaining items to be completed before closing or after a final walk-through.

Smart Pricing / Pricing Strategy — Pricing the home strategically to attract attention and offers.

K — Slang and Shorthand You'll See in Slack

Final note: When you encounter a term not on this list, write it down. Add it to a personal notebook. By month 3 you should be adding fewer than 2 new terms per week. By month 6 you should be teaching the new VAs the slang.

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