🏡 Real Estate Terms Every Buyer Should Know in Los Angeles

Residential (Housing)

• Single Family Home — A standalone house designed for one family.

• Condominium (Condo) — A privately owned unit within a larger building or complex, often with shared amenities.

• Townhouse — A multi-floor home that shares walls with neighboring units, often part of a row.

• Duplex / Triplex — Homes divided into two or three separate living units.

• HOA (Homeowners Association) — An organization that manages shared areas and enforces community rules; members usually pay fees.

• Listing — A property that is officially for sale.

• Open House — A scheduled event where potential buyers can view the property.

• Offer — A formal proposal to purchase a property.

• Counter Offer — A seller’s response to a buyer’s offer with adjusted terms.

• Appraisal — A professional assessment of a property’s market value.

• Inspection — A detailed examination of a property to identify issues or defects.

• Repair Request — A request for the seller to fix issues found during inspection.

• Property Tax — Taxes paid annually to the local government based on property value.

• Home Insurance — Insurance protecting the home against damage or loss.

Commercial (Business Properties)

• Key Money — A payment made for the right to lease a commercial property, common for restaurants or retail.

• Turnkey Property — A property ready for immediate use or operation.

• LOI (Letter of Intent) — A non-binding document outlining a buyer’s or tenant’s intentions.

• NNN Lease (Triple Net Lease) — A lease where the tenant pays property taxes, insurance, and maintenance, in addition to rent.

• Gross Lease — A lease where rent covers all expenses, including taxes and maintenance.

• Tenant Improvement (TI) — Renovation or customization of a property to suit tenant needs.

• CAM (Common Area Maintenance) — Fees for maintaining shared spaces in commercial properties.

• Square Footage — The total floor area of a property, measured in square feet.

• Franchise — A business operating under the branding and guidelines of a larger company.

• Zoning — Local laws that regulate how property can be used or developed.

• Business License — A legal permit to operate a business in a specific location.

Contract (Legal & Agreements)

• Escrow — A neutral third party holds funds and documents during a property transaction.

• Closing — The final step in which ownership is transferred and the deal is completed.

• Disclosure — A statement by the seller providing details about the property’s condition.

• Contingency — Conditions that must be met for a contract to be binding; if unmet, the deal can be canceled.

• EMD (Earnest Money Deposit) — A deposit showing the buyer’s commitment to the purchase.

• Title — The legal ownership of the property.

• Deed — The legal document that conveys ownership.

• Recording — Officially registering the property transfer with the county.

• Notary — A certified individual who verifies signatures and documents.

• Addendum — An additional agreement or clause added to the contract.

• Counter Offer — A revised offer with new terms during negotiations.

Loan (Mortgages & Financing)

• Mortgage — A loan used to purchase a property, secured by the property itself.

• Pre-Approval — A lender’s initial review confirming how much you can borrow.

• Interest Rate — The cost of borrowing money, expressed as a percentage of the loan.

• Down Payment — The upfront portion of the purchase price that the buyer pays.

• Principal — The original loan amount, not including interest.

• Escrow Account — A special account holding money for taxes and insurance.

• Closing Costs — Fees and expenses paid when finalizing a property purchase.

• Points — Fees paid upfront to reduce the interest rate on a loan.

• Amortization — A schedule for repaying a loan over time.

• Refinance — Replacing an existing loan with a new one, often at a lower rate.

• Loan Estimate — A document outlining the expected costs and terms of a mortgage.

General Real Estate Terms

• Agent — A licensed professional who represents buyers or sellers.

• Broker — A higher-level license holder who can oversee transactions and manage agents.

• MLS (Multiple Listing Service) — A database of properties listed for sale by agents.

• Buyer’s Agent — An agent representing the buyer’s interests.

• Seller’s Agent — An agent representing the seller’s interests.

• Commission — Payment earned by agents for facilitating a sale.

• Staging — Preparing a home with furniture and decor to appeal to potential buyers.

• CMA (Comparative Market Analysis) — A report comparing similar properties to determine a home’s market value.

• Contingent — A property with conditions still pending, not fully sold yet.

• Pending — A property with an accepted offer, awaiting closing.

• Off-Market — A property not publicly listed for sale.

Final Notes!

Understanding these real estate terms can make buying, selling, or investing in Los Angeles properties much easier and comfortable — especially for international buyers.

As a Japanese-English bilingual realtor, I provide all explanations and guidance in both Japanese and English, making the process smooth and stress-free.

📞 Contact me for a free consultation

https://www.misakimatsuda.com/contact