Real Estate Terms that are Helpful to Know

    Real Estate Terms that are Helpful to Know

    Apr 26, 2022

    What’s a REPC?

    REPC is an abbreviation for the Real Estate Purchase Contract. Utah law requires licensees to use a specifically designed Real Estate Purchase Contract. The great news for both buyers and sellers in Utah is that the Utah Real Estate Purchase contract is written in such a way that it is easy to understand. 

    What is Earnest Money? 

    When you make an offer on a home, you will be required to write a check that goes with the offer. This check is known as earnest money. The earnest money shows the seller that you are serious about your offer on the home. 

    What does Under Contract mean?

    Under contract means that the seller has accepted an offer from a buyer, but the sale has not yet become final. When the transaction has been completed, the home status will show that the property has been sold. Houses that are listed as under contract are considered off market, but it is still possible for the home to go back on the market if the buyer and/or seller doesn’t meet one of the conditions for the sale to become final. 

    What are Agency Agreements? 

    A Buyer’s Agency Agreement is a document signed by the buyer that gives permission and authority to a licensed brokerage firm (and typically a Real Estate agent at the firm) to be the representative for the buyer when buying a home. This agreement shows the agency/Real Estate agent that you are committed to working with them and that the agent or firm will be compensated if there is a sale. A Listing Agreement is a contract between the listing agent and seller. This agreement states that the agent has the exclusive right to list the house.

    What do Title Companies Do?

    A Title Company reviews insurance policies, titles, facilitates closings, and more. Title Companies research the property and people involved to make sure that there are no encumbrances, leans and judgements that would prevent the legal transfer of property ownership. They issue title policies that protect the buyer from any undiscovered issues after closing and they also prepare and facilitate the signing of all closing documents, including (if applicable) the paperwork associated with the buyer’s loan. Once everything is in order, they record the transfer of ownership at the county recorder’s office. 

    What is a Mortgage Pre-Approval? 

    A mortgage pre-approval means that a lender has analyzed your finances and has figured out how much money you are able to borrow, what your interest rate will be and how much money you could pay per month (for a house). Once you’ve been pre-approved for a mortgage, your lender will give you a pre-approval letter that you can present to the property seller, showing them that you are capable of following through with your presented offer. 

    References: 

    https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-buyers/ 

    https://www.daveramsey.com/blog/mortgage-pre-approval-process

    https://www.realtor.com/advice/buy/what-does-under-contract-mean-in-a-listings-status/ 

    https://www.redfin.com/resources/under-contract

    https://www.nolo.com/legal-encyclopedia/signing-listing-agreement-your-real-estate-agent.html

    https://thelendersnetwork.com/what-does-a-title-company-do/

    About Jenny Vossler

    Jenny is a seasoned Realtor at ERA Realty Center and thoroughly enjoys the opportunity to guide clients through the process of buying and selling real estate in Iron County. Jenny is an exceptionally well-respected agent, not only for her unparalleled professional skills, years of real estate experience and her focus on building a solid and real connection with each client, but also for doing it right the first time. Are you looking to buy or sell a home? Contact Jenny Vossler, ERA Realty Center, at 435-559-1260 or at jennyvossler.homes@gmail.com.

    Photo credit to Jenny Vossler - ERA Realty Center and Settler's Square