Reference
Real Estate Transaction Coordination Glossary
The AI-native transaction coordinator uses these terms with state-specific precision. Where a term varies by state (e.g., 'AVID' is CA-only), we note the scope. This is the lexicon the AI control plane for real estate runs on.
Eighty plain-language definitions across the real estate transaction coordination lexicon — drafted for TCs, brokers, agents, and operators new to the domain. Where a term is state-specific, we tag the state.
A–C
- Addendum
- A separate document that modifies or adds to the executed contract.
- Amendment
- A change to the terms of an existing contract agreed to by all parties.
- Appraisal
- A licensed appraiser's opinion of a property's market value, usually required by the lender.
- Appraisal contingency
- The buyer's right to renegotiate or terminate if the appraisal comes in below the purchase price.
- As-is sale
- A sale in which the seller will not make repairs or offer credits for property condition.
- Assignment
- Transfer of a buyer's contract rights to another party before closing, where the contract permits it.
- AVID (CA-only)
- Agent Visual Inspection Disclosure.
- Backup offer
- An accepted offer in secondary position that becomes primary if the first contract falls through.
- BINSR (AZ-only)
- Buyer's Inspection Notice and Seller's Response.
- Broker of record
- The licensed broker legally responsible for a brokerage's transactions and compliance.
- Buyer's agent
- The licensed agent representing the buyer in a transaction.
- CDA
- Commission Disbursement Authorization.
- Closing costs
- Fees paid by buyer and seller at closing: lender fees, title, escrow, taxes, and recording charges.
- Closing Disclosure (CD)
- The TRID-required final statement of loan terms and closing costs, delivered at least 3 business days before closing.
- Commission
- Compensation paid to brokerages for representing a party in the transaction.
- Comps
- Recently sold comparable properties used to estimate market value.
- Contingency
- A condition that must be satisfied for the contract to close.
- Counter
- A counteroffer.
- CTC
- Clear-to-close.
- COE
- Close of escrow.
D–F
- Days, business
- Days excluding weekends and holidays.
- Days, calendar
- All days.
- DD
- Due diligence.
- Deed
- The legal instrument that transfers title from seller to buyer.
- Disclosure
- A required statement by seller about the property.
- Dual agency
- One brokerage (or agent, where lawful) representing both buyer and seller in the same transaction.
- Earnest money deposit (EMD)
- Buyer's good-faith deposit.
- E&O insurance
- Errors and omissions insurance covering licensees against negligence claims.
- Encumbrance
- A claim or lien on property.
- Escrow
- Neutral third party holding funds and documents.
- Escrow instructions
- The written directions both parties give the escrow holder for closing the transaction.
- Executed contract
- A contract signed by all parties; the date of final signature usually starts contract timelines.
- FAR/BAR
- Florida REALTORS/Florida Bar contract.
- FHA loan
- A mortgage insured by the Federal Housing Administration, with its own appraisal and condition requirements.
G–L
- Good funds
- Funds available to disburse at closing.
- HOA estoppel
- HOA statement of charges.
- Home warranty
- A service contract covering repair or replacement of home systems and appliances after closing.
- Inspection contingency
- Buyer's right to terminate after inspection.
- IRPC
- Inspection-response-period clause.
- Kick-out clause
- A seller's right to keep marketing the property and displace a contingent buyer if a better offer arrives.
- Lien
- A legal claim against property as security for a debt, generally cleared before closing.
- Listing agreement
- The contract between the seller and the listing brokerage authorizing the sale.
- Loan commitment
- The lender's formal commitment to fund the buyer's mortgage.
- Loan contingency
- Buyer's right to terminate if financing falls through.
- Loan estimate
- TRID-required disclosure within 3 business days of application.
M–R
- MLS
- Multiple Listing Service.
- Mutual acceptance
- The point at which both parties have signed and the contract becomes binding.
- NHD (CA-only)
- Natural Hazard Disclosure.
- NOC
- Notice of completion.
- Option fee (TX-only)
- Buyer's fee for unrestricted right to terminate during the option period.
- Option period (TX-only)
- Buyer's termination window.
- Payoff demand
- The lender's statement of the exact amount required to pay off the seller's existing loan.
- PMI
- Private mortgage insurance, typically required when the down payment is under 20 percent.
- Possession
- When buyer takes possession.
- Preapproval
- A lender's conditional determination of how much a buyer can borrow.
- Prelim
- Title preliminary report.
- Recording
- Filing the deed and loan documents with the county, making the transfer public record.
- Repair credit
- Seller credit to buyer in lieu of repairs.
- RPA-CA (CA-only)
- Residential Purchase Agreement, California.
S–T
- Seller credit
- Credit at closing from seller.
- Settlement
- Closing.
- Settlement statement
- The itemized accounting of funds for both sides of the closing.
- Short sale
- A sale for less than the seller's mortgage balance, requiring lender approval.
- SPDS (AZ-only)
- Seller's Property Disclosure Statement.
- Survey
- Property boundary map.
- T-21
- Twenty-one days before closing — a common milestone for lender status checks.
- T-7
- Seven days before closing.
- TDS (CA-only)
- Transfer Disclosure Statement.
- Time is of the essence
- A contract clause making deadlines strictly enforceable.
- Title commitment
- Title insurer's commitment to issue policy.
- Title insurance
- Insurance protecting the buyer and lender against defects in title.
- Transaction coordinator (TC)
- The professional who manages the administrative and compliance tasks of a transaction from contract to closing.
- TREC (TX-only)
- Texas Real Estate Commission.
- TRID
- TILA-RESPA Integrated Disclosure.
U–Z
- Underwriting
- The lender's review of the buyer's credit, income, and the property before final loan approval.
- VA loan
- A mortgage guaranteed by the U.S. Department of Veterans Affairs.
- Vesting
- How the buyer takes title (e.g., joint tenancy, community property, sole ownership).
- Walk-through
- Final inspection by buyer before closing.
- Wire fraud
- Theft of closing funds via fake wire instructions; growing risk.
- Withholding (FIRPTA)
- Federal withholding on foreign-seller transactions.
Frequently asked
Are these definitions legally binding?
No. They're plain-language references for TC workflow.
Why are some terms state-specific?
Because forms and required disclosures differ by state.
Can I suggest a term?
Yes via /contact.
Is the glossary kept current?
Quarterly review.
Is there a PDF?
On request via /contact.
Can I use this for training?
Yes.
See the AI control plane on your real files.
30-minute live demo with the founders. No sandbox; we run on your contracts.