Real estate glossary

The terms that actually come up in a coastal Carolina transaction, in plain language. Anything here you want walked through, call (910) 933-6223 and ask.

Adjustable-rate mortgage (ARM)

A loan whose interest rate is fixed for an opening period, then moves with a published index. The payment can rise or fall after that first period ends.

Amortization

The schedule that splits each payment between interest and principal. Early payments are mostly interest; the balance tips toward principal over time.

Appraisal

A licensed appraiser's opinion of value, ordered by the lender. If it comes in below the contract price, the buyer, seller, or both have to cover the gap or renegotiate.

As-is

The seller will not make repairs. A buyer can still inspect and still walk away if the contract keeps that right — as-is limits repairs, not due diligence.

Buyer agency agreement

The written agreement that makes a broker your representative rather than a courtesy door-opener. It sets what the broker does for you and how they are paid.

Closing costs

Everything owed at closing beyond the price itself: lender fees, title work, insurance, recording, prorated taxes. Budget for them separately from the down payment.

Closing disclosure

The itemised final accounting of your loan and costs. Federal rules require it at least three business days before closing so you can compare it against your estimate.

Comparative market analysis (CMA)

A broker's pricing study built from recent comparable sales, current competition, and expired listings. It is not an appraisal, but it is what pricing decisions are made from.

Contingency

A condition that must be satisfied for the contract to proceed — financing, appraisal, inspection, sale of another home. Each one is an exit that stays open until it is removed.

Coastal Area Management Act (CAMA)

North Carolina's coastal development law. Building, rebuilding, or altering property near the shoreline can require a CAMA permit, and the rules differ by how close you are to the water.

Days on market (DOM)

How long a listing has been active. A high number invites lower offers, which is why re-listing strategy matters.

Deed

The document that transfers ownership. Recorded at the county register of deeds; the type of deed determines what warranties the seller is making about title.

Due diligence fee

A North Carolina-specific payment from buyer to seller for the right to investigate the property. It is generally non-refundable but credits toward the price at closing.

Due diligence period

The North Carolina window in which a buyer can inspect, appraise, arrange financing, and terminate for any reason. Once it closes, walking away usually costs the earnest money.

Earnest money

A good-faith deposit held in trust. Unlike the due diligence fee, it is normally refundable if the buyer terminates within the due diligence period.

Easement

A recorded right for someone else to use part of your land — a shared driveway, a utility run, a beach access path. It travels with the property.

Elevation certificate

A surveyed document showing a structure's height relative to the base flood elevation. It drives flood insurance pricing and is worth requesting on any coastal property.

Encroachment

A structure crossing a boundary line — a fence, a shed, a deck. Usually surfaces on the survey and has to be resolved before closing.

Equity

The share of the property you actually own: market value minus what you still owe.

Escrow

Funds or documents held by a neutral third party until conditions are met. Also the lender account that collects monthly for taxes and insurance.

Fixed-rate mortgage

The interest rate never changes for the life of the loan, so principal and interest stay flat. Taxes and insurance can still move the total payment.

Flood zone

FEMA's mapped risk designation for a parcel. It determines whether flood insurance is required and heavily influences the premium — on the coast, check it before you make an offer.

HOA

A homeowners association with authority to levy dues and enforce restrictions. Review the covenants and the current budget: special assessments are a real cost.

Home inspection

A buyer-paid, non-invasive examination of condition. It is not a pass/fail — it is information you use to decide whether to proceed, renegotiate, or walk.

Homeowners insurance

Covers the structure and contents against covered perils. Standard policies exclude flood, and coastal properties often need separate wind and hail coverage.

IDX

Internet Data Exchange — the agreement that lets a brokerage display other brokerages' MLS listings on its own site, under rules the MLS sets.

Listing agreement

The contract that authorises a brokerage to market and sell your property, and sets the commission and the term.

Loan estimate

The standardised three-page quote a lender must provide after application. Because the format is fixed, it is the honest way to compare lenders.

LTV (loan-to-value)

Loan amount divided by property value. Above 80% on a conventional loan generally triggers mortgage insurance.

MLS

The Multiple Listing Service — the broker-run database where listings, showing instructions, and closed-sale data live. Public portals are downstream of it.

Mortgage insurance (PMI/MIP)

Protects the lender, not you, when the down payment is small. Conventional PMI can usually be removed once you have enough equity; FHA MIP often cannot.

Multiple offer situation

More than one offer on the table. Price is only part of it — due diligence terms, financing type, and closing timeline frequently decide the winner.

Pending

Under contract with contingencies largely satisfied. Still not closed; deals do fall through.

Pre-approval

A lender's conditional commitment after reviewing your income, assets, and credit. Materially stronger than a pre-qualification, and increasingly expected with an offer.

Pre-qualification

An informal estimate of what you might borrow, based on what you tell a lender. Useful for orientation, not persuasive to a seller.

Principal

The amount borrowed, separate from interest. Extra payments applied to principal shorten the loan and cut total interest.

Proration

Splitting an ongoing cost — property taxes, HOA dues, rent — between buyer and seller based on the closing date.

Right of first refusal

A recorded right letting a named party match an offer before the owner can accept it. It slows a sale and must be disclosed.

Seller concessions

Seller-paid costs on the buyer's behalf, usually closing costs or a rate buydown. Lenders cap how much is allowed.

Settlement statement

The final line-by-line accounting of who pays and who receives what at closing.

Short sale

A sale for less than the mortgage balance, requiring lender approval. Timelines are long and unpredictable.

Survey

A licensed surveyor's map of boundaries, structures, and easements. It is how encroachments and setback problems surface before you own them.

Title insurance

Protects against defects in ownership history — undisclosed heirs, old liens, recording errors. The lender's policy protects the lender; an owner's policy protects you.

Title search

The examination of public records that traces ownership and finds liens or claims that must clear before transfer.

Under contract

An offer has been accepted and the contract is signed. Contingencies may still be outstanding.

Variable rate

Any rate that can change over the loan term according to a stated index and margin.

Walk-through

The buyer's final look, typically within 24 hours of closing, confirming condition has not changed and agreed repairs were made.

Zoning

Local rules governing how a parcel may be used and what may be built. Short-term rental rules on the coast are often set here, and they vary town by town.