Bill of Sale
A document which transfers personal property.  For example, if you decide to sell some of your furniture when you sell your house the furniture would be placed on a bill of sale instead of the real estate contract. 

Certificate of Title

A document which confirms that the title to a property is legally held by the current owner.

Closing Statement

A detailed written summary of the financial settlement of a real estate transaction, showing all charges and credits made, all cash received and paid. Also called settlement sheet or HUD-1 statement.

Commission
Payment to a real estate broker for services performed.  It is usually a predetermined percentage of the selling price. 

Contingency

A specific condition that must be met before a contract is legally binding. Usually that the house must pass the home inspection and the borrower must get a loan.

Deed
A document which transfers title to real property from one owner to another.

Deed of Trust
Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties involved: the borrower, the trustee, and the lender (or beneficiary).

Earnest Money
Money given by a buyer to a seller as a form of deposit (part of the purchase price) in order to bind a transaction or to ensure payment.

Equity
The value an owner has in real estate over and above the debt of the property. The homeowner's equity increases or decreases accordingly as the value of the house increases or decreases.

Escrow
Funds that are set aside and held in trust. Usually used for payment of taxes, insurance, etc.

Fixture
Personal property which is permanently attached to real property, such as lighting, medicine cabinets, and mantels. Fixtures are included when the property is sold.

Hazard Insurance
A form of insurance that protects the insured from specified losses due to hazards such as fire, flood, wind damage, etc.

Market Value
The highest price a ready, willing, and able buyer will pay, and the lowest price a ready, willing, and able seller will accept. Market value is the basis for the listing or asking price.

Market Price
The actual amount for which a piece of property is sold. Also called sales price or purchase price.

Mortgage
A conveyance of (or lien against) property until it is paid or until other stipulated terms are met.

P.I.T.I.
Principal, interest, taxes, and insurance.

Points 
Prepaid interest charged at closing by the lender.  Each point equals 1 percent of the loan amount.  Also called discount points.

Prepayment Penalty
Fees for early repayment of debt.

Principal
Principal has several definitions in real estate: