Savannah Real Estate Glossary: Buyers, Sellers & Investors

📜 Abstract of Title

A summarized legal history of a property’s ownership, liens, and other recorded claims, verified by a title examiner. Used during closings in Savannah to ensure clean title.

⚠️ Acceleration Clause

A mortgage term allowing the lender to demand full repayment if the borrower misses a payment or violates the loan agreement.

Example: If a Midtown Savannah homeowner misses payments, this clause may initiate foreclosure proceedings.

📊 Accrued Items

Expenses like unpaid property taxes or mortgage interest, typically prorated between buyer and seller at closing.

Example: A seller in Kensington Park may owe accrued county taxes that get deducted at closing.

📉 Adjustable-Rate Mortgage (ARM)

A home loan with an interest rate that may change based on market trends. Often starts low and adjusts periodically.

🎈 Balloon Payment

A large final payment due at the end of a mortgage term, typically because the loan wasn’t fully amortized with regular payments.

🧾 Bargain and Sale Deed

A deed that implies ownership but provides no warranties against liens. Used in some Georgia real estate sales, particularly auctions.

📈 Basis

The original value used to calculate capital gains or losses, adjusted for improvements and depreciation.

🗂️ Binder

An initial agreement paired with earnest money, showing the buyer's intent to move forward with the property purchase.

🛏️ Blanket Loan

A single mortgage that covers multiple properties—common in Savannah area land development or multi-property deals.

🚫 Blockbusting

An illegal practice of scaring homeowners into selling by suggesting demographic shifts could reduce property values.

🏢 Branch Office

A secondary location of a real estate brokerage, typically requiring its own licensed broker-in-charge.

💼 Broker

A licensed professional authorized to manage real estate transactions for a fee or commission. Brokers can supervise agents and open brokerages in Georgia.

🏦 Brokerage

The business of connecting buyers and sellers in real estate transactions. Brokerages operate throughout the Savannah metro area.

🏗️ Building Code

Local laws that establish safety and design standards for construction. Savannah-Chatham County enforces its own building code regulations.

📉 Buydown

A financing method where the seller or builder pays upfront to lower the buyer's mortgage interest rate temporarily.

🧾 Buyer-Agency Agreement

A contract that authorizes a real estate broker to exclusively represent a buyer in a property purchase.

💰 Capital Gain

The profit earned from selling real estate for more than the original purchase price, minus eligible deductions.

📐 Capitalization

A method for estimating investment property value by applying a capitalization rate to net operating income.

📊 Capitalization Rate

The rate of return used to determine the value of an income-generating property. Formula: Cap Rate = NOI ÷ Property Value.

📄 Certificate of Title

A document verifying legal ownership and noting any encumbrances based on public records.

🔗 Chain of Title

A chronological record of ownership transfers of a property. Used to confirm clear title before closing.

📋 Closing Statement

A detailed summary of all financial transactions during a real estate closing, including taxes, insurance, and fees.

🌥️ Cloud on Title

An unresolved issue—like a lien or claim—that may affect legal ownership of a property.

📜 Code of Ethics

A written standard of professional conduct used by REALTORS® and real estate professionals.

💸 Commission

The payment made to a real estate broker for services rendered, often a percentage of the property's sale price.

📍 Comparable

A similar property used to help determine a home’s value during an appraisal or market analysis.

📊 Competitive Market Analysis (CMA)

A pricing tool that evaluates recently sold properties similar in location, size, and features.

📑 Conditional-Use Permit

Approval granted to use a property in a way that’s not normally allowed under local zoning rules.

⏳ Contingency

A contract condition that must be fulfilled for the agreement to proceed—such as financing or inspection approval.

📝 Contract

A legally binding agreement between parties, enforceable by law. Can be unilateral or bilateral in nature.

🏦 Conventional Loan

A mortgage loan not backed by a government agency like FHA or VA. Common for buyers with strong credit.

🔁 Conveyance

The legal act of transferring property ownership from one party to another via deed or other instrument.

📐 Cost Approach

A valuation method where a property’s value is estimated based on land value plus replacement cost minus depreciation.

↩️ Counteroffer

A new offer made in response to an original offer, effectively rejecting the first and proposing new terms.

📜 Covenant

A written agreement in deeds or contracts requiring or restricting certain actions on a property.

📄 Deed

A legal document that transfers property ownership from seller to buyer. Types include warranty, quitclaim, and special purpose deeds.

🔁 Deed in Lieu of Foreclosure

When a borrower gives the lender their property title to avoid formal foreclosure proceedings.

📜 Deed in Trust

A legal agreement placing property in the hands of a trustee to hold on behalf of a beneficiary.

🚫 Deed Restriction

Rules placed in a deed limiting how a property can be used, such as prohibiting commercial activity in a residential zone.

📉 Depreciation

The loss of property value due to age, wear, or external changes. Also used for tax deductions on investment properties.

💵 Discount Point

A fee paid to a lender at closing to reduce a loan’s interest rate. One point equals 1% of the loan amount.

⚖️ Dual Agency

When a real estate broker represents both the buyer and the seller in a transaction. Allowed in Georgia with written consent.

📌 Due-on-Sale Clause

A mortgage clause that requires the full loan amount to be paid off if the property is sold or transferred.

💰 Earnest Money

A good faith deposit made by a buyer to show serious intent to purchase a property. Applied to the purchase price at closing.

🚧 Encroachment

When a structure like a fence or shed extends beyond the property line onto a neighbor’s land or public space.

📊 Equity

The portion of a property's value that you truly own—its market value minus any outstanding mortgage debt.

📁 Escrow

A third-party process where funds or documents are held until all conditions of a sale or agreement are met.

🏦 Escrow Account

A secure account used by brokers or lenders to hold funds during a real estate transaction, like taxes or insurance premiums.

📑 Escrow Instructions

A written document that outlines the duties of the escrow agent and the steps required to complete a real estate transaction.

📝 Exclusive Agency Listing

An agreement where the broker is the exclusive agent, but the owner can sell the property independently without paying a commission.

📄 Exclusive Right-to-Sell Listing

The most common listing type in Georgia, guaranteeing the broker a commission regardless of who sells the property.

🏠 Fair Housing Act

A federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, or national origin.

🏦 Fannie Mae (FNMA)

A government-sponsored entity that buys and guarantees mortgages from lenders to help keep the housing market liquid and affordable.

🏛️ Federal Deposit Insurance Corporation (FDIC)

An independent U.S. agency that insures deposits in commercial banks up to a certain limit, safeguarding consumers' money.

🏢 Freddie Mac (FHLMC)

Like Fannie Mae, Freddie Mac buys mortgages from lenders to promote liquidity in the housing finance system.

💼 Federal Reserve System

The central banking system of the United States, responsible for managing inflation, regulating interest rates, and maintaining financial stability.

🏚️ FHA Loan

A mortgage insured by the Federal Housing Administration, typically with lower credit and down payment requirements—popular among first-time buyers in Savannah.

🤝 Fiduciary

A person who holds a legal or ethical relationship of trust. Real estate agents owe fiduciary duties to their clients.

🔒 Fiduciary Relationship

A relationship based on trust and confidence, like that between a broker and client in a real estate transaction.

📉 Foreclosure

The legal process by which a lender takes possession of a property due to the borrower’s failure to repay a mortgage loan.

📜 General Warranty Deed

A deed offering the most protection to the buyer, guaranteeing clear title and defending against all claims.

📈 Graduated-Payment Mortgage (GPM)

A loan where payments start low and increase gradually over time—common for borrowers expecting income growth.

👤 Grantee

The person receiving ownership of a property from a grantor.

✍️ Grantor

The individual transferring ownership of real property to a grantee.

📑 Gross Lease

A lease where the landlord pays property expenses like taxes, maintenance, and insurance—common in residential rentals across Savannah.

📉 Growing-Equity Mortgage (GEM)

A loan where payments increase over time with the extra amount applied to principal, shortening the loan’s term.

🏡 Home Equity Loan

A loan that lets homeowners borrow against the equity they’ve built in their property. Often used for renovations or debt consolidation.

🛡️ Homeowner’s Insurance Policy

A package policy covering loss or damage to a home due to fire, theft, liability, and more. Often required by lenders.

🏠 Homestead

A primary residence protected from certain creditors under Georgia law. Offers tax exemptions and asset protection benefits.

🧾 Independent Contractor

Real estate agents in Georgia are typically independent contractors—not employees—responsible for their own taxes and expenses.

📜 Installment Contract

A financing method where the buyer makes payments over time and receives the title after the final payment. Also called a contract for deed.

💵 Installment Sale

A property sale where the buyer pays in two or more installments over time. Allows the seller to defer taxes on income received.

🏗️ Interim Financing

A short-term loan (like a construction loan) used during the building phase before securing permanent financing.

🚫 Involuntary Lien

A claim placed on a property without the owner's consent, such as tax liens, mechanics’ liens, or judgments.

👥 Joint Tenancy

A form of property ownership where two or more people share equal ownership with right of survivorship—if one owner dies, their share passes to the others.

🌾 Land Contract

Also known as a contract for deed, it allows a buyer to make payments to the seller over time while using the property, with title transferred after final payment.

📄 Lease Option

A lease agreement that gives the tenant the option (but not obligation) to purchase the property during or at the end of the lease term.

📝 Lease Purchase

A lease agreement combined with a purchase agreement. The buyer leases the property first, then purchases it later—popular in Savannah investment scenarios.

💼 Liquidated Damages

A preset amount specified in a contract that one party agrees to pay if they breach the agreement.

📑 Lis Pendens

A public notice that a property is the subject of a lawsuit which could affect ownership. Often seen in foreclosure or title disputes.

📋 Listing Agreement

A contract between a property owner and a broker authorizing the broker to market and sell the property.

🧑‍💼 Listing Broker

The broker who secures a listing agreement with a property owner, often distinct from the selling or cooperating broker.

💳 Loan Origination Fee

A fee charged by a lender for processing a new mortgage application. Typically 0.5% to 1% of the loan amount.

📈 Loan-to-Value Ratio (LTV)

The ratio between the loan amount and the appraised value of the property. A key metric in loan approvals.

📜 Marketable Title

A property title that is free from major defects, liens, or legal disputes and can be readily transferred or sold.

💰 Market Value

The most probable sale price a property would bring in a competitive and open market under normal conditions.

🔧 Mechanic’s Lien

A legal claim filed by contractors or suppliers for unpaid work or materials supplied during construction or repairs.

🏦 Mortgage

A loan secured by real estate, where the property serves as collateral. Commonly used for home purchases in Savannah.

👨‍💼 Mortgage Banker

A company or professional that originates, funds, and sometimes services mortgage loans directly.

💼 Mortgage Broker

An intermediary who connects borrowers with lenders and helps arrange financing, but doesn’t directly lend money.

🏢 Mortgagee

The lender in a mortgage transaction who provides the loan and receives repayments.

📌 Mortgage Lien

A legal claim on a property held by the lender until the mortgage is paid off.

👤 Mortgagor

The borrower in a mortgage agreement who pledges the property as collateral.

🗂️ Multiple Listing Service (MLS)

A cooperative platform where agents share property listings with other agents to reach more buyers—used across Savannah-area real estate firms.

📋 Net Listing

An agreement where a broker keeps any amount over a specified net price as commission. Often discouraged or illegal due to ethical concerns.

🔄 Open-End Loan

A type of mortgage that allows the borrower to increase the loan balance up to a set limit, similar to a credit line.

📃 Open Listing

A non-exclusive agreement where multiple brokers can market a property, but only the one who sells it earns a commission.

📝 Option Listing

A listing agreement that gives the broker the right to purchase the property during the listing term.

📦 Package Loan

A real estate loan that includes both the property and personal items like appliances or furnishings.

🔝 Payment Cap

The maximum amount an adjustable-rate mortgage payment can increase, regardless of rate hikes.

💧 Percolation Test

A soil test to determine drainage ability—required before installing a septic system, especially in rural Georgia properties.

📄 Power of Attorney

A legal document giving someone authority to act on another’s behalf, often used for closing real estate transactions remotely.

✅ Pre-Approval

A lender’s formal agreement to provide a mortgage up to a set amount. Strengthens offers in competitive Savannah housing markets.

🔍 Pre-Qualification

A lender’s informal estimate of how much you may borrow, based on self-reported income and debt.

💸 Prepayment Penalty

A charge some lenders impose for paying off a loan early. Not common in most Georgia residential loans.

🏦 Primary Mortgage Market

Where borrowers obtain mortgage loans directly from lenders such as banks or credit unions.

🛡️ Private Mortgage Insurance (PMI)

Insurance that protects lenders when a borrower makes a down payment under 20%. PMI may apply in Georgia FHA and conventional loans.

🔗 Procuring Cause

The agent or broker whose actions lead to the sale of a property, thereby earning commission.

📝 Promissory Note

A written promise to repay a loan under specific terms. It's the borrower’s contractual obligation in a mortgage deal.

📊 Prorations

Adjustments of expenses (like taxes or HOA dues) between buyer and seller based on the closing date.

📘 Quiet Title

A legal proceeding to resolve disputes or remove clouds on the title, often used when ownership is unclear.

🔖 Quitclaim Deed

A deed that transfers any interest the grantor has in a property without making any promises about ownership. Used commonly among family or heirs.

📈 Rate Cap

The maximum increase allowed in an adjustable-rate mortgage's interest rate during one adjustment or over the life of the loan.

🏢 Real Estate Investment Trust (REIT)

A company that owns or finances income-producing real estate and offers shares to investors, like a mutual fund for property.

📄 Real Estate Settlement Procedures Act (RESPA)

A federal law requiring transparency in real estate closings. It prohibits kickbacks and mandates full disclosure of all costs.

👔 REALTOR®

A real estate professional who is a member of the National Association of REALTORS®, adhering to a strict code of ethics.

🗂️ Recording

The official act of filing a document, like a deed or mortgage, into public record—ensuring legal enforceability in Georgia.

📜 Regulation Z

The federal rule that implements the Truth-in-Lending Act, ensuring borrowers are fully informed about loan costs.

🚫 Restrictive Covenants

Legal rules placed in deeds to control land use, like building size, setbacks, or use type—common in Savannah HOAs.

🔁 Reverse-Annuity Mortgage (RAM)

A loan for homeowners (typically 62+) that pays them monthly using their home’s equity, to be repaid when the home is sold or the owner passes.

📊 Sales Comparison Approach

A method of property valuation based on the sale prices of similar homes nearby. Commonly used in residential appraisals in Savannah.

🧑‍💼 Salesperson

A licensed professional who assists clients in buying, selling, or leasing property under the supervision of a licensed broker.

✅ Satisfaction of Mortgage

A document issued by a lender confirming that the borrower has fully paid off the mortgage debt.

🔁 Secondary Mortgage Market

A market where lenders sell existing mortgages to investors like Fannie Mae or Freddie Mac to free up funds for new loans.

📐 Setback

The minimum distance a structure must be from property lines, as mandated by local zoning laws.

👤 Severalty

Ownership of real estate by one individual or legal entity, with no co-owners.

✂️ Severance

The act of removing something attached to real property (like a tree or fixture), converting it to personal property.

🤝 Shared Appreciation Mortgage (SAM)

A financing arrangement where the lender offers a reduced interest rate in exchange for a share of the home's future appreciation.

🧾 Special Agent

A real estate broker authorized to perform one specific act, such as selling a property—standard in listing agreements.

💵 Special Assessment

A local government tax levied on properties that benefit from public improvements like sidewalks or street lighting.

⚖️ Specific Performance

A legal action to compel a party to carry out the terms of a contract—used when monetary damages are inadequate.

📏 Square-Foot Method

A method of estimating construction cost based on square footage multiplied by a cost per square foot.

🚫 Steering

The illegal practice of guiding homebuyers toward or away from certain neighborhoods based on race or other protected factors.

👨‍💼 Subagent

An agent who assists another agent in a transaction but owes fiduciary duties to the same client. Common in traditional brokerage models.

📍 Survey

A professional measurement of a property’s boundaries, easements, and structures. Often required before closing in Georgia.

📜 Tax Deed

A deed issued to a buyer of property sold at a tax sale. Grants ownership due to unpaid property taxes.

📌 Tax Lien

A legal claim against a property for unpaid taxes, taking precedence over other liens.

💰 Tax Sale

A public sale of property due to unpaid taxes, often resulting in a transfer of ownership via a tax deed.

⏰ Time Is of the Essence

A contract clause stating that deadlines are legally binding and must be strictly met.

Shared ownership of a vacation property that allows each owner exclusive use for a set period annually. Common in coastal areas like Tybee Island.

🛡️ Title Insurance

A policy protecting property buyers and lenders against title defects, liens, or ownership disputes.

🔍 Title Search

An examination of public records to verify property ownership and uncover potential title issues.

💸 Transfer Tax

A fee imposed by state or local governments when the title of a property is transferred. Paid at closing in Georgia.

📑 Trust Deed

A legal document where property is held by a trustee as security for a loan, commonly used in Georgia real estate financing.

📎 Trust Deed Lien

A lien on real property created by a deed of trust. It secures the lender’s interest in the property.

📃 Trustee’s Deed

A deed issued by a trustee transferring ownership of a property, often following a foreclosure or termination of a trust.

🧑‍⚖️ Trustor

The borrower in a deed of trust transaction who grants the title to a trustee as loan security.

🤝 Unilateral Contract

A one-sided agreement where only one party is legally obligated to act—commonly used in options to purchase.

🎖️ VA Loan

A government-backed mortgage available to U.S. military veterans and active-duty service members, offering low or no down payment and favorable terms.

🔁 Wraparound Loan

A type of secondary financing where a new mortgage includes the remaining balance on an existing mortgage plus additional funds, often used in creative seller financing.

📐 Zoning Ordinance

Local laws that define how properties in certain geographic zones can be used. In Savannah, zoning affects use types, setbacks, and density.

📘 Georgia Real Estate Glossary (Savannah Edition)

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