How quickly homes sell in a given market, expressed as months of inventory at the current pace. Under three months favours sellers; over six favours buyers.
MarketA loan whose rate is fixed for an initial period, then adjusts against an index. Common at the luxury end, where buyers often expect to sell or refinance before the first adjustment.
FinancingThe written statement identifying who each agent legally represents. In California it must be delivered before any confidential information is shared.
Legal & TitleAn independent opinion of value, commissioned by the lender to confirm the home is worth what is being borrowed against it.
FinancingThe shortfall when a property appraises below the agreed price. The buyer covers the difference in cash, renegotiates, or walks — which is why appraisal contingencies matter in competitive markets.
Contract & ProcessA sale in which the seller will not make repairs. It does not remove the seller’s duty to disclose known defects, and it does not prevent the buyer from inspecting.
Contract & ProcessThe value a county assigns for tax purposes — often well below market value in California, because Proposition 13 limits how fast it can rise.
CaliforniaA written offer accepted in second position, moving into first automatically if the primary contract fails. Binding on the buyer, so it should be made deliberately.
Contract & ProcessShort-term financing secured against a current home to fund the next purchase, letting a buyer make a non-contingent offer before selling.
FinancingA licensee who has completed additional education and examination beyond the salesperson level, and may operate independently or supervise other agents.
Legal & TitleThe agent representing the purchaser, owing fiduciary duties of loyalty, disclosure and confidentiality.
Contract & ProcessConditions in which supply exceeds demand, giving purchasers leverage on price, terms and timing.
MarketCovenants, Conditions and Restrictions — the recorded rules governing what owners may do with property in a planned community, from exterior paint to short-term rentals.
Legal & TitleThe municipal document confirming a building is legally habitable and code-compliant. Required after new construction or substantial renovation.
Legal & TitleThe recorded sequence of ownership transfers, traced back to confirm the seller can convey clear title.
Legal & TitleFees due at completion beyond the purchase price — escrow, title, recording, transfer tax, lender charges, prorated taxes. Typically one to three percent.
FinancingApproval required from the California Coastal Commission for most development in the coastal zone. It can add months to a project and constrain what may be built.
CaliforniaAn agent’s valuation based on recent comparable sales, active competition and expired listings — distinct from a lender’s formal appraisal.
MarketA recently sold property similar enough in location, size and condition to inform pricing. At the luxury end genuine comps are scarce, which is where local knowledge earns its keep.
MarketA condition that must be satisfied before a contract becomes binding — inspection, appraisal, loan, sale of the buyer’s home. Each is a defined right to withdraw.
Contract & ProcessA response rejecting the original offer and proposing different terms. It voids the offer it answers, so the original can no longer be accepted.
Contract & ProcessHow a property presents from the street. It sets expectations before a buyer crosses the threshold, and disproportionately affects both showing traffic and price.
MarketHow long a listing has been actively for sale. Rising figures weaken a seller’s position, which is why pricing correctly at launch matters more than pricing high.
MarketThe instrument transferring ownership of real property. It must be delivered and recorded to be effective against third parties.
Legal & TitleThe security instrument used in California instead of a mortgage, involving a trustee who holds title until the loan is repaid, allowing faster non-judicial foreclosure.
CaliforniaThe seller’s obligation to reveal known material facts affecting value or desirability — defects, litigation, deaths, noise, nearby development.
Legal & TitleOne brokerage representing both sides of a transaction. Legal in California with written consent, but it limits the advice either side can receive on price.
Legal & TitleThe window in which a buyer investigates — inspections, permits, title, HOA documents — before contingencies are removed.
Contract & ProcessThe deposit demonstrating serious intent. In luxury transactions it commonly runs three percent or more, and becomes at risk once contingencies are removed.
Contract & ProcessA recorded right allowing someone else to use part of a property for a defined purpose — beach access, shared driveway, utility lines.
Legal & TitleA structure intruding onto a neighbouring parcel. Usually surfaces during survey and must be resolved before close.
Legal & TitleAny claim against a property that limits clear ownership — a lien, easement, lease or restriction.
Legal & TitleA provision automatically raising a buyer’s offer above competing bids up to a stated ceiling. Effective in multiple-offer situations, though many luxury sellers decline them.
Contract & ProcessA neutral third party holding funds and documents until every condition is met, then disbursing and recording simultaneously so neither side is exposed.
Contract & ProcessThe standard listing agreement, entitling the listing brokerage to a commission regardless of who ultimately produces the buyer.
Contract & ProcessThe price a willing buyer and willing seller would agree on, neither under compulsion and both reasonably informed.
MarketThe obligation an agent owes their client — loyalty, confidentiality, disclosure, obedience, reasonable care. It is what separates representation from facilitation.
Legal & TitlePersonal property attached to the building so as to become part of it, and therefore included unless expressly excluded. Chandeliers cause more disputes than anything else.
Contract & ProcessThe lender’s process of taking possession after default. In California most proceed non-judicially under a deed of trust.
FinancingA seller marketing without brokerage representation. Rare above a certain price point, where the buyer pool is private and reached through relationships rather than advertising.
MarketA development with controlled access, typically governed by an HOA. Access rules for guests, staff and contractors vary widely and are worth reviewing before an offer.
Legal & TitleThe common California conveyance, carrying an implied warranty that the seller has not already transferred the property and that it is free of undisclosed encumbrances.
CaliforniaThe finished, heated square footage above grade. Basements, garages and guest houses are measured and reported separately.
MarketThe most profitable legal use of a site, which may differ from its current one. Relevant where land value approaches or exceeds the value of the house on it.
MarketThe body governing a common-interest development, collecting dues and enforcing CC&Rs. Its reserves, litigation history and pending assessments all belong in due diligence.
Legal & TitleA service contract covering repair or replacement of major systems for a set period, often offered by sellers as a closing incentive.
Contract & ProcessAn account held by the lender into which the borrower pays monthly toward taxes and insurance, so the lender can pay them directly when due.
FinancingThe buyer’s right to have the property professionally examined, and to renegotiate or withdraw based on what is found.
Contract & ProcessAn institutional purchaser making algorithmic cash offers. Largely absent above the luxury threshold, where valuation depends on features a model cannot weigh.
MarketCo-ownership with right of survivorship, so a deceased owner’s share passes automatically to the survivors outside probate.
Legal & TitleA mortgage exceeding conforming limits, requiring stronger reserves, larger deposits and manual underwriting. The standard instrument in most luxury purchases.
FinancingA provision letting a seller keep marketing while under contract with a contingent buyer, requiring that buyer to remove their contingency or release the property if a better offer arrives.
Contract & ProcessAn arrangement where the buyer owns the improvements but leases the land beneath. Common in select coastal and resort communities, and significant for both value and financing.
Legal & TitleA recorded claim against a property securing a debt. Liens must generally be cleared before clear title can transfer.
Legal & TitleA provision capping the seller’s recovery — usually at the deposit — if the buyer defaults, in place of proving actual losses.
Contract & ProcessThe written contract engaging a brokerage to market a property, setting term, price, compensation and the scope of marketing permitted.
Contract & ProcessThe loan amount as a percentage of value. Lower ratios strengthen an offer and widen the field of lenders willing to write it.
FinancingA special tax levied within designated California districts to fund infrastructure, added to the annual property tax bill. It can materially change carrying cost and must be disclosed.
CaliforniaThe cooperative database through which brokerages share listings and offers of compensation. Not every luxury property appears in it.
MarketCompeting offers on one property. How they are presented, and whether counters go to one party or several, is at the seller’s direction.
Contract & ProcessA required California report stating whether a property sits in a flood, fire, seismic or landslide zone. It increasingly drives insurability, which in turn drives financing.
CaliforniaWhat the seller actually receives after loan payoff, commission, transfer tax, escrow and title fees, and prorations.
FinancingAn offer with contingencies waived at the outset. The strongest form a buyer can make and the riskiest, since the deposit is immediately exposed.
Contract & ProcessThe recorded notice beginning foreclosure, filed after a borrower falls materially behind. It becomes public record.
FinancingA property available for purchase but not publicly listed. Reaching these depends entirely on an agent’s standing among peers.
MarketThe lender’s charge for processing a loan, usually expressed as a percentage of the amount borrowed.
FinancingA property marketed privately within a brokerage or network rather than openly, usually for discretion. Now restricted by MLS rules in many markets.
MarketPrepaid interest, each point equal to one percent of the loan, paid at closing to reduce the ongoing rate.
FinancingA lender’s conditional written commitment based on verified income, assets and credit. Materially stronger than a pre-qualification, and expected with any serious offer.
FinancingThe title company’s early statement of record ownership, liens, easements and exceptions — the first place problems surface.
Legal & TitleA fee for repaying a loan ahead of schedule. Uncommon on primary residences but still found in portfolio and bridge lending.
FinancingDocumentation showing a buyer holds the cash required to close. Routinely requested before a private showing at the top of the market.
Contract & ProcessThe owner’s right to possess and use property without interference from prior claims or the party who conveyed it.
Legal & TitleA conveyance transferring whatever interest the grantor may hold, with no warranty that they hold any. Used between family or to clear clouds on title, rarely in an arm’s-length sale.
Legal & TitleAn agreement signed by all parties with every term settled. The point at which timelines begin running.
Contract & ProcessThe recorded release of a deed of trust once a loan is repaid, returning clear title to the owner.
Legal & TitleAn arrangement letting the seller remain in the home after closing for an agreed period and rate. Common where a seller is buying onward.
Contract & ProcessA recorded right allowing a specified party to match any offer before the property may be sold to someone else.
Legal & TitleConditions in which demand outpaces supply, compressing days on market and shifting leverage toward the seller.
MarketThe minimum distance a structure must sit from a property line, street or bluff. Setbacks govern what can be built and where.
Legal & TitleA sale for less than the balance owed, requiring lender approval. Timelines are long and outcomes uncertain.
FinancingFurnishing and styling a home so buyers read scale and possibility rather than absence. At the luxury end it is close to standard practice.
MarketA licensed measurement of boundaries, structures and easements. It resolves questions about where a property actually ends.
Legal & TitleCo-ownership in which each holder owns a divisible share that passes by will rather than to the surviving owners.
Legal & TitleA policy protecting owner and lender against defects predating the purchase — forged deeds, missed heirs, unrecorded liens. Paid once at closing.
Legal & TitleA tax on the conveyance of real property, levied by county and sometimes city. Some municipalities apply a substantially higher rate above a price threshold.
FinancingA sale by a trustee rather than an individual owner, often following a death. Disclosure obligations are typically narrower, so inspection matters more.
Legal & TitleThe lender’s assessment of borrower and property before funding. Jumbo underwriting is manual and document-heavy, which is why timelines run longer.
FinancingMunicipal approval for a use not permitted outright in a zone — a guest house, studio or short-term rental. It runs with the property and should be verified, not assumed.
Legal & TitlePermission to depart from a zoning requirement, such as building closer to a boundary than setbacks allow. Granted case by case and recorded.
Legal & TitleHow title is held — individually, jointly, in trust or through an entity. The choice carries tax, estate and privacy consequences and should be settled before closing.
Legal & TitleThe buyer’s final inspection shortly before closing, confirming condition is unchanged and agreed repairs were completed.
Contract & ProcessCriminal interception of closing funds, usually through spoofed emails altering wire instructions. Always confirm instructions by telephone using a number you already hold.
Contract & ProcessA configuration where the dwelling sits directly on a boundary, maximising usable land on constrained or urban sites.
Legal & TitleMunicipal rules dictating how land may be used and what may be built. Zoning determines whether a plan is possible before any other question matters.
Legal & TitleA deferral under IRC Section 1031 letting an investor sell one investment property and reinvest into like-kind property without immediately paying capital gains tax. Strict deadlines apply — 45 days to identify, 180 to close.
FinancingThe IRS form reporting proceeds from a real estate sale, filed by the settlement agent.
FinancingA structure temporarily reducing the interest rate by two percent in year one and one percent in year two, usually funded by a seller credit.
FinancingAn FHA product combining purchase and renovation costs into a single mortgage. Rarely applicable at luxury price points but frequently asked about.
FinancingA select network of the nation's most accomplished luxury real estate professionals.