FAQs and Support
Real Estate Terminology
This alphabetical guide covers common terms you'll encounter when buying or selling a home in Illinois. It's designed to help you understand the process clearly.
A–C
- Cash Deal – A home purchase made entirely with the buyer's own funds, no mortgage involved. Often faster closing and more attractive to sellers.
- Closing – The final step where ownership officially transfers. Buyer signs loan documents (if financing), pays closing costs, and receives keys. Seller receives proceeds.
- Commission – The fee paid to real estate agents/brokers for facilitating the sale. In my flat-fee model (like our $5,495 full-service listing), the seller pays a fixed amount for listing service. There are a lot of changes going on regarding commissions and agency agreements.
- Contingency – A condition in the contract that must be met for the sale to proceed (e.g., inspection, appraisal, financing, or home sale contingency). If not met, buyer can usually exit without penalty.
- Contract – The legally binding purchase agreement between buyer and seller outlining price, terms, contingencies, and timelines.
- Conventional Loan – A mortgage not backed by the government. Typically requires higher credit scores and larger down payments than FHA or VA loans.
- Counter Offer – A response to an initial offer with different terms (price, closing date, contingencies, etc.). Negotiation continues until agreement or one party walks away.
D–F
- Deed – The legal document that transfers ownership of the property from seller to buyer. Signed at closing and recorded with the county. Common types in Illinois include Warranty Deed (seller guarantees clear title) and Quitclaim Deed (transfers whatever interest the seller has, with no guarantees).
- Disclosures – Required forms where seller reveals known issues about the property (lead paint, past repairs, flooding, etc.). Illinois has specific disclosure requirements.
- FHA Loan – Government-backed mortgage with lower down payment requirements (as low as 3.5%) and more flexible credit guidelines. Popular with first-time buyers.
I–O
- Inspection – Professional examination of the home's condition (structure, systems, roof, etc.). Common types include general home, radon, termite/wood-destroying insects, sewer line, and chimney.
- Offer – Buyer's formal proposal to purchase, including price, contingencies, earnest money, and closing date.
P–R
- Parcel – The legal description of the land (lot) the home sits on, identified by tax ID or parcel number.
- Radon Inspection – Test for radon gas (naturally occurring, potentially harmful). Common in Illinois; mitigation systems can be installed if levels are high.
S–T
- Sewer Inspection – Camera scope of sewer line from house to street/main to check for damage, roots, or collapse (especially important in older homes).
- Showings – Scheduled visits for potential buyers to tour the property.
- Termite/Wood-Destroying Insect Inspection – Checks for evidence of termites, carpenter ants, powder post beetles, etc. Often required by lenders.
- Title – Legal ownership of the property.
- Title Company – Neutral third party that researches title history, issues title insurance, and facilitates closing.
- Title Insurance – Protection against future claims or defects in the property’s title (e.g., undisclosed liens, forgery, errors in public records). Two policies are common: Owner’s policy (protects the buyer/homeowner) and Lender’s policy (protects the mortgage company). Usually paid at closing; buyer typically pays for owner’s policy, seller for lender’s.
U–V
- VA Loan – Zero-down-payment mortgage available to eligible veterans, active-duty service members, and certain surviving spouses. No private mortgage insurance required.
Questions about any term? Call me. 618-531-4000, George.
"In a digital age of shares and likes,
you need a Realtor LIKE George Sykes"
George Sykes
Managing Broker, Worth Clark Realty
618-531-4000
