Like many other industries, the real estate industry has its own unique language and vocabulary. Without some knowledge of this specialized language, you may find yourself a bit confused if you become involved in a real estate transaction.

Whether entering the real estate market for the first time or if you have invested before, this handy reference will provide an understanding of basic real estate words and phrases.

Sale Agreement – A contract entered into between a buyer and seller, setting forth the terms, provisions and conditions of a sale of real estate. (Known under many names; i.e. “Purchase Agreement”, “Contract to Sell/Purchase”, “Real Estate Sales Contract”, etc.)

Sale and Leaseback – The sale of an asset to a buyer who immediately leases it back to the seller.

Search – A careful exploration and perusal of the public records in an effort to find all recorded instruments relating to a particular chain of title.

Second Mortgage – A mortgage ranking in priority immediately below a first mortgage.

Subordination – The act or process by which a person's rights are ranked below the rights of others. For example, a second mortgagee's (lender's) rights are subordinate to those of the first mortgagee (lender).

Surety – (1) A person who agrees to be responsible for a debt or obligation of another. (2) The pledge or agreement by which one undertakes responsibility for the debt or obligation of another.