Industry Terminology
Glossary
Every confusing term in plain English. Tap any card to learn more.
Earnest Money
A good-faith deposit you put down to show the seller you are serious about buying the home.
Option Fee
A non-refundable fee paid directly to the seller in exchange for the right to terminate the contract during the option period.
Title Commitment
The title company's promise to issue a title insurance policy, along with a detailed report of anything affecting the property's title.
Title Insurance
A one-time policy that protects your ownership rights against title defects, undisclosed heirs, forgery, and errors in public records.
Escrow
Think of escrow as the referee in the transaction — making sure the game is played fairly.
Wire Fraud
The #1 financial threat to homebuyers today. Always verify wire instructions by phone before sending funds.
Schedule A
The current and proposed ownership and insurance coverage.
Schedule B
Items we take exception to on the title policy.
Schedule C
Issues that need to be resolved before closing.
Schedule D
Disclosures about the entity insuring the title and the cost.
Homestead Exemption
A Texas property tax exemption that reduces the taxable value of your primary residence.
Render Your Property
Report your new property to the county appraisal district so it's correctly assessed for taxes.
Owner's Policy
Title insurance that protects YOU, the buyer, against title defects for as long as you own the home.
Lender's Policy
Title insurance that protects your MORTGAGE LENDER, not you. Required for most loans.
Closing Disclosure
The final 5-page document showing your loan terms, monthly payment, and all closing costs. You must receive it at least 3 business days before closing.