Damage or imperfection that cannot be detected during a thorough inspection of the property. Generally, sellers of property can be held liable for latent defects that become known after the transfer of title to property, unless the purchase and sale agreement specifically provides that the seller is not liable for latent defects, or if the seller was unaware of the imperfection or defect at the time of the property transfer.

Sellers are required to provide the buyers of property that was built before 1978 with a lead paint disclosure that details any information the seller may have regarding the existence of lead paint. It is important to test for lead paint and take any remedial measures that may be necessary to protect against exposure to lead paint, as such exposure has been found to be a health risk.

A formal depiction of the dimensions and location of a property; generally included in deeds, leases, sales contracts, and mortgage contracts for real property.

A title policy that is issued in the amount of the borrower's mortgage loan. It protects the lender up to the amount of the outstanding balance of the mortgage if a title claim is made. If you are financing a property with a commercial lender, they will require that you purchase a lender's policy of title insurance.

A formal statement that the buyer intends to purchase the property for a stated price under defined terms. This is generally a preliminary document that will serve as the foundation for a formal contract that will be entered into at a later date.

An interest rate that participating banks charge for loans from one bank to another. This is often used as an index for adjustable rate mortgages.

A promise by a lender or other financial institution to make a loan for a specified amount and on specific terms.

The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).