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Intermediate45 minutes9 terms

Secure Funds Transfer: Real Estate Terms

This curated collection offers key terms that might be helpful when exploring secure fund transfers and payment methods in real estate investment. It's designed as a quick reference to understand commonly referenced concepts related to moving money safely during property transactions, not a comprehensive guide.

Term Collection

1

Down Payment

A down payment is an initial upfront payment made when purchasing a property, representing a portion of the total purchase price and reducing the amount of money borrowed through a mortgage.

Intermediate15-18 min
2

Bank Draft

A bank draft is a payment method guaranteed by the issuing bank, ensuring funds are available and making it a secure way to transfer money, especially for large transactions in real estate.

Beginner2 min
3

Closing Day

Closing Day is the official date when a real estate transaction is finalized, ownership is transferred, and all necessary documents are signed and funds exchanged between the buyer and seller.

Beginner2-3 min
4

Earnest Money

Earnest money is a deposit made by a buyer to a seller, held in escrow, demonstrating the buyer's serious intent to purchase a property and serving as security against buyer default.

Intermediate13-14 min
5

Acquisition Agreement

An Acquisition Agreement is a legally binding contract outlining the terms and conditions between a buyer and seller for the purchase and sale of a real estate asset, crucial for defining the transaction's scope and protecting all parties.

Intermediate8-9 min
6

Demand Draft

A demand draft is a payment instrument issued by a bank on behalf of a customer, instructing another bank or its own branch to pay a specified sum of money to a named beneficiary. It is a secure and reliable method for transferring funds, often used in real estate transactions.

Beginner5 min
7

Escrow

A legal arrangement where a neutral third party holds funds and documents until specific conditions of a contract are met, ensuring a secure and fair transaction, especially in real estate.

Intermediate15-18 min
8

Closing Costs

Closing costs are the various fees and expenses incurred by buyers and sellers at the end of a real estate transaction, covering services like loan origination, title insurance, appraisal, and legal fees.

Intermediate13-14 min
9

Wire Transfer

A wire transfer is an electronic payment service for transferring funds by wire, typically between banks or financial institutions. It is a fast, secure, and irreversible method often used for large real estate transactions.

Intermediate5 min

Common Questions