Plain-English definitions for the terms you'll encounter on your financial journey.
An illegal practice where a broker executes excessive trades in a client's account to generate more commissions for themselves.
The illegal act of mixing a client's funds with a broker's personal or business funds. In real estate, earnest money must be kept in a separate trust account to avoid this.
A claim, lien, or liability attached to a property that may lessen its value or restrict its use. Common examples include easements for utilities or outstanding property tax liens.
The market value of an asset, such as a home, minus the total amount of any remaining loans or liens against that asset.
A legal claim or right against a property that allows a creditor to seize it if the owner fails to fulfill a debt or contract.
A legal claim or right against a property by a creditor as security for a debt.
A legal claim by the government against a taxpayer's property when they fail to pay a tax debt.
A qualified individual, such as a CPA or tax attorney, who assists clients in preparing and filing their taxes.
An examination of public records to confirm a property's legal ownership and check for any liens or claims.
The process by which an insurer evaluates the risk of a potential client to determine whether to provide coverage and at what price.