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Appraisal

A licensed appraiser's opinion of a home's value, usually ordered by the buyer's lender.

Closing costs

Fees and expenses paid at closing on top of the price, such as title, lender and recording fees.

Contingency

A condition in a contract that must be met for the sale to go forward, like financing or selling another home.

Earnest money

A deposit the buyer makes after the contract is signed to show good faith. It's usually applied to the purchase at closing.

Escrow

Money or documents held by a neutral third party, like a title company, until the sale closes.

Homestead exemption

A Texas property tax exemption on your primary residence that lowers its taxable value. You apply through your county appraisal district.

MUD and PID

Special districts that fund roads, water or amenities in some neighborhoods, paid through an extra tax or assessment.

Option period

In a Texas contract, a negotiated number of days when the buyer can end the contract for any reason, for a fee paid to the seller.

Probate

The court process that settles an estate after someone dies. A probate attorney can explain how it affects a home.

Title insurance

Insurance that protects owners and lenders against problems with the ownership record of a property.

General information, not legal or tax advice. Ask your attorney or CPA about your situation.