APPRAISAL: Assessment of the property’s market value, typically done for the purpose of obtaining a mortgage.

COMMON CHARGE: Monthly maintenance fee paid by condo owners. Property taxes are not included in the common charge.

CONTRACT DEPOSIT: A percentage of the agreed-upon purchase price paid by the buyer at the time of signing the contract.

CO-OP SHAREHOLDER: Owner of a co-op unit, since what they are actually purchasing are shares of stock in the co-op corporation.

DEBT-TO-INCOME RATIO: The percentage of an individual’s monthly gross income relative to the amount of debt owed.

ESCROW DEPOSIT: Deposit of funds to be transferred upon completion of the deal.

FINANCIAL STATEMENT: A formal record of all your financial assets, debts, and liabilities.

FLIP TAX: A tax levied by a co-op and paid by the seller when a sale is made. They are designed to generate funds for the co-op’s cash reserve.

MAINTENANCE FEE: Fees paid by co-op shareholders that contribute to building operations.

LIEN SEARCH: A background check on the property and the seller to ensure there are no outstanding debts or claims upon the property.

POST-CLOSING: The amount of cash the buyer must have on hand after deducting the down-payment and closing costs.

PRE-APPROVED: Advanced approval from a bank or other lending institution for a home mortgage.

PRE-QUALIFIED: Potential buyers provide an overall financial picture and mortgage brokers provide an estimate of what level of loan you will likely be pre-approved for.

RECORDING FEE: A fee paid to the local government to officially report a sale of a home; usually paid by the buyer.

TAX ABATEMENT: Newly constructed buildings sometimes receive abatements so that owners do not have to pay taxes on their units for a specified amount of time.

SPONSOR: The entity responsible for developing a new building or converting an existing rental building to a condo or co-op.