Plain English definitions
Real Estate Glossary for Manchester and Coffee County Buyers and Sellers
If you are buying or selling a home in Manchester or anywhere in Coffee County, you will hear a lot of new words. This glossary explains the ones I get asked about most, in plain English, with links to my longer guides. It is general information, not legal, tax or lending advice. For your own situation, ask your lender, your closing attorney or title company, or a Tennessee attorney.
Jump to a term
Buying and financing: Preapproval | Down payment | Loan Estimate | Mortgage insurance | Escrow account | VA loan | USDA loan | THDA Great Choice Home Loan | Earnest money | Appraisal
Inspections and property: Home inspection | Inspection period | Radon test | Wood destroying insect report | Septic system | Private well | Lead based paint disclosure | Survey
Closing: Closing attorney or title company | Title search | Title insurance | Closing Disclosure | Cash to close | Prorations | Final walk through | Deed | Deed of trust
Selling: Listing agreement | Comparative market analysis | Seller concessions | Seller net sheet
Land and rural property: Greenbelt | Rollback taxes | Soil evaluation (perc test) | Plat | Easement | TVA Section 26a permit
Tennessee specific terms: Residential property disclosure statement | Disclaimer statement (as is) | Buyer representation agreement | Realty transfer tax | Tennessee mortgage tax | Assessed value | Affiliate broker
Buying and financing
Preapproval
A lender reviews your income, credit and savings and gives you a preapproval letter that shows how much you may be able to borrow. Sellers expect one with an offer, so get it before you start touring. See buying a home step by step.
Down payment
The part of the price you pay from your own funds instead of borrowing. How much you need depends on the loan. Some programs, such as VA and USDA loans, can allow little or no down payment for eligible buyers. Ask your lender what your loan requires.
Loan Estimate
A standard form your lender must give you within three business days of receiving your loan application, according to the CFPB. It shows the estimated rate, monthly payment, closing costs, taxes and insurance, so you can compare lenders. My buyer closing costs guide walks through it.
Mortgage insurance
Insurance that protects the lender, not you, if a loan is not repaid. Whether your loan has it depends on the loan type and your down payment. VA says its purchase loans do not require private mortgage insurance, and FHA, VA and USDA loans can carry an upfront premium or funding fee instead. Ask your lender what applies to you.
Escrow account
An account your lender sets up to pay your property taxes and homeowners insurance. The CFPB says the lender collects part of each monthly payment for it, and many lenders require one. The first deposit is collected at closing.
VA loan
A home loan made by a private lender and backed by the Department of Veterans Affairs for eligible service members, veterans and some surviving spouses. VA says it generally allows no down payment when the price is not more than the appraised value, and you must live in the home. See my VA home loans guide.
USDA loan
The USDA Section 502 Guaranteed Loan offers 100 percent financing for a primary residence in an eligible rural area, with household income limits. Eligibility is checked by address. See my USDA home loans guide.
THDA Great Choice Home Loan
A 30 year fixed rate mortgage from the Tennessee Housing Development Agency for eligible buyers. THDA sets a minimum credit score, county income and price limits and a homebuyer education requirement, and Great Choice Plus can help with the down payment and closing costs. See my first time home buyer guide.
Earnest money
A good faith deposit a buyer puts down when an offer is accepted. Your purchase contract says how much it is, who holds it and when it can be refunded. At closing it is normally credited toward your cash to close.
Appraisal
An opinion of value from an independent, licensed appraiser, usually ordered by the lender after you go under contract. The CFPB says you have a right to a copy. An appraisal is not the same as an agent home value report or a home inspection.
Inspections and property
Home inspection
A visual look at the condition of the home and its main systems by a home inspector, who must be licensed in Tennessee. Under Tennessee law it is not a code compliance inspection. See my home inspection guide.
Inspection period
The window in your purchase contract for inspections and tests and for deciding what to do about anything you find. Your contract sets the length and the steps, so read those terms before you sign.
Radon test
Radon is a gas you cannot see or smell, and testing is the only way to know the level in a home. The EPA recommends fixing a home at 4 pCi/L or higher and says all tests should run at least 48 hours. The home inspection guide covers radon testing in a purchase.
Wood destroying insect report
Often called a termite letter. The Tennessee Department of Agriculture says a Wood Destroying Insect Infestation Report issued with a sale must be warranted for 90 days for accuracy.
Septic system
A private wastewater system, usually a buried tank and a drainfield, used where a home is not on city sewer. TDEC keeps permit records for systems, and its inspection letter documents the status of an existing system. See my septic systems guide.
Private well
A well that supplies water to one home. The owner is responsible for testing it, and TDEC says Tennessee does not require private water to be sampled, so the test is up to the buyer and any lender that asks for one. See my guide to buying a home with a well.
Lead based paint disclosure
A federal rule for most housing built before 1978. The seller provides an EPA pamphlet and discloses any known lead based paint, and the buyer generally gets a 10 day opportunity to have the home tested, which the buyer may waive.
Survey
A map of the property boundaries and improvements prepared by a land surveyor, who must be registered in Tennessee. A survey can show encroachments and easements. It is common on land and rural purchases. See my land buying guide.
Closing
Closing attorney or title company
The office that handles the closing, prepares the settlement statement and records the documents. Ask your closing attorney or title company which documents need a notary and whether a remote closing is available for your loan.
Title search
A review of public records to confirm who owns the property and whether there are liens or other claims against it. The Coffee County Register of Deeds does not do title searches; a title company or attorney handles that.
Title insurance
Insurance against covered problems with the title. The CFPB says most lenders require a lender title policy. An owner title policy is optional and protects you against claims from before your purchase, such as a past owner unpaid taxes or contractors.
Closing Disclosure
The final statement of your loan terms and closing costs. The CFPB says your lender must give it to you at least three business days before closing, so you have time to compare it to your Loan Estimate.
Cash to close
The amount you bring to closing: your down payment plus closing costs, minus your earnest money deposit, seller credits and other adjustments. It is usually paid by wire or cashier check. Confirm wiring instructions by phone with your closing agent before you send money.
Prorations
The split of costs like the year property taxes and any HOA dues between buyer and seller based on the closing date, so each pays for the part of the year they own the home.
Final walk through
A last visit to the home shortly before closing to confirm its condition and that any agreed repairs were made.
Deed
The document that transfers ownership from the seller (grantor) to the buyer (grantee). It is recorded with the county Register of Deeds. Ask your attorney about the type of deed in your sale.
Deed of trust
The document recorded with your loan that pledges the home as security for the debt. Tennessee charges the state mortgage tax when it is recorded; see Tennessee mortgage tax below.
Selling
Listing agreement
The written agreement between a seller and the listing brokerage. It sets the terms of the listing, including the commission, which is negotiable and not set by law. See how to sell a house in Manchester.
Comparative market analysis
Also called a CMA. An agent review of recent sales, active listings and the condition of a home to estimate its market value. It is an opinion meant to help you plan, not an appraisal. See what is my Manchester home worth.
Seller concessions
Money a seller agrees to pay toward the buyer closing costs. The CFPB notes a seller credit often comes with a higher price. Concessions are negotiated in the purchase contract.
Seller net sheet
An estimate of what a seller may take home after the loan payoff, closing costs and any concessions. Final numbers come from the closing agent. See my seller closing costs guide.
Land and rural property
Greenbelt
The common name for the Agricultural, Forest and Open Space Land Act of 1976, which values qualifying agricultural, forest or open space land by its present use instead of its highest and best use. You apply with the county assessor. See my greenbelt guide.
Rollback taxes
Taxes saved under greenbelt for the past 3 years for agricultural and forest land, or 5 years for open space land, which come due when land leaves the program. Who pays can depend on the contract and on what the buyer files. See my selling land guide.
Soil evaluation (perc test)
Before a septic permit is issued, a TDEC Environmental Scientist evaluates the site, and TDEC may require a soils map from a licensed soil consultant. Land buyers often make a purchase contingent on a satisfactory evaluation. See my land buying guide.
Plat
A recorded map that shows how land is divided into lots. In Coffee County, the Register of Deeds says subdivision plats and plats dividing land into lots under 5 acres must be approved by planning and zoning before recording.
Easement
A right for someone else to use part of a property for a set purpose, such as utility lines or a shared drive. Easements can show up on the survey, the plat or the title search. Ask your title company or attorney to explain any you find.
TVA Section 26a permit
TVA requires a Section 26a permit for docks and other construction along the shoreline of its reservoirs, including Normandy and Tims Ford, and approval is not guaranteed. See my Normandy Lake homes guide.
Tennessee specific terms
Residential property disclosure statement
Under the Tennessee Residential Property Disclosure Act (TCA 66 5 201 and following), the seller of a home with one to four units gives the buyer a statement of the property condition and known material defects, before the contract is accepted. See Tennessee seller disclosure explained.
Disclaimer statement (as is)
The alternative to the disclosure statement, where the seller makes no representations and the buyer takes the home as is. Tennessee law allows it only if the buyer waives the disclosure statement.
Buyer representation agreement
A written agreement between a buyer and an agent. Since August 17, 2024, agents who participate in an MLS must have one with a buyer before touring a home. It states the agent compensation, which is negotiable and not set by law. See how buyer representation works.
Realty transfer tax
A state tax collected when a deed is recorded: $0.37 per $100 of the price or value, whichever is greater. The statute places it on the grantee, the buyer, but your purchase contract decides who pays which costs. See my buyer closing costs guide.
Tennessee mortgage tax
Also called the indebtedness tax. It is collected when a mortgage or deed of trust is recorded: $0.115 per $100 of the loan amount, with the first $2,000 exempt.
Assessed value
The amount your property tax is figured on. In Tennessee, residential property is assessed at 25 percent of its appraised value, and counties reappraise on a cycle of four, five or six years. See my Coffee County property taxes guide.
Affiliate broker
A Tennessee real estate license type. Matt Sargent holds an active affiliate broker license, number 329785, with the Tennessee Real Estate Commission. You can look up any agent license at verify.tn.gov.
Keep reading:
- Buying a home in Manchester, step by step
- First time home buyer help in Tennessee
- Buyer closing costs in Tennessee
- Home inspections in Tennessee
- How to sell a house in Manchester
- All Manchester guides
Have a question that is not here?
I help buyers and sellers across Manchester and Coffee County understand every step before it happens. Call or text me at (615) 497 1658, get a free home value report, or request my buyer guide below.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.