Abstract: Form prepared containing historical data (previous owners, liens, etc) shown on the property. This is used to convey clear title of the property.
Acquisition Costs: Expenses incurred in acquiring business, which includes payments to agents, clients and brokers and includes expenses for telemarketing, direct mail, fulfillment, and conservation.
Affiliate: Franchisee of HMS who holds the rights to offer and market HMS products and services within a geographic area through the Real Estate Channel.
Appraisal: Professional service provided by a registered, licensed, or certified appraiser to produce an estimate of value.
Application: Request for warranty coverage submitted to the warranty issuer by or on behalf of the warranty property owner. The application usually includes sufficient facts for the issuer to determine whether or not it wishes to accept the risk.
Application Date: The date on which the consumer committed to purchase a Cinch product. This date determines the Agreement in force date for our products.
Branch Office: A business location other than the real estate Broker’s principal place of business.
Broker: Generally, a special agent who acts as an intermediary between two parties.
Broker Salesperson: A person who has passed the Broker's licensing examination but works on behalf of another licensed Broker.
Buyer’s Market: When the supply of available properties exceeds the demand.
Cancellation: A complete termination of an existing policy prior to expiration.
Cancellation Date: The termination date of an agreement that can be requested by the homeowner or real estate affiliate based on the terms of the agreement as governed by the state of issuance.
Cell Code: An assigned group number that identifies a common characteristic of all contracts within the group. They can be used to track configuration, marketing etc.
Clients: Corporate business partners of Cinch/HMS who have agreed to give us access to their client database, and/or who have agreed to co-market the Cinch/HMS services.
Closing: Final settlement between the buyer and the seller.
Closing Date: The date when the title passes from the seller to the buyer.
Common Elements: The parts of a multiple ownership property not included in the units. Parts in which each unit holder holds an undivided interest, e.g., condominium, etc.
Condominium: A multi-unit project consisting of individual ownership of a dwelling unit and undivided ownership of common elements.
Conversion Date: The date on which a seller warranty will convert to a buyer warranty.
Customer: One with whom the Broker or salesperson hopes to be successful in accomplishing the closing of a sale; a prospect.
DEC: Declaration
DEC Page: Document that identifies the term, coverage, limits and deductible, along with other declaratives for a single product plan purchased by a consumer, and is specific to the state of the property.
Deed: A type of conveyance. A written instrument to transfer title to real property from one party to another.
Disbursement: The process of releasing monies owed/due to Cinch/HMS Customers, using checks, ACH, wire transfer, Credit Card, etc..
Effective Date: The date on which Cinch/HMS becomes liable for a sold product and identifies the term start date for the contract governing the product sold.
Enrollment: The process of qualifying and initiating an agreement or contract with a buyer of the Cinch product. Enrollment can be real- time over the telephone or may be faxed in by our various affiliates or Agents, or presented in other electronic forms.
Escrow Account: An account at a real estate brokerage, bank, title company, credit union, savings and loan or trust company, used solely for safekeeping customer funds and not for deposit of personal funds.
Escrow Disbursement Order: An order issued by a state regulatory organization governing real estate transactions that determines the party entitled to escrow funds in the case of a dispute.
Estate: Tenancy; the interest one holds in real property. The total of someone’s property and possessions.
Exclusive Right to Sell: A listing given to one real estate Broker as the sole Agent for the sale of an owner’s property with the commission going to that broker regardless of who actually sells the property.
Find a Purchaser: A provision in a listing contract requiring a broker to produce a ready, willing and able buyer or offer under the terms specified.
Formal Contract: Any agreement that contains all of the essentials of a contract including the fact that it is in writing and under seal.
Homeowner: The owner of a property that is either currently covered by a Cinch/HMS service contract or that could potentially be covered by a Cinch/HMS service contract.
· HUD: The Department of Housing and Urban Development.
· Lessee: A tenant or leaseholder. Party given a lease.
· Lessor: The landlord or owner. Party granting a lease.
Market Value: The most probable price a property will bring from a fully informed buyer, willing but not compelled to buy. The lowest price a fully informed seller will accept if not compelled to sell.
Member-Broker: A real estate Broker who has signed an agreement with HMS. The member-broker agreement allows the broker and the agents in the real estate company to use the products and services offered through HMS. There is no fee for this service. The HMS Membership Services Department is responsible for establishing Member-Broker accounts and maintaining their records.
Mortgage: A written agreement that pledges property as security for payment of a debt.
Multiple Listing Service (MLS): An arrangement among members of a real estate board or exchange that allows each member broker to share listings with other members so that greater exposure is obtained and there is a higher chance that sales will result.
Offer: An indication from one person to another of their willingness to enter into a contract.
Open Listing: A listing given to any number of brokers who work simultaneously to sell the owner’s property.
Option: A right or privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration.
Optionee: The party who takes an option and pays a consideration.
Optionor: The party who gives an option and receives a consideration.
Planned Unit Development (PUD): A residential project with mixed land use and high residential density.
Premium: The consideration paid for a Plan Configuration.
Product Plan: The marketing unit offered for sale to the consumer. Typically have names such as Choice, Preferred, National One Year etc.
Product Type: The grouping of services, typically by industry or major market segment. Examples are HPP, HMS Warranty.
Purchase Type: Purchase types classify the enrollment conditions based on how the customer was introduced to the warranty. They also determine the effective and expiration date of the coverage. There are five warranty types with specific coverage, terms and marketing limitations. For a definition of each, see the “Home Warranty Agreement” or Purchase Type Definition. Purchase Types:
· SHW - Seller Home Warranty
· BCW – Buyer Conversion Warranty
· BDW – Buyer Direct Warranty
· NHW – New Home Warranty
· ODW - Open Direct Warranty
Real Estate: Land, including the air above and the earth below, plus any permanent improvements affecting the utility of the land.
Real Property: Property that is not personal property.
Real Estate Business: A commercial activity in which the sale, purchase, leasing, rental, exchange or management of real property is conducted by qualified and licensed parties acting either for themselves or for others for compensation.
Realtor: A licensed professional who organizes and assists with real estate transactions. They are usually paid commission and work on behalf of another agent or brokerage.
Renewal: The processing of an additional year of warranty coverage.
Retention: The act of causing a warranty that would otherwise expire to renew; or which would cancel, to continue the terms of the contract.
Sales Contract: An agreement whereby one party agrees to sell and the other party agrees to buy according to the terms set forth.
Salesperson: A licensed individual who, for compensation, is employed by a Broker, owner or developer.
Seller’s Market: When the demand for available properties exceeds the supply.
Tenant: A person or party who does not own but has rights of occupancy or possession of real estate property.
Title: The group of rights that represent ownership of real estate property and the quality of the estate owner. Evidence of ownership of property (legal title).
Title Insurance: A policy of insurance that protects the holder from any loss resulting from defects in the title.
Trust: A right of property, either real or personal, held by one party for the benefit of another.