Real Estate Glossary

The following are some common real estate terms you may run across during the process of buying or selling your home.

Change Orders

After construction begins, you may discover that you need to make unplanned and necessary changes to the work. The contingency reserve covers unforeseen repairs or deficiencies found during renovation. Unnecessary additions or changes are treated differently. These change orders are considered discretionary and must first be approved by your lender. You must deposit additional funds to pay for the work in the escrow account before work on the changes begins. These change orders -- as well as any that result from unforeseen repairs -- must be added as amendments to your construction contract.

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