A Divorce and Home Glossary in Plain English

What does “Pre-approval” mean?

Before you tour seriously, a lender checks your documents and issues a letter that states how much you can likely borrow. It is not a loan commitment, but it makes an offer more credible than a casual pre-qualification.

What does “HOA and CC&Rs” mean?

Buying into an HOA means agreeing to its rules and paying its dues. During escrow you receive the CC&Rs, the budget and the reserve study, and reading them can tell you a lot about the community’s health.

What does “Months of supply” mean?

Divide homes for sale by monthly sales and you have months of supply. A market with a few months of inventory feels tight; one with many feels roomy. Local example: In the week ending Sep 19, 2026, the San Diego metro area (San Diego–Chula Vista–Carlsbad) had 3.4 months of supply.

What does “Typical home value” mean?

A “typical” value is a statistical midpoint for an area’s middle-tier homes, from Zillow’s index. Use it to follow a trend, not to price a home; your street and your home’s condition decide the price. Local example: For the San Diego metro area (San Diego–Chula Vista–Carlsbad) as a whole, Zillow’s typical home value was $930,785 in Aug 2026.

What does “ADU and junior ADU” mean?

State law encourages accessory dwelling units, and cities must follow its rules when they permit them. They come in several forms, from detached cottages to garage conversions to junior ADUs built inside the main house. Local example: Each city or county applies its own ADU ordinance within the state rules.

What does “Proposition 19” mean?

Proposition 19 (2020) lets homeowners who are 55 or older, severely disabled, or victims of a wildfire or other disaster carry their taxable value to a replacement home in California, and it narrowed the parent-child exclusion for family transfers.

What does “Earnest money deposit” mean?

A good-faith deposit the buyer delivers to escrow shortly after the seller accepts an offer, commonly a percentage of the price. It counts toward the purchase, and it can be at risk if a buyer backs out for a reason the contract does not allow.

What does “Contingency” mean?

A condition in the purchase contract that lets the buyer cancel and keep the deposit if it is not met, most often for the home inspection, the appraisal, the loan approval and the review of disclosures. The standard California contract commonly gives about 17 days for these.

What does “Escrow” mean?

Escrow is the stretch between an accepted offer and the day the sale records. A neutral escrow officer collects the deposit, the loan funds and the paperwork, then pays everyone and records the deed when both sides have done what the contract requires.

What does “Appraisal” mean?

A licensed appraiser visits the home and compares it with recent nearby sales to reach an opinion of value for the lender. A low number does not end a deal, but it forces a conversation about price, cash or terms.

What does “Transfer Disclosure Statement” mean?

The TDS is a disclosure the seller signs about what they actually know: the roof, plumbing, additions, permits, neighborhood noise and other conditions. It supplements the buyer’s own inspections and does not replace them.

What does “Closing costs” mean?

Expect a separate line of costs at closing, distinct from your down payment: charges for the loan, for title insurance and escrow, for recording the deed and for prepaying part of the year’s taxes and insurance. The Closing Disclosure shows the final numbers.

What does “Base-year value (Proposition 13)” mean?

California’s property tax is built on a purchase-price base. Buy a home and its taxable value resets to what you paid, then can rise by at most 2% a year, which is why long-time owners often pay less than new neighbors in identical homes. Local example: For a typical home in the San Diego metro area (San Diego–Chula Vista–Carlsbad) at $930,785, the 1% base tax would be about $9,308 a year, or roughly $10,704 with an assumed 0.15% for voter-approved charges. Real bills vary by address and by any special taxes.

What does “Interspousal transfer” mean?

When one spouse keeps the home and the other signs over their interest, the transfer is generally excluded from reassessment under California’s rules for spouses, so the property tax base usually continues. Ask your attorney and a tax advisor about your case.

What does “Supplemental tax bill” mean?

After a sale, the assessor updates the value and the county sends one or two supplemental bills for the months since the sale. Buyers should budget for them; they arrive separately from the regular annual bill.