Buying or selling in Roanoke can feel like learning a new language. You want to make confident decisions, avoid costly mistakes, and understand exactly what you are signing. This glossary gives you plain-English definitions of the most important real estate terms you will see in a Roanoke contract, plus local tips to help you navigate them like a pro. You will also find trusted resources for deeper reading and a quick FAQ at the end. Let’s dive in.
How to use this glossary
Use these definitions to decode offers, addenda, and closing documents. In Roanoke and across Virginia, agents commonly work with standard Virginia REALTORS forms, which helps keep terms consistent. If you want to see statewide guidance on forms and practices, start with the professional resources at Virginia REALTORS.
Key Roanoke real estate terms
Earnest money (EMD)
A deposit that shows good faith when you make an offer. It is held while the contract is active and applied to your costs at closing or handled per the contract if the deal cancels.
Roanoke tip: The contract should name who holds the deposit and when it is due. Release rules follow Virginia contract language and state law.
Due diligence fee
A fee paid to the seller in exchange for your right to inspect and walk away during the due diligence period. It is separate from earnest money.
Roanoke tip: This fee is common here. In competitive offers, sellers often expect a meaningful amount. It is frequently nonrefundable if you back out after the due diligence window.
Due diligence period
A negotiated window of days when you can inspect, finalize financing, and cancel per the contract.
Roanoke tip: Lengths vary, often 7 to 21 days. Shorter timelines and stronger fees may be needed in multiple-offer situations.
Contingency
A contract clause that lets you cancel if a condition is not met, such as inspection, financing, or appraisal.
Roanoke tip: Pay close attention to deadlines. Confirm whether they run on calendar or business days and how they tie to financing commitment dates on Virginia forms.
Financing (mortgage) contingency
Protects you if your loan is not approved by a set date.
Roanoke tip: VA loans are common. Local lenders can advise on realistic appraisal and underwriting timelines for our area.
Appraisal and appraisal contingency
An appraiser gives an opinion of value for the lender. With an appraisal contingency, you can cancel or renegotiate if the value comes in low.
Roanoke tip: In bidding wars, buyers and sellers often discuss appraisal gaps. Low appraisals may require extra cash or price changes if no gap is agreed.
Inspection contingency (home inspection)
Time to hire inspectors, review findings, and request repairs or credits. You may cancel for major issues per the contract.
Roanoke tip: Older homes are common here. In addition to a general inspection, many buyers order pest, radon, chimney, sewer or septic, and HVAC evaluations.
Title contingency and title review
Your right to review the title report for liens, easements, and defects. You can request fixes per the contract.
Roanoke tip: Verify utility and access easements, historic covenants, and any local liens. Settlement companies can quickly pull Roanoke records.
Title insurance (owner’s and lender’s)
Policies that protect you and your lender from certain past title problems that show up after closing.
Roanoke tip: This is a one-time premium at closing and is widely recommended. For basics, see the American Land Title Association.
Escrow and escrow agent
A neutral party holds funds and documents until conditions are met.
Roanoke tip: Your contract must name the escrow holder, which could be a broker, settlement company, or attorney.
Closing and settlement
The final signing and fund transfer when ownership changes hands.
Roanoke tip: Settlement agents typically coordinate closings. Bring photo ID and confirm wiring instructions by phone to prevent fraud.
Closing costs
Fees due at closing, such as title insurance, lender fees, recording, and prorations.
Roanoke tip: You will receive a Closing Disclosure before settlement that outlines these costs. Sellers should plan for payoff amounts and transfer-related fees.
Prorations
A fair split of recurring items like taxes and HOA dues as of the closing date.
Roanoke tip: Roanoke City property taxes and water or sewer bills are prorated per the contract. Confirm billing cycles with your settlement agent.
Warranty deed vs quitclaim deed
A warranty deed promises clear title from the seller. A quitclaim deed transfers whatever interest the seller has without guarantees.
Roanoke tip: Most residential sales use warranty deeds. Quitclaims are more common in family or estate transfers and need extra care.
Deed
The legal document that transfers ownership to you.
Roanoke tip: Deeds are recorded with the City or County clerk’s office, depending on where the property sits.
Easement
A right for others to use part of your property, often for utilities or access.
Roanoke tip: Check recorded easements and visible signs of lines or boxes. They can affect fencing, additions, or pools.
Survey or boundary survey
A map that shows boundaries, structures, and easements.
Roanoke tip: Older properties may not have a recent survey. Lenders sometimes require one, and it can prevent future disputes with neighbors.
HOA and CC&Rs
An HOA manages rules and common areas for a subdivision or condo. CC&Rs are the recorded rules you agree to follow.
Roanoke tip: Several neighborhoods and condos have active HOAs. Read fee schedules, restrictions, and any planned special assessments.
Covenants, Conditions and Restrictions (CC&Rs)
Recorded rules that govern property use, such as setbacks and exterior finishes.
Roanoke tip: Pay special attention in planned communities and older subdivisions with historic character. Rules can limit certain renovations.
“As is” sale
The seller does not plan to make repairs. You can still inspect and may request credits or termination per the contract.
Roanoke tip: You still need inspections. An “as is” label does not remove your right to due diligence.
Seller property disclosure
What the seller states in writing about known issues or conditions.
Roanoke tip: Standard Virginia disclosure forms are used. Review carefully, especially for roof age, moisture in basements, and the condition of major systems.
Lead-based paint disclosure
For homes built before 1978, sellers must disclose known hazards and provide the federal pamphlet.
Roanoke tip: Many Roanoke homes are pre-1978. Learn more about requirements and safety from the EPA’s lead resources.
Radon
A natural gas that can collect indoors and raise health risks, but it is testable and fixable.
Roanoke tip: Many Virginia areas have elevated potential. See testing guidance from the Virginia Department of Health Radon Program.
Flood zone, FEMA floodplain and flood insurance
FEMA maps identify flood hazards. Being in certain zones can require flood insurance for a mortgage.
Roanoke tip: Properties near the Roanoke River or creeks may be in a mapped zone. Check your address in FEMA’s Flood Map Service Center.
Septic system and well
Homes outside city utilities may have on-site wastewater treatment and private wells.
Roanoke tip: Verify septic inspections, pump records, and well yield and water quality. Lenders may require septic inspections before closing.
Pre-qualification vs pre-approval
Pre-qualification is a quick estimate of what you can afford. Pre-approval is a documented lender commitment, subject to conditions.
Roanoke tip: Sellers here tend to favor offers with a strong pre-approval, ideally from a responsive local lender.
Appraisal gap and appraisal waiver
An appraisal gap is when you agree to bring extra cash if appraisal is low. A waiver means removing the appraisal contingency.
Roanoke tip: These tools help in bidding situations but raise your cash risk. Discuss caps and budget impact before you commit.
Short sale, foreclosure and REO
Short sale means the lender allows a payoff for less than what is owed. Foreclosure or REO means the bank owns the property.
Roanoke tip: Expect longer timelines and “as is” conditions. Pay extra attention to title and property condition.
Escalation clause
Language that increases your offer automatically up to a set cap when there are competing bids.
Roanoke tip: Useful in competition, but can complicate appraisal and underwriting. Make the wording precise and require proof of competing offers.
Local historic-district rules and preservation review
Historic districts may require approval for exterior changes.
Roanoke tip: Many central neighborhoods fall under review. Start early with the City’s planning pages at the City of Roanoke to understand process and timelines.
Homestead and tax relief programs
Programs can reduce property taxes for qualifying homeowners, such as seniors or people with disabilities. Rules vary by locality.
Roanoke tip: Check statewide tax resources at the Virginia Department of Taxation and your locality’s Commissioner of the Revenue for current eligibility and application windows.
Local questions and pitfalls to avoid
- Difference between earnest money and due diligence fee: earnest money is usually refundable per the contract, while due diligence fees are often not if you cancel after the window closes. Budget for both.
- Who holds earnest money: it can be a broker, title or settlement company, or attorney. The contract must state the holder and deposit deadline.
- Escalation clause pros and cons: can win you a home in competition, but be ready to address appraisal and financing if price escalates.
- Inspections for older homes: go beyond general inspection if needed. Consider radon, lead-based paint for pre-1978 homes, chimney, sewer or septic, pest, foundation, and HVAC.
- Flood risk diligence: FEMA maps are the baseline for insurance requirements, but local elevation and recent storm data matter. Ask about elevation certificates.
- Historic district limits: some exterior work needs approval. Confirm before you plan windows, siding, additions, or roof changes.
- Closing costs and taxes: amounts vary by loan and property. Review your Closing Disclosure and consult local tax offices for current rates and relief programs.
- High-risk moves: very short due diligence periods, waiving inspection or appraisal contingencies, and skipping utility or septic checks can expose you to big unexpected costs.
You do not have to learn this alone. If you want a steady hand from offer to keys, connect with the veteran-led team at Mac Westland Real Estate Group and schedule a Free Consultation.
FAQs
What is the difference between earnest money and the due diligence fee in Roanoke?
- Earnest money is a good-faith deposit usually handled per the contract, while the due diligence fee is paid to the seller for your right to investigate and is often nonrefundable after the due diligence window.
How long is a typical due diligence period for Roanoke homes?
- It varies by negotiation and market conditions, often 7 to 21 days, with shorter timelines more common in competitive situations.
Do I need flood insurance in Roanoke if my home is not in a FEMA flood zone?
- Lenders may not require it outside certain zones, but some owners still buy it for peace of mind after checking FEMA maps and local elevation details.
What inspections should I order for an older Roanoke property?
- Start with a general inspection, then consider pest, radon, chimney, sewer or septic, HVAC, and any specialty evaluations based on age and condition.
How do historic district rules affect exterior remodeling in Roanoke?
- Many central neighborhoods have review requirements, so plan ahead and check the City’s planning resources before changing windows, siding, or rooflines.
How can I estimate closing costs and property taxes for a Roanoke purchase?
- Review your lender’s Loan Estimate and Closing Disclosure for fees, then consult the City or County tax offices and the Virginia Department of Taxation for current rates and relief programs.
