St. Louis Real Estate Terms, Definitions, and Lingo

Whether you're buying your first home in Brentwood, selling a two-family in South City, investing in rental property in North County, or leasing commercial space in Clayton, this glossary covers the terminology you'll encounter. We've organized it by topic and included St. Louis-specific practices that often catch newcomers off guard.

Jump to a section:

• St. Louis & Missouri Specific Terms
• Agency & Representation
• Contracts & Negotiations
• Financing & Mortgages
• Inspections & Due Diligence
• Title, Escrow & Closing
• Property Types & Structures
• Construction & Property Condition
• Rentals & Landlord-Tenant
• Real Estate Investing
• Taxes & Assessments
• MLS, Listings & Marketing
• Legal & Regulatory Terms

---

St. Louis & Missouri Specific Terms

The St. Louis metro area has unique real estate practices, terminology, and legal requirements that differ from other markets. Understanding these local nuances is essential whether you're relocating from out of state or simply new to buying or selling property.

St. Louis City vs. St. Louis County

St. Louis City and St. Louis County are completely separate jurisdictions—they split in 1876. This affects property taxes, school districts, municipal services, and many other factors. When someone says "St. Louis," always clarify which they mean. The City has its own assessor, collector, and services entirely independent of the County.

Certificate of Value

Missouri does not require sale prices on recorded deeds. Instead, most metro area counties require a Certificate of Value to be filed when property transfers. This document reports the actual sale price to the assessor's office for tax assessment purposes. Required in St. Louis City, St. Louis County, St. Charles County, Jefferson County, and Franklin County.

Occupancy Permit / Municipal Inspection

Many St. Louis area municipalities require an occupancy inspection before a buyer can move in. The seller typically must correct any code violations identified, regardless of whether the property is sold "as-is." Each municipality has its own requirements, fees, and enforcement practices. Some are simple walkthroughs; others are extensive. Always check the specific municipality's requirements early in the transaction.

Point of Sale Inspection

Some municipalities require specific inspections triggered by the sale of property. Common requirements include sewer lateral inspections, smoke detector compliance, and building code compliance. These are separate from the general home inspection and are typically the seller's responsibility to pass.

MARIS (Mid-America Regional Information Systems)

The MLS serving the greater St. Louis region, including parts of Missouri and Illinois. MARIS is owned by participating brokerages and sets the rules for how listings are entered, marketed, and compensated. When agents refer to "the MLS" in St. Louis, they mean MARIS.

Sewer Lateral

The pipe connecting a property to the public sewer main. In St. Louis, the property owner is responsible for the entire lateral from the house to the main—this can extend well into the street. Sewer lateral failures are common in older homes and repairs can cost $5,000 to $20,000 or more. St. Louis County requires a sewer lateral inspection for most sales.

Sewer Lateral Inspection Program (St. Louis County)

St. Louis County requires a camera inspection of the sewer lateral for most property transfers. If the lateral fails, the seller must repair or escrow funds for repair. Some municipalities have their own additional requirements. This is one of the most important inspections in the St. Louis market due to the age of the housing stock and prevalence of clay tile sewers.

Personal Property Tax

Missouri taxes personal property annually, including vehicles, boats, trailers, and business equipment. This is separate from real estate taxes. New residents are often surprised by this tax, and it must be current to register vehicles. At closing, buyers relocating to Missouri should budget for this additional annual expense.

Two-Family / Four-Family

St. Louis has extensive multi-family housing stock, particularly in the City. "Two-family" refers to a duplex; "four-family" to a quadplex. Many were built in the early 1900s with solid brick construction. These can be owner-occupied with rental income or purely investment properties, and they're financed differently depending on owner occupancy.

Brick Construction

St. Louis is known for brick homes, thanks to abundant local clay deposits. Much of the housing stock features solid brick or brick veneer construction. While durable, brick homes require attention to tuckpointing (mortar repair), and buyers should understand the difference between solid brick (structural) and brick veneer (decorative over frame).

Tuckpointing

Repairing or replacing deteriorated mortar joints in brick construction. In St. Louis, this is routine maintenance for older brick homes. Neglected tuckpointing leads to water infiltration and structural issues. When evaluating older St. Louis homes, tuckpointing condition is a significant cost consideration.

Special Taxing Districts (CID, TDD, NID)

Many newer developments in the St. Louis suburbs include special taxing districts that add to the effective tax rate. CID (Community Improvement District), TDD (Transportation Development District), and NID (Neighborhood Improvement District) are common. These fund infrastructure, amenities, or services and add a sales tax, property tax, or special assessment. Always ask about special taxing districts in newer subdivisions.

Proposition S and Residential Property Tax

Missouri's assessment rate for residential property is currently 19% of market value (set by Prop S passed in 2022, phasing down from the previous rate). Commercial property is assessed at 32%. This means your property tax bill is based on 19% of the assessed value times the total tax levy rate for your location.

Illinois Side

The Metro East area of Illinois (including cities like Belleville, Edwardsville, O'Fallon, and Collinsville) is part of the St. Louis metro but operates under Illinois law. Property taxes, transfer taxes, closing customs, and disclosure requirements differ significantly from Missouri. MARIS covers both sides, but agents must be licensed in the applicable state.

Transfer Tax (Illinois)

Illinois charges a state transfer tax on real estate sales ($1.00 per $1,000 of value for state, $0.50 per $1,000 for county). Missouri does not have a state transfer tax, making this a notable difference for Metro East transactions.

---

Agency & Representation

Agency law defines who your real estate agent represents and what duties they owe you. Misunderstanding agency relationships is one of the most common and costly mistakes consumers make in real estate transactions.

Fiduciary Duty

The highest legal duty of trust and loyalty. An agent with fiduciary duty must act in your best interest, maintain confidentiality, disclose material facts, and provide honest counsel even when it's not what you want to hear.

Buyer's Agent

An agent who represents the buyer exclusively. Owes fiduciary duties to the buyer including loyalty, confidentiality, full disclosure, obedience, reasonable care, and accounting. Should help you find properties, evaluate value, negotiate effectively, and protect your interests throughout the transaction.

Listing Agent / Seller's Agent

An agent who represents the seller. Responsible for pricing strategy, marketing, showing coordination, negotiating offers, and advocating for the seller's interests. Owes fiduciary duty to the seller, not to buyers who inquire about the listing.

Dual Agency

When a single agent or brokerage represents both the buyer and seller in the same transaction. Dual agency limits the advocacy either party receives because the agent cannot fully champion one party's interests against the other's. Must be disclosed and consented to in writing. Prohibited in some states; allowed with disclosure in Missouri.

Designated Agency

A brokerage practice where different agents within the same company represent the buyer and seller separately, avoiding full dual agency. Each agent owes fiduciary duty only to their client, while the broker supervises both sides of the transaction.

Transaction Broker / Facilitator

An agent who assists both parties in completing a transaction without representing either party. Provides limited services and no fiduciary duty to either side. Common in some states but less so in Missouri residential transactions.

Procuring Cause

The agent whose efforts were the primary cause of a successful transaction. Determines who earns the commission when multiple agents were involved with a buyer. Generally, the agent who introduced the buyer to the property or was actively working with them when they decided to purchase.

Agency Disclosure

The legal requirement that agents disclose whom they represent in a transaction. In Missouri, this disclosure must be made at first substantive contact with a buyer or seller.

REALTOR®

A trademarked term for a real estate professional who is a member of the National Association of REALTORS® and subscribes to its Code of Ethics. Not all licensed agents are REALTORS®.

Broker vs. Agent

A broker has additional licensing and education beyond a salesperson/agent and can operate independently or supervise other agents. Agents must work under a broker's supervision. In Missouri, the license levels are Salesperson, Broker, and Broker-Salesperson (a broker who chooses to work under another broker).

---

Contracts & Negotiations

Real estate transactions involve multiple contracts and legal documents. Understanding the terminology helps you negotiate effectively and avoid costly misunderstandings.

Purchase Agreement / Sales Contract

The binding legal contract between buyer and seller outlining all terms of the sale including price, contingencies, inclusions, timeline, and responsibilities of each party. In Missouri, the standard forms are provided by Missouri REALTORS® but can be modified.

Offer

A formal proposal to purchase property at specified terms. An offer becomes a binding contract only when accepted in writing by the seller without modifications.

Counteroffer

A seller's response that changes any terms of the original offer. A counteroffer legally rejects the original offer and proposes new terms. The buyer can then accept, counter back, or walk away.

Multiple Offer Situation

When a seller receives more than one offer simultaneously. The seller can accept one, counter one or more, reject all, or ask all buyers for their "highest and best" offer by a deadline.

Highest and Best

A seller's request for all interested buyers to submit their strongest offer by a specific deadline, typically used in competitive multiple-offer situations.

Escalation Clause

A provision in an offer that automatically increases the buyer's price by a set amount above competing offers, up to a specified maximum. Common in competitive markets but not always accepted by sellers.

Contingency

A condition in the contract that must be satisfied for the sale to proceed. Common contingencies include financing, inspection, appraisal, and sale of buyer's current home. If a contingency isn't met, the buyer can typically cancel without penalty.

Inspection Contingency

Allows the buyer to have the property professionally inspected and negotiate repairs or credits, or cancel the contract if significant issues are found. Typically 10-14 days in the St. Louis market.

Financing Contingency / Mortgage Contingency

Protects the buyer if they cannot obtain loan approval despite good-faith efforts. Specifies the loan type, amount, and interest rate parameters that the buyer is seeking.

Appraisal Contingency

Protects the buyer if the property appraises for less than the purchase price. The buyer can typically renegotiate, pay the difference in cash, or cancel the contract.

Home Sale Contingency

Makes the purchase conditional on the buyer selling their current home. Weakens an offer significantly and may include a "kick-out clause" allowing the seller to continue marketing.

Kick-Out Clause / Release Clause

Allows a seller who accepted a contingent offer to continue marketing the property. If another acceptable offer comes in, the original buyer has a specified time (often 48-72 hours) to remove their contingency or lose the contract.

Earnest Money / Good Faith Deposit

Money submitted with an offer to demonstrate the buyer's serious intent. Typically held in escrow by the listing brokerage or title company. Applied to the buyer's costs at closing. In St. Louis, earnest money is commonly 1-3% of the purchase price but varies by situation.

Due Diligence Period

The timeframe after contract acceptance during which the buyer investigates the property through inspections, title review, and other research. The contract specifies deadlines for each contingency within this period.

As-Is Sale

A sale where the seller will not make repairs or provide credits for property condition issues. The buyer accepts the property in its current state. Note: "As-is" does not typically override municipal inspection requirements in St. Louis area municipalities.

Seller Disclosure / Property Disclosure

A document where the seller discloses known material facts about the property's condition, history, and any issues. Missouri requires sellers to complete a disclosure form, though some exemptions exist (estates, foreclosures, etc.).

Material Fact

Any information that could affect a buyer's decision to purchase or the price they would pay. Sellers and agents have a legal duty to disclose known material facts. Examples include foundation issues, water intrusion, deaths on property, neighborhood nuisances, and environmental hazards.

Addendum

A document that adds to or modifies the original contract. Common addenda address inspection results, financing terms, closing date changes, and repair agreements.

Amendment

A change to an existing contract term, agreed to by all parties in writing. Used to modify dates, prices, or other terms after the original contract is signed.

Time is of the Essence

Legal language meaning deadlines in the contract are strict and binding. Missing a deadline can constitute breach of contract.

Default

Failure to perform a contractual obligation. A defaulting buyer may forfeit earnest money; a defaulting seller may face legal action for specific performance or damages.

Specific Performance

A legal remedy requiring a party to complete the contract as agreed, rather than pay damages. Can force a seller to sell or a buyer to buy if they default.

Liquidated Damages

A predetermined amount of damages specified in the contract if one party defaults. In many real estate contracts, the earnest money serves as liquidated damages if the buyer defaults without a valid contingency.

---

Financing & Mortgages

Understanding mortgage terminology helps you secure better financing and avoid surprises during the loan process.

Pre-Qualification

A lender's informal estimate of how much you might borrow based on self-reported financial information. Quick but not verified—sellers don't give it much weight.

Pre-Approval

A lender's conditional commitment to lend a specific amount based on verified financial documentation (income, assets, credit). Much stronger than pre-qualification and typically required to submit competitive offers.

Underwriting

The lender's detailed review of the loan application, verifying all documentation and ensuring the loan meets investor/insurer guidelines. The underwriter makes the final approval decision.

Loan Estimate

A standardized federal form provided within three business days of loan application, detailing estimated interest rate, monthly payment, closing costs, and other loan terms. Use it to compare offers from different lenders.

Closing Disclosure

A standardized federal form provided at least three business days before closing, showing final loan terms and all closing costs. Compare it carefully to your Loan Estimate to catch any changes.

Conventional Loan

A mortgage not insured or guaranteed by a government agency. Typically requires higher credit scores and down payments than government-backed loans but may have lower overall costs for qualified borrowers.

Conforming Loan

A conventional loan that meets Fannie Mae or Freddie Mac guidelines, including loan amount limits (currently $766,550 in most areas for 2024). Conforming loans typically have better rates than non-conforming loans.

Jumbo Loan

A loan exceeding conforming loan limits. Requires stricter qualification and often higher down payments and interest rates.

FHA Loan

A mortgage insured by the Federal Housing Administration. Allows lower down payments (3.5% minimum) and more flexible credit requirements. Requires mortgage insurance for the life of the loan. Property must meet FHA condition standards.

VA Loan

A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans and service members. Allows zero down payment and no monthly mortgage insurance. One of the best loan products available for those who qualify.

USDA Loan

A zero-down-payment loan for properties in designated rural areas, backed by the U.S. Department of Agriculture. Income limits apply. Parts of the outer St. Louis suburbs and exurbs may qualify.

Down Payment

The portion of the purchase price paid in cash at closing. Typical down payments range from 3% to 20% or more. Larger down payments reduce monthly payments and may eliminate mortgage insurance requirements.

Mortgage Insurance (PMI/MIP)

Insurance protecting the lender if you default. Required on conventional loans with less than 20% down (called PMI—Private Mortgage Insurance) and on all FHA loans (called MIP— Mortgage Insurance Premium). Adds to your monthly payment.

Principal

The amount borrowed, not including interest. Each mortgage payment includes some principal repayment (reducing your loan balance) and some interest.

Interest Rate

The cost of borrowing, expressed as a percentage. A fixed rate stays the same for the loan term; an adjustable rate can change after an initial period.

APR (Annual Percentage Rate)

The total cost of borrowing including interest rate plus lender fees, expressed as a percentage. Use APR to compare true loan costs between lenders, but understand it assumes you keep the loan for its full term.

Points / Discount Points

Upfront fees paid to the lender to reduce the interest rate. One point equals 1% of the loan amount. Whether points make sense depends on how long you plan to keep the loan.

Origination Fee

A lender fee for processing the loan, typically 0.5% to 1% of the loan amount. Negotiable and should be compared between lenders.

PITI

Principal, Interest, Taxes, and Insurance—the four components of a typical monthly housing payment. Lenders use PITI to calculate your debt-to-income ratio.

Debt-to-Income Ratio (DTI)

Your total monthly debt payments divided by gross monthly income. Lenders typically want to see a DTI below 43-50%, depending on loan type and other factors. Lower is better for loan approval and terms.

LTV (Loan-to-Value Ratio)

The loan amount divided by the property value. An 80% LTV means you're borrowing 80% of the value (20% down payment). Lower LTV means less lender risk and often better terms.

Escrow Account / Impound Account

An account held by the lender to pay property taxes and insurance on your behalf. You pay into it monthly as part of PITI, and the lender disburses payments when due. Required on most loans with less than 20% down.

Rate Lock

A commitment from the lender to honor a specific interest rate for a set period (typically 30-60 days) while your loan is processed. Protects you from rate increases but may cost extra for longer lock periods.

Clear to Close

Final loan approval from the underwriter, indicating all conditions have been met and the loan is ready to fund at closing. A major milestone in the transaction.

Funding

The lender's release of loan funds, typically to the title company at closing. The transaction isn't complete until the loan funds.

Seller Concession / Seller Credit

Money the seller agrees to pay toward the buyer's closing costs. Allows buyers to reduce out-of-pocket costs. Limits apply based on loan type and down payment amount. Common negotiating tool in buyer's markets.

Assumable Mortgage

A loan that can be transferred to a new buyer, keeping the original terms. FHA and VA loans are assumable. With current higher rates, older assumable loans at lower rates can be valuable.

Amortization

The gradual repayment of principal over the loan term. An amortization schedule shows how each payment is split between principal and interest over time—early payments are mostly interest; later payments are mostly principal.

Balloon Payment

A large final payment due at the end of a loan term that hasn't fully amortized. Common in commercial loans and some creative financing arrangements. Risky if you can't refinance or pay when due.

---

Inspections & Due Diligence

Thorough inspections and due diligence protect you from costly surprises. In the St. Louis market, certain inspections are especially important due to the age and construction of local housing stock.

Home Inspection

A visual examination of a property's accessible systems and components by a licensed inspector. Covers structure, roof, electrical, plumbing, HVAC, and more. Not a code inspection or guarantee—it identifies visible issues and potential concerns.

Sewer Lateral Inspection / Sewer Scope

A video camera inspection of the sewer line from the house to the main. Critical in St. Louis due to aging clay tile sewers prone to root intrusion, cracks, and bellies. Required by St. Louis County for most sales. Can reveal $10,000+ in needed repairs.

Radon Test

A test for radon gas, a naturally occurring radioactive gas that can accumulate in basements and cause lung cancer. The EPA recommends mitigation if levels exceed 4 pCi/L. Common in Missouri homes, especially those with basements. Mitigation typically costs $800-$1,500.

Wood-Destroying Insect Inspection (Termite Inspection)

An inspection for termites and other wood-destroying insects or organisms. Often required by lenders, especially for VA and FHA loans. In Missouri, also looks for powder post beetles and wood-decay fungus.

Mold Inspection

Testing for mold presence and type, usually triggered if the home inspection reveals water damage, musty odors, or visible growth. Important in St. Louis homes with basement moisture issues.

Lead-Based Paint Inspection

Testing for lead paint, common in homes built before 1978. Federal law requires sellers to disclose known lead paint and provide buyers 10 days to test. Especially relevant in St. Louis's older housing stock.

Asbestos

A hazardous material common in older homes, found in insulation, floor tiles, siding, and other materials. Not always dangerous if undisturbed but costly to remove if renovation is planned. Common in St. Louis homes built before 1980.

Foundation Inspection

A structural engineer's evaluation of the foundation, often ordered if the home inspection reveals cracks, settlement, or water infiltration. Can identify serious issues and estimate repair costs.

Roof Inspection

A detailed evaluation by a roofing professional, typically ordered if the home inspector notes concerns or the roof is near end of life. Provides remaining life estimate and repair/replacement costs.

HVAC Inspection

An evaluation by an HVAC technician to assess the heating and cooling systems' condition, efficiency, and remaining useful life. Important for older systems where replacement could cost $8,000-$15,000+.

Well and Septic Inspection

Required for properties not on municipal water and sewer. Well inspection includes water quality testing. Septic inspection typically includes pumping the tank and evaluating the system. Found in rural areas around St. Louis.

Survey

A professional measurement of property boundaries, easements, and encroachments. May be required by lenders or title companies. Reveals if fences, driveways, or structures cross property lines.

Appraisal

A lender-ordered opinion of property value by a licensed appraiser. Protects the lender by ensuring the property is worth at least the loan amount. Not an inspection—appraisers note obvious condition issues but don't investigate systems or structure.

Appraisal Gap

The difference between the purchase price and appraised value when the appraisal comes in low. The buyer must make up the difference in cash, renegotiate, or cancel (if appraisal contingency applies).

Title Search / Title Examination

A review of public records to verify the seller's ownership and identify any liens, easements, encumbrances, or defects that could affect the buyer's title.

Municipal Lien Search

A search for unpaid municipal charges (water bills, code violation fines, special assessments) that could become liens on the property. Important in St. Louis City, where water bills and code fines follow the property.

---

Title, Escrow & Closing

The closing process transfers ownership from seller to buyer. Understanding these terms helps ensure a smooth closing.

Title

Legal ownership of property. Having "clear title" means there are no liens, claims, or defects that could challenge your ownership.

Title Insurance

Insurance protecting against losses from title defects not discovered in the title search. Owner's policies protect buyers; lender's policies protect the mortgage holder. One-time premium paid at closing.

Owner's Title Policy

Title insurance protecting the buyer's equity against covered title defects. Optional but strongly recommended. In Missouri, the seller customarily pays for the owner's policy, though this is negotiable.

Lender's Title Policy

Title insurance protecting the lender's interest. Required on virtually all mortgage loans. The buyer pays for this policy.

Deed

The legal document transferring ownership from seller to buyer. Must be signed, notarized, and recorded with the county recorder. Missouri uses warranty deeds for most sales.

Warranty Deed

A deed where the seller guarantees clear title and will defend against any claims. The most common deed type in Missouri residential sales.

Quitclaim Deed

A deed transferring whatever interest the grantor has, with no warranties. Used for transfers between family members, to clear title issues, or add/remove names. Not appropriate for standard sales.

Beneficiary Deed (Missouri)

A deed allowing property to transfer to a named beneficiary at death without probate. Revocable during the owner's lifetime. A useful estate planning tool in Missouri.

Escrow

A neutral third party holding funds or documents until conditions are met. In real estate, earnest money is held in escrow, and the title company acts as escrow agent at closing.

Closing / Settlement

The final step where ownership transfers. Documents are signed, funds are exchanged, and the deed is recorded. In Missouri, buyer and seller often close separately at the title company.

Dry Closing

When documents are signed but funds haven't yet been released (waiting for lender funding or recording). Title doesn't transfer until funds are disbursed.

Proration

The division of expenses like property taxes, HOA dues, and utilities between buyer and seller based on the closing date. Each party pays their fair share for their period of ownership.

Recording

Filing the deed and other documents with the county recorder to make them part of the public record. Recording establishes priority of ownership and liens.

Closing Costs

All fees and expenses paid at closing beyond the purchase price. Includes lender fees, title insurance, recording fees, prorated taxes, and other charges. Typically 2-5% of the purchase price for buyers.

ALTA Settlement Statement

A standardized form itemizing all financial details of the transaction—purchase price, prorations, fees, and disbursements for both parties. Review carefully before signing.

Wire Transfer / Wire Fraud Warning

Closing funds are typically sent by wire transfer. Wire fraud is common—always verify wiring instructions by phone using a known number, never email. Title companies will never change wiring instructions via email.

Possession

When the buyer can occupy the property. Typically at closing or a specified time after. Post-closing occupancy agreements can allow sellers to remain temporarily.

---

Property Types & Structures

Understanding property types affects everything from financing to insurance to HOA rules.

Single-Family Home

A standalone residential structure designed for one household. The most common property type, typically with the most straightforward financing and ownership.

Townhouse / Townhome

A multi-story home sharing one or more walls with adjacent units, with individual ownership of the structure and land beneath it. May have an HOA for common areas.

Condominium (Condo)

Ownership of an individual unit within a larger building or complex, plus a share of common areas. The HOA owns exterior and common areas; you own the interior space. Financing requires condo project approval.

Co-op (Cooperative)

Ownership of shares in a corporation that owns the building, with a proprietary lease to occupy a specific unit. Rare in St. Louis but common in some cities. Financing is more difficult than condos.

Duplex / Two-Family

A building with two separate living units, either side-by-side or stacked. Can be owner- occupied with one rental unit or purely investment. Financing differs based on owner occupancy.

Triplex / Three-Family

A building with three separate living units. With owner occupancy, can still be financed with residential loans (FHA, VA, conventional).

Quadplex / Four-Family

A building with four separate living units. The largest multi-family property that qualifies for residential financing with owner occupancy. Five+ units requires commercial financing.

Multi-Family

A general term for any property with more than one living unit. 2-4 units can use residential financing with owner occupancy; 5+ units requires commercial financing.

Mixed-Use

A property combining residential and commercial uses, like apartments above retail space. Financing and zoning considerations are more complex.

PUD (Planned Unit Development)

A residential development where homeowners own their lot and structure but share common areas through an HOA. Different from condos—you own the land under your home.

Manufactured Home / Mobile Home

A factory-built home transported to its site. Financing options are limited unless the home is permanently affixed to owned land and titled as real property. Older homes may only qualify for chattel loans.

Modular Home

A factory-built home assembled on-site on a permanent foundation, meeting local building codes. Treated the same as site-built homes for financing and appraisal.

---

Construction & Property Condition

Understanding construction terms helps evaluate property condition and anticipate maintenance costs.

Foundation Types

Slab: Concrete poured directly on grade—no basement or crawlspace. Common in newer construction and warmer climates. Basement: Full-depth space below grade, common in St. Louis. Crawlspace: Shallow space with access for utilities. Pier and Beam: Structure elevated on posts.

Load-Bearing Wall

A wall supporting weight from above (roof, upper floors). Cannot be removed without structural modification. Critical to identify before any renovation involving wall removal.

Solid Brick vs. Brick Veneer

Solid brick (or double brick) is structural—the brick supports the building. Brick veneer is decorative, with a wood or steel frame carrying the load. Most older St. Louis homes are solid brick; newer homes use veneer.

Knob and Tube Wiring

Early electrical wiring method using ceramic knobs and tubes. Common in pre-1940s homes. Not inherently dangerous if undisturbed but cannot handle modern electrical loads and is uninsurable by many carriers without upgrade.

Galvanized Plumbing

Steel pipes coated with zinc, common in homes built before 1960. Corrodes from inside, reducing water pressure and eventually failing. Replacement cost is significant ($5,000-$15,000+ for a whole house).

Polybutylene Pipes

Gray plastic supply pipes used from the late 1970s through mid-1990s. Prone to failure and leaks. Often requires replacement and can affect insurability.

Cast Iron Drain Lines

Heavy iron pipes used for drains in older homes. Eventually corrode and fail, especially in horizontal runs. Common issue in St. Louis homes built before 1970.

HVAC

Heating, Ventilation, and Air Conditioning systems. Typical lifespan is 15-25 years depending on type and maintenance. Replacement is a major expense ($8,000-$15,000+).

Forced Air vs. Radiant Heat

Forced air uses ducts to distribute heated/cooled air—most common modern system. Radiant heat uses hot water in pipes (radiators, baseboard) or floor systems. Many older St. Louis homes have converted from radiant to forced air.

Flat Roof

A roof with minimal slope, common on St. Louis's brick four-family buildings and some mid-century homes. Requires different materials and maintenance than pitched roofs, with typical 15-20 year lifespan.

Tuckpointing

Removing deteriorated mortar from brick joints and replacing it. Essential maintenance for St. Louis's brick homes. Neglected tuckpointing leads to water infiltration and structural damage. Cost varies widely based on extent needed.

Efflorescence

White crystalline deposits on brick or concrete, caused by water moving through the material and leaving mineral deposits. Indicates moisture issues that should be addressed.

R-Value

A measure of insulation's effectiveness. Higher R-values mean better insulation. Older St. Louis homes often have minimal insulation, increasing heating/cooling costs.

SEER Rating

Seasonal Energy Efficiency Ratio—measures air conditioning efficiency. Higher is better. Minimum standard is now 14-15 SEER; high-efficiency units are 18-20+.

---

Rentals & Landlord-Tenant

Whether you're a landlord or tenant, understanding these terms protects your rights and clarifies responsibilities.

Lease / Rental Agreement

A contract establishing the tenant's right to occupy the property and both parties' obligations. Specifies rent, term, rules, and responsibilities.

Fixed-Term Lease

A lease for a specific period (typically one year). Neither party can terminate early without cause or penalty unless the lease allows it.

Month-to-Month Tenancy

A rental agreement that renews automatically each month until either party gives notice. More flexible but less stable for both parties.

Security Deposit

Money held by the landlord to cover damages beyond normal wear and tear or unpaid rent. Missouri law does not cap security deposit amounts but requires return within 30 days of move-out, with an itemized statement of deductions.

Normal Wear and Tear

Expected deterioration from ordinary use—minor scuffs, carpet wear in traffic areas, small nail holes. Cannot be deducted from security deposit. Damage from negligence or abuse is different.

Application Fee

A fee charged to process a rental application, covering credit and background checks. Should reflect actual screening costs.

Pet Deposit / Pet Rent

Additional charges for tenants with pets. A pet deposit is refundable if no damage; pet rent is a monthly fee. Service animals and emotional support animals are treated differently under fair housing law.

Sublease / Sublet

When a tenant rents to another person (subtenant) while remaining responsible under the original lease. Usually requires landlord approval.

Assignment

Transferring all lease rights and responsibilities to a new tenant, who becomes directly responsible to the landlord. Different from subletting.

Eviction

Legal process to remove a tenant from a property. In Missouri, landlords must follow specific notice and court procedures. "Self-help" eviction (changing locks, removing belongings) is illegal.

Rent Control

Government limits on how much landlords can charge or increase rent. Missouri has a state preemption prohibiting local rent control ordinances, so rent control does not exist in the St. Louis area.

Fair Housing

Federal, state, and local laws prohibiting discrimination in housing based on protected classes (race, color, religion, national origin, sex, familial status, disability, and additional categories under local ordinances).

Implied Warranty of Habitability

A landlord's legal obligation to maintain rental property in livable condition—providing essential services like heat, water, and weatherproofing, and addressing serious maintenance issues.

Quiet Enjoyment

A tenant's right to use and enjoy the rental property without unreasonable interference from the landlord or their failure to address issues caused by others.

Lease Renewal

Signing a new lease or extending an existing one when the term expires. Terms may change at renewal.

Notice to Vacate

Written notice from landlord to tenant (or vice versa) that the tenancy will end. Required notice periods vary based on lease type and reason.

---

Real Estate Investing

Investment properties are evaluated differently than primary residences. These terms help analyze potential returns and risks.

Cash Flow

Rental income minus all expenses (mortgage, taxes, insurance, maintenance, vacancy, management). Positive cash flow means the property generates profit monthly.

Cap Rate (Capitalization Rate)

Net Operating Income divided by property value or purchase price. Expresses return independent of financing. Higher cap rates suggest higher returns (and often higher risk). Formula: NOI ÷ Price = Cap Rate.

NOI (Net Operating Income)

Rental income minus operating expenses, before debt service. Doesn't include mortgage payments. Used to calculate cap rate and property value.

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested (down payment plus closing costs and initial repairs). Measures return on your actual cash investment.

GRM (Gross Rent Multiplier)

Purchase price divided by annual gross rents. A quick screening metric—lower GRM suggests better value. Doesn't account for expenses.

1% Rule

A rough screening guideline suggesting monthly rent should equal at least 1% of purchase price. Just a starting point—actual analysis requires detailed numbers.

DSCR (Debt Service Coverage Ratio)

NOI divided by annual debt payments. Measures ability to cover the mortgage. Lenders typically require DSCR of 1.20-1.25+, meaning NOI is 20-25% higher than debt payments.

Vacancy Rate

Percentage of time units are unoccupied. Budget 5-10% for vacancy in projections. Actual rates vary by property type, location, and management.

CapEx (Capital Expenditures)

Major, infrequent expenses like roof replacement, HVAC systems, or renovations. Smart investors reserve funds monthly for future CapEx needs.

Property Management

Hiring a company or individual to handle tenant relations, maintenance, rent collection, and other landlord responsibilities. Typically 8-10% of rent.

House Hacking

Living in one unit of a multi-family property while renting out others, reducing or eliminating your housing cost. Popular strategy for new investors.

BRRRR

Buy, Rehab, Rent, Refinance, Repeat. A strategy to build a rental portfolio by forcing appreciation through renovation, then pulling equity out to fund the next purchase.

Fix and Flip

Buying distressed property, renovating, and selling quickly for profit. Different from rental investing—income is from appreciation, not cash flow.

Wholesaling

Contracting to buy property and then assigning that contract to another buyer for a fee, without actually purchasing. Requires finding deals significantly below market value.

1031 Exchange

A tax-deferred exchange allowing investors to sell a property and reinvest proceeds in a like-kind property without paying capital gains taxes. Strict timelines and rules apply—must identify replacement property within 45 days and close within 180 days.

Syndication

Pooling money from multiple investors to purchase larger properties. A sponsor/operator manages the investment; passive investors provide capital.

Hard Money Loan

Short-term, high-interest financing based on property value rather than borrower qualifications. Used for flips or bridge financing. Typically 10-15% interest with 2-4 point origination fees.

ARV (After Repair Value)

The estimated market value of a property after planned renovations are complete. Critical metric for fix-and-flip and BRRRR investing.

Forced Appreciation

Increasing property value through improvements, better management, or increased rents—as opposed to natural market appreciation.

---

Taxes & Assessments

Property taxes are a significant ongoing cost. Understanding how they work helps you budget accurately and identify savings opportunities.

Assessed Value

The value assigned to your property by the county assessor for tax purposes. In Missouri, residential property is assessed at 19% of market value.

Appraised Value vs. Assessed Value

Appraised value is an estimate of market value (what the property would sell for). Assessed value is a percentage of that used for taxes. Don't confuse them—your tax bill is based on assessed value times the levy rate.

Tax Levy / Mill Rate

The tax rate set by various taxing jurisdictions (schools, municipality, library, fire district, etc.) expressed per $100 of assessed value. Your total levy is the sum of all jurisdictions.

Property Tax Bill

Calculated as: Assessed Value × Total Levy Rate ÷ 100. In the St. Louis metro area, total levies typically range from about $6 to over $10 per $100 of assessed value, depending on location.

Reassessment

Periodic revaluation of properties by the assessor. In Missouri, reassessment occurs in odd-numbered years. Values can increase or decrease based on market conditions.

Tax Appeal / Assessment Appeal

The process of challenging your property's assessed value if you believe it's too high. In Missouri, appeals are filed with the local Board of Equalization, typically in June-July of reassessment years.

Homestead Exemption

Missouri does not have a general homestead exemption reducing property taxes for owner-occupants. However, senior citizens may qualify for a property tax credit on their state income tax return.

Tax Proration

At closing, property taxes are divided between buyer and seller based on the closing date. In Missouri, taxes are paid in arrears (you pay in the current year for the prior year), so prorations can be complex.

Special Assessment

A charge for specific improvements benefiting a property—sidewalks, sewers, streetlights. May appear as a lien or ongoing charge. Ask about special assessments before purchasing.

Tax Sale / Tax Lien Sale

When property taxes go unpaid, the county can sell the tax lien or eventually the property itself to recover the debt. Creates opportunities for investors but has significant risks and complexity.

Collector vs. Assessor

The assessor determines property values. The collector collects tax payments. They're separate offices. Questions about value go to the assessor; payment questions go to the collector.

Personal Property Tax (Missouri)

An annual tax on tangible personal property like vehicles, boats, and business equipment. Assessed each January based on what you own. Billed in the fall. Must be current to register vehicles.

Capital Gains Tax

Federal and state tax on profit from selling property. Long-term (held over a year) rates are lower than short-term. The $250,000/$500,000 primary residence exclusion can eliminate gains for many homeowners.

Depreciation (Tax)

For rental property, you can deduct the building's cost (not land) over 27.5 years, reducing taxable income. A significant tax benefit for investors.

Cost Segregation

An advanced tax strategy accelerating depreciation by identifying components that can be depreciated faster than the standard 27.5 years. Beneficial for larger investments.

---

MLS, Listings & Marketing

Understanding how properties are marketed helps buyers find homes and sellers maximize exposure.

MLS (Multiple Listing Service)

A database where brokers share listing information and agree to compensate cooperating brokers. MARIS serves the St. Louis metro. MLS access requires membership through a REALTOR® association.

IDX (Internet Data Exchange)

A system allowing MLS data to be displayed on member websites. When you search homes on a brokerage or agent website, you're usually seeing IDX data.

Active Listing

A property currently available for sale and accepting showings. The primary status buyers search.

Pending

A property under contract where all contingencies have been removed. Sale is expected to close.

Contingent

A property under contract with contingencies still in place. May show as "Contingent— Show" (still accepting backup offers and showings) or "Contingent—No Show."

Coming Soon

A pre-marketing status for listings not yet active. Allows limited promotion before going live. MARIS has specific rules about Coming Soon duration and showings.

Off-Market / Pocket Listing

A property for sale but not listed on the MLS. Limits exposure but may be desired for privacy reasons. Less common due to MLS rules requiring timely entry of listings.

Days on Market (DOM)

How long a property has been listed. Resets if the listing is withdrawn and relisted. Cumulative Days on Market (CDOM) tracks total time across multiple listings.

Price Reduction

A decrease in asking price, typically due to lack of buyer interest. Multiple reductions can signal an overpriced property or issues.

Back on Market

A previously pending property that's returned to active status because the deal fell through. Worth investigating why.

Expired

A listing that reached the end of its contract period without selling. May indicate overpricing, condition issues, or market challenges.

Withdrawn

A listing temporarily removed from the market by the seller's choice, without canceling the listing agreement.

Showing

An in-person viewing of a property. Most require appointments scheduled through showing services like ShowingTime.

Lockbox

A secure device holding the property key, accessed by authorized agents using an electronic code or app. Allows showings without the listing agent present.

Open House

A scheduled time when a property is open for anyone to view without appointment. Used to generate interest and accommodate multiple buyers efficiently.

Buyer Broker Compensation / Commission

Payment offered by the seller or listing broker to the buyer's agent. Historically listed in the MLS; now disclosed differently following recent industry changes. Buyers should discuss compensation with their agent before making offers.

Listing Agreement

A contract between seller and listing broker establishing the terms of representation, including commission, price, duration, and marketing plan.

Exclusive Right to Sell

The most common listing agreement type. The listing broker earns commission if the property sells during the listing period, regardless of who finds the buyer.

Exclusive Agency

A listing where the broker earns commission unless the seller finds their own buyer without agent involvement.

CMA (Comparative Market Analysis)

An agent's analysis of comparable sales to estimate a property's market value. Used to set listing prices and inform offers. Not an appraisal.

Absorption Rate

How quickly homes are selling in a given market—calculated as sales per month divided by active inventory. Indicates market pace.

Buyer's Market vs. Seller's Market

In a buyer's market, inventory exceeds demand—buyers have more negotiating power. In a seller's market, demand exceeds inventory—sellers have leverage and multiple offers are common.

---

Legal & Regulatory Terms

Legal terms affecting property ownership, use, and transfer.

Fee Simple

The most complete form of property ownership—you own the land and structure outright with the right to use, sell, or bequeath as you choose, subject to laws and any encumbrances.

Easement

A right to use another's property for a specific purpose. Common examples include utility easements (allowing utility access) and access easements (allowing passage). Run with the land and transfer with ownership.

Right of Way

An easement allowing passage across property. May be for roads, driveways, or pedestrian access.

Encumbrance

Any claim, lien, or restriction affecting property title. Includes mortgages, easements, liens, and deed restrictions.

Lien

A legal claim against property as security for a debt. Mortgages, tax liens, mechanic's liens, and judgment liens all encumber title and must be satisfied for clear conveyance.

Mechanic's Lien

A lien filed by contractors, subcontractors, or suppliers for unpaid work or materials. Can complicate sales if previous owners had work done without paying.

Lis Pendens

A recorded notice that litigation affecting the property is pending. Alerts potential buyers to a legal dispute.

Zoning

Local government regulations controlling how property can be used—residential, commercial, industrial, etc. Also regulates density, setbacks, building height, and other factors.

Variance

Permission to deviate from zoning requirements. Requires application and approval from the local zoning board.

Nonconforming Use / Grandfathered

A property use that doesn't comply with current zoning but is allowed to continue because it predates the zoning change. May have restrictions on expansion or rebuilding.

CC&Rs (Covenants, Conditions & Restrictions)

Private rules governing property use in a subdivision or community, enforced by an HOA or property owners. May restrict paint colors, fencing, parking, rentals, and more.

HOA (Homeowners Association)

An organization managing common areas and enforcing CC&Rs in a community. Membership is typically mandatory and includes dues for maintenance and reserves. Review HOA documents carefully before purchasing.

Deed Restriction

A limitation on property use recorded in the deed. May restrict certain activities, require certain features, or limit modifications. Runs with the land.

Eminent Domain

The government's power to take private property for public use with just compensation. Condemnation is the legal process of exercising this power.

Adverse Possession

A legal doctrine allowing someone to claim ownership of land they've openly occupied and used for a statutory period (10 years in Missouri) without the owner's permission.

Cloud on Title

Any document, claim, or encumbrance that could impair the owner's title. Must be resolved before clear title can be conveyed.

Quiet Title Action

A lawsuit to establish ownership and eliminate claims or clouds on title. Common when there are boundary disputes, missing heirs, or defective conveyances.

Power of Attorney (POA)

A legal document authorizing someone to act on another's behalf. A specific POA for real estate transactions may be needed if a party cannot attend closing.

Joint Tenancy

Co-ownership where each owner has an equal, undivided interest and the right of survivorship—when one dies, their share automatically passes to surviving owners.

Tenants in Common

Co-ownership where each owner has a distinct share (not necessarily equal) that passes to their heirs, not other co-owners. No right of survivorship.

Tenancy by the Entirety

A form of ownership available only to married couples, where both have equal ownership with right of survivorship and some creditor protection.

Trust (Living Trust)

A legal entity holding property for beneficiaries. Commonly used to avoid probate and manage property during incapacity. Property is transferred by deed into the trust.

---

Have questions about a specific term or how it applies to your situation?
Contact a St. Louis real estate professional for personalized guidance on your transaction.

Disclaimer: This glossary is for general educational purposes and does not constitute legal, tax, or financial advice. Real estate laws, practices, and terminology vary by jurisdiction and change over time. Consult qualified professionals for advice specific to your situation.