Most of my Korean-speaking clients understand real estate perfectly well. The problem is not the concept — it is that the concept arrives in a 40-page English contract with a 17-day deadline attached to it.
So here is the glossary I wish someone had handed my clients on day one. Forty terms you will actually encounter in a California transaction, in English and Korean (한국어), grouped by the order you will meet them. I have added the part that matters — not just what the word means, but what it costs you if you misunderstand it.
If you would rather go through this on a call in Korean, that is what I am here for. 한국어 상담 도와드립니다.
Stage 1 — Getting your financing in order
- Pre-qualification사전 자격 심사
- A rough estimate based on numbers you tell the lender. Nothing is verified. It carries almost no weight with a seller.
- Pre-approval사전 승인
- The lender has actually reviewed your income, assets, and credit and issued a letter. In a competitive North Orange County market, an offer without this is usually not read seriously.
- Down payment다운페이먼트 · 계약금
- Your own money toward the purchase price. Not the same as the earnest money deposit, though the deposit gets credited toward it.
- Earnest Money Deposit (EMD)계약 보증금
- Typically around 1–3% of the price, wired into escrow after your offer is accepted. This is real money at risk — if you remove your contingencies and then walk away, you can lose it.
- Debt-to-Income ratio (DTI)부채상환비율
- Your monthly debt payments divided by gross monthly income. Lenders use it to size your loan. Paying off a car loan before applying can change what you qualify for.
- PITI원리금 + 세금 + 보험
- Principal, Interest, Taxes, Insurance — the four parts of a mortgage payment. In much of North Orange County you must add HOA dues and sometimes Mello-Roos on top.
- PMI (Private Mortgage Insurance)모기지 보험
- Required on most conventional loans with less than 20% down. It protects the lender, not you, and can usually be removed later once you have enough equity.
- Discount points포인트
- Prepaid interest — you pay cash up front to lower your rate. Worth it only if you will hold the loan long enough to break even.
- Rate lock금리 고정
- Locking your interest rate for a set number of days. If your escrow runs long, ask early what an extension costs.
- Loan Estimate대출 견적서
- A standardized form the lender must give you within three business days of your application. Because the format is fixed, you can compare two lenders line by line — do it.
Stage 2 — Making the offer
- Listing매물 등록
- A property formally offered for sale, usually published on the MLS.
- Offer오퍼 · 매수 제안
- In California this is the Residential Purchase Agreement (RPA) — a full contract, not a letter of interest. Once signed by both sides it is binding.
- Counter offer카운터 오퍼 · 역제안
- The seller's changed terms. Your original offer is dead the moment a counter is issued — you now have to accept theirs.
- Contingency컨틴전시 · 조건부 조항
- Your legal exit ramps: loan, appraisal, and inspection. While a contingency is active you can cancel and recover your deposit. Once removed, you generally cannot.
- Escrow에스크로
- A neutral third party that holds funds and documents until both sides perform. "We're in escrow" means the contract is signed and the clock is running.
- As-is현 상태 그대로
- The seller does not intend to make repairs. It does not waive your right to inspect, and it does not waive the seller's duty to disclose known problems.
- Multiple offer situation복수 오퍼 상황
- More than one buyer competing. The seller is not required to tell you how many, or what they contain.
- Highest and best최종 최고 조건 제출
- The seller asking all buyers to submit their final terms. This is not only about price — closing timeline and contingency periods often decide it.
- Buyer-broker agreement바이어 브로커 계약서
- Since 2024, a written agreement between you and your agent is required before touring homes. It states how your agent is compensated. Read it before signing — the terms are negotiable.
- Seller concession셀러 부담금
- The seller paying part of your closing costs or buying down your rate. Often more valuable than a small price reduction.
Stage 3 — Due diligence, where deals are won or lost
- Home inspection홈 인스펙션
- A licensed inspector's report on the physical condition of the house. You pay for it, and you should attend.
- Sewer lateral inspection하수관 카메라 점검
- A camera run through the sewer line. Not part of a standard inspection. On older Fullerton and central Yorba Linda homes I recommend it every time — it is the repair that most often surprises people after closing.
- Appraisal감정 평가
- The lender's independent valuation. The bank lends against the appraised value, not your offer price.
- Appraisal gap감정가 차액
- When the appraisal comes in below your offer. You cover the difference in cash, renegotiate, or cancel if your appraisal contingency is still in place.
- Title소유권 · 등기
- Legal ownership of the property, and the record of everything attached to it.
- Preliminary title report예비 권원 보고서
- Early in escrow this shows liens, easements, and restrictions on the property. Read it. An easement across the back of a lot has ended more than one deal.
- Title insurance권원 보험
- One-time coverage against ownership defects that predate your purchase — an unknown heir, an old lien, a recording error.
- Transfer Disclosure Statement (TDS)매도인 고지서
- California requires sellers to disclose known material facts about the property in writing. Read every page and follow up on anything vague.
- Natural Hazard Disclosure (NHD)자연재해 고지서
- Tells you whether the property sits in a flood, fire, or earthquake zone. In hillside Anaheim Hills this directly affects whether you can get insurance and at what price.
- Section 1 / Section 2 (termite report)터마이트 리포트 1항 · 2항
- Section 1 is active infestation or damage. Section 2 is conditions likely to cause it later. Who pays for which is negotiable, and it is worth negotiating.
Stage 4 — The costs of owning here
- HOA (Homeowners Association)주택 소유자 협회
- Monthly dues for shared amenities and maintenance. Get the current budget and reserve study, not just the dues figure.
- CC&Rs관리 규약
- Covenants, Conditions & Restrictions — the rules that run with the property. They can govern paint colors, rentals, parking, and pets. They bind you whether or not you read them.
- Mello-Roos (CFD)멜로루스 특별 부담금
- A bond assessment for community infrastructure, added to your property tax bill. Separate from HOA dues. Some North Orange County tracts have it and some do not — on two otherwise identical homes this can be hundreds of dollars a month.
- Supplemental tax bill추가 재산세 고지서
- After you buy, the county reassesses and sends a one-time catch-up bill. It arrives months later, it is not in your impound account, and it surprises almost every first-time buyer.
- Proposition 13주민발의 13호
- California law limiting how fast assessed value can rise. It is why a longtime neighbor may pay far less property tax than you on a similar house.
- Proposition 19주민발의 19호
- Rules on transferring a property tax base — relevant if you are over 55, or inheriting a family home. Talk to a tax professional; the details decide the outcome.
Stage 5 — Closing
- Closing costs클로징 비용
- Escrow, title, lender, and recording fees. Budget roughly 2–3% of the purchase price as a starting point, then use the actual estimate from escrow.
- Final walkthrough최종 점검
- Your last look before closing, usually a few days out. Confirm agreed repairs were done and that the condition has not changed.
- Recording등기 접수
- The county records the deed. In California this — not signing — is the moment the property legally becomes yours.
- Possession인도 · 입주
- When you actually get the keys. It is negotiated separately and does not automatically happen at recording. Get it in writing.
The two terms that cost the most when misunderstood
If you remember nothing else: contingency and Mello-Roos.
Removing a contingency before you are ready puts your deposit at risk — that is real cash, often tens of thousands of dollars. And missing a Mello-Roos assessment can quietly add hundreds of dollars to your monthly payment on a home you thought you had budgeted for. Both are entirely avoidable with one conversation before you sign.
For how these play out in specific cities, I have written area guides for Yorba Linda, Anaheim Hills, and Fullerton. If you are just getting oriented, the buyer and seller guides walk through the sequence, and the mortgage calculator will let you test what a payment actually looks like once taxes and insurance are included.
한국어 정리 — 꼭 기억하실 것
위 40개 용어 중에서 한국 분들이 가장 자주 손해를 보시는 지점 세 가지만 짚어드립니다.
첫째, 컨틴전시(contingency)입니다. 이건 계약을 취소하고 보증금을 돌려받을 수 있는 권리 기간입니다. 캘리포니아에서는 보통 17일 정도인데, 이 기간이 지나거나 서면으로 해제하면 그다음부터는 취소 시 보증금(EMD)을 잃을 수 있습니다. 금액이 집값의 1~3%니까 백만 달러대 집이면 1~3만 달러입니다. "일단 해제하고 나중에 얘기하자"는 절대 안 됩니다. 대출 승인과 인스펙션 결과를 확인하기 전에는 해제하지 마세요.
둘째, 멜로루스(Mello-Roos)입니다. HOA 회비와 완전히 다른 것인데 많이 혼동하십니다. HOA는 관리사무소에 매달 내는 돈이고, 멜로루스는 재산세 고지서에 붙는 채권 상환금입니다. 같은 가격대 집이라도 이게 있는 집과 없는 집은 매달 수백 달러 차이가 납니다. 오퍼 넣기 전에 해당 주소의 재산세 고지서를 확인하셔야 합니다. 제가 대신 확인해 드립니다.
셋째, 추가 재산세 고지서(supplemental tax bill)입니다. 집을 산 뒤 몇 달 지나서 카운티가 재평가를 하고 차액을 청구하는 고지서를 따로 보냅니다. 에스크로에서 정산되지 않고, 매달 내는 모기지에도 포함되어 있지 않습니다. 처음 집을 사시는 분들이 거의 예외 없이 놀라시는 부분이라 미리 예산에 넣어두셔야 합니다.
영어 서류를 이해 못 한 채로 서명하시는 일이 없도록, 저는 계약서 조항을 한국어로 하나씩 설명해 드립니다. 요바린다, 애너하임힐스, 풀러튼을 포함한 북부 오렌지카운티 전역에서 도와드리고 있습니다. (213) 505-1843으로 편하게 연락 주세요.
Frequently asked questions
What is a contingency in a California real estate contract?
A contingency is a condition in the purchase agreement that allows the buyer to cancel and recover their earnest money deposit if it is not satisfied. The common ones are the loan contingency, the appraisal contingency, and the inspection or investigation contingency. In California these typically run about 17 days from acceptance, though the period is negotiable. Once a contingency is removed in writing, cancelling can put the deposit at risk.
What is the difference between HOA dues and Mello-Roos?
HOA dues are paid monthly to a homeowners association for shared amenities and maintenance. Mello-Roos is a Community Facilities District special assessment that repays bonds for community infrastructure, and it appears on the property tax bill rather than being paid to an association. A property can have one, both, or neither, so both should be checked for the specific address before writing an offer.
What is a supplemental tax bill in California?
After a property changes ownership, the county reassesses its value and issues a one-time supplemental tax bill for the difference between the previous assessment and the new one. It arrives separately, often months after closing, and it is generally not covered by an impound account, so buyers should budget for it.
Is there a Korean-speaking real estate agent in North Orange County?
Yes. Justin Woo of Woo Real Estate Group is fluent in English and Korean (한국어) and works with Korean-speaking buyers and sellers in Yorba Linda, Anaheim Hills, Fullerton, Placentia, Brea, and the surrounding North Orange County area. He is a licensed California agent, DRE #02031915, with Keller Williams Realty.
Do I need a written agreement with a buyer's agent in California?
Yes. Since 2024, buyers are required to sign a written buyer-broker agreement with their agent before touring homes. The agreement states how the agent is compensated, and its terms — including the compensation amount and the length of the agreement — are negotiable.
This glossary is general information about California real estate practice and is not legal, tax, or financial advice. Contract terms, timelines, tax rules, and local assessments vary by property and change over time — verify the specifics for your transaction with the appropriate professional.
Questions about any of these terms?
Ask me — in English or Korean. 한국어 상담 도와드립니다.
Get in touch