Confused by the real estate jargon you hear around San Rafael? You are not alone. Whether you are browsing listings or getting ready to sell, clear definitions help you move with confidence. In this plain‑English glossary, you will learn the most common terms, why they matter, and what to watch for in Marin. Let’s dive in.
Offer and negotiation terms
Contingency (general)
A contingency is a clause that lets you back out or renegotiate if a specific condition is not met. Common examples include inspection, loan, and appraisal contingencies.
Why it matters: Contingencies protect you. Removing them can make your offer more competitive, but it also increases your risk if something unexpected comes up.
Local tip: In competitive Marin listings, buyers sometimes shorten contingency periods to stand out. Balance speed with protection, and lean on my guidance for current norms.
Inspection contingency
An inspection contingency gives you time to inspect the home and ask for repairs, credits, or the right to cancel within the agreed period.
Why it matters: Inspections help you uncover safety issues or costly repairs before you finalize your purchase.
Local tip: In San Rafael’s older and hillside homes, pay close attention to pest/termite (WDO) reports, drainage and soil stability, roofs, and seismic bracing.
Financing contingency
A financing contingency lets you cancel if your loan cannot be approved under the terms in your offer.
Why it matters: It protects your deposit if financing falls through for reasons allowed by the contract.
Local tip: Fully underwritten pre-approvals and proof of funds make offers stronger in Marin’s high-price segments.
Appraisal contingency
An appraisal contingency allows cancellation or renegotiation if the home appraises below the purchase price.
Why it matters: Lenders base loans on appraised value, so a gap can affect your financing. This clause protects you from overpaying.
Local tip: Appraisal gaps can happen in fast-moving, high-priced areas. Some buyers commit to cover part of a shortfall, which adds risk. Get advice before you agree.
Earnest money (good‑faith deposit)
Earnest money is the deposit you place into escrow to show you are serious. It is applied to the purchase at closing or handled per the contract if the deal is canceled.
Why it matters: If you breach the contract without a valid contingency, you could forfeit this money.
Local tip: Larger deposits can strengthen an offer in some San Rafael neighborhoods. There is no single rule, so talk with your agent about what is appropriate for your price point.
Multiple offers and escalation clauses
Multiple offers occur when more than one buyer submits an offer at the same time. An escalation clause raises your offer by a set amount up to a maximum if competing offers appear.
Why it matters: These tools can help you compete, but they introduce complexity in negotiations and disclosures.
Local tip: Escalation clauses are used in tight-inventory markets. Draft them carefully with professional advice so your cap and terms protect you.
Days on Market (DOM)
DOM is the number of days a home is listed before an offer is accepted, as tracked by the MLS.
Why it matters: Short DOM can signal strong demand. Longer DOM can point to pricing or property issues, or simply a change in market pace.
Local tip: DOM rules vary by MLS, and relisting can reset the count. Confirm the backstory and timing with a local agent like me.
Escrow, title, and closing
Escrow
Escrow is a neutral third party that holds funds and paperwork while everyone completes the agreed steps. Escrow closes when funds are delivered and the deed records.
Why it matters: Escrow coordinates money flow, signatures, and closing details so both sides perform as agreed.
Local tip: In California, 30 to 45 days is common, but timelines are negotiable. Title and escrow services are often paired.
Title and title insurance
Title is your legal ownership of the property. Title insurance protects you and your lender against past defects like liens, easements, or undisclosed ownership claims.
Why it matters: It reduces the risk of costly title surprises after you buy.
Local tip: Older Marin properties can have complex easements or long-recorded documents. Review your title report closely.
Closing costs and prorations
Closing costs include lender fees, title and escrow charges, and taxes. Prorations split property taxes, HOA dues, and utilities between buyer and seller at closing.
Why it matters: You should budget beyond the purchase price so you are not caught off guard.
Local tip: In California, Proposition 13 guides property taxes, and reassessment happens when ownership changes. Check for any local assessments on the property tax bill and title report.
Representation and listing types
Agency (who represents whom)
Agency explains who your agent legally represents. A listing agent represents the seller. A buyer’s agent represents the buyer. In California, dual agency, where one broker represents both sides, is allowed with disclosure and consent.
Why it matters: Agency defines duties like loyalty, confidentiality, and disclosure, so you know whose interests are being served.
Local tip: California requires written agency disclosure. Ask me to explain how my brokerage handles in-house buyer and seller teams.
Listing types
Common listing agreements include exclusive right to sell, exclusive agency, and pocket or office-only listings that are not publicly marketed in the MLS.
Why it matters: The listing type affects a home’s exposure and how cooperating agents are compensated.
Local tip: Off-market options oftentimes appear in Marin. Understand MLS rules and your marketing strategy before you commit.
HOA and disclosure essentials
HOA, CC&Rs, and HOA documents
An HOA manages shared property and community rules. CC&Rs are the covenants, conditions, and restrictions that set obligations for owners.
Why it matters: HOAs charge dues, set rules, and can levy special assessments that affect your budget and lifestyle.
Local tip: San Rafael condos and planned communities vary widely. Review HOA financials, rules, meeting minutes, and any pending litigation during your contingency period.
Disclosures (TDS, NHD, lead‑based paint)
California requires sellers to deliver disclosures about known property conditions and hazards. Key items include the Transfer Disclosure Statement, Natural Hazard Disclosure, and lead-based paint disclosure for homes built before 1978.
Why it matters: Disclosures help you understand risks and recent issues so you can make a well-informed decision.
Local tip: In Marin, pay close attention to wildfire risk, possible public safety power shutoff impacts, flood or coastal zones, seismic and landslide areas, and any neighborhood-specific notices.
Permits, hazards, and local checks
Unpermitted work and permits
Unpermitted work is any addition or remodel done without required permits. It can affect safety, financing, and resale.
Why it matters: Lenders and insurers may require correction, and you could inherit the liability.
Local tip: Many older Marin homes have past remodels. The City of San Rafael requires a Resale Inspection, which checks for permitted and unpermitted work. Verify permits and finals with the City of San Rafael and/or county building records.
Hazard zones and insurance
Wildfire, flood, earthquake fault, and landslide areas are disclosed in standard reports. Insurance availability and cost can be affected by these risks.
Why it matters: Understanding hazards helps you plan for mitigation, retrofits, and insurance budgeting.
Local tip: Check defensible-space requirements for wildfire and review floodplain information for low-lying areas. Ask your lender and insurer about any required inspections or retrofits.
Septic vs. sewer and municipal compliance
Most San Rafael properties are on sewer. In some outlying Marin areas, homes use septic systems that require specialty inspections and maintenance.
Why it matters: System type affects inspections, disclosures, and future costs.
Local tip: Most cities require items like smoke and carbon monoxide detectors, water heater bracing, or sewer lateral compliance. Verify current requirements before listing or closing.
Property taxes and transfer tax
Your base property tax is typically reassessed at the purchase price when you buy in California. Some jurisdictions charge a documentary transfer tax when the deed records.
Why it matters: These costs influence your cash needed to close and your ongoing expenses.
Local tip: Confirm transfer tax details with the Marin County Recorder or City of San Rafael, and review your preliminary title report for special assessments.
Financing readiness
Pre‑approval vs. pre‑qualification
Pre-qualification is a quick estimate of what you may afford. Pre-approval means a lender has reviewed documents and conditionally committed to lend.
Why it matters: Sellers weigh the strength of your financing. Pre-approval carries more weight and can improve your negotiating position.
Local tip: In competitive Marin offers, fully underwritten pre-approvals and proof of funds for cash purchases are common best practices.
Quick buyer checklist
- Get a fully underwritten pre-approval and set a realistic budget, including closing costs.
- Plan your inspection strategy for structure, pests, roof, drainage, and seismic safety.
- Read all disclosures, HOA documents, and the title report carefully.
- Confirm permits for visible improvements or additions.
- Understand your contingency timelines before you write an offer.
Quick seller checklist
- Pull permit history and resolve open items if possible.
- Prepare comprehensive disclosures and gather HOA documents early.
- Address safety basics like detectors and water heater bracing.
- Discuss pricing, DOM expectations, and offer strategy with your agent.
- Clarify who will pay which closing costs and any city requirements.
Ready to move from research to results in San Rafael or anywhere in Marin County? For patient guidance, neighborhood insight, and full-service support from prep to closing, connect with Erin Farber.
FAQs
How much earnest money should I offer in San Rafael?
- There is no single rule; amounts vary by price point and strategy. Larger deposits can strengthen an offer, but we will discuss the right number and risk tradeoffs.
How long does escrow usually take in California and Marin?
- Many escrows close in 30 to 45 days in Marin County, but they can also be quite short, like 7-15 days. Timelines are negotiable based on inspections, loan approval, and seller needs.
What happens if inspections find major issues?
- During your inspection contingency, you can request repairs or credits, renegotiate price, or cancel per the contract; waiving contingencies limits options.
Who typically pays closing costs in Marin County?
- Buyers often pay lender, escrow, and title fees, while sellers usually cover real estate commissions and transfer taxes; final terms are negotiable.
How do I confirm Days on Market accuracy?
- DOM can reset with relisting and varies by MLS rules; ask me to check the property’s listing history for context.
Which disclosures should I read most carefully in California?
- Review the Transfer Disclosure Statement, Natural Hazard Disclosure, and any lead-based paint disclosure for pre-1978 homes, plus HOA documents if applicable. All disclosures should be read and understood fully for the best buying experience.
Are multiple offers common in San Rafael right now?
- They can be, especially for well-priced single-family homes; check recent local MLS activity to understand current competition.
