Cash Home Sale Glossary — 40 Arizona Real Estate Terms Explained
By Nate · Published May 24, 2026 · 11-minute read
During a cash sale, you'll hear words and acronyms that real estate people throw around like everyone knows them. Some are technical, some are jargon. Here's a plain-English glossary of the 40 most common terms you'll encounter — particularly the ones specific to Arizona and to cash sales. Bookmark this if you're going through the process.
A
ARV (After-Repair Value). What a property would sell for fully updated and listed. Cash buyers use ARV as the baseline; their offer is typically 65-80% of ARV. Not to be confused with current market value (which is what an unrepaired property would sell for now).
ARS § 44-5101. Arizona's wholesale buyer disclosure law (2022). Requires wholesale buyers to provide written disclosure to sellers about their intent to assign the contract. Doesn't apply to principal buyers like us. Full explainer here.
As-Is. Property sold in its current condition with no repairs or warranties from the seller. Cash buyers typically buy as-is. Traditional buyers often require repairs as a contingency.
Assignment. The transfer of a purchase contract from one buyer to another before closing. Wholesalers use this to flip contracts; principal buyers (like us) don't typically assign.
B
Beneficial Ownership Report. Under FinCEN's 2026 rule and the Corporate Transparency Act, certain entity-purchased real estate transactions require reporting of beneficial owners (the individuals behind the LLC). Buyer compliance issue, not seller.
C
Cap Fee (HOA). A one-time fee an HOA charges on the resale of a property, typically funding the community's reserve fund. Common in master-planned AZ communities. Usually paid by the buyer.
Cash Buyer. A buyer purchasing with their own funds, not borrowing from a lender. Subcategories: principal buyer (holds the property), wholesaler (assigns the contract), iBuyer (algorithmic institutional).
Closing Disclosure / Closing Statement. The document detailing every dollar movement at closing — sale price, deductions, credits, fees. You'll see this 5-10 days before signing. Read every line.
Community Property. Arizona is one of 9 community property states. Property acquired during marriage is generally community-owned regardless of whose name is on title. Affects divorce sales and surviving-spouse transfers.
Comparable Sales (Comps). Recent sold properties used to estimate value. Cash buyers pull comps within 1 mile and 6 months of the subject property to underwrite the offer.
D
Deed. The legal document transferring ownership. Multiple types in AZ: Warranty Deed (full warranty of clear title), Special Warranty Deed (limited warranty), Quitclaim Deed (no warranty, just transfers whatever interest exists), Beneficiary Deed (transfers on death).
Deed of Trust. Arizona's mortgage equivalent. Three parties: borrower (you), lender, and trustee. If you default, the trustee can sell the property without going to court (non-judicial foreclosure).
Disclosure. Required information sellers must provide buyers. Arizona requires the Seller Property Disclosure Statement (SPDS) on traditional sales. Cash sales often waive this since the buyer is buying as-is.
DOM (Days on Market). How long a listing has been active. Used as a market velocity indicator. Phoenix metro 2026 typical DOM: 35-55 days for standard inventory.
E
Earnest Money. Buyer's initial deposit to demonstrate good faith. Refundable in some scenarios, forfeit in others depending on contract. Standard AZ cash sale: $500-$5,000. Higher = more buyer commitment.
Equitable Interest. The right to acquire title (which a buyer holds during contract period) but not yet actual title. Wholesalers hold equitable interest only when they sign — they assign that interest, not legal title.
Escrow. The neutral third-party process managed by a title company. Holds funds, documents, and instructions until closing conditions are met.
Executor / Personal Representative. The person legally authorized to manage an estate. In Arizona, the term "Personal Representative" (PR) is used in probate. The PR signs the sale paperwork on behalf of the estate.
F
FinCEN. Financial Crimes Enforcement Network — the Treasury Department arm that requires beneficial ownership reporting on certain real estate transactions starting March 2026. Affects entity buyers, not individual sellers.
FSBO (For Sale By Owner). Owner-listed without an agent. Saves listing commission but adds seller workload. Different from cash sale; FSBO sellers can sell to anyone (financed or cash).
Foreclosure. Lender's process to recover a defaulted loan by selling the property. In AZ, typically non-judicial trustee sale (90 days from Notice of Trustee Sale recording to sale date).
G-H-I
HOA (Homeowners Association). Community-governance organization with authority to assess fees, enforce CC&Rs, and approve transfers. Common in AZ master-planned communities. Adds 5-15 days to closing for paperwork.
HOA Estoppel. Document from the HOA stating current dues balance, transfer fees, and any violations. Required at closing for HOA properties.
iBuyer. Algorithmic institutional cash buyer (Opendoor, Offerpad). Higher headline offers than independent investors; charges service fees; subject to post-inspection adjustments.
Inspection Contingency. Clause allowing buyer to back out or renegotiate based on inspection findings. Traditional sales have one; cash buyers (us) typically don't.
iBuyer Service Fee. Opendoor and Offerpad charge ~5% of sale price as a service fee. Comes out of seller proceeds. Comparable to a partial real estate commission.
L
Lien. Legal claim against a property securing payment of a debt. Types include mortgage liens, tax liens (IRS or local), judgment liens, mechanic's liens, HOA liens. Cleared at closing through sale proceeds.
Lis Pendens. Latin for "suit pending" — a public notice that a lawsuit affecting title to the property is in progress. Clouds title until resolved. Common in divorce, partition, and estate disputes.
M
Marital Settlement Agreement. The contract in a divorce dividing property. If a house is to be sold, the agreement typically specifies who sells, who keeps what proceeds, and timing.
MLS (Multiple Listing Service). Database of active and sold listings used by real estate agents. Drives most online listing sites (Zillow, Redfin pull from MLS). Cash sales typically skip the MLS.
Mortgage Payoff Demand. Lender-issued document stating the exact dollar amount needed to satisfy your mortgage at a specific date. Comes out of sale proceeds. Typical turnaround: 5-15 business days.
N
Notice of Default. First step in AZ foreclosure. Recorded by the lender when the borrower is materially behind on payments. Starts the foreclosure clock.
Notice of Trustee's Sale. The recorded notice of foreclosure auction date. Once recorded, the trustee sale must happen 90 days later (with limited extensions). The 90-day window is the seller's last chance to sell before foreclosure completes.
O-P
Personal Representative. See "Executor."
Power of Sale. Clause in a deed of trust giving the trustee authority to sell the property without court order if the borrower defaults. The basis for AZ's non-judicial foreclosure process.
Pre-Foreclosure. The period between Notice of Trustee's Sale recording and the sale date. Seller can still sell and pay off the lender during this window.
Principal Buyer. A buyer purchasing for their own portfolio (hold as rental) or for rehab and resale. Not a wholesaler; doesn't assign contracts. We are a principal buyer.
Probate. Court-supervised process of administering a deceased person's estate. AZ uses Superior Court for probate; typical timeline 6-12 months. Full probate guide here.
Property Tax Proration. Allocation of property tax between buyer and seller based on closing date. Seller credits buyer for taxes accrued during seller's ownership.
Q-R
Quitclaim Deed. Deed that transfers whatever interest the grantor has without any warranty. Used in divorces (one spouse quitclaims to the other) and certain estate transfers.
Recording. Filing a document (deed, deed of trust, lien) with the county recorder's office to make it part of the public record. Necessary for any property interest to be enforceable against third parties.
S
Short Sale. Sale where the lender accepts less than the full mortgage balance. Requires lender approval. Adds 60-120 days to the timeline.
Special Warranty Deed. Deed warranting only against title defects that arose during the grantor's ownership (not before). Common in foreclosure-related transfers.
T-W
Title Commitment. Title company's preliminary report on the property's chain of title and any clouds (liens, easements, judgments, etc.). Issued early in the closing process; buyer reviews and either accepts or requests cleanup.
Title Insurance. Insurance protecting against undiscovered title defects. Owner's policy protects the buyer; lender's policy protects the lender. In our cash sales, we pay the owner's policy.
Trustee Sale. AZ's non-judicial foreclosure auction. The trustee sells the property to the highest bidder (often the lender themselves). Wipes out junior liens and any seller equity.
Underwater. When the mortgage balance exceeds the property's market value. Triggers consideration of short sale or strategic default.
Wholesaler. A real estate operator who signs purchase contracts with intent to assign them to other buyers for a fee. Different from principal buyers. Subject to ARS § 44-5101 disclosure requirements.
If you have questions about any specific term
Call (602) 555-0100. We'll explain anything that comes up during the process. No question is too basic — most sellers haven't done this before, and the terminology is genuinely opaque.