Key Real Estate Terms Every Lamorinda Buyer Should Know

Thinking about buying a home in Orinda or the wider Lamorinda area? You will see a lot of real estate terms on listings, disclosures, and offers, and it can feel like a new language. When you understand the basics, you move faster, ask smarter questions, and write stronger offers with confidence. This guide breaks down key terms you will encounter in Orinda, why they matter locally, and how to use them to your advantage. Let’s dive in.

Financing basics in Orinda

Pre‑approval vs. pre‑qualification

• Pre‑qualification: An initial estimate of what you can afford based on self‑reported info. It is a quick check, not a commitment.
• Pre‑approval: A lender has reviewed your documents and issued a conditional approval. In competitive Lamorinda markets, a strong pre‑approval makes your offer more credible.

Conventional, FHA, VA, and jumbo loans

• Conventional loans are the most common in Lamorinda.
• FHA and VA loans serve specific buyer profiles and property requirements.
• Jumbo loans are often relevant in Orinda because sale prices frequently exceed conforming loan limits. Jumbo underwriting can require higher credit scores, larger down payments, and different reserve rules. Ask your lender early which category you will use.

Earnest Money Deposit (EMD)

Your EMD is a good‑faith deposit that shows commitment to the purchase. It is typically held by the escrow company and applied to your closing funds. In competitive offers, sellers may expect a larger EMD.

Escrow

Escrow is a neutral third party that holds funds and documents until all conditions are met and the sale closes. In California, escrow timelines commonly run 17 to 30 days, and you can negotiate the period in your offer.

Appraisal and the appraisal contingency

An appraisal is the lender’s opinion of value. If your offer price is higher than the appraised value, you may need to cover the difference in cash or renegotiate. An appraisal contingency gives you the option to cancel or adjust if the appraisal comes in low. Some buyers shorten or remove this contingency to compete, which increases risk.

Closing costs

Closing costs include lender fees, title and escrow charges, prorated property taxes or HOA dues, and recording fees. Ask your lender and escrow officer for itemized estimates so you plan beyond your down payment.

Contingencies and inspections

Common buyer contingencies

• Financing contingency: Time to secure your loan.
• Inspection contingency: Time to inspect the property and negotiate repairs or credits.
• Appraisal contingency: Protection if the appraisal is low.
• Sale‑of‑buyer’s‑home contingency: Less common in competitive settings.
• Title contingency: Time to review the preliminary title report.

Removing contingencies makes your offer stronger but increases the chance of losing your EMD if you cancel later. Know your comfort level before you write.

Inspections you will likely see in Orinda

Older and hillside properties are common in Lamorinda, so inspections can be more specialized.

• General home inspection plus roof, foundation, plumbing, electrical, and HVAC evaluations
• Pest/WDO inspection for termites and dry rot
• Sewer‑scope camera inspection, especially for older homes
• Chimney or pool inspections where applicable
• Geotechnical/soils review for steep or hillside lots
• Septic inspection if the property is not on municipal sewer

After inspections, you can request seller repairs, negotiate a credit, or cancel if your contingency allows. Some sales are marked as‑is, so review disclosures closely before writing.

Title and ownership terms

Preliminary title report

A preliminary title report shows recorded liens, easements, restrictions, and unpaid taxes. This is essential reading in Orinda, where hillside parcels may include slope easements, private road agreements, or utility rights‑of‑way. For recorded document questions, consult the Contra Costa County Clerk‑Recorder.

Title insurance

Title insurance protects you and your lender against certain undisclosed title defects. In California, buyers commonly purchase an owner’s policy at closing.

Easements and rights‑of‑way

You may see access easements for shared driveways, utility easements, or open‑space/conservation easements. Easements can influence where you build, fence, or plant, and how you access the property. Confirm details in the title report before you remove contingencies.

CC&Rs and HOAs

If a property is part of an HOA or has Covenants, Conditions and Restrictions (CC&Rs), these govern use, exterior changes, and rentals, and may include fees or special assessments. Many Orinda single‑family homes are not in HOAs, so rules vary by address. If you are in an HOA, review meeting minutes, financials, and the reserve study.

Taxes and ongoing costs

Property taxes and Proposition 13

California property taxes are based on assessed value and are subject to Proposition 13 limits on annual increases. When you buy, the property is typically reassessed, and you may receive a supplemental assessment after closing. For tax history and parcel questions, check with the Contra Costa County Assessor.

Mello‑Roos and special taxes

Some Bay Area neighborhoods include Mello‑Roos or other special assessments to fund infrastructure. Not every property has them. Verify through your preliminary title report and lender disclosures.

Insurance and earthquake coverage

Standard homeowner’s policies do not cover earthquakes. Separate earthquake insurance is optional. In hillside and wildland‑adjacent parts of Orinda, wildfire exposure and seismic risk can affect premiums and availability, so get quotes early in your search.

Utilities and service districts

Confirm water, sewer, and trash providers. Many Orinda properties are served by the East Bay Municipal Utility District for water. Some homes may have a septic system. Verify each service for the property, including any sewer lateral requirements and private road maintenance agreements.

Required disclosures in California

• Transfer Disclosure Statement (TDS): The seller’s description of the property’s condition and known issues.
• Natural Hazard Disclosure (NHD): Reports whether the property is in designated hazard areas such as flood, wildfire, or earthquake fault zones.
• Seller Property Questionnaire and related addenda: Details on permits, disputes, improvements, and surveys.
• Lead‑Based Paint Disclosure: Required for homes built before 1978.

For state rules and consumer guidance, visit the California Department of Real Estate.

Local hazards and rules in Orinda

Wildland‑Urban Interface and defensible space

Parts of Orinda are in the Wildland‑Urban Interface (WUI). Review Very High Fire Hazard Severity Zones on Cal Fire’s Fire Hazard Severity Zones resource. Expect discussions about home hardening, ember‑resistant vents, roofing materials, and vegetation management in inspection and repair talks.

Seismic and geologic issues

Sellers must disclose known seismic hazards. For older homes, you may encounter terms like foundation bolting, cripple wall bracing, and chimney retrofits. On steep parcels, a geotechnical or soils review can be prudent before removing contingencies.

Hillside lots, drainage, and slope stability

Hilly terrain brings slope setbacks, grading permits, and potential retaining wall requirements. Ask for permits and sign‑offs for prior work. Drainage and erosion control are key items during inspections.

Sewer or septic and private roads

Confirm whether the home is on municipal sewer or septic. If septic, order a dedicated inspection to evaluate capacity and maintenance. Many hillside areas use private roads or shared driveways, so look for recorded maintenance agreements in the title report.

ADUs and local zoning

California supports Accessory Dwelling Units (ADUs), though local rules on size, height, parking, and setbacks apply. For zoning and permits, start with the City of Orinda Planning Department.

Flood zones

Check your address on the FEMA Flood Map Service Center to see whether flood insurance may be required or recommended.

Quick buyer checklist

Use this list to stay organized as you evaluate an Orinda home.

• Documents to request from the seller or listing agent:

  • Transfer Disclosure Statement (TDS) and Natural Hazard Disclosure (NHD)
  • Preliminary title report, including easements, CC&Rs, and any private road agreements
  • Recent property tax bill and any Mello‑Roos disclosures
  • HOA documents if applicable: CC&Rs, bylaws, meeting minutes, financials, reserve study
  • Copies of permits and final sign‑offs for major renovations
  • Utility and service provider info, including water, sewer, and trash

• Inspections to consider:

  • General home and pest/WDO inspections
  • Roof and chimney inspections
  • Sewer‑scope camera inspection
  • Septic inspection if present
  • Geotechnical or civil engineering review for hillside lots
  • Fire‑safety and defensible‑space evaluation for homes near wildland

• Verifications with local agencies:

  • City of Orinda Planning and Building for permits, code compliance, ADU rules, and slope restrictions
  • Contra Costa County Recorder and Assessor for recorded documents and tax history
  • Cal Fire and local fire district for fire hazard zones and brush clearance requirements
  • FEMA for flood zone status
  • EBMUD for water service details

• Financial prep:

  • Get lender pre‑approval and confirm whether your loan will be conforming or jumbo
  • Ask how your lender handles appraisals in high‑priced neighborhoods and appraisal gaps
  • Obtain homeowner’s insurance and separate earthquake quotes early

Putting it all together

When you know the vocabulary, you can spot risks, plan your budget, and compete with confidence. Focus on the essentials: financing strength, clear contingencies, thorough inspections, clean title, and a full understanding of taxes, hazards, and ongoing costs. In Orinda, hillside factors, wildfire risk, and potential jumbo financing make local knowledge especially valuable.

If you want a clear game plan for touring, disclosures, and writing a winning offer in Lamorinda, connect with Alexis Thompson. You will get practical guidance, local context, and steady communication from search to closing.

FAQs

What’s the difference between escrow and title in California home purchases?

• Answer: Escrow is the neutral process that holds funds and paperwork until closing, while title refers to legal ownership; title search and title insurance help protect against ownership defects.

Should I waive contingencies to win an Orinda offer?

• Answer: Waiving contingencies can strengthen your offer but increases risk to your earnest money; consult your agent and lender to decide which contingencies, if any, you can safely shorten or remove.

What is Mello‑Roos and how do I check for it in Orinda?

• Answer: Mello‑Roos is a special tax for community infrastructure; confirm presence and cost through the preliminary title report, seller disclosures, and your lender’s estimates.

Do I need earthquake insurance for an Orinda home?

• Answer: Standard homeowner policies exclude earthquakes; many buyers consider a separate earthquake policy given California’s seismic risk and the value of East Bay homes.

How do Natural Hazard Disclosures work in California?

• Answer: Sellers must provide an NHD indicating whether the property lies in designated hazard zones like flood, fire, or earthquake fault areas; follow up on any listed hazards during inspections and insurance shopping.

Are there special concerns for hillside homes in Lamorinda?

• Answer: Yes, focus on drainage, slope stability, retaining walls, and soils; order specialized inspections such as geotechnical reviews and confirm any slope easements or grading permits in the title and city records.