The Alaskan Real Estate Glossary: 5 Terms to Secure Your Deal

Buying or selling a home in Alaska isn't just a financial transaction; it’s a major life event. Between navigating rural easements and urban zoning, the paperwork can start to feel like a blizzard of jargon.

In Alaska, we do things a little differently—from how we handle "earnest money" to the specific forms required by state law. Here is a breakdown of the five heavy-hitters you need to know to move forward with confidence.

1. Earnest Money

Think of earnest money as your "serious face" in financial form. It is a good-faith deposit that is a percentage of the sale price a buyer makes to show the seller they aren't just window shopping.

• The Process: Once the offer is accepted, the money is held by a neutral third party (not the seller!).
  
  
• The Outcome: If the deal closes, this money goes toward your down payment. However, if you back out for a reason not listed in your contract, the seller may be entitled to keep it as "liquidated damages" for taking their home off the market.
  
  

2. Escrow

Escrow is the neutral "holding zone" that keeps everyone protected. Think of them as the referee. They don’t take sides; they simply ensure that the buyer’s money and the seller’s deed only change hands once every single line of the contract is satisfied. They also handle the nitty-gritty, like paying off the seller's old mortgage and distributing the final proceeds.

3. Contingencies

A contingency is a "what if" clause. It’s a safety hatch that allows a party to walk away from the deal without losing their earnest money if certain conditions aren't met.

Common Alaska contingencies include:

• The Inspection: Vital for checking things like foundation stability in earthquake zones or the functionality of a Toyo stove.
  
  
• Financing & Appraisal: Ensuring the bank agrees the home is worth the price and officially approves your loan.
  
  
• Well & Septic: In many Alaskan properties, a clean water test or a "COSA" (Certificate of On-Site Approval) for the septic system is a non-negotiable requirement for the sale to proceed.
  
  

4. Title

Title isn't just a piece of paper; it’s your legal right to own the land. Before you close, a title company performs a "title search" to ensure the seller actually has the right to sell the property.

In Alaska, land history can be... colorful. A title search looks for:

• Unpaid contractor liens or back taxes.
  
  
• Easements: Rights for utility companies or neighbors to cross the land.
  
  
• Mining Claims: Historical claims that could affect your rights to what’s under the dirt.
  
  
• Title Insurance: Most lenders require this to protect against "hidden" owners popping up later.
  
  

5. Disclosures

This is a multi-page document where the seller must disclose every "material fact" they know about the property. This includes structural issues, whether the roof has leaked, or if there are environmental hazards like radon or buried fuel tanks.

Disclosures are not a warranty. They are based on the seller's current knowledge. As a buyer, it is recommended to pair the disclosure with a professional home inspection to see what the seller might have missed.

Why This Matters

Understanding these terms keeps you in the driver's seat. Whether you're selling a family home in the Mat-Su Valley or buying your first place in Anchorage, knowing the "referee" (Escrow) and the "safety hatches" (Contingencies) ensures you won't get caught out in the cold.