Plain English

Coronado Real Estate Terms in Plain English

Seventeen real estate terms a Coronado buyer or seller will hear, defined in plain English, with today’s local numbers and rules where they apply.

Updated September 2026 · Rudy Flores · Coldwell Banker West

Buying or selling on Coronado comes with a vocabulary of its own, from escrow and contingencies to the Mills Act and the coastal zone. Here is each term in plain English, in alphabetical order, with a Coronado example under the ones where it helps.

The terms at a glance

ADU and junior ADU · Appraisal · Base-year value (Proposition 13) · Closing costs · Coastal zone and coastal development permits · Contingency · Earnest money deposit · Escrow · HOA and CC&Rs · Mello-Roos (community facilities district) · Mills Act · Months of supply · Natural Hazard Disclosure · Pre-approval · Share of listings with a price cut · Transfer Disclosure Statement · Typical home value

Terms A to C

ADU and junior ADU: An ADU is a second, complete living unit on a residential lot: it has its own kitchen and bath and can be a backyard cottage, a garage conversion or an attached unit. A junior ADU is a smaller unit within the existing house, up to 500 square feet.
Local example: In Coronado, ADUs are regulated by Municipal Code section 86.56.105 and permitted by the Community Development Director.
Appraisal: An estimate of a home’s market value by a licensed appraiser, ordered by the lender. If it comes in below the price, the buyer, the seller and the lender have to decide how to close the gap.
Base-year value (Proposition 13): The taxable value California sets when a property is purchased or newly built, usually the purchase price. Under Proposition 13 it can rise by no more than 2% a year until the next change of ownership. The base tax is about 1% of it, plus voter-approved local charges.
Local example: For a typical ZIP 92118 home at $2,563,759, the 1% base tax would be about $25,638 a year, or roughly $29,483 with an assumed 0.15% for voter-approved charges. Real bills vary by address and by any special taxes.
Closing costs: The fees due at closing on top of the down payment: loan charges, title and escrow fees, recording fees, and prepaid taxes and insurance. The Loan Estimate and the Closing Disclosure list them line by line.
Coastal zone and coastal development permits: In the coastal zone, a project may need a coastal development permit in addition to the usual building permit, issued by the city under its certified Local Coastal Program or by the Coastal Commission.
Local example: Coronado has a Local Coastal Program, so projects in the coastal zone can need a coastal permit.
Contingency: Each contingency is a safety net with a clock on it. If the inspection, appraisal or loan approval goes badly within the agreed period, the buyer may cancel and keep the deposit; once the buyer removes the contingency, that protection is gone.

Terms E to M

Earnest money deposit: A good-faith deposit the buyer delivers to escrow shortly after the seller accepts an offer, commonly a percentage of the price. It counts toward the purchase, and it can be at risk if a buyer backs out for a reason the contract does not allow.
Escrow: Escrow is the stretch between an accepted offer and the day the sale records. A neutral escrow officer collects the deposit, the loan funds and the paperwork, then pays everyone and records the deed when both sides have done what the contract requires.
HOA and CC&Rs: In an HOA community, owners pay dues that fund common areas and services and agree to the CC&Rs, which can regulate rentals, parking, pets and changes to the exterior. Read them before you commit.
Local example: On the island, many condominium buildings and some communities have associations, so ask for the documents early.
Mello-Roos (community facilities district): A special tax levied in a community facilities district to pay for infrastructure such as roads, schools and parks, usually in newer developments. It appears on the property tax bill and typically runs for a set number of years.
The San Diego County Assessor publishes information on Mello-Roos; ask whether the address is in a district.
Mills Act: The Mills Act is a state program that lets a city reduce the property tax on a designated historic property in exchange for a contract to preserve it. Participation and terms are up to each city.
Local example: Coronado’s Community Development Department administers historic preservation and the Mills Act; ask the city whether a home is designated.
Months of supply: Divide homes for sale by monthly sales and you have months of supply. A market with a few months of inventory feels tight; one with many feels roomy.
Local example: In the week ending Sep 12, 2026, the San Diego metro area (San Diego–Chula Vista–Carlsbad) had 3.4 months of supply.

Terms N to T

Natural Hazard Disclosure: It tells buyers whether the address sits in state or federal zones for flood, fire, earthquake faults, landslides or liquefaction, and it is a natural starting point for insurance questions.
Pre-approval: A lender’s written assessment, after reviewing your income, assets and credit, of the loan amount you may qualify for. It is stronger than a pre-qualification, which is a quick estimate, and it shows sellers that your offer is serious.
Share of listings with a price cut: The price-cut share is the portion of active listings that have lowered their asking price at least once. It is a quick read on whether sellers are meeting the market or holding firm.
Local example: In ZIP 92118, about 26% of listings had a price cut in Aug 2026.
Transfer Disclosure Statement: A form the seller completes to disclose known facts about the property’s condition, including repairs, defects and work done without permits. The buyer reads it alongside the inspection report.
Typical home value: The typical home value is an index, not an appraisal: a smoothed estimate for the middle price tier that helps you follow changes over months and years.
Local example: Zillow’s typical home value in Aug 2026 was $2,563,759 in ZIP 92118.

A note on what this is

These definitions describe general California practice in plain English. Contracts, forms and rules change and differ by case, so confirm details with your lender, the escrow officer, the county and a licensed advisor. Rudy Flores is a licensed real estate agent (CalDRE #02257808) with Coldwell Banker West, not an attorney or tax professional. Market numbers come from Zillow Research and Freddie Mac and are dated on the page.

Keep exploring

Market reports — Current numbers for the ZIP code.
Closing cost estimator — Estimate the cash to close.
Coronado home buyer guide — The whole process, step by step.
Prop 13 and Prop 19 on Coronado — How the tax bill works.
Coronado zoning and permits — What you can build or change.

Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.

Sources

General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.