Now that you’re looking into buying and/or selling a new home, you will be faced with a lot of jargon. This can be overwhelming, but a good first step is to familiarize yourself with key terms. I have provided a basic glossary, but if you still have questions, just ask!
-
AGENT:
A person who is authorized by a broker to trade real estate. For example, I am an agent; my broker is Chestnut Park.
-
AMORTIZATION:
Refers to the period of repaying a debt through periodic payments on the principal and interest.
-
APPRAISAL:
An estimated value. Financial institutions appraise properties to determine the amount of a mortgage.
-
APPRECIATION:
The amount a property increases in value.
-
BUYER'S MARKET:
Refers to a market where there are more properties for sale than there are buyers – the lack of demand drives prices down, which is good for buyers.
-
CAPITAL GAIN:
Refers to the difference between the original price paid for a property and the price for which it is sold.
-
CHATTELS:
Refers to removable items that would not normally be included in the sale of a home, such as portable dishwashers, laundry appliances, or portable microwaves.
-
CLOSING DATE
The date on which the real estate transaction is complete.
-
COUNTER-OFFER
Used in price negotiation. One party may accept an offer, or make a counter-offer of a different price.
-
DEBT SERVICE RATIO
Refers to the percentage of a borrower’s gross income that can be used to service mortgage payments and realty taxes.
-
DEED:
The document that states ownership of a property.
-
DEPOSIT:
A payment made to ‘hold’ a property until inspections are performed. Usually 5-10% of the total price.
-
DOWN PAYMENT:
A cash amount that makes up the difference between the price and the amount being financed.
-
EQUITY:
The difference between the market value and the mortgage or liens against a property.
-
FIXTURES:
Permanent improvements or items become fixtures when they are attached to the property, becoming part of it. Wall to wall carpeting is an example.
-
LAND TRANSFER TAX:
payment to the Provincial Government for transferring ownership of a property.
-
LIEN:
A claim on a property to ensure payment of a debt.
-
LISTING AGREEMENT
The contract between a seller and their broker authorizing the broker to list his/her property for sale.
-
LISTING BROKER:
The realtor that represents the seller.
-
MORTGAGE:
A contract between a borrower (buyer) and a lender (usually a bank). The borrower puts the property up as collateral against the mortgage debt. There are many types of mortgages and terms-ask your realtor for details.
-
MORTGAGE TERM:
Refers to the amount of time the borrower has to repay a loan to the lender.
-
MULTIPLE LISTING SERVICE (MLS):
A computerized networking system for realtors.
-
PRINCIPAL:
the amount originally borrowed.
-
REALTOR:
A trademarked name that describes agents who have membership in their local real estate board as well as the Canadian Real Estate Association.
-
SELLING BROKER:
The realtor that represents the buyer.
-
SURVEY:
A document with all the details about a given property. A survey will include the boundaries, legal description, and any improvements.
-
TITLE:
The legal evidence of ownership of a property.
-
VENDOR:
The seller.
-
ZONING REGULATIONS:
Governmental guidelines that regulate how a property may or may not be used.
