Real Estate Jargon You Should Know
Tags: real estate jargon, real estate terms, ontario real estate terms, ontario real estate jargon, real estate definitions
There are a ton of terms you should know when it comes to real estate. Here are a few that you might want to know if you are thinking of buying or selling soon.
APPRAISAL
An estimate of the current market value of a home.
An estimate of the current market value of a home.
APPROVED LENDER
A lending institution, such as a bank, which is authorized by the Government of Canada to make loans under the terms of the National Housing Act. Only Approved Lenders can offer CMHC-insured mortgages.
A lending institution, such as a bank, which is authorized by the Government of Canada to make loans under the terms of the National Housing Act. Only Approved Lenders can offer CMHC-insured mortgages.
APR (ANNUAL PERCENTAGE RATE)
The yearly interest percentage of a mortgage as expressed by the actual rate of interest paid given the term, rate, amount and cost of arrangement.
The yearly interest percentage of a mortgage as expressed by the actual rate of interest paid given the term, rate, amount and cost of arrangement.
ARM (ADJUSTABLE RATE MORTGAGE)
A mortgage for which the interest rate is adjusted periodically according to movements in a pre-selected index.
A mortgage for which the interest rate is adjusted periodically according to movements in a pre-selected index.
ASSIGNOR
One who transfers or assigns the rights or title to another.
One who transfers or assigns the rights or title to another.
ASSUMPTION AGREEMENT
A legal document that requires a person buying a home to take over responsibility for the mortgage of the previous owner.
A legal document that requires a person buying a home to take over responsibility for the mortgage of the previous owner.
BLANKET MORTGAGE
A single registered document which encumbers more than one property.
CLOSING/COMPLETION DATE
The date at which the sale of a property becomes final and the new owner takes possession of the home.
A single registered document which encumbers more than one property.
CLOSING/COMPLETION DATE
The date at which the sale of a property becomes final and the new owner takes possession of the home.
CMHC
Canada Mortgage and Housing Corporation. A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians. CMHC also develops and sells mortgage loan insurance.
Canada Mortgage and Housing Corporation. A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians. CMHC also develops and sells mortgage loan insurance.
CONDITIONAL OFFER/SOLD CONDITIONAL
An Offer to Purchase a home that includes one or more conditions that must be met before the sale is official (for example, getting a mortgage or home inspection).
An Offer to Purchase a home that includes one or more conditions that must be met before the sale is official (for example, getting a mortgage or home inspection).
COUNTEROFFER
If your original offer to the vendor is not accepted, the vendor may counteroffer. A counteroffer usually changes something from your original offer, such as the price or closing date.
If your original offer to the vendor is not accepted, the vendor may counteroffer. A counteroffer usually changes something from your original offer, such as the price or closing date.
CURB APPEAL
How attractive a home looks from the street. A home with good curb appeal will have attractive landscaping and a well-maintained exterior.
How attractive a home looks from the street. A home with good curb appeal will have attractive landscaping and a well-maintained exterior.
DELINQUENCY
Failing to make a mortgage payment on time.
Failing to make a mortgage payment on time.
DOMINANT TENEMENT
The estate which derives benefit from an easement over a subservient estate, as in a Right-of-Way.
The estate which derives benefit from an easement over a subservient estate, as in a Right-of-Way.
DOWER INTEREST
A wife's interest in the lands of her husband accruing to her by virtue of the marriage.
A wife's interest in the lands of her husband accruing to her by virtue of the marriage.
EASEMENT
The right acquired for access over another person's land for a specific purpose, such as for a driveway or public utilities
The right acquired for access over another person's land for a specific purpose, such as for a driveway or public utilities
FORECLOSURE
A legal process where a lender takes possession of your property if you default on a loan, and sells it to cover the debts you have failed to pay.
A legal process where a lender takes possession of your property if you default on a loan, and sells it to cover the debts you have failed to pay.
LAND SURVEYOR
A land surveyor identifies land boundaries and features of land to determine ownership. A survey requirement is sometimes part of a home purchase &sale. Your Realtor can help you obtain an existing or new survey if required.
A land surveyor identifies land boundaries and features of land to determine ownership. A survey requirement is sometimes part of a home purchase &sale. Your Realtor can help you obtain an existing or new survey if required.
LENDER OR MORTGAGE BROKER
Lenders will loan you money (a “mortgage”) to help you buy a home. Lenders include banks, trust companies, credit unions, caisses populaires, pension funds, insurance companies and finance companies. A mortgage broker can work with many different lenders to get you a mortgage that meets your needs.
Lenders will loan you money (a “mortgage”) to help you buy a home. Lenders include banks, trust companies, credit unions, caisses populaires, pension funds, insurance companies and finance companies. A mortgage broker can work with many different lenders to get you a mortgage that meets your needs.
LIEN
A claim against a property for money owing. A lien may be filed by a supplier or a subcontractor who has provided labour or materials but has not been paid.
A claim against a property for money owing. A lien may be filed by a supplier or a subcontractor who has provided labour or materials but has not been paid.
MLS (MULTIPLE LISTING SERVICE)
A service offered by Canadian Realtors with descriptions of most of the homes that are for sale across the country.
OPEN MORTGAGE
A mortgage that can be prepaid, paid off or renegotiated at any time without an interest penalty. The interest rate on an open mortgage is usually higher than on a closed mortgage with an equivalent term
A mortgage that can be prepaid, paid off or renegotiated at any time without an interest penalty. The interest rate on an open mortgage is usually higher than on a closed mortgage with an equivalent term
SUBJECT REMOVAL
A period, typically a week, in which all subject clauses must be satisfied in order for the contract to become firm. The deposit is typically due once subject removal has been completed.
A period, typically a week, in which all subject clauses must be satisfied in order for the contract to become firm. The deposit is typically due once subject removal has been completed.
TITLE INSURANCE Insurance against loss or damage arising from a matter affecting the title to real property (e.g.: by a defect in the title or by the existence of a lien, encumbrance or servitude).
Still unsure? Feel free to give me a call anytime if you need some guidance at 905 926 5554.
