Real Estate Terms

Bungalow

A one-story house, cottage, or cabin.

Condominium

A large property complex that is divided into individual units and sold. Ownership usually includes a non-exclusive interest in certain "common properties" controlled by the condominium management.

Close

The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.

Closing Statement

A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place. This document is prepared by a closing agent and is also known as a "settlement sheet".

Commercial Real Estate

Property that is solely used for business purposes.

Deed

A legal document that grants the bearer a right or privilege, provided that he or she meets a number of conditions. In order to receive the privilege - usually ownership, the bearer must be able to do so without causing others undue hardship. A person who poses a risk to society as a result of holding a deed may be restricted in his or her ability to use the property. Deeds are most known for being used to transfer the ownership of automobiles or land between two parties.

Investment Real Estate

Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.

Land

Property or real estate, not including buildings or equipment, that does not occur naturally. Depending on the title, land ownership may also give the holder the rights to all natural resources on the land. These may include water, plants, human and animal life, fossils, soil, minerals, electromagnetic features, geographical location, and geophysical occurrences.

Land Value

The total value of the land, including any upgrades or improvements to the land.

Real Estate Sales Representative

A person with a provincial license to represent a buyer or a seller in a real-estate transaction in exchange for commission. Most Sales Representatives work for a real estate brokerage or agent.

Zoning

Government (usually municipal) laws that control the use of land within a jurisdiction.

PROPERTY TAXES

This annual fee, imposed by the local government, pays for services like public education, local police and libraries.
 

HOME INSURANCE

This is a form of property insurance protecting you financially in the event of damages or losses to your home and its contents. In most cases, you can include these payments in your monthly mortgage payment.

Home inspection

Even if the home appears to be flawless, many home buyers arrange a home inspection as a condition of their purchase. Hiring a professional to inspect the overall condition of the home can cost a few hundred dollars, but can reveal any serious defects.

Irrevocability of The Offer

The length of time the seller has to consider your offer. Generally, the seller has between 24 and 48 hours to accept, reject or counter-offer. Title Insurance: An insurance policy protecting you against challenges related to the title of your home—and more.

Offer to Purchase

A formal, legal agreement made between the buyer and seller which often contains certain conditions.

Conditional Offer

Includes factors that must be met in order for the sale to be successful such as financing terms, appliances and fixtures, inspections and the physical condition of the house.

Down Payment

This refers to the initial up-front portion you pay against your home purchase. The larger the down payment, the smaller your mortgage.

Fixed-rate mortgage

Your interest rate is locked in for a specified period called a term. Your payments stay the same for the mortgage’s term so you will not pay more even if interest rates increase over time.

Variable rate mortgage

The rate of interest you pay may change if rates go up or down.

Conventional mortgage

Requires a down payment of 20% or more of the property’s value. You’re not required to get mortgage default insurance with a conventional mortgage.

Closed mortgage

The mortgage cannot be paid off early without paying a prepayment charge.

Open mortgage

A mortgage that can be paid off at any time during the term, without having to pay a charge. The interest rate for an open mortgage may be higher than for a closed mortgage with the same term.