Real Estate Terms

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.

 

REAL ESTATE TERMS YOU SHOULD KNOW

Buying or selling real estate can be a challenging process. There are hundreds of commonly used terms that could make up a language of their own. Here are some Real Estate terms that you will most likely encounter when you buy or sell your home.

 

Amenities
Features that enhance and add to the value or desirability of real estate. Common amenities include swimming pools, professional landscaping, gourmet kitchen and so on.

 

Amortization
This is a schedule that outlines your loan payments for the duration of the home buying loan. It details how much of each monthly payment goes toward the principal and how much goes toward the loan interest. Initially, the bulk of your payments will be applied toward the interest.

 

Appraisal
An estimate of the value of property, made by a qualified professional called an “appraiser”.

 

Breach
Violation of an obligation in a contract.

 

Broker
A real estate professional who has acquired a higher level of training and experience than a sales agent who has passed requisite exams to acquire a broker’s license. Often they are a legal representative or a proprietor of the Brokerage office.

 

Building Code
A set of stringent laws that control the construction of buildings, design, materials and other similar factors.

 

CMA
Comparative Market Analysis. A CMA is a report that shows prices of properties that are comparable to a subject property and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.

 

Conventional Mortgage
A first mortgage issued for up to 75% of the property’s appraised value or purchase price, whichever is lower.

 

Counter Offer
An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.

 

Earnest Money
Along with an offer, buyers can make a deposit on the home to demonstrate the seriousness of the offer. When an earnest money deposit is made, it is held by an escrow until closing. It is then added to the down payment.

 

Escrow
Funds held before closing by a third party, usually including the earnest money deposit. Future taxes and homeowners insurance, held by the mortgage company after closing, are also considered escrow.

 

FSBO, For Sale By Owner
This term refers to property that is being sold without a real estate agent. FSBO is also used to refer to the home owner who is selling the property.

 

Foreclosure
The process after home buying is complete by which a lender repossesses and resells a property after the owner has defaulted.

 

Land Transfer Tax
Payment to the provincial government for transferring property from the seller to the buyer.

 

Lien
This is a legal claim that keeps the property from being sold until the lien is paid off.

 

MLS - Multiple Listing Service
An organization that collects, compiles, and distributes information about properties listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites. MLS’s can be local or regional.

 

Real Estate Agent or REALTOR�
A person with a provincial/state license to represent a buyer or a seller in a real estate transaction in exchange for commission. Most agents work for a real estate broker.

 

REALTOR�
A licensed real estate salesperson or broker who is registered with the Canadian Real Estate Association.
REALTORS adhere to a strict Code of Ethics and Standards of Business Practice which is your guarantee of professional conduct and the best in service.

 

Title Insurance
An insurance policy that protects a lender’s or owner’s interest in real estate property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.

 

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