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- Absorption Rate: The rate at which homes in a particular area are sold over a specific period, often used to determine the pace of the market.
- Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that changes periodically based on market conditions, also known as a variable-rate mortgage in Canada.
- Amortization Period: The length of time it takes to repay a mortgage in full, typically expressed in years (e.g., 25 years).
- Appraisal: An unbiased professional opinion of a property's market value, usually required by lenders before approving a mortgage.
- Assessed Value: The value placed on a property by a public tax assessor for the purposes of taxation.
- Breach of Contract: Failure to fulfill the terms of a contract, which can lead to legal consequences.
- Bridge Financing: A temporary loan to cover the gap between the sale of an existing property and the purchase of a new one.
- Broker: A licensed professional who facilitates the buying, selling, or leasing of real estate properties. In Canada, this can refer to a real estate agent with additional qualifications.
- Cap Rate (Capitalization Rate): A percentage used to estimate the return on investment in a property, calculated by dividing the net operating income by the property's purchase price.
- Caveat: A legal notice registered against the title of a property to warn that the person lodging the caveat claims an interest in the property.
- Closing Costs: Expenses incurred during the finalization of a real estate transaction, including legal fees, title insurance, and transfer taxes.
- CMHC (Canada Mortgage and Housing Corporation): A federal agency that provides mortgage loan insurance, making it possible for Canadians to purchase homes with a down payment as low as 5%.
- Comparative Market Analysis (CMA): An evaluation of similar, recently sold homes in the same area to determine a property's market value.
- Conditional Offer: An offer to purchase a property that includes specific conditions that must be met, such as securing financing or passing a home inspection.
- Condominium (Condo): A type of property ownership where individuals own their unit and share common areas, such as lobbies and amenities, with other owners.
- Covenant: A legally binding promise in a deed or lease that outlines what can or cannot be done with the property.
- Debt-to-Income Ratio: A measure used by lenders to assess a borrower's ability to repay a loan, calculated by dividing monthly debt payments by gross monthly income.
- Deed: A legal document that transfers ownership of property from one person to another.
- Deposit: An amount of money paid by a buyer to show serious intent to purchase a property, typically held in trust until closing.
- Down Payment: The portion of the purchase price paid upfront by the buyer, usually expressed as a percentage of the total price (e.g., 20%).
- Dual Agency: A situation where a single real estate agent represents both the buyer and the seller in a transaction, which is restricted or regulated in some Canadian provinces.
- Easement: A legal right to use another person's land for a specific purpose, such as a utility company having access to install or maintain power lines.
- Equity: The difference between the market value of a property and the amount still owed on the mortgage.
- Exclusive Listing: A property listing where the seller agrees to work with only one real estate agent or brokerage for a specified period.
- Fixed-Rate Mortgage: A mortgage with a constant interest rate for the entire term of the loan.
- Foreclosure: The legal process in which a lender takes possession of a property when the borrower fails to make mortgage payments.
- Freehold: A type of property ownership where the owner has complete control over the land and building without any limitations from other entities.
- GDS Ratio (Gross Debt Service Ratio): A measure used by lenders to determine the proportion of a borrower's gross income that goes towards housing costs, including mortgage payments, property taxes, and heating.
- Granny Flat: A self-contained living area within a home or on the same property, typically used for elderly relatives.
- High-Ratio Mortgage: A mortgage where the borrower has a down payment of less than 20% of the home's purchase price, requiring mortgage insurance through CMHC or a private insurer.
- Home Inspection: An evaluation of a property's condition by a qualified professional before the sale is finalized.
- Homeowners' Association (HOA): An organization in a condominium or planned community that makes and enforces rules for the properties and residents.
- Interest-Only Mortgage: A mortgage where the borrower only pays interest for a set period, after which principal payments begin.
- Interest Rate: The percentage charged by a lender for borrowing money, expressed as an annual percentage of the loan amount.
- Joint Tenancy: A form of property ownership where two or more individuals own a property together with equal rights and obligations, including the right of survivorship.
- Judgment Lien: A court-ordered claim against a property to secure payment of a debt owed by the property owner.
- Land Transfer Tax: A tax levied by provincial governments when property ownership is transferred from one party to another.
- Leasehold: A type of property ownership where the owner leases the land from another entity, usually for a long term, but does not own the land itself.
- Lien: A legal claim against a property for unpaid debts, such as property taxes or contractor fees.
- Listing Agreement: A contract between a property owner and a real estate agent authorizing the agent to market and sell the property.
- MLS (Multiple Listing Service): A database of real estate listings that provides information on properties for sale to real estate agents and the public.
- Mortgage: A loan used to purchase real estate, where the property itself serves as collateral.
- Mortgage Insurance: Insurance required for high-ratio mortgages to protect the lender if the borrower defaults on the loan.
- Municipal Taxes: Property taxes collected by local governments to fund municipal services such as schools, roads, and emergency services.
- Net Operating Income (NOI): The income generated by a property after operating expenses, excluding mortgage payments, have been deducted.
- Notice of Assessment (NOA): A statement from the Canada Revenue Agency (CRA) detailing the amount of income tax owed or refunded, often used by lenders to verify income.
- Offer to Purchase: A written proposal from a buyer to a seller to purchase a property under specific terms and conditions.
- Open Mortgage: A mortgage that allows the borrower to pay off the loan at any time without penalties.
- Pre-Approval: A process where a lender evaluates a potential borrower's financial situation to determine how much they can borrow for a mortgage.
- Principal: The original amount of money borrowed for a mortgage, excluding interest.
- Property Disclosure Statement (PDS): A document completed by the seller disclosing known issues with the property, required in some Canadian provinces.
- Property Tax: A tax levied by municipal governments based on the assessed value of the property, used to fund public services.
- Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-producing real estate and allows investors to purchase shares.
- Reserve Fund: A fund set aside by a condominium or strata corporation for major repairs and replacements of common property elements.
- Right of First Refusal: A contractual right giving an individual the opportunity to purchase a property before the owner accepts another offer.
- Riparian Rights: The rights of a property owner whose land borders a river or stream to access and use the water.
- Sales Agreement: A legally binding contract between the buyer and seller outlining the terms and conditions of the property sale.
- Seller’s Market: A market condition where demand for homes exceeds supply, often leading to higher prices and multiple offers.
- Short Sale: A sale of property where the proceeds fall short of the balance owed on the mortgage, often used as an alternative to foreclosure.
- Strata Title: A form of ownership common in condominiums where individual ownership is combined with shared ownership of common areas.
- Tenancy in Common: A form of property ownership where two or more individuals own shares of a property, which may be unequal, without the right of survivorship.
- Title: The legal right to ownership of a property, which can be transferred from one person to another.
- Title Insurance: Insurance that protects the buyer and lender against losses related to property title defects or disputes.
- Transfer Tax: A tax imposed by provincial governments when the ownership of real estate is transferred from one person to another.
- Underwriting: The process by which a lender evaluates a borrower's financial situation and the risk involved in issuing a mortgage.
- Variable-Rate Mortgage: A mortgage with an interest rate that fluctuates with market conditions, often tied to the prime rate.
- Vendor Take-Back Mortgage (VTB): A mortgage where the seller of a property provides financing to the buyer, typically used in situations where traditional financing is difficult to obtain.
- Voidable Contract: A contract that can be legally voided by one of the parties without penalty, usually due to a breach of conditions.
- Walk-Through: A final inspection of the property by the buyer before closing to ensure that the property is in the agreed-upon condition.
- Warranty Deed: A legal document that guarantees the seller holds clear title to the property and has the right to sell it.
- Zoning: Regulations set by local governments dictating how a property can be used, including residential, commercial, or industrial purposes.
Disclaimer:
The information provided in these posts are for general purposes only. It is not written nor intended to provide legal advice or opinions of any kind. No one should act upon, refrain from acting, based solely upon the materials provided & recorded, or through any hypertext links and other general information, without first seeking appropriate legal and/or other professional advice.