Real estate terminology can seem confusing and lead to frustration.
Below is a compilation of common real estate terms to help you better understand the words you need to know.
The number of years it takes to repay the entire amount of your mortgage. It is paying off an amount owed over time by making planned, incremental payments of principal and interest. To amortize a loan means “to kill it off”.
LAND TRANSFER TAXES
When you acquire a property or land, you pay land transfer tax to the province when the transaction closes. Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
The legal evidence of ownership of a property.
A detailed examination of ownership documents to identify the legal owner of a property and to uncover any liens or restrictions on a property.
These are expenses to prepare for in addition to the purchase price for buying and/or selling a property. Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing fees, according to a recent survey.
The increase in the value of a property.
A clear title is a title without any kind of lien or levy from creditors or other parties and poses no question as to legal ownership. For example, an owner of a home with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership.
All legal and financial obligations are met on this day, and the title (and keys) to the property are transferred from the seller to the buyer. The closing date is usually the same date as the possession date.
The Canadian Real Estate Association
An association that speaks for the real estate industry on federal public policy matters and that offers member services and education. CREA supports a strict REALTOR code of conduct.
The amount of money given towards a property’s purchase price.
A listing contract (or listing agreement) is a contract between a real estate broker and an owner of real property granting the broker the authority to act as the owner’s agent in the sale of the property.