Navigating the process of buying or selling a home can be a little overwhelming to some people. Having a Realtor to guide you through the process helps to make the process much easier. Even with the help of a Realtor you may still be lost in some of the terms used when it comes to talking about real estate. Lets take a look at some of the more common terms used in real estate, and help to clear up some of the confusion.
AGENCY A relationship which arises out of a contract, where an agent is authorized by a client to engage in certain acts, usually in dealing with one or more third party(s).
APPRAISED VALUE An estimate of property value written by a qualified individual. Appraisals performed for mortgage lending purposes, may not reflect the market value of the property, or the purchase price.
ASSESSED VALUE An amount assigned to taxable property, for the purpose of equalizing the burden of taxation.
CMHC The Canada Mortgage and Housing Corporation a Canadian Crown Corporation which administers the National Housing Act. CMHC services include the insuring of high ratio mortgage loans for lenders.
CONDOMINIUM The ownership of a separate amount of space in a multiple dwelling or other multiple-ownership of common elements used jointly with other owners.
CO-OPERATIVE The ownership of a separate amount of space in a multiple dwelling or multiple-occupancy building with proportioned tenancy in common ownership of common elements. Used jointly with other owners, however, the owner does not have clear title to a specific unit, but becomes a shareholder of the corporation which owns all the property and occupies by way of a tenancy agreement subject to shareholders agreement administered by an elected board of directors.
HALF DUPLEX Refers to a structure used for residential purposes and consisting of two living units with a common wall.
DULEPX SIDE BY SIDE Refers to the entire structure of a duplex unit, consisting of both living units
ENCROACHMENT The act of building a structure which is in whole or in part on a neighbor's property.
EQUITY The value of real estate over and above the mortgage(s) against it.
FREEHOLD The ownership of a tract of land on which the building(s) are located. The oldest and most common typed of ownership of real estate.
LEASEHOLD A type of interest in a property that is certain only for a specified period of time granted by contract.
LEGAL DESCRIPTION A written description by which property can be definitely located, and which is acceptable for registration in a land registry system.
LIEN A legal claim against a property for money owed.
MORTGAGE The legal pledge of real estate as security for a loan.
MORTGAGE BROKER A person who originates real estate loans and allocates mortgage funds. These funds are placed on behalf of others, through negotiation of lenders and borrowers for the best possible arrangement and satisfaction of all concerned.
OFFER TO PURCHASE A written proposal to purchase real estate that becomes binding upon acceptance of the vendor
PROPERTY Refers to the rights which an individual enjoys by virtue of his/her ownership.
REALTOR A real estate broker holding active membership in a local real estate board.
TERM The length of time which a mortgage agreement covers. Payments made may not repay the outstanding principal by the end of the term because of a longer amortization period.
TOWNHOUSE/TOWNHOME A style of housing unit generally built in a vertical as opposed to horizontal plane, sharing one or more common wall.
VENDOR A seller of real property.
ZONING The public regulation of the character and intensity of the use of real estate. This is accomplished by the establishment of districts in each of which uniform holding restrictions related to use, height, are, bulk, and density of population are imposed upon the private property.
Well this short list may not teach you all the terms you will need on your purchase or sale of your home, it should help to educate you on some of the aspects of the real estate process. If you feel yourself getting lost in terms like the ones listed above it may be time to ask for the help of a professional Realtor, to asset you in navigating this sometimes tricky language. Realtors have the knowledge and resources to maximize your time and limit your hassles. Should you need more help with your property search please let this Realtor help you to navigate the enjoyable process of buying or selling your next home.
And Thats The Cats’ Meow