More useful resource to help with the sale and purchase of your home.
REAL ESTATE GLOSSARY
Amortization: The number of years it takes to repay the entire amount of mortgage.
Appraisal: An estimate of a property's market value used by lenders in determining the amount of the mortgage.
Appreciation: The increase of a property's value over time.
Assessment: The value of a property set by provincial assessors, for the purposes of calculating property tax.
Assumable Mortgage: A mortgage held on a property by the seller that can be taken over by the buyer, who then accepts the responsibility for making the mortgage payments.
Blended Mortgage: A combination of two mortgages, one with a higher interest rate than the other, to create a new mortgage with an interest rate somewhere between the two original rates.
Broker: A real estate professional licensed in Ontario to facilitate the sale, lease or exchange of a property.
Bridge Financing: Money borrowed against a homeowner's equity in a property, usually for a short term, to help finance the purchase of another property or make improvements to a property being sold.
Buyer's Market: A residential real estate market in which the number of properties available for sale significantly exceeds the number of buyers.
Buy - Down: When the seller reduces the interest rate on the mortgage by paying the difference between the reduced rate and the market rate directly to the lender, or to the purchaser in one lump sum or monthly installments.
Capital Gain: The difference between the purchase price and selling price.
Chattels: Removable personal items that are not normally included in the sale of a home, but may be added to the purchase price to make the property more attractive to buyers. (Examples include microwave ovens, portable dishwashers, and washers and dryers.)
Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced, during its term, without significant penalties.
Closing: The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
Closing Costs: Expenses in addition to the purchase price for buying and selling a property.
Closing Date: The date on which the title and possession to the property are transferred from the seller to the buyer, and the money is paid.
Common Elements: The portions of a condominium development owned in common (shared) by the unit owners.
Conditions: Provisions to an Agreement of Purchase and Sale between the seller and the buyer that must be met before the sales transaction can be completed.
Condominium: Shared ownership in property. Owners have title (ownership) to individual units and proportionate share in the common elements.
Conventional Mortgage: A first mortgage issued for up to 75% of the property's appraised value or purchase price. Whichever is lower.
Counter - Offer: One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.
Deed: A legal document that conveys (transfers) ownership or "title" of a property to the buyer.
Deposit: The monies paid by the buyer at the time an offer is submitted on the purchase of a property. Normally the deposit does not exceed 10% of the purchase price.
Down Payment: The difference between a property's purchase price and the amount financed.
Easement: A legal right to use of cross (right of way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
Encroachment: An intrusion onto an adjoining property. A neighbor's fence, storage shed, or overhanging roof line that partially (or even fully) intrudes onto your property are examples of encroachment.
Equity: The different between the price for which a property can be sold and the mortgage(s) on the property. Equity is the owner's "stake" in a property.
Estoppel Certificate: A written statement of a condominium unit's current financial and legal status.
First Mortgage: the first security registered on a property. Additional mortgages secured against the property are "secondary" to the first mortgage.
Fixtures: Permanent improvements to a property that are normally included with the purchase unless specifically excluded in the Agreement of Purchase and Sale. Examples include wall-to-wall carpeting and installed appliances.
Foreclosure: A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet ("defaults" on) the mortgage obligations.
Hazard Insurance: An insurance policy required by lenders to protect a property against damage or loss caused by a fire, weather, etc.
Interest: The cost of borrowing money.
Joint Tenancy: A for of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s), apart from the deceased's will.
Lien: Any legal claim against a property, filed to ensure payment of a debt.
Listing Agreement: The contract between the Listing Realtor and owner, authorizing the Realtor to facilitate the sale, or lease of a property.
Listing Broker: The Realtor who signs a contract with an owner to sell the property.
Lock Box: A sturdy metal box affixed to the outside off a property for sale and containing a key to that property. The box is usually opened by a combination given to the Realtor by the Broker's office.
Maintenance Fee: A monthly fee paid by condominium owners for maintaining the development's common areas.
Mortgage: A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt.
Mortgagee: The lender.
Mortgage Insurance: Government-backed or private-backed insurance protecting the lender against the borrower's default on high-ratio (and other types of) mortgages.
Mortgage Life Insurance: Insurance that pays off the mortgage debt should the insured borrower die.
Mortgage Payment: The regular installments made towards paying back the principal and interest on a mortgage.
Mortgage Term: The length of time a lender will loan mortgage funds to a borrower. Most mortgage terms run from six months to five years, after which the borrower can either repay the balance (remaining principal) of the mortgage, or renegotiate the mortgage for another term.
Mortgagor: The borrower.
Multiple Listing Service (MLS): A system for relaying information to Realtors about properties for sale.
Open Mortgage: A mortgage that can be prepaid or renegotiated at any time in any amount without penalty.
Partially Open Mortgage: (Also called "partially closed" mortgage.) Allows the borrower to pre-pay a specific portion of the mortgage principal at certain times with or without penalty.
Portability: A mortgage feature that allows the borrowers to take their mortgage with them without penalty when they sell their present home and buy another.
Principal: The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.
Rate (Interest): The return the lender receives for advancing the mortgage funds required by the borrower to purchase a property.
Realtor: A trademarked name describing real estate professionals who are members of a local real estate board and the Canadian Real Estate Association.
Refinancing: The process of obtaining a new mortgage (usually at a lower interest rate) to replace the existing mortgage.
Reserve Fund: The portion of a condominium maintenance fee, that is set aside to cover major repair and replacement costs.
Second Mortgage: A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.
Secondary Financing: Second, third, fourth, etc., mortgages secured by a property "behind" the first mortgage.
Selling Broker: The Realtor that actually finds the buyer.
Survey: A professionally prepared document that provides accurate details about a property's location, boundaries, size and legal description, as well as any improvements to the property including buildings, fences, etc.
Take Back: See vender take-back mortgage.
Term: See mortgage Term.
Title: The legal evidence of ownership in a property.
Title Insurance: Protects the buyer against defects in the property's title or unknown claims on the property.
Title Search: A detailed examination of the ownership documents to ensure that there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.
Transfer Taxes: Payment to the provincial government for transferring property from the seller to the buyer.
Unit: Term used to describe the individual home or apartment held by the owner within a condominium development.
Vendor: The seller in a real estate transaction.
Vendor Take-Back Mortgage: When sellers use their equity in a property to provide some or the entire mortgage financing in order to sell the property.
Zoning Regulations: Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.
for internet marketing, web site design, development, promotion, and maintenance.
For more details call Tom Irwin. tel: (705) 328-5424 [Direct]