Buyer glossary
Absorption Rate
Ratio of the number of properties in an area that have been sold against the number available; used to show the volatility of a market
Accessory Building
A building separate from the main structure on a property; often used for a specific purpose such as a workshop or shed
Accretion
The natural growth of a piece of land resulting from forces of nature
Addendum
A supplement to the Contract of Purchase and Sale that contains additional information pertinent to the property
Amenity
Any feature of a property that increases its value or desirability
Appraisal
A carefully documented opinion of value; most commonly derived using recent sales of comparable properties by a licensed professional appraiser
Appraised Value
The estimated fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals
Appreciation
The natural rise in property value due to market forces
Arms Length Transaction
Any transaction in which the 2 parties are independent and have no obvious common interests
Assessed Value
The value of a property according to jurisdictional tax assessment
Bona Fide
Any genuine offer, made without intent to defraud or deceive
Bridge Financing
An interim loan made to facilitate the purchase of a new home before the buyer’s current residence sells and its equity is available to fund the new purchase
Brokerage
Is the real estate company under which the individual is licensed
Building Code
Regulations that ensure the safety and material compliance of new construction within a municipality
Bungalow
A 1 storey home-style, dating back to the early 20th century; often characterized by a low-pitched roof
Cape Cod Colonial
A home-style made popular in New England, often characterized by a steep roof with gables
Caveat Emptor
“Buyer beware”; the buyer is responsible for verifying any and all claims by the seller of the property
Certificate of Occupancy
Issued by an appropriate jurisdictional entity, typically for a new home, it certifies that a building complies with all building codes and is safe for use
Certificate of Title
A document designating the legal owner of a parcel of real estate
Chain of Title
The complete history of ownership of a piece of property
Chattel
A moveable article of property, any article of tangible property other than land, buildings, and other things annexed to land
Clear Title
Ownership of property that is not encumbered by any counter-claim or lien
Closing
The sale of a property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale
Commission
A fee negotiated by an agent to compensate for the effort expended to sell or purchase a property
Concessions
Additional value granted by a buyer or seller to entice another party to complete a deal
Contract
A legally binding agreement between 2 parties
Deposit
Cash given along with an offer to purchase property
Depreciation
The natural decline in value of the improvement due to market forces or deterioration of the improvement
Distressed Property
A mortgaged property which has been foreclosed on
Double End
When you are the listing agent and also the selling agent as well. You are dealing with both the listing and selling side
Down Payment
An amount paid in cash for a property with the intent to mortgage the remaining amount due
Easement
The right of a non-owner of property to exert control over a portion or all of the property
Effective Age
The subjective, estimated age of a property based on its condition, rather than the actual time since it was built
Encroachment
A building or other improvement on one property which invades another property or restricts its usage
Encumbrance
A claim against a property, such as mortgages, liens, easements, and rights of way
Exclusive Listing
An agreement between the owner of a property and a real estate agent giving the agent the exclusive right to sell the property
FAQ
Frequently Asked Question
Feature Sheet
Information sheet for the home for sale showing all pertinent information that a buyer would need to know
Fee Simple
A complete unencumbered ownership right in a piece of property
Fixture
Any piece of personal property which becomes permanently affixed to a piece of real property
FSBO
For sale by owner
Gable Roof
A steeply angled, triangular roof
Gambrel Roof
A "barn-like” roof, where the upper portion of the roof is less steeply angled than the lower part
Georgian
A classic English style house characterized by simple rectangular shape and multiple stories
Grade
The slope of land around a building
Grantee
Any person who is given ownership of a piece of property
Grantor
Any person who gives away ownership of a piece of property
GST
Goods and services tax
Home Inspection
A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value
Homeowner’s Warranty
An insurance policy covering the repair of systems and appliances within the home for the coverage period
Latent Defects
Any defect in a piece of property which is not readily apparent but which has an impact of the value (e.g. dry rot)
Legal Description
The description of a piece of property identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides
Licensee
Is the managing broker, associate broker and/or representative of a Brokerage
Lien
Any claim against a piece of property resulting from a debt or other obligation
Multiple Listing Service (MLS)
A computerized database of real estate listings and sales; it is operated by the Boards in conjunction with other real estate boards and The Canadian Real Estate Association
New England Colonial
A home-style dating from early American history typified by a 2 storey building with clapboard siding
Non-Conforming Use
The use of land for purposes contrary to the applicable municipal zoning specifications
PDS (Property Disclosure Statement)
A form that the seller completes disclosing general and structural details; the seller is responsible for the accuracy of the answers on the form as it constitutes a representation under any Contract of Purchase and Sale if so agreed, in writing, by the seller and the buyer
Plat
A plan or a chart of a piece of land which lays out existing or planned streets, lots, or other improvements
Pre-Qualification
Less formal than pre-approval, is usually a written statement from a loan officer indicating an opinion that the borrower will be able to become approved for a mortgage loan
PTT (Property Transfer Tax)
A Provincial Government Tax which applies on all transfers of Real Estate and is payable on the completion date; the rate of tax is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price over $200,000; payable at completion at the lawyer’s office and payable with a separate cheque to the Minister of Finance
Purchase Agreement
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold
Rancher
Home style typified by a single storey, low roof construction
Raw Land
Any land which has not been developed
Realtylink
Master database of MLS listings in Greater Vancouver
Right of First Refusal
An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others
Survey
A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land; also depict rights of way, easements, and encroachments
Sweat Equity
Method where the owner creates equity in a property by personally constructing improvements rather than paying to have them constructed
Title
A document which serves as proof of ownership
Title Search
Research on a property’s title history to ensure no outstanding claims exist
Transfer of ownership
Any means by which the ownership of a property changes hands
Tudor
Home-style typified by exposed stone, wood and brick construction;
Unencumbered Property
Any property which has no outstanding claims or liens against it
Useful Life
The span of time over which a property can be used or can provide benefits to its owner
Webforms
Accessed through Realtorlink, where realtors can create and save a personalized form toolkit for buyers and sellers
Working With a Realtor
A form that is used to provide an explanation of the relationship between you and a realtor and of the collection, use and disclosure of personal information