A guide to Real Estate Speak
Every industry has its own acronyms and terms. When you decide to buy a home, it is a good idea to be familiar with the different terms real estate professionals use.
Asking Price
The price placed on the property for sale by the Seller.
Assessed Value
The value of a property, set by the B.C Assessment Authority, and used by the local municipality for the purposes of calculating property tax.
CMHC - Canada Mortgage and Housing Corporation
A Crown corporation that administers the National Housing Act for the federal government and encourages the improvement of housing and living conditions for all Canadians.
Closing Costs
Costs, in addition to the purchase price of a home, such as legal fees, transfer fees, and disbursements, that are payable on the closing date.
Conveyance
The term used to describe the process of transferring the seller’s title to the buyer and indicates all the necessary steps to complete the transfer.
Counter Offer
An offer made by the seller back to the buyer altering one or several terms or conditions.
Deposit
A sum of money placed in trust by the purchaser when an Offer to Purchase is made.
Fixtures
All things attached to the property or growing on it.
Market Value
The highest price paid for a piece of property which has been exposed for sale in the open market.
MLS - Multiple Listing Service
A current and comprehensive listing system for relaying property information.
Offer to Purchase
A written contract setting out the terms under which the buyer agrees to buy. If accepted by the seller, it forms a legally binding contract subject to the terms and conditions stated in the document.
Property Disclosure Statement
This form enables sellers to disclose known defects. If the seller does not disclose known defects, he or she can still be held liable.
Statements of Adjustments
Closing statements in a real estate transaction that indicates credits to the seller (purchase price, prepaid taxes, etc), credits to the buyer (deposit, etc), and the balance due on closing
“Subject-to” Clause
A statement of a condition to be fulfilled before the contract will become firm and binding; must include a specific deadline for removal.
Title Registration
The legal evidence of ownership of a property.