Whether you're a seasoned real estate professional looking to polish your vocabulary, a new agent eager to master the industry jargon, or a prospective homebuyer or seller aiming to navigate the complexities of real estate transactions more effectively, this blog is tailored for you. We will explore a range of essential terms that are key to grasping the nuances of real estate marketing and transactions. From the basics of 'As-is', 'Amortization', and 'Closing Costs' to more intricate concepts like 'Escrow' and 'Due Diligence', each term will be broken down in simple, easy-to-understand language. Our goal is to empower you with the knowledge you need to make informed decisions in the world of real estate. Stay tuned as we decode the terms that can help you succeed in the market, enhance communication with clients, and streamline your real estate operations.

 

 

Term	Explanation
Appraisal	An evaluation of a property's value by a licensed appraiser.
Closing Costs	Expenses over and above the price of the property that buyers and sellers normally incur to complete a real estate transaction.
Conventional Sale	A real estate transaction that is not affected by additional factors such as foreclosure or probate.
Land Lease	An agreement where one party allows another to use a piece of land for a specified time in exchange for rent.
Listing Agent	A real estate agent who lists the property for sale on the market.
Buyer's Agent	A real estate agent who assists the buyer in finding and purchasing a property.
Equity	The difference between the market value of a property and any outstanding mortgage balance.
Foreclosure	A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.
Fixture vs. Chattel	Fixtures are items permanently attached to the property (like built-in furniture), whereas chattels are movable items.
Listing Agreement	A contract between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer.
Mortgage Pre-approval	A lender's assessment of a potential borrower's ability to finance the purchase of a home before agreeing to lend the money.
Closing Date	The date on which the buyer is entitled to possession of the property and responsible for taxes, utility charges, and other fees.
Covenant	A promise in a written contract or deed of real property that certain activities will or will not be carried out on the property.
Easement	A right to cross or otherwise use someone else's land for a specified purpose.
Encumbrance	A claim or liability that affects the title to real estate, such as mortgages, leases, easements, or restrictions.
Fixture	Personal property that becomes real property when attached in a permanent manner to real estate.
Lien	A legal right or interest that a lender has in the borrower's property, until the debt associated with it is paid off.
Market Value	The highest estimated price that a buyer would pay and a seller would accept for an item in an open and competitive market.
Porting	Transferring an existing mortgage from one property to another, useful for buyers moving to a new home.
Real Property	Land and any permanent structures attached to it, such as houses, outbuildings, and other fixtures.
Realtor	A real estate professional who is a member of the Canadian Real Estate Association and adheres to its strict code of ethics.
Refinancing	Replacing an existing mortgage with a new one, usually to reduce monthly payments or tap into home equity.
Zoning	Government (municipal) regulation of land use which designates permitted uses of land based on mapped zones.
Amortization	The process of spreading out a loan into a series of fixed payments over the loan's duration.
Appreciation	The increase in the value of a property over time due to various factors like market conditions and improvements.
Capital Gains	The profit realized on the sale of a property that has increased in value over the time it was held.
Equity	The difference between the market value of a property and the outstanding balance of all liens on it.
Foreclosure	A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.
Mortgage Broker	A licensed professional who compares multiple loan products and facilitates the borrowing process for clients.
As-is	A term used to describe a property sold in its current condition with no warranties or guarantees by the seller.
Closing	The final step in executing a real estate transaction where the title passes from seller to buyer, and the funds are transferred.
Days on Market (DOM)	The number of days a property is listed on the market before it sells.
Offer to Purchase	A formal proposal made by a buyer to purchase real estate, which includes the price and terms under which the buyer is willing to purchase the property.
Conditional Offer	An offer to purchase a property that includes conditions that must be met before the sale can go through.
Land Lease	An agreement where the land is rented rather than owned by the homeowner, common in cooperative housing.
Market Value	The most probable price a property would bring in a competitive and open market under all conditions requisite to a fair sale. Simplified, what a buyer is prepare to pay and what a seller is prepared to sell for.
Appreciation	An increase in the value of a property due to changes in market conditions or other causes.
Realtor Jargon	Specific terms and language used by real estate professionals to communicate about property transactions.
Property Management	The administration of residential, commercial, and industrial real estate including apartments, detached houses, condominium units, and shopping centers.
Mortgage	A loan obtained to purchase real estate, typically secured by the property being purchased.
Listing	A written contract that gives a real estate agent the exclusive right to sell a property for a specified time.
Due Diligence	The necessary research and analysis that a prudent purchaser/investor should undertake before making business decisions.