LFR REAL Estate Glossary - Home Buying & Selling Terms
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1.
OFFER TO PURCHASE
Category: Contracts and Agreements
Technical explanation:
A written proposal from a buyer outlining price and conditions.
What it means: Formal start of negotiations.
How it’s useful: Helps you make confident decisions and negotiate favourable terms.
2.
COUNTER OFFER
Category: Contracts and Agreements
Technical explanation: Seller’s response modifying terms like price or possession date.
What it means: Keeps negotiations alive without outright rejection.
How it’s useful: Ensures you stay in control of the deal.
3.
CONTINGENCY
Category: Contracts and Agreements
Technical explanation: Condition that must be met for the deal to proceed.
What it means: Protects buyers from unexpected issues.
How it’s useful: Gives a safety net to renegotiate or back out if needed.
4.
EARNEST MONEY
Category: Contracts and Agreements
Technical explanation: Deposit showing buyer commitment, held in trust.
What it means: Signals seriousness on a purchase.
How it’s useful: Demonstrates intent while clarifying contingencies.
5.
HOME INSPECTIONS
Category: Home Buying Process
Technical explanation: Expert review of the property condition before purchase.
What it means: Identifies issues before finalizing the deal.
How it’s useful: Avoids costly repairs and allows negotiation on fixes.
6.
APPRAISAL
Category: Assessments
Technical explanation: Professional assessment of property market value.
What it means: Ensures price aligns with market conditions.
How it’s useful: Protects you from overpaying or financing issues.
7.
CLOSING DATE
Category: Home Buying Process
Technical explanation: Day ownership transfers from seller to buyer.
What it means: Finalizes purchase and keys are exchanged.
How it’s useful: Lets you coordinate moving logistics efficiently.
8.
UNDER CONTRACT
Category: Home Buying Process
Technical explanation: Property accepted an offer but not yet sold.
What it means: Off the market pending conditions.
How it’s useful: Keeps you informed while planning next steps.
9.
PROPERTY DISCLOSURE STATEMENT
Category: Legal and Regulations
Technical explanation: Seller reveals known defects or issues.
What it means: Ensures buyers understand property risks.
How it’s useful: Helps budget for repairs and avoid surprises.
10.
MARKET VALUE
Category: Assessments
Technical explanation: Price a property would reasonably sell for.
What it means: Determined by comps, demand, and location.
How it’s useful: Guides competitive offers without overpaying.
11.
LISTING PRICE
Category: Home Selling Process
Technical explanation: Asking price set by seller/agent.
What it means: Starting point for negotiations.
How it’s useful: Prepares you to negotiate based on market conditions.
12.
COMPARATIVE MARKET ANALYSIS (CMA)
Category: Assessments
Technical explanation: Report comparing similar homes to estimate value.
What it means: Advises on realistic pricing.
How it’s useful: Ensures offers align with actual market trends.
13.
APPRAISED VALUE
Category: Assessments
Technical explanation: Value determined by appraiser using market data.
What it means: Impacts financing approval.
How it’s useful: Helps you adjust budget or renegotiate if needed.
14.
PRICE PER SQUARE FOOT
Category: Assessments
Technical explanation: Home price divided by size.
What it means: Quick comparison metric.
How it’s useful: Helps evaluate relative value between properties.
15.
MARKET TRENDS
Category: Market Conditions
Technical explanation: Patterns in prices, demand, and inventory.
What it means: Indicates timing for buying or selling.
How it’s useful: Helps plan strategic moves.
16.
DAYS ON MARKET (DOM)
Category: Market Conditions
Technical explanation: Duration of time for which a property has been publicly listed.
What it means: Signals pricing or condition issues.
How it’s useful: Guides negotiation decisions.
17.
TURNKEY
Category: Property Condition
Technical explanation: Home ready to move into without upgrades.
What it means: No renovations required.
How it’s useful: Simplifies move-in planning.
18.
AS-IS CONDITION
Category: Property Condition
Technical explanation: Property sold without repairs.
What it means: Buyer accepts current condition.
How it’s useful: Protects seller; buyer must budget for fixes.
20.
FIXER UPPER
Category: Property Condition
Technical explanation: Home needing repairs or renovations.
What it means: Typically priced lower.
How it’s useful: Opportunity to invest sweat equity.
21.
CURB APPEAL
Category: Property Condition
Technical explanation: Attractiveness of exterior and landscaping.
What it means: First impression on buyers.
How it’s useful: Improves sale speed and offer quality.
22.
WALK SCORE
Category: Market Conditions
Technical explanation: Rating of neighbourhood walkability.
What it means: Indicates access to amenities.
How it’s useful: Helps evaluate lifestyle convenience.
23.
MOVE-IN READY
Category: Property Condition
Technical explanation: Requires no immediate work.
What it means: Similar to turn-key.
How it’s useful: Simplifies transition without unexpected projects.
24.
RENOVATED
Category: Property Condition
Technical explanation: Updated or modernized home.
What it means: Fewer surprises, potentially higher value.
How it’s useful: Reduces risk of post-purchase repairs.
25.
NEW CONSTRUCTION
Category: Property Condition
Technical explanation: Recently built homes never lived in.
What it means: Often comes with warranties and modern features.
How it’s useful: Offers modern layouts and efficiency.
26.
FREEHOLD
Category: Property Types
Technical explanation: Ownership of building and land.
What it means: Full control over property.
How it’s useful: Gives freedom to manage property and land.
27.
CONDOMINIUM
Category: Property Types
Technical explanation: Unit ownership with shared common areas.
What it means: Monthly maintenance fees apply.
How it’s useful: Simplifies upkeep and shared management.
28.
CO-OWNERSHIP
Category: Property Types
Technical explanation: Multiple owners share a property.
What it means: Requires agreements on use and sale.
How it’s useful: Prevents conflicts and ensures clear responsibilities.
29.
CONDITIONAL SALE
Category: Home Selling Process
Technical explanation: Sale depends on conditions like inspection or financing.
What it means: Must meet conditions to finalize.
How it’s useful: Protects buyer and seller from unmet obligations.
30.
TOWNHOUSE
Category: Property Types
Technical explanation: Multi-floor home attached to others in a row.
What it means: Shared walls, separate entrances.
How it’s useful: Balances privacy and community amenities.
31.
DETACHED HOUSE
Category: Property Types
Technical explanation: Standalone house with no shared walls.
What it means: Maximum privacy and yard space.
How it’s useful: More space, but higher costs and upkeep.afaf
32.
SEMI-DETACHED
Category: Property Types
Technical explanation: House sharing one wall with a neighbour.
What it means: Compromise between detached and townhouse living.
How it’s useful: Offers privacy with less maintenance than detached.
33.
DUPLEX
Category: Property Types
Technical explanation: Building divided into two units.
What it means: Two separate living spaces, but one dwelling.
How it’s useful: Generates rental income and flexible living options.
34.
TRUST ACCOUNT
Category: Legal and Regulations
Technical explanation: Regulated account holding deposits during transactions.
What it means: Funds are held by a trusted third party until conditions are met.
How it’s useful: Keeps your deposit safe throughout the deal.
35.
DEPOSIT
Category: Contracts and Agreements
Technical explanation: Buyer’s good-faith payment held in trust.
What it means: Part of the purchase price.
How it’s useful: Signals serious intent while protecting your money.
36.
HOME WARRANTY
Category: Costs and Financials
Technical explanation: Service contract covering repairs for a limited time.
What it means: Adds protection post-purchase.
How it’s useful: Saves money and stress on unexpected repairs.
37.
OPEN HOUSE
Category: Home Selling Process
Technical explanation: Scheduled public viewing of property.
What it means: Attracts multiple buyers.
How it’s useful: Lets you compare homes and neighbourhoods.
38.
MULTIPLE LISTING SERVICE (MLS)
Category: Home Buying Process
Technical explanation: Database of properties for sale.
What it means: Central source for listings.
How it’s useful: Gives access to nearly all market options.
39.
CLOSING STATEMENT (Statement of Adjustments)
Category: Costs and Financials
Technical explanation: Summary of all costs and payments at closing.
What it means: Clarifies money flow.
How it’s useful: Prevents surprises and ensures transparency.
40.
TITLE TRANSFER
Category: Legal and Regulations
Technical explanation: Legal change of ownership from seller to buyer.
What it means: Confirms new ownership.
How it’s useful: Lets you take full possession of the property.
41.
INSPECTION REPORT
Category: Home Buying Process
Technical explanation: Written summary of home inspection findings.
What it means: Guides repair requests or negotiations.
How it’s useful: Ensures you know what you’re buying.
42.
PROPERTY TAX ASSESSMENT
Category: Assessments
Technical explanation: Municipality’s valuation for tax purposes.
What it means: May differ from market value.
How it’s useful: Helps plan property tax budget and appeals.
43.
HOME STAGING
Category: Home Selling Process
Technical explanation: Preparing interiors to appeal to buyers.
What it means: Decluttering and decorating for sale.
How it’s useful: Attracts better offers faster.
44.
PRE-LISTING INSPECTION
Category: Home Selling Process
Technical explanation: Inspection ordered by seller before listing.
What it means: Identifies issues early.
How it’s useful: Reduces surprises and smooths negotiations.
45.
PROPERTY TAXES
Category: Costs and Financials
Technical explanation: Annual municipal taxes based on property value.
What it means: Ongoing ownership cost.
How it’s useful: Helps budget monthly housing expenses.
46.
MOVING COSTS
Category: Costs and Financials
Technical explanation: Expenses for relocating, including movers and setup.
What it means: Planning for relocation.
How it’s useful: Prevents unexpected expenses during your move.
47.
FIRST RIGHT of REFUSAL
Category: Contracts and Agreements
Technical explanation: Gives a party first chance to buy a property if offered.
What it means: Another buyer can’t purchase before you’re offered the opportunity.
How it’s useful: Protects your chance to acquire a property.
48.
OPTION TO PURCHASE
Category: Contracts and Agreements
Technical explanation: Right, not obligation, to buy within a set time.
What it means: You can decide later whether to proceed.
How it’s useful: Provides flexibility while securing purchase rights.
49.
ASSIGNMENT of CONTRACT
Category: Contracts and Agreements
Technical explanation: Transfer of a buyer’s rights under a purchase contract.
What it means: Another buyer steps into your contract.
How it’s useful: Lets you exit while protecting your deposit.
50.
AGREEMENT PURCHASE of SALE
Category: Contracts and Agreements
Technical explanation: Legal contract outlining terms between buyer and seller.
What it means: Defines obligations and conditions.
How it’s useful: Protects both parties and clarifies responsibilities.
51.
ESCROW
Category: Contracts and Agreements
Technical explanation: Directives for managing funds in trust.
What it means: Ensures deposits/payments are handled correctly.
How it’s useful: Protects your money until sale conditions are met.
52.
LEASEBACK AGREEMENT
Category: Contracts and Agreements
Technical explanation: Seller leases property back from buyer after sale.
What it means: Buyer owns property but seller remains temporarily.
How it’s useful: Offers control while accommodating the seller’s timeline.
53.
HOLDBACK
Category: Contracts and Agreements
Technical explanation: Portion of funds withheld until conditions are met.
What it means: Ensures obligations or repairs are completed.
How it’s useful: Protects you from incomplete work or unresolved issues.
54.
BID
Category: Home Buying Process
Technical explanation: Offer to purchase in competitive situations.
What it means: Formalizes intent to buy.
How it’s useful: Lets you compete effectively in a seller’s market.
55.
OFFER ACCEPTANCE
Category: Home Buying Process
Technical explanation: Seller agrees to buyer’s offer.
What it means: Starts contractual obligation.
How it’s useful: Confirms purchase and triggers next steps.
56.
CONDITIONAL OFFER
Category: Home Buying Process
Technical explanation: Offer depending on certain conditions.
What it means: Sale not final until conditions are removed.
How it’s useful: Protects from financing or inspection risks.
57.
SUBJECT REMOVAL
Category: Home Buying Process
Technical explanation: Formal removal of conditions.
What it means: Buyer commits to complete purchase.
How it’s useful: Shows readiness and moves the deal forward.
58.
POSSESSION DATE
Category: Home Buying Process
Technical explanation: Agreed date when buyer takes ownership.
What it means: Marks move-in day.
How it’s useful: Helps plan logistics efficiently.
59.
WALK-THROUGH
Category: Home Buying Process
Technical explanation: Final inspection before closing.
What it means: Confirms property condition.
How it’s useful: Ensures no issues arise before taking ownership.
60.
PRE-APPROVAL
Category: Home Buying Process
Technical explanation: Lender assessment of borrowing capacity.
What it means: Sets budget limits before shopping.
How it’s useful: Focuses search on affordable homes.
61.
CLOSING COSTS (Ontario)
Category: Costs and Financials
Technical explanation: Itemized list of fees at closing.
What it means: Clarifies total cash required.
How it’s useful: Prevents surprises and ensures proper budgeting.
62.
LISTING AGREEMENT
Category: Home Selling Process
Technical explanation: Contract authorizing an agent to market property.
What it means: Outlines terms, duration, and commission.
How it’s useful: Secures professional representation.
63.
SELLER DISCLOSURE
Category: Home Selling Process
Technical explanation: Seller reveals material facts about property.
What it means: Ensures buyer transparency.
How it’s useful: Protects legally and builds trust.
64.
OFFER REVIEW
Category: Home Selling Process
Technical explanation: Assessment of purchase offers.
What it means: Determines most favourable offer.
How it’s useful: Helps maximize value.
65.
PRICE ADJUSTMENT (new price)
Category: Home Selling Process
Technical explanation: Modifying listing price based on market feedback.
What it means: Keeps property competitive.
How it’s useful: Reduces time on market and attracts buyers.
66.
MUNICIPAL ASSESSMENT
Category: Assessments
Technical explanation: City’s valuation of property for tax purposes.
What it means: Determines annual property taxes.
How it’s useful: Helps plan yearly housing costs and appeal assessments if needed.
67.
ASSESSED VALUE
Category: Assessments
Technical explanation: Value assigned to a property by municipality.
What it means: May differ from market value.
How it’s useful: Useful for budgeting property taxes accurately.
68.
COMPARABLE PROPERTIES (COMPS)
Category: Assessments
Technical explanation: Recently sold similar homes used to estimate value.
What it means: Helps judge realistic pricing.
How it’s useful: Guides fair offers or listing price.
69.
ZONING
Category: Legal and Regulations
Technical explanation: Rules controlling property use and development.
What it means: Limits what can be built or modified.
How it’s useful: Protects investment by ensuring compatible use.
70.
LAND TRANSFER TAX
Category: Costs and Financials
Technical explanation: Provincial tax paid when property ownership changes.
What it means: Based on the purchase price.
How it’s useful: Helps budget closing costs properly.
71.
CANADIAN MORTGAGE & HOUSING CORPORATION (CMHC)
Category: Costs and Financials
Technical explanation: Insurance protecting lender when down payment <20%.
What it means: Mandatory for high-ratio mortgages.
How it’s useful: Allows purchase with smaller down payment.
72.
PRINCIPAL & INTEREST
Category: Costs and Financials
Technical explanation: Portion of mortgage payment going to loan vs. interest.
What it means: Reduces debt while paying borrowing cost.
How it’s useful: Helps track equity and plan finances.
73.
PROPERTY TITLE
Category: Legal and Regulations
Technical explanation: Legal documentation of property ownership.
What it means: Confirms who owns the property.
How it’s useful: Protects your rights and proves ownership.
74.
PROPERTY LIEN
Category: Legal and Regulations
Technical explanation: Legal claim on property for unpaid debts.
What it means: Must be cleared before sale.
How it’s useful: Ensures clear ownership and avoids disputes.
75.
EASEMENT
Category: Legal and Regulations
Technical explanation: Right allowing others to use part of your property.
What it means: May restrict certain uses of land.
How it’s useful: Helps you understand obligations and limitations.
76.
ENCROACHMENT
Category: Legal and Regulations
Technical explanation: Unauthorized use of another property’s land.
What it means: May lead to legal disputes.
How it’s useful: Identifies potential conflicts before purchase.
77.
TITLE INSURANCE
Category: Legal and Regulations
Technical explanation: Protects against title defects or claims.
What it means: Covers financial loss from ownership issues.
How it’s useful: Protects your investment and peace of mind.
78.
PROPERTY SURVEY
Category: Assessments
Technical explanation: Maps property boundaries and features.
What it means: Confirms size and limits.
How it’s useful: Prevents disputes and guides renovations.
79.
FIXED RATE MORTGAGE
Category: Costs and Financials
Technical explanation: Interest rate that remains constant throughout the Term.
What it means: Predictable payments.
How it’s useful: Provides budgeting certainty.
80.
VARIABLE RATE MORTGAGE
Category: Costs and Financials
Technical explanation: Interest rate that fluctuates with prime rates.
What it means: Payments may change.
How it’s useful: Potential savings if rates fall, but higher risk.
81.
PORTABILITY (MORTGAGES)
Category: Costs and Financials
Technical explanation: Ability to transfer mortgage to new property.
What it means: Avoids breaking contract.
How it’s useful: Saves penalties and keeps favorable rates.
82.
REAL PROPERTY REPORT (RPR)
Category: Assessments
Technical explanation: Certified survey showing improvements on land.
What it means: Confirms compliance with municipal rules.
How it’s useful: Ensures legal and safe ownership.
83.
BUILDER WARRANTY
Category: Home Buying Process
Technical explanation: Coverage on new homes for defects or systems.
What it means: Time-limited protections from the builder.
How it’s useful: Saves repair costs and protects against defects.
84.
APS (PURCHASE AGREEMENT)
Category: Contracts and Agreements
Technical explanation: Formal written contract to buy a property.
What it means: Outlines price, terms, and conditions of the sale.
How it’s useful: Protects your rights and sets clear expectations with the seller.
85.
DEBT to INCOME RATIO
Category: Costs and Financials
Technical explanation: Percentage of monthly income that goes toward debt payments.
What it means: Lenders use it to assess borrowing risk.
How it’s useful: Keeps your finances healthy and improves mortgage approval odds.
86.
CHATTELS & FIXTURES
Category: Legal and Regulations
Technical explanation: Chattels are movable items; fixtures are attached property items.
What it means: Determines what stays or goes during a sale.
How it’s useful: Prevents disputes and clarifies what you’re buying.
87.
IRREVOCABLE OFFER
Category: Contracts and Agreements
Technical explanation: An offer that cannot be withdrawn for a set period.
What it means: Guarantees the seller time to respond.
How it’s useful: Gives stability to negotiations and prevents sudden offer withdrawals.
88.
BUYING ADVISOR / Agent
Category: Home Buying Process
Technical explanation: Licensed professional representing the buyer in a transaction.
What it means: Advocates for your interests during purchase.
How it’s useful: Ensures you get the best deal and guidance throughout the process.
89.
LISTING ADVISOR / AGENT
Category: Home Selling Process
Technical explanation: Licensed professional representing the seller.
What it means: Manages marketing, negotiations, and sale of property.
How it’s useful: Helps sell efficiently and for optimal price.
90.
CREA (Canadian Real Estate Association)
Category: Legal and Regulations
Technical explanation: National association governing real estate professionals.
What it means: Sets professional standards and access to MLS.
How it’s useful: Provides credibility and resources when buying or selling.
91.
REALTOR Vs BROKER
Category: Legal and Regulations
Technical explanation: Realtor is a licensed agent member of CREA; brokers manage agents.
What it means: Defines role and responsibility in transactions.
How it’s useful: Helps you understand who to work with for professional guidance.
92.
FSBO (For Sale By Owner)
Category: Home Selling Process
Technical explanation: Selling a property without a licensed agent.
What it means: Owner handles marketing, negotiations, and paperwork.
How it’s useful: May save commission but requires more effort and legal awareness.
93.
BALANCED MARKET
Category: Home Buying / Selling Process
Technical explanation: Market where supply and demand are roughly equal.
What it means: Neither buyers nor sellers dominate pricing power.
How it’s useful: Helps set realistic expectations for offers and negotiations.