Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Real-estate

land titles system — Definition (Real-estate)

This is a system of land registration under which the registrar or master of titles passes on the validity of the instrument, determines its legal effect, and the Government guarantees title.

land transfer tax (LTT) — Definition (Mortgages, Real-estate, Taxation)

A provincial tax payable on any property that changes hands. First time buyers may be eligible for a rebate.

landlord — Definition (Real-estate, Financial-banking)

One who rents or leases his or her property to another person or a business.

latent defect — Definition (Real-estate)

A deficiency in a piece of property that can't be seen easily, such as termite damage or the presence of dangerous levels of radon.

lease extension — Definition (Real-estate, Financial-banking)

The continuation of an existing lease, at the original monthly payment, usually on a month-by-month basis.

lease option — Definition (Real-estate, Financial-banking, Legal-contracts)

A written agreement in which an owner allows an individual to use a property in exchange for rent, and also gives that individual the right to buy the property for a specified price within a specified period

leasehold (l/h) — Definition (Real-estate, Financial-banking, Abbreviation)

Land or property held under a lease for a term of years.

legal description (lgdc) — Definition (Real-estate, Legal-contracts)

A way of identifying a piece of property in writing that is acceptable to a court.

legal fees and disbursements — Definition (Mortgages, Real-estate, Financial-banking)

Charges paid on your behalf by a solicitor that are in addition to professional costs.

lessee — Definition (Real-estate, Legal-contracts)

The person who signs a lease.

lessor — Definition (Real-estate, Legal-contracts)

The person who grants a lease.

letter of intent — Definition (Real-estate, Legal-contracts)

A formal notification that a buyer intends to buy property. It is not legally enforceable.

lien — Definition (Real-estate, Legal-contracts)

A legal hold or claim of a creditor on the property of another.

lien holdback — Definition (Mortgages, Real-estate, Legal-contracts)

The practice of mortgagees withholding up to 15% of mortgage monies advanced on new construction.

liquidation — Definition (Real-estate, Financial-banking)

To convert into cash.

lis pendens — Definition (Real-estate, Legal-contracts)

A legal document giving notice that an action or proceeding is pending in the courts which affects the title to the designated property.

listing inventories — Definition (Real-estate)

The dwellings for sale in a given market.

live-work space — Definition (Real-estate)

A dwelling, such as a loft, in which the occupant both lives and conducts business.

load-bearing wall — Definition (Real-estate)

Any exterior wall or interior wall that supports its weight and the weight of other parts of the building.

local improvement charge — Definition (Real-estate, Taxation)

A fixed annual fee levied by a municipality against specific real property for a specific period which amortizes the capital costs of local improvements such as sewers, paved roads, etc. This charge is in addition to real estate taxes.

local taxes — Definition (Mortgages, Real-estate, Taxation, Financial-banking)

Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.

low ball offer — Definition (Real-estate)

A way-below-market bid a buyer makes on a property or item.

maintenance fee — Definition (Real-estate)

A periodic assessment that residents pay to their homeowners or condominium association to pay for maintenance and repair of common areas.

manufactured housing — Definition (Real-estate)

Factory-built home that can be placed temporarily or permanently upon land. Styles vary from modest trailers to dwellings that look like site-built houses.

market conditions — Definition (Investments, Real-estate, Financial-banking)

Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year.

market value (MV) — Definition (Real-estate, Insurance, Financial-banking)

Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.

mechanical systems — Definition (Real-estate)

A house's heating, cooling, plumbing and electrical apparatus.

median price — Definition (Real-estate, Financial-banking)

In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.

metes and bounds — Definition (Real-estate)

A surveyor's legal description of a parcel of land, defined by measurements and angles.

mill rate — Definition (Real-estate, Taxation)

A unit of taxation that is a set ratio made by the city or municipality in reference to property taxes.

mint condition — Definition (Automotive, Real-estate, Financial-banking)

A term describing a building or item that's just like new.

mis-selling — Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)

The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.

mixed-income housing — Definition (Real-estate, Financial-banking)

A neighbourhood whose residents earn widely varying wages and salaries.

monetary value — Definition (Real-estate, Insurance, Financial-banking)

A property's monetary value is its worth if sold at this moment in time.

mortgage assumption — Definition (Mortgages, Real-estate)

Taking over the payment and responsibility for an existing property loan.

motivated buyer — Definition (Real-estate)

A prospective buyer who has a strong reason to buy, and quickly.

motivated seller — Definition (Real-estate)

A home seller who has a strong reason to sell quickly, possibly because of an upcoming relocation or an impending default on a loan.

move-in condition (MIC) — Definition (Real-estate)

A house that is ready for a new occupant.

move-up buyer — Definition (Real-estate)

One who is selling a house to buy a more expensive house.

moving expenses — Definition (Real-estate, Taxation)

Expenses incurred when you moved in connection with your job and are deductible if they are the reasonable costs of moving yourself, your family and your possessions. You can no longer deduct the cost of meals while moving.

multi-family (MF, mfam) — Definition (Real-estate, Abbreviation)

A building with more than four residential units.

Multiple Listing Service (MLS) — Canada

A database that lists all properties in an area that are for sale or lease by Realtors.

non-assumption clause — Definition (Mortgages, Real-estate, Legal-contracts)

A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender's permission.

non-owner occupant — Definition (Investments, Mortgages, Real-estate, Financial-banking)

A borrower who purchases a property for investment or rental purposes and will not occupy the property.

non-recurring closing costs (NRCC) — Definition (Real-estate)

One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report.

  ➥  Non-recurring fees at closing are those that are paid once such as a property inspection or property appraisal fees. Recurring fees are those that are paid again and again such as property taxes, condo fees and property insurance.

non-resident alien (NRA) — Definition (Real-estate, Taxation)

A person who is not a permanent resident or a citizen of Canada, and who is generally taxed on income from Canadian resources.

not in my backyard (NIMBY) — Definition (Real-estate)

Opposition from residents for proposed buildings or structures in a neighbourhood.

notice of default (NOD) — Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)

The step in the foreclosure process where the lender informs the court that the borrower is in arrears.

offer — Definition (Real-estate, Legal-contracts)

To propose or give something.

open house (OH) — Definition (Real-estate)

A selling tool in which a real-estate agent advertises a property for sale and invites people to visit without making an appointment.