Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Real-estate

open listing — Definition (Real-estate)

A property that a number of brokers can market and sell for a commission.

owner financing (O/F, OF, OWN) — Definition (Real-estate)

A transaction in which the seller lends all or part of the money to the buyer.

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

A borrower who resides in the property used as security for the loan.

plat — Definition (Real-estate)

A map that shows a parcel of land and how it is subdivided into individual lots. Plat maps also show the locations of streets and easements.

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

Something that is owned.

pre-paid expenses — Definition (Mortgages, Real-estate, Taxation, Insurance, Financial-banking)

also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.

pre-sold home — Definition (Real-estate)

A house that is sold prior to construction as opposed to a house built on spec.

principle of conformity — Definition (Real-estate)

The notion that a house will fetch a fair price if it is situated among houses of similar size, style and condition.

principle of progression — Definition (Real-estate)

The notion that a smaller house's value will be enhanced if it is near larger, fancier houses.

principle of regression — Definition (Real-estate)

The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.

probate sale — Definition (Estate-management, Real-estate, Financial-banking, Legal-contracts)

Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs.

production home — Definition (Real-estate)

Homes that are mass produced as part of housing developments.

property report — Definition (Real-estate, Legal-contracts)

A legal disclosure that developers of timeshare properties are required to give to prospective buyers.

property tax — Definition (Mortgages, Real-estate, Taxation)

A levy by a city on real estate and personal property whose amount varies depending on the property's value.

property value — Definition (Real-estate, Financial-banking)

The worth of a piece of real estate, based on the price a buyer and seller would negotiate.

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

The owner of a business or property.

province of domicile — Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)

The province where an individual lives or intends to live permanently or for a long term, regardless of the individual's current location.

purchase agreement — Definition (Real-estate, Financial-banking)

A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.

purchase option — Definition (Automotive, Real-estate, Financial-banking)

An agreement where a portion of monthly rent can be credited toward the purchase of a property.

purchase price — Definition (Real-estate)

The total selling price of the home, including the cash down payment and the principal on the loan.

real estate (RE) — Definition (Real-estate, Financial-banking)

A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. Also known as "realty."

real estate agent — Definition (Real-estate)

A person who is licensed to represent a buyer or seller of land and the buildings and other improvements on it.

real estate attorney — Definition (Mortgages, Real-estate, Taxation, Legal-contracts)

A lawyer who specializes in the transfer of land and buildings and property tax issues.

real estate broker — Definition (Real-estate)

An individual who is licensed to represent a buyer or a seller of real estate and collects commissions for the work. Most brokers have agents working for them and they collect a portion of those commissions in exchange for providing office space, marketing, and other overhead.

real property — Definition (Real-estate)

Permanent, non-movable property, such as land and buildings.

realtor — Definition (Real-estate)

A real estate broker or an associate holding active membership in a real estate board.

reliction — Definition (Real-estate)

An increase in the amount of land that occurs when a river or sea permanently withdraws.

rent — Definition (Mortgages, Real-estate, Financial-banking)

When one party pays another for the use of an asset, service or property.

rent loss insurance — Definition (Real-estate, Insurance)

Hazard insurance that pays for a loss in rental value or rental income if damage causes the property to become unfit for habitation.

rent-to-own (RTO) — Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)

An agreement to purchase an asset after a series of rental payments.

rental agreement (RA) — Definition (Real-estate, Financial-banking, Legal-contracts)

A document that states the terms and conditions for tenancy of a dwelling.

rental property (RP) — Definition (Investments, Mortgages, Real-estate, Financial-banking)

Property that is occupied by rent-paying tenants and not the owner.

replacement reserve fund — Definition (Real-estate)

Money that is set aside by a homeowners association or condominium board to replace common property, such as playground equipment.

resale value — Definition (Real-estate)

The sales price that would be negotiated by a willing seller and buyer for an existing home or property.

reserve fund — Definition (Real-estate)

Money that a homeowners or condominium association sets aside for major repairs and capital improvements.

right of first refusal — Definition (Real-estate, Financial-banking, Legal-contracts)

An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.

roll in — Definition (Mortgages, Real-estate)

To include certain closing costs, such as origination and settlement fees, in the mortgage.

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

The price that is paid for an asset.

sale-leaseback — Definition (Real-estate)

A transaction in which the seller transfers the title to the buyer, then rents the property from the new owner. Generally not done in Canada, more an American practice.

sales contract — Definition (Real-estate, Legal-contracts)

A legal written document that details the agreed upon conditions between a seller and a buyer regarding the sale of a specific property. Also called an "Agreement of Sale."

sales tax — Definition (Real-estate, Taxation, Financial-banking)

Federal and / or provincial taxes that are applied to purchases.

schematic designs — Definition (Real-estate)

Structural plans for a building's mechanical systems, such as its plumbing and electrical functions.

second home — Definition (Investments, Mortgages, Real-estate)

An additionally purchased property, often a vacation or a rental property.

second home mortgage — Definition (Investments, Mortgages, Real-estate)

A mortgage used purchase property, often a vacation or a rental property.

security — Definition (Investments, Real-estate, Financial-banking)

A tradable financial implement that represents ownership, the rights to ownership or debt.

self-build insurance — Definition (Mortgages, Real-estate, Insurance)

Insurance that covers a homeowner for problems involved in a construction project.

seller broker — Definition (Real-estate)

One who earns a commission from the seller of a property in exchange for finding a buyer and assisting in negotiation.

seller's market — Definition (Real-estate, Financial-banking)

Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.

semi-custom home — Definition (Real-estate)

A house in which the buyer cannot alter the layout, but can specify amenities such as type of cabinets and floor coverings.

single-family detached home — Definition (Real-estate)

A house that one family lives in and is not attached to another house (like a duplex).