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ABC’s of Real Estate

Posted by Tyler Pope on July 23, 2018
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A – Appraisal: Evaluation of the Market Value for a specific home based on recent comparable sales in the neighbourhood

B – Buyer Representation Agreement (BRA): an agreement with a prospective buyer authorizing a licensed brokerage and their agent to represent the buyer in purchasing a home

C – Closing Cost: This amount varies but is typically estimated to be 2-5% of the purchase price

D – Downpayment: Normally expressed as a percentage, it’s the amount of money a buyer pays at closing to fund a home purchase – Mortgage Payment Calculator 

E – Estate Sale: Occurs when a homeowner dies or moves to an assisted-living facility

F – Fiduciary: In real estate it is a legal relationship between agent and their clients. The buyer or seller puts trust in the agent to handle the transaction and keep their best interests in mind.

G – Green Home: A house designed to be environmentally friendly, focusing on the efficiency of water usage, electricity and building materials

H – Home Insurance: Policies vary but in general it protects homeowners from future damages and claims by third parties for accidents that happen in the home 

I – Inspection: A thorough visual investigation of a property to see if there are any material defects or necessary repairs needed  before buying a home

J – Joint Tenancy: Estate or property jointly owned by two or more people, if one party dies shares are split between remaining parties of the joint tenancy

K – Key Lending Rate: A specific interest rate that determines bank lending rates and the cost of credit for borrowers

L – Land Transfer Tax: Buyers of houses and condos in Ontario must pay Land Transfer Tax when they purchase a property. Lawyers will arrange payment when deed of home is transferred – Sellers do not pay this tax.

M – Mortgage Rate: The rate of Interest charged by a Mortgage Lender.  Mortgage Rate Comparison 

N – Notice of Default: A note from a lender indicating that the borrower has fallen behind on their payment

O – Occupancy Date: Is the date the Purchaser is allowed to move into property

P – Probate Sale: When a court oversees the settlement of an individual’s estate after their death

Q – Quantum Merit: “Reasonable Value of Services” Determines the amount to be paid for services when a contract does not exist or when a contract is not completed.

R – Refinancing: Is the process of paying off one loan to get another with better terms

S – Survey: The process of locating and measuring a property’s boundary lines to determine the exact amount of land that a homeowner owns

T – Title: The right to, or ownership of, a specific real estate property

U – Under Contract: When a buyer has made an offer on a home and the seller has accepted, but the sale has not yet closed due to contingencies that must be satisfied or waived such as inspection, financing, etc. Until satisfied the Parties are still Under Contract

V – Vacant Property: There is no longer anyone living at a property and not one is scheduled to move in

W – Waiver: Voluntarily agreeing to give up a legal right to Act

X – Signatures needed by the “X”

Y – Yield: Is the income return on an investment

Z – Zero-Lot-Line: A house/building that comes to the very edge of the property line on at least one side 

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