Real Estate Terms

Agreement of Purchase
and Sale:

Agreement of Purchase and Sale - the document through which the buyer states all the terms and conditions, price, closing date and any and all other provisions under which he will buy the property

Appraisal:

Estimate of market value of a property

Broker:

A licensed real estate professional who has completed advanced "Broker" education and is thereby licensed to engage licensed salespeople to represent the brokerage with buyers and sellers

Closing:

The time the legal title changes from previous owner to new owner

Commission:

Compensation agreed upon by the seller and the broker and stated in the listing agreement. It is often a percentage of the selling price and payable by the seller when the transactIon closes.

Common Elements:

That part of a development owned in common by all owners

Condominium:

Method of ownership in property, whereby each owner has title on individual units and a proportionate share in the common elements

Condominium Fee:

A monthly fee paid by condominium owners for maintaining common areas and common expenses

CREA:

The Canadian Real Estate Association - a national association representing the real estate industry on federal public policy matters, and providing member services and education. CREA promotes adherence to a strict Code of Ethics and Standards of Business Practice

Listing Agreement:

The legal agreement between the listing broker and the seller, stating the services to be rendered. It must describe the subject property, have an expiry date and provide the terms of payment

Multiple Listing Service:

Trademark owned by CREA. They are used in conjuction with a real estate database service, operated by local real estate boards under which properties may be listed, purchased or sold

Mortgage:

A contract between a borrower (mortgagor) and a lender (mortgagee). The borrower pledges a property as security to guarantee repayment of the mortgage

Mortgagee:

The lender of the money secured by a mortgage

Mortgagor:

The borrower of the money, secured by a mortgage

Real Estate Board:

A non-profit organization representing local real estate brokers and salespeople, which provides services to its members and maintains and operates an MLS system in the community

Realtor:

Trademark identifying real estate professionals who are members of the Canadian Real Estate Association CREA, and as such subscribe to a high standard of professional service and to a strict code of Ethics

Reserve Fund:

That part of the condominium fee apportioned to cover repairs and replacement costs

Title:

The legal ownership in a property

Title Search:

An examination by a lawyer of ownership documents to ensure there are no liens or encumbrances on the property

Zoning:

Rules set out by municipal governments which regulate the uses and non uses of a property