A real estate glossary is a reference for the terms used in property contracts and transactions. Read Canadian terminology in plain language.
77 terms — everything you need to understand your deal
Showing 77 of 77 terms
The legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate transaction, including price, closing date, conditions, and representations.
The total length of time (typically 25 years in Canada) over which a mortgage is scheduled to be fully repaid through regular payments of principal and interest.
A professional assessment of a property's market value conducted by a licensed appraiser, often required by lenders before approving a mortgage.
The value assigned to a property by the municipal government for the purpose of calculating property taxes. This may differ significantly from market value.
The true owner of a property who enjoys the benefits of ownership, even if the legal title is held by another party (such as a corporation or trust).
A type of condominium where the owner owns the land and the building on it, but shares common areas and services with other unit owners through a condominium corporation.
A short-term loan used to bridge the gap when a buyer purchases a new property before selling their existing one, covering the period between closing dates.
Official authorization from a municipal government required before constructing, renovating, or making significant changes to a building. Ensures compliance with building codes and zoning bylaws.
A legal notice registered on a property's title that warns potential buyers or lenders of an interest or claim against the property. Common in Alberta's land registration system.
A document prepared by a land surveyor showing the property boundaries, building locations, encroachments, and servitudes. Required in Quebec real estate transactions.
Movable personal property items that are not permanently attached to the property (e.g., appliances, curtains, furniture). Must be specifically listed in the APS if included in the sale.
A property title that is free from liens, encumbrances, defects, or other legal issues that could challenge the owner's right to the property.
All expenses beyond the property purchase price that buyers and sellers pay to complete a real estate transaction, including land transfer tax, legal fees, title insurance, and adjustments.
The date specified in the Agreement of Purchase and Sale when the property officially changes hands, funds are transferred, and the buyer takes possession.
Mortgage loan insurance provided by Canada Mortgage and Housing Corporation, required when a buyer's down payment is less than 20% of the purchase price.
Recently sold properties similar to a subject property in location, size, condition, and features, used to estimate market value.
A detailed report comparing a property to similar recently sold, active, and expired listings in the area to estimate its current market value.
A clause in an Agreement of Purchase and Sale that must be satisfied before the contract becomes binding (e.g., financing approval, home inspection, sale of buyer's existing property).
An offer to purchase that includes one or more conditions that must be met within specified timeframes before the deal becomes firm and binding.
The legal entity that manages a condominium complex, responsible for maintaining common elements, enforcing bylaws, and managing the reserve fund.
A legal document that transfers ownership (title) of real property from one party to another. In Canada, the most common type is a Transfer/Deed of Land.
A sum of money paid by the buyer upon acceptance of an offer, held in trust as a demonstration of good faith. Typically 5% of the purchase price in Canada.
The portion of the purchase price paid upfront by the buyer from their own funds. Minimum 5% for properties under $500K in Canada, with higher requirements for more expensive properties.
The process of thoroughly investigating and verifying all aspects of a property before completing a purchase, including physical inspection, title search, environmental assessment, and financial analysis.
A legal right granted to a party to use another person's land for a specific purpose, such as access roads, utility lines, or drainage. Easements run with the land and survive ownership changes.
When a structure, fence, or improvement extends beyond the property's legal boundaries onto adjacent property or public land.
Any claim, lien, charge, or liability attached to a property that may diminish its value or restrict its use, such as mortgages, easements, or unpaid taxes.
An evaluation of potential environmental hazards on a property, such as soil contamination, underground storage tanks, asbestos, or flood risk. Phase I and Phase II assessments may be required.
The difference between a property's current market value and the outstanding balance of all mortgages and liens against it. Represents the owner's financial stake in the property.
An arrangement where a neutral third party holds funds, documents, or assets on behalf of the transacting parties until specific conditions are met.
The most complete form of property ownership in Canada, giving the owner full rights to use, sell, lease, or bequeath the property, subject only to government restrictions.
An offer to purchase that contains no conditions and is immediately binding upon acceptance by the seller.
Items permanently attached to a property that are included in the sale by default (e.g., built-in shelving, light fixtures, plumbing). Contrast with chattels.
A form of property ownership where the owner holds both the building and the land it sits on indefinitely, as opposed to leasehold ownership.
In Canada, GST or HST applies to the purchase of newly constructed homes, substantially renovated homes, and vacant land. Rebates may be available depending on the purchase price and province.
A revolving credit facility secured against the equity in a property, allowing the owner to borrow up to a set limit and repay as needed.
A mortgage where the borrower's down payment is less than 20% of the purchase price, requiring mandatory mortgage insurance (CMHC, Sagen, or Canada Guaranty).
A portion of the purchase price or construction payment held back by the buyer or lender to ensure certain conditions are met, such as completion of repairs or satisfaction of lien claims.
A professional examination of a property's physical condition, including structure, systems (electrical, plumbing, HVAC), roof, and foundation, typically conducted as a condition of purchase.
The time frame specified in an offer during which the offer cannot be revoked or withdrawn. After this period expires, the offer automatically becomes null and void.
A form of co-ownership where two or more persons hold equal, undivided interests in a property with the right of survivorship — when one owner dies, their share automatically passes to the surviving owner(s).
A provincial tax payable by the buyer when real property is transferred. Rates vary by province. Ontario, British Columbia, and some municipalities charge additional transfer taxes.
A form of property ownership where the owner owns the building but leases the land from another party (often government or Indigenous band) for a fixed term, typically 49–99 years.
A legal claim registered against a property as security for a debt or obligation. Common types include construction liens, tax liens, and judgment liens.
A legal notice filed against a property indicating that a lawsuit is pending that may affect the title or ownership of the property.
The estimated price a property would sell for on the open market under normal conditions, between a willing buyer and seller, with both parties having reasonable knowledge of the relevant facts.
A formal written promise from a lender to provide a mortgage loan at specified terms and conditions, typically valid for a set period (60–120 days).
The length of time the mortgage contract and interest rate are in effect (typically 1–5 years in Canada), after which the mortgage must be renewed, renegotiated, or paid off.
The organization responsible for assessing the value of all properties in Ontario for property tax purposes. Other provinces have similar assessment authorities.
When a brokerage represents both the buyer and the seller in the same transaction. Subject to strict disclosure and consent requirements in Canada. Prohibited in some provinces.
A contractual agreement that prevents parties from bypassing the introducing party to deal directly with contacts or properties introduced through the relationship.
A legally binding agreement that combines non-circumvention and non-disclosure obligations. It protects confidential information and prevents parties from bypassing the platform or each other. Standard in off-market real estate transactions on OffMarketMatch.
The process of having a document officially authenticated by a notary public, who verifies the identity of the signers and witnesses the signing. In Quebec, notaries play a larger role in real estate transactions.
A real estate deal conducted privately without listing the property on public MLS or real estate platforms. Offers privacy, reduced competition, and direct negotiation between parties.
A mortgage that allows the borrower to repay any amount of the principal at any time without penalty, offering maximum flexibility at a typically higher interest rate.
A unique number assigned to every parcel of land in Ontario's electronic land registration system (Teranet/POLARIS) for tracking and identifying properties.
A mortgage enforcement remedy available in some provinces (e.g., Ontario, PEI, New Brunswick) where the lender can sell the property without court involvement after the borrower defaults.
A document in which the seller discloses known material facts about the property's condition, defects, renovations, and history. Requirements vary by province.
A savings account maintained by a condominium corporation to cover major repairs and replacements of common elements, funded through regular contributions from unit owners.
A contractual right that gives a party the opportunity to match any offer received by the property owner before the owner can sell to a third party.
A type of easement granting the legal right to pass through or over another person's property, commonly for access to landlocked parcels.
A financing arrangement where the seller acts as the lender, allowing the buyer to pay a portion of the purchase price over time directly to the seller.
The Quebec civil law equivalent of an easement — a charge imposed on one property (the servient land) for the benefit of another (the dominant land).
An additional charge levied by a condominium corporation on unit owners to cover unexpected expenses or shortfalls in the reserve fund.
A document issued by a condominium corporation that provides essential information about the financial health, rules, bylaws, and any pending litigation of the condominium. Critical for buyers in Ontario.
The British Columbia term for condominium ownership. Governed by the Strata Property Act. The strata corporation manages common property and enforces bylaws.
A legal document prepared by a licensed surveyor that shows property boundaries, dimensions, building locations, easements, and encroachments. May be required for title insurance or mortgage approval.
A form of co-ownership where two or more persons hold interests in a property (not necessarily equal) without the right of survivorship. Each owner's share passes to their estate upon death.
An insurance policy that protects property owners and lenders against losses from defects in title, fraud, forgery, encroachments, and other title-related issues.
An examination of public records to verify a property's legal ownership, identify any liens, encumbrances, or claims, and confirm the seller has the right to transfer ownership.
A regulated bank account held by a lawyer or brokerage where client funds (deposits, proceeds) are held separately from the firm's operating funds until disbursed.
A property with significant equity relative to its value that could support additional financing to fund improvements, acquisitions, or portfolio growth.
Permission granted by a municipal committee of adjustment allowing a property owner to deviate from specific zoning bylaw requirements (e.g., setback, height, lot coverage).
A form of seller financing where the property seller provides a mortgage to the buyer for part of the purchase price, often used in private or off-market transactions.
The formal relinquishment of a condition in an Agreement of Purchase and Sale, making the offer firm and binding with respect to that condition.
Municipal regulations that dictate how land can be used (residential, commercial, industrial, mixed-use), building heights, setbacks, density, and permitted activities within specific zones.
A document from the municipality confirming that a property's current use complies with applicable zoning bylaws. Often required by lenders and buyers for commercial properties.