Cash to Mortgage:
When buyer assumes the outstanding principal amount of the existing mortgage on a property and pays the balance of the purchase price in cash.
Certificate of Location:
A document specifying the exact location of the property and describing the type and size of the house including additions.
Certificate of Search:
A document verifying the transactions registered against the property e.g. mortgages, sales, etc.
The person being represented by an agent.
A mortgage that cannot be prepaid, renegotiated or refinanced during its term, except with compensation or breakage costs.
The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.
Expenses in addition to the purchase price for buying and selling a property. Standard closing costs include adjustments for prepayment of taxes, utilities and condominium common expenses, if any, made by the vendor; property land transfer taxes; property insurance; and legal/notary fees.
The date on which the title and keys to the property are transferred from the seller to the buyer and the money is paid.
CMHC (Canada Mortgage and Housing Corporation):
A Crown corporation providing information services and mortgage loan insurance.
An amount agreed to by the seller and the real estate broker/agent and stated in the listing agreement. It is payable to the broker/agent on closing and shared, if applicable, among those salespeople involved in the sale.
A pladge, promise or affirmation of agreement which is binding in law.
The portions of a condominium development owned in common (shared) by the unit owners.
Payment or reward for performance of service.
An offer to purchase subject to specified conditions. These conditions could be the arranging of a mortgage, a satisfactory inspection, or the selling of a present home. A time limit in which the specified conditions must be met should be stipulated in the offer to purchase.
Shared ownership in property. Owners have title (owner-ship) to individual units and a proportionate share in the common elements.
A fixed rate mortgage which offers the same security as a closed mortgage, but which can be converted to a longer, closed mortgage at any time without penalty.
A legally binding agreement between two or more capable persons for consideration or value, to do or not to do some lawful and genuinely intendent act. If for the sale of real estate, it must be in writting. All contracts are affected by the law of contract.
One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.
An agreement contained in a deed and creating an obligation. It may be positive, stipulating the performance of some act. It may be negative or restrictive, forbidding the commission of some act.
CREA (Canadian Real Estate Association):
A national association representing the real estate industry on federal public policy matters, providing member services and education.
If you currently own property and are thinking of placing it on the market, get informed about preparing your home for sale, pricing your property appropriately, marketing it effectively and learn everything you can about sale process so you can maximize your chances. Read more...
Since choosing a right property to buy starts with needs and desires and finishes with a sizable portion of your earnings used for paying for it, it's important to ensure that the property you choose both meets your needs and is a good "fit" with your financial situation.
Familiarize yourself with the fundamentals of real estate before you invest in your first property.
Make sure your information is up to date. You have to know and be realistic about today's real estate market.
Location matters, so before you buy any real estate property, ensure that it's in a good location.
Regardless of how certain you are that you will get mortgage, it is always good idea to get pre-approved.
Keep in mind, the commission is always negotiable upfront, before you sign a contract.
If you are working with agent, make it clear that you want the agent, not his/her assistants, to represent you.
Before you buy any real estate property, have it inspected by a professional home inspector.
If you are buying property with a partner, have a proper partnership agreement to protect both of you.
Make sure you read your listing or buyer’s agreement carefully before signing it.
Don’t skip the final walk-through to make sure that everything is done properly, and that the items you agreed should stay are still there.
Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world."