Buying or selling a home is an exciting process, but it can also come with a whole heap of new terminology. Of course, a great agent will translate along the way, but getting acquainted with the lingo early can help you get a strong start in your real estate journey!
Have you read part one of my Real Estate Dictionary? You can find it here.
As promised, here’s part 2 of my real estate dictionary…
Seller’s Market
A seller’s market occurs when there are more buyers active in a market than properties available. Opposite to a buyer’s market, this gives sellers the upper hand during negotiations. As a result, sellers will often receive multiple offers on their home and properties typically sell over their asking price.
Buyer’s Market
A buyer’s market occurs when there are more properties available in a market than there are interested buyers. With a large surplus of available homes, buyers often have the upper hand in negotiations when placing an offer.
Chattels
Chattel refers to a personal possession that can be easily removed from a property by the seller. This usually means items like furniture or smaller appliances. Unlike fixtures, chattels are excluded from the purchase price. Your agent can help you determine which elements will be included with the property during the purchasing process.
Common Property
Common property, also known as common elements, are the parts of a condominium property collectively shared by owners. This typically includes all elements of a condominium excluding the units themselves. Examples of common elements include hallways, garages, lobby areas, storage facilities, outdoor grounds and garbage rooms.
Condo Board
The condominium board of directors is a group of people who oversee a condominium’s business affairs on behalf of the owners. Condo owners most commonly elect board members on an annual basis.
Condo Certificate
A condominium status certificate is a document provided to the potential buyer of a condominium unit by the condominium corporation. The certificate contains critical financial and legal information about the condominium corporation, property and for-sale unit. In addition to financial and legal statuses, condo certificates also include details about fees, bylaws, insurance, management contracts, declarations and reserve funds.
Need more information on condo status certificates? Check out my blog post on the topic here.
Counteroffer
After you place an offer on a home, the property owner may respond with a counteroffer. A counteroffer will provide alternative terms based on your original offer. This may include a different price or closing date.
Deed
A deed, also known as a transfer, is a legal document that verifies the transfer of a property from the seller to the buyer. The deed will include a description of the property, including property lines, and must be signed by both the seller and buyer to become official.
Land Survey
A land survey is a process that documents a property’s environmental features. Land surveys determine a property’s boundaries, also known as property lines. They can also establish the dimensions of any buildings within the property lines and are typically required for obtaining title insurance or a mortgage.
Land Transfer Tax
When purchasing a property in Ontario, you will be required to pay a provincial land transfer tax. Buyers may also be required to pay a municipal land transfer tax depending on where the property is located. For example, land transfer tax rates in Toronto are double that of the rest of Ontario.
Market Value
Market value refers to the determined value of a property if sold in a fair market under current economic conditions. This will impact your pricing strategy when selling your home. Your home’s fair market value will also impact how much you pay in property taxes.
Mortgage
A mortgage is a loan provided by a financial institution to a home buyer for the purpose of purchasing a property. A mortgage agreement issued by the lender typically outlines payment sums, interest rates and due dates. Qualifying for a mortgage is often one of the first steps in a home buyer’s journey. Financial institutions usually offer a variety of mortgage types with fixed or adjustable rates so buyers can choose the one which suits them best.
Curious about qualifying for a mortgage in today’s market? Read more about it on my blog here.
Principal
Principal refers to the total amount of money borrowed from a financial institution when obtaining a mortgage. It’s important to note that the principal does not include interest, so buyers should remember to additionally budget for interest charges when planning their mortgage payments.
Property Taxes
If you’re a homeowner, you’ll need to pay annual property taxes. In Toronto, property taxes are calculated by multiplying the assessed value of property by the city’s determined tax rate.
Valuation
A valuation is an estimate of a property’s market value based on comparable homes or condos that have recently sold. Valuations will also consider any features or details that make the property unique. Receiving a home valuation is free, easy and usually only requires sharing a few details about your home with an agent or broker.
Get your free home valuation by filling out this quick and easy form.
That’s a wrap on part 2 of my real estate dictionary. While you may be feeling more confident in your knowledge, it’s important to remember that an expert agent is your best resource for navigating the market!
Have questions about what’s happening in the Toronto condo market? Call or text to learn more: 416-500-5360 / Email: info@rashidnotash.com
