AMORTIZATION
The number of years it takes to repay the entire amount of a mortgage.
APPRAISAL
An estimate of a property’s market value, used by lenders to determine the mortgage amount.
APPRECIATION
The increase in a property’s value over time.
ASSESSMENT
The value of a property set by the local municipality for calculating property tax.
CLOSING
The completion of a real estate transaction, where all legal and financial obligations are met, and the deed is transferred to the buyer.
CLOSING COSTS
Expenses incurred in addition to the purchase price when buying or selling a property.
CLOSING DATE
The date on which the property title and keys are transferred from the seller to the buyer, and payment is completed.
COUNTEROFFER
A written response to an offer during the negotiation of a real estate purchase.
EASEMENT
A legal right to use or cross another person’s land for limited purposes, such as utility access.
ENCROACHMENT
An intrusion onto an adjoining property, such as a fence or building crossing boundary lines.
EQUITY
The homeowner’s financial interest in a property, calculated as the difference between the property’s value and the remaining mortgage balance.
TENANCY IN COMMON
A form of shared ownership where each owner holds a specific share of the property, which can be unequal and freely transferable.
JOINT TENANCY
A form of ownership in which two or more individuals hold equal shares of a property, with the right of survivorship transferring ownership to the surviving owner(s) upon death.
LEVERAGE
Using a small amount of cash to control a large asset, such as purchasing a home with a down payment and a mortgage.
LIEN
A legal claim against a property to ensure payment of a debt.
LISTING AGREEMENT
A contract authorizing a real estate professional to sell or lease a property.
LISTING BROKER
The real estate professional who facilitates the sale of a property under a listing agreement.
MAINTENANCE FEE
A monthly fee paid by condominium owners for maintaining shared areas.
MORTGAGE BROKER/AGENT
A licensed individual who matches borrowers with lenders for a mortgage, earning a fee from the lender.
MORTGAGEE
The lender in a mortgage agreement.
MORTGAGE DEFAULT INSURANCE
Insurance protecting the lender against borrower default on high-ratio or other types of mortgages.
MORTGAGE LIFE INSURANCE
Insurance that pays off a mortgage if the insured borrower dies.
MORTGAGOR
The borrower in a mortgage agreement.
MULTIPLE LISTING SERVICE (MLS) SYSTEM
A system for sharing information about properties for sale among real estate professionals.
PORTABILITY
A feature allowing borrowers to transfer their mortgage to a new home without penalty.
PREPAYMENT PRIVILEGE
A feature that permits borrowers to pay off a portion or all of their mortgage principal early, often under specific conditions.
PRINCIPAL
The original amount borrowed in a mortgage or the remaining unpaid balance.
RATE (Interest)
The return a lender receives for providing mortgage funds, expressed as a percentage.
RESERVE FUND
A portion of a condominium maintenance fee set aside for major repairs and replacements.
TITLE
The legal documentation proving ownership of a property.
TITLE SEARCH
An examination of property records to ensure there are no liens, encumbrances, or ownership disputes.
ZONING REGULATIONS
Municipal guidelines that dictate how a property can be used or developed.
For any additional real estate questions, feel free to contact:
Sara Sharma – Realtor
📞 604-992-7253
