Real Estate Terms
The value placed on the home by the public tax assessor. Used for calculating the property taxes due each year.
Certificate of Title
A document registered at the Land Title’s Office which shows ownership of the property.
Costs associated with completing the purchase of a property. These include lawyers’ fees, property transfer tax, home inspection costs, property taxes and mortgage default insurance if your down payment is less than 20% of the price of the home.
The date on which the money is paid, the keys are given to the purchaser and title is transferred
The amount of cash a buyer puts down, thereby reducing the mortgage amount.
The difference between the current market value of the property versus the amount still owing on the mortgage. If the home is valued at $400,000 and you owe $250,000 on the mortgage, you have $150,000 in equity.
An in-depth inspection by a professional inspector to evaluate the structure and assess whether there are any deficiencies to components such as roofing, plumbing, electrical, foundation and more.
The financing you obtain to enable you to purchase a home.
Generally implies a purchaser has gone through the application process to secure mortgage approval, by providing the income, credit and other information required by the lender to determine whether or not a mortgage can be granted to a particular person. The borrower is pre-approved. Once the property is chosen, the property must also be reviewed by the lender to ensure it meets their guidelines.
The amount borrowed or which remains outstanding on the mortgage.
Property Transfer Tax
Payable to the Government of BC each time a property is sold. Calculated based on the purchase price of the property. 1% of the first $200,000, 2% from $200,000 to $2 million, and 3% on the portion over $2 million. This is a one-time payment usually paid by the purchaser at the time of closing. Not to be confused with Property Taxes which are levied annually by the local municipal office in the jurisdiction where the home is located.
Real Estate Agent
A person licensed to facilitate the sale of real estate called a REALTOR®.
Statement of Adjustments
Prepared by your lawyer. Outlines all the costs associated with the purchase of the property, including deposits or down payments, and reflects the final amount of cash required to complete the purchase.
Buying a home, especially the first time, can be overwhelming. Talk to your real estate agent, your lawyer and your mortgage provider and make sure you fully understand your rights and responsibilities. Ask as many questions as you need to before signing on the dotted line.