Listing Agreement: The contract between the listing brokerage and the homeowner. This allows the REALTOR® to look after all aspects of the sale of the home
Multiple Listing Service® (MLS®): is a system for sharing the listing of homes to a vast audience
Appraisal: The estimate of the homes market value
First Refusal: In real estate, the right of first refusal is a provision in a lease or other agreement. It gives a potentially interested party the right to buy a property before the seller negotiates any other offers.
Irrevocable: offers to purchase property normally have an irrevocable date and time. Irrevocable is defined as incapable of being recalled or revoked.
Assessment: The value of a property set by the local municipality. It is used to calculate your property tax
Firm Offer: The offer to buy the home with no conditions
Conditional Offer: An offer that has conditions attached
Mortgage: A contract between a borrower and a lender to repay the money borrowed to buy the home
Canada Mortgage and Housing Corporation (CMHC): CMHC controls the Mortgage Insurance Fund, which protects NHA Approved Lenders
Principal: The amount of money borrowed for a new mortgage
Interim Financing: Short-term financing to help the person buying the home
Maturity Date: The number of years it will take to pay off the mortgage
First Mortgage: The first security registered on a property
High-Ratio Mortgage: A mortgage for more than 75 percent of a property’s value or price
Assumable Mortgage: A mortgage held on a property by a seller that the buyer can take over
Blended Mortgage Payments: Equal or regular mortgage payments consisting of both a principal and an interest component
Variable Rate Mortgage: The rate of interest may change
Closed Mortgage: A mortgage that cannot be prepaid, renegotiated or refinanced without significant penalties
Debt Service Ratio: The percentage of a borrower’s gross income that can be used for housing costs
Closing Date: The date when the deal is final, and the new owner can move in
Understanding these terms is an essential part of learning the necessary real estate knowledge to navigate the sale of your home with confidence.