When you decide to by or sell real estate, you’ll discover a new language used by real estate professionals. The following are a sample of some of the more common terms used.
APPRAISED VALUE: An estimate of the value of the property by an appraiser conducted for the purpose of lending.
CHATTELS: Removable items in a home or cottage, or located on a property. Much confusion exists when it comes to what constitutes a fixture and what constitutes a chattel. A lawyer I knew years ago defined a chattel it to me as “anything that isn’t screwed, glued or otherwise permanently affixed to the property”
CONVENTIONAL MORTGAGE: A mortgage loan issued for up to 75% of a property’s appraised value or purchase price, whichever is less.
COUNTER-OFFER: One party’s alteration of the terms of the other party’s offer during negotiations of a real estate purchase between a buyer and seller.
DOWN PAYMENT: The buyer’s cash payment toward the property. Not to be confused with a deposit a buyer submits with an Offer.
EASEMENT: A legal right to use or cross other lands for limited purposes. Many cottage properties in the Parry Sound area are accessed by easements (Rights of Way).
FIXTURES: Permanent improvements to a property that are normally included with purchase unless specifically excluded in an Agreement of Purchase and Sale. In realty, the fixture is the opposite of a chattel.
HOME INSPECTION: The examination of the house and property for structural and other defects by a professional home inspector. Many home inspectors will no perform woodstove (WETT) certifications and septic inspections.
LIEN: Any legal claim against a property, filed to ensure payment of a debt.
LISTING BROKER: The REALTOR® who signs a contract (listing) with an owner to sell a property.
SELLING BROKER: The Broker who actually finds the buyer Selling brokers can also have Buyer Broker contracts (Buyer Agency Agreements) with their buyers.
SURVEY: A document prepared by an Ontario Land Surveyor (OLS) that provides accurate details about a property’s location, boundaries, size, and any easements that may affect the lands.
TITLE: Legal ownership in a property.
