Good afternoon CC followers!
Understanding the real estate lingo can be a confusing process for anyone who is not too familiar with the industry. Not only for a first-time home buyer but for anyone selling their home, looking for an investment opportunity or even renting. To better assist you navigate your way through the process, the Condo Culture experts have chosen our top 10 terms used in any real estate transaction. Here is your opportunity to become an expert for your next real estate transaction! However, you know you can always count on us here to provide you with exceptional service, support and coffee!
Appraisal: In order receive a loan from a bank to buy a home, you need to get the home appraised so the bank can be sure they are lending the correct amount of money. The appraiser will determine the value of the home based on an examination of the property as well as the sale price of comparable homes in the area.
Approved Lender: A lending institution, such as a bank, which is authorized by the Government of Canada to make loans under the terms of the National Housing Act.
Condominium: It is the physical space that you buy/rent to live in. As a type of ownership, you are the sole owner of the space within the boundaries or your condo unit and you share common property with all other condo owners in your Condo.
Conditional Offer: An offer to purchase a home that includes one or more conditions that must be met before the sale becomes official. These condition could be getting a mortgage or a home inspection done.
Condominium Corporation: Every condo development has a condominium corporation that comes into place when a condominium plan is registered with the Land Titles Office. The Corporation is made up of everyone who owns a unit in the development and is run by the condominium board of directors.
Down Payment: A portion of the price of a home that is not financed by the mortgage loan which you must pay out of your own savings before you can get a mortgage.
MLS (Multiple Service Listing): A service offered by Canada’s realtors with descriptions, details and photos of most of the homes that are for sale/rent across the country.
Reserve Fund: Money set aside by the condominium corporation for any future major expenses. This could be any situation where a repair or replacement needs to be addressed. For example, exterior amenities of the building or heating.
Return on Investment (ROI): formula to understand how an investment performs. It's a simple calculation that lets you know how profitable an investment is. ROI = (gain from investment – cost of investment) / cost of investment.
Tarion: Its primary purpose is to protect consumers of new homes by ensuring that builders abide by the provincial legislation. It is financed entirely by builder registration, renewal and home enrollment fees.
Real estate can be challenging and sometimes overwhelming when you don’t have a broad understanding of the industry. The above 10 terms are commonly brought up during a real estate conversation. However, those are just some of the most popular terms to understand. Whether you are buying your forever home or buying your first investment unit, having a licensed professional that has been in the industry helps take off some weight from your shoulders. You want a experienced and knowledgeable team to guide you and thoroughly explain details. Before everyone gets the long-weekend started, we have one last term we are sure everyone know. TGIF - Thank goodness its Friday.
Have a happy and safe long-weekend, everyone!
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