20 Real Estate Terms in Canada

Whether you’re a first-time home buyer or an experienced real estate investor, understanding the language of the industry is critical to success. In Canada, there are a variety of real estate terms that you’ll encounter throughout the buying and selling process. Here are 20 key terms to help you navigate the world of Canadian real estate.

1. Appraisal – An appraisal is an assessment of a property’s value, typically conducted by a professional appraiser.
2. Closing Costs – Closing costs are expenses that buyers and sellers must pay at the time of closing, including legal fees, land transfer taxes, and other miscellaneous charges.
3. Commission – A commission is the fee that real estate agents charge for their services, typically a percentage of the sale price.
4. Condominium – A condominium is a type of property ownership where buyers own their unit but share ownership of common areas such as hallways, elevators, and parking garages.
5. Down Payment – A down payment is the amount of money that a buyer puts towards the purchase price of a property, typically a percentage of the total cost.
6. Equity – Equity is the difference between the value of a property and the amount owed on any outstanding mortgages.
7. Home Inspection – A home inspection is a professional assessment of a property’s condition and potential issues, typically conducted prior to closing.
8. Mortgage – A mortgage is a loan that buyers take out to finance the purchase of a property, typically secured by the property itself.
9. Multiple Listing Service (MLS) – An MLS is a database of properties listed for sale, used by real estate agents to market properties and facilitate transactions.
10. Offer – An offer is a formal proposal to purchase a property, typically including the purchase price and other terms and conditions.
11. Pre-Approval – A pre-approval is a preliminary assessment of a buyer’s creditworthiness and ability to obtain a mortgage, typically based on income and credit history.
12. Property Taxes – Property taxes are fees charged by local governments based on the assessed value of a property.
13. Real Estate Agent – A real estate agent is a licensed professional who assists buyers and sellers with buying, selling, or renting properties.
14. Title – Title refers to the legal ownership of a property and any associated rights and restrictions.
15. Title Insurance – Title insurance is a type of insurance that protects buyers and lenders against any potential issues or defects with a property’s title.
16. Appraised Value – Appraised value is the estimated value of a property based on a professional appraisal.
17. Assessed Value – Assessed value is the value of a property as determined by the local government for the purpose of calculating property taxes.
18. Closing Date – The closing date is the date on which the sale of a property is finalized and ownership is transferred to the buyer.
19. Counteroffer – A counteroffer is a response to an initial offer, typically proposing different terms or conditions.
20. Listing Agreement – A listing agreement is a contract between a seller and a real estate agent, outlining the terms and conditions of the agent’s services.

By familiarizing yourself with these real estate terms, you’ll be better equipped to navigate the buying and selling process in Canada. And remember, working with a trusted real estate professional can help ensure a successful and stress-free transaction.