​Terms & Conditions

Amortization is a term used when setting up your mortgage. It refers to the repayment schedule over a period of time and outlines how much of your payment will go to the principal you are borrowing and how much will go to the interest on the balance.

Assessed value in real estate usually refers to the value of a property done by an assessor for local governments to determine how much a property is worth for property tax purposes. Municipal tax assessors will evaluate multiple factors when assessing the value of a home. This may include: comparable properties in the area, recent improvements, the cost to replace the home if it is ever destroyed and whether or not the homeowner is collecting rent. However, assessors generally are not required to do site inspections and assessments are usually done on an annual basis. Property values assessed for tax purposes are typically higher or lower than appraisals. To find out what your home’s assessed value is, refer to your property tax statement.

A bridge loan a short term loan that is often available to buyers who are purchasing a property, have their current property for sale and have a received a firm (unconditional) offer to purchase their existing home. A bridge loan provides the necessary funds to secure your new property ensuring that you have the necessary financial means until the sale of the current property is finalized.

Brrrr is an acronym for Buy, Rehab, Rent, Refinance, Repeat. This is a real estate method for investors meaning buy the property, rehab it to add more value, refinance, and rent the property for revenue.

Cap rate is short form for capitalization rate. The cap rate is determined by dividing the net operating income by the current market value. This term and formula is used to show the rate of return on an investment property.

A cash offer is an all-cash bid, meaning the buyer has chosen to make the purchase without a mortgage loan or other financing. It is unusual for financing conditions on a cash offer. Buyers offering cash deals on properties usually include a condition for an appraisal on the property.

A chattel refers to any items on the property that are movable. Chattels include movable items such as appliances, window coverings, furniture, sheds.

Real estate agents typically use the comparative market analysis method to estimate the current value of a property. The comparative market analysis the agent compares similar homes in the vicinity of the subject property that have recently sold to determine an estimate of the property value.

A conditional sale, or conditional agreement, refers to a sale in which the buyer's obligation to purchase the property is contingent upon the fulfillment of certain conditions in a specific amount of time. These conditions could include obtaining financing, conducting a satisfactory home inspection, or securing home insurance. If the conditions are not met within the specified time period, the agreement becomes null and void.

Conditions are agreed-upon components that must be fulfilled or performed on or before an agreed upon time/date and before closing the transaction. Most conditions are requested by the buyer when initially making an offer to purchase and included in the real estate agreement when agreed upon by both the buyer and seller. The most common real estate agreement conditions are – Financing, Inspection, Insurance, Sale of Existing Property, Home Improvement. Condition timelines can vary due to many factors, however, 7 - 14 days is common.

A condo fee (condominium fee) is paid by each condo unit owner and paid to the building(s) condo corporation. Condo fees are based on the size of the condo unit and an estimate of the condo complex's ongoing annual expenses. Costs covered by the condo fee include expenses such as cost to maintain amenities the building offers, building utilities, building insurance, and property management services. Condo fees are normally paid monthly and are reviewed annually. The condo fees can increase depending on the anticipated expenses for the upcoming year or increases in costs for building services.

A condominium can be an apartment condo, a townhouse, duplex, or even a detached home. Legally condominium is a term that refers to property ownership. The actual physical unit is owned as freehold ownership and is the owners responsibility to maintain and insure. The shared ownership is of the common areas is also known as common property or tenants in common co-ownership. Co-ownership of the common property includes paying condo fees for maintenance and expenses of the common areas and electing or participating as a Director for the condominium corporation. Board memberships are volunteer positions and the elected board of directors take part in the decision making on behalf of the shareholders or tenants in common.

Canadian Real Estate Association (CREA) was incorporated in 1954 and is a not for profit organization that represents the interest of it’s members. Membership is made up of licensed real estate brokers, real estate agents, and real estate sales people. CREA owns, operates, and provides members access to technology products, owns registered trademarks that are available to members, promotes two primary national trademarks and maintains a real estate data base. CREA is governed by an elected Board of Directors. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®). For more information about CREA, go to https://www.crea.ca/

Days on Market (DOM) refers to number of days a property has been listed for sale. If a property has been on the market for an extended period, the seller may be more motivated, potentially leading to more favorable terms for the buyer. However, it's important to note that the days on market can be manipulated by relisting the property or taking it off the market temporarily. Additionally, a property may have a high number of days on market because the seller is waiting for the right offer.

An escalation clause can be included in an offer to purchase when the buyer anticipates the seller will receive multiple offers on the property. It is a provision that allows the buyer to increase to the offered price in incremented amounts up to a maximum amount. This is a clause that is frequently used in a competitive sellers markets when buyer's are bidding or competing for properties. Example: Should the seller receive a bona fide offer from another buyer(s), the buyer agrees to increase their offer with a $5,000 increment above the competing offer to a maximum of $20,000.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control. FINTRAC is the Canadian branch of a united body of over 200 Financial intelligence units in countries around the world. Photo ID and personal information is required to be collected by real estate professionals to identify all individuals who transact in real estate as either buyers or sellers. For more information, go to https://fintrac-canafe.canada.ca/reporting-declaration/info/re-ed-eng

Freehold land is the complete ownership of a property and any immovable structures attached to the property.

FSBO is an acronym for for sale by owner, usually pronounced as fizzbo. A for sale by owner property is a property that the seller owns and has chosen to sell the property on their own without commissioning a real estate agent or brokerage. A FSBO property does not have the added expense of paying a commission to an agent, therefore, can be more competitive with the pricing of their home. It is common for a buyer to purchase a for sale by owner property with the help of a real estate agent and for the for sale by owner and/or the buyer to negotiate a flat fee or reduced commission with the real estate agent.

The difference between your current home value and your outstanding mortgage is referred to as your home equity.

The Land Transfer Fee is an Alberta requirement when transferring ownership of a property. The fee is calculated with a base fee of $50 plus $2.00 per every $5000 of the purchase price. Up to date information and fees can be found on the alberta.ca website.

Most provinces have a land transfer tax that is based on the purchase price of a property. Alberta does not have a land transfer tax, therefore, there is no land transfer tax rebate either. In Alberta there is a Transfer of Land registration fee and a mortgage registration fee.

Leased land is land that is basically rented from the owner of the land for a monthly or an annual fee. When purchasing a home on leased land you will own the house but not the land.

Mortgage insurance is more commonly referred to as CMHC (Canada Mortgage and Housing Corporation) insurance or high ratio insurance. Mortgage insurance is mandatory in Canada for borrowers with a minimum of 5% but less than 20% of the property purchase price for a down payment. The insurance is default protection for the lender and allows the lender to offer reasonable interest rates. The average cost of the insurance is between 2.8% to 4% of the loan amount. It is paid either by adding the cost into the mortgage or in a lump sum. More information can be found on the CMHC website https://www.cmhc-schl.gc.ca/

An appraisal is an unbiased estimate of the value of a property and is done by a licensed or certified professional based on various factors and conditions. An appraiser gathers information for a thorough analysis such as recent comparable sales in the area, age, condition, construction materials, deficiencies, improvements, measurements, etc. An appraisal is usually ordered through a lending institution for lending purposes. Appraisals have become highly recommended and more commonly ordered by both buyers and sellers to confirm reliable unbiased valuations prior to purchasing or selling property.

Conveyance done by a real estate brokerage normally includes monitoring the waivers for condition removal, confirming receipt of deposit, and processing the appropriate documents and sending them to a cooperating brokerage for commission invoicing and to the lawyer for conveyance or transfer of the property. When a brokerage holds the deposits, there are additional duties required to communicate to stakeholders such as cooperating brokerages and lawyers.

A real property report is a detailed survey that is required at some point in all real estate transactions in Alberta. The RPR is a detailed survey that outlines the property boundaries, includes dimensions of the all the structures on the property, as well as easements, compliance with zoning, and other relevant land facts. Lenders always require a current real property report prior to approving a mortgage or any funding that is secured against the title of the property. Sellers may be advised to purchase a real property report prior to listing their property for sale to ensure that there are no issues that may hinder the selling process.

A reserve fund is fund set up by a condominium corporation. The funds are taken from a percentage of condo owner's condo fees. The fund is set up to cover the costs of unexpected or scheduled maintenance and large scale upgrades that may be required for the condominium building or complex.

A Seller Property Information Statement or SPIS is a document that a seller completes that discloses known information about the property. Any defects or facts about the property must be noted on the SPIS or the seller can be at risk of legal consequences. The SPIS is not a legal requirement for all Canadian provinces, however, sellers will usually provide this information should the buyer request it.

Wholesale real estate is a short-term investment strategy that involves finding a property or properties, entering into a sales contract with the seller for an agreed upon price, then selling the contract to a buyer for a profit (contract selling price higher than the original contract price). Wholesaling real estate is legal in Canada and under most circumstances does not require a real estate license, however, prospective wholesalers are wise to check for regulatory restrictions and relevant laws in each province.