Amortization

The total number of years it will take to pay off your mortgage in full, based on scheduled payments.

Agreement of Purchase and Sale (APS)

A legally binding contract between buyer and seller outlining terms, conditions, price, and possession date.

Appraisal

An independent, professional assessment of a property’s market value—often required by lenders.

Closed Mortgage

A mortgage product with set prepayment limits and penalties for early payoff; typically offers lower interest rates.

Closing Costs

Fees and adjustments payable at completion, including legal fees, land transfer tax, title insurance, and adjustments for property taxes or utilities.

Chattels

Moveable personal property included in a sale (e.g., appliances, light fixtures); distinguished from fixtures, which are affixed to the land or building.

Condition

A clause in the APS (e.g., financing condition, home inspection condition) that must be satisfied before completion.

Duty to Disclose

The seller’s obligation to inform the buyer of any known material defects or issues affecting the property.

Earnest Money Deposit

Funds submitted with an offer to demonstrate the buyer’s good faith; held in trust until completion or released per contract terms.

Equity

The difference between current market value and outstanding mortgage balance; represents ownership stake.

Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant for the selected term (typically 1–5 years).

Home Buyers’ Plan (HBP)

Federal program allowing first-time buyers to withdraw up to $35,000 from RRSPs tax-free for a down payment.

Land Transfer Tax

A provincial fee calculated as a percentage of the purchase price, payable on transfer of property title.

Legal Description

The precise description of a property as recorded in land registry (lot, plan, block, and parish or district).

Mortgage Pre-Approval

A lender’s conditional commitment to finance up to a specified amount, based on credit, income, and down payment.

MLS® (Multiple Listing Service)

A centralized database of properties for sale, accessible to REALTORS® and often syndicated to public search sites.

Offer

A formal expression of interest by a buyer, outlining price, conditions, and timelines; becomes binding when accepted and signed by the seller.

Possession Date

The date on which ownership and physical possession of the property transfers to the buyer.

Prepayment Privileges

The lender-approved option to pay down mortgage principal ahead of schedule, reducing interest costs (subject to limits).

Property Disclosure Statement

A form completed by the seller detailing known defects, renovations, or history that may affect a buyer’s decision.

Subsidized Mortgage

A mortgage product where a third party (e.g., family member) contributes to the down payment to help a buyer qualify.

Survey Certificate

A drawing prepared by a land surveyor showing property boundaries, structures, and easements; often required by lawyers or lenders.

Title Insurance

Insurance policy protecting against financial loss from title defects, liens, or other legal issues affecting property ownership.

Zoning

Municipal regulations defining permitted land uses and development standards (e.g., residential, commercial, agricultural).

For more detailed definitions or specific questions, contact Diane Richardson at 403-397-3706.