Frequently Asked Questions and Real Estate Terms:
Click any of the terms below to be linked directly to its definition.
The nature of the assistance or representation provided to a person in a real estate transaction.
1. The nature of the assistance or representation being provided to the person by the licensee;
2. Whether the licensee is or will be acting in the transaction on behalf of any other person, in any capacity; and
3. Whether the licensee is, or will be, receiving remuneration relating to the real estate transaction from any other person, and, if so, the nature of the licensees relationship with each such other person or persons.
An exclusive arrangement between a realtor and a buyer, to locate real property for the buyer to purchase, and to represent the buyer in negotiating the terms of purchase of real property.
Comparative Market Analysis (CMA)
A “CMA” is a report that shows prices of homes that are of comparable value to a subject home and that were recently sold, are currently on the market, or were on the market, but not sold within the listing period.
The date when the title of the property is transferred from the seller (by a lawyer or notary public) to the buyer and the funds of the contract are transferred from the buyer to the seller.
Deposit or Down Payment
Standard practice requires a buyer to place a minimum of 5% of the purchase price in the agent’s trust account, upon acceptance or subject release of a “Contract for Purchase or Sale.”
Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. In American mortgage transactions an escrow account usually refers to the funds a mortgagor pays to the lender at the time of the periodic mortgage payments. The money is held in a trust fund provided by the lender for the buyer. Such funds should be adequate to cover yearly-anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments.
This document is requested by the seller (who pays for it). It is forwarded to the prospective buyer for review, prior to purchase. The Strata Management Company provides this document and it independently states details of the strata unit and the strata corporation.
Premiums paid by the borrower to the lender to protect the lender’s loss in insured mortgage transactions. (This is usually a one-time up-front payment.) Government legislation requires this insurance for mortgages valued at more than 75% of the property’s value.
Mortgage Life Insurance
This is insurance taken by the borrower (mortgagor) under the request of the mortgagee (bank / mortgage broker) to pay out the value of the mortgage in the event of the borrower’s demise.
A written agreement between an “Agent” and a “Home Owner” that allows the licensed sales person to market and arrange the sale of the owner’s home. The word “listing” is also used to refer to the “For Sale” home. A home being sold by the owner with out a real estate agent is not a listing.
A person qualified through training in building technology to render an opinion on the systems and structure of a property. For more info on choosing a Property Inspector, see here.
Property purchase transfer tax
A sales tax paid by the buyer to the Province of British Columbia on the purchase of real estate. The rate equals 1% on the first $200,000 of the purchase price, plus 1% on the balance of the purchase price.
Realtor is often used interchangeably with licensee, real estate agent, or salesperson, and in BC is licensed under “The Real Estate Act.” A realtor can use the term realtor if he/she belongs to a local Board or Association that enforces a strict Code of Ethics.
If you have any questions that are not covered in our glossary of terms here, feel free to contact us at any time.