If you’re looking to buy or sell your home, you’ve likely turned to the professionals for aid and guidance. Navigating the purchase or sale of your home can be tricky, but even more difficult for the average homeowner is the real estate terminology used by agents and brokers alike. Many times, agents, whether your own or others, will expect you to know and understand verbiage that isn’t used in everyday speech.
To make the process easier and more convenient for you as the client, Tembo has provided a short introduction to some of the commonly used real estate terms & references which you may not be familiar with.
Title: The title of a property is the documentation which provides evidence that the owner has lawful possession of the property, while also referring to the bundle of rights associated with the owner’s interest in title.
Walk-Through Inspection: This is an inspection which takes place just before closing to ensure that the property in question fulfills the criteria of the contract of sale.
Party Wall: A Party Wall refers to the wall in common between two adjoining structures, such as townhomes.
Maintenance: This is a fee paid by the homeowner to the co-operation/condominium corporation to cover the operating costs, real estate taxes, and debt services for the building, condominium, or townhouse complex.
Encumbrance: An encumbrance is a claim, lien, charge, or liability attached to and binding upon real property.
Conditional: A conditional sale is a real estate transaction where the parties have set conditions. Conditions can include a home inspection or mortgage financing (most commonly), and if said conditions are not met within a specific time (the “conditional period”), the agreement is void.
Waivers/Amendments: An amendment is a formal/official change to a contract, such as a purchase and sale agreement. Amendments can add, remove, or update parts of these agreements. A waiver is a voluntary relinquishment of some right as set out in a condition within the agreement. A waiver of condition essentially removes a real or potential liability in the agreement.
Deposit: This is a sum of money placed in trust by the purchaser when an Offer to Purchase is made. The real estate rep. or lawyer holds the sum in trust until the sale closes, and then it is paid to the vendor. This amount is paid towards the purchase price (it is not an additional cost).
Closing Date: This is the date that the buyer takes possession of the property, and the sale of the property becomes final.
Have you sold/are in the process of selling your home, and now can use an advance on your equity before closing day, perhaps you need money for your new purchase deposit? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!
*Subject to qualification.