Real Estate Legal Terminology – Part 3 – Final
Navigating the Ontario real estate market can feel overwhelming, especially when faced with complex legal terminology and industry jargon. Whether you’re a first-time homebuyer, seasoned investor, or real estate professional, understanding these key terms is crucial for making informed decisions and protecting your interests throughout any property transaction.
Here is part 3, our final part, of our list of common real estate terminologies. Check out part 1 and part 2 that is already posted for words that start with A to P.
Purchase – The acquisition of property ownership by a buyer from a seller, usually involving financial compensation.
Real Estate Commission – Fees paid to real estate agents for their services in buying or selling a property.
Refinance – The process of replacing an existing mortgage with a new one, often with different terms, to better suit the borrower’s needs.
Requisition Date – The deadline for a buyer’s lawyer to submit questions or objections regarding the property’s title or other issues. The Requisition Date is found at paragraph 8 of the Agreement of Purchase and Sale.
Sale – The transfer of property ownership from a seller to a buyer in exchange for payment.
Special Assessment – A one-time fee charged by a condominium corporation to unit owners for unexpected expenses or major repairs.
Status Certificate – A document provided by a condominium corporation detailing the financial and legal status of a condominium unit.
Statement of Adjustments – Use to calculate the balance due to the seller on closing, adjusting for realty taxes, deposit, sale price and any other payments that may affect the property such as tenants or monthly common expenses.
Survey – A detailed map of a property’s boundaries, dimensions, and physical features.
Survivorship Application – The process of transferring property ownership to a surviving joint tenant after the death of another joint tenant.
Tarion Warranty Certificate – A document that outlines the builder’s warranty on a new home in Ontario.
Tenants in Common – A type of property ownership where multiple owners have distinct shares, which can be unequal, and no right of survivorship.
Title – A legal document that proves ownership of a property.
Title Insurance – Insurance that protects property owners and lenders from losses resulting from defects in a property’s title or other issues.
Title Search – To confirm legal ownership of a property and identify any outstanding claims or liens, searches are conducted up to 40 years prior to the closing date of a transaction. The purchaser has 30 days to search the title and submit requisitions. The Requisition Date is found at paragraph 8 of the Agreement of Purchase and Sale.
Title Transfer – The legal process of changing property ownership from one party to another, typically through a sale or gift.
Transfer/Deed – A legal document transferring property ownership from one party to another.
Underused Housing Tax – A federal tax imposed on the ownership of vacant or underused residential properties.
Vacant Unit Tax – A municipal tax on vacant residential units in certain cities such as Ottawa, Toronto, Hamilton, Windsor, and Sault Ste. Marie, aimed at increasing rental supply.
Variable Rate – An interest rate that fluctuates with the prime rate set by the Bank of Canada.
Warranties – Promises or guarantees made by a seller or builder regarding the condition of a property or its components.
Writ of Execution – A court order authorizing the seizure and sale of a property to satisfy a debt owed by the property owner.
Zoning Issues – Problems or conflicts arising from local zoning regulations affecting how a property can be used or developed.
Understanding these essential real estate terms empowers you to navigate Ontario’s property market with confidence and clarity. From the initial offer to final closing, each phase of a real estate transaction involves specific terminology that can significantly impact your rights, obligations, and financial outcomes.
While this glossary provides a solid foundation, real estate transactions are complex legal matters that often require professional guidance. Always consult with qualified real estate professionals, including experienced lawyers, agents, and mortgage brokers, who can provide personalized advice based on your specific situation and the latest regulatory changes.