Browse a list of definitions of common terminology used by real estate agents – and in the real estate market – if you’re unsure of a meaning. If you’re just starting out in Brantford real estate, it’s important to be familiar with these terms so you can act more efficiently and get more done.
GLOSSARY OF REAL ESTATE TERMS
Below you’ll find a comprehensive list of real estate jargon, fully explained so you can understand most of the terms used in the industry.
- Agreement Of Purchase & Sale (Aps)
- Agreement To Lease (Atl)
- Amendment
- Appraisal
- Buyer Rep Agreement (Bra)
- Buyer Walkthrough
- Closing Day
- Conditional Offer/conditionally Sold
- Confirmation of Cooperation
- Freehold
- Fintrac
- Irrevocable
- Listing Agreement
- MLS® Listing
- Notice of Fulfillment (Nof)
- Sellers Direction
- Title Search Date
- Waiver
AGREEMENT OF PURCHASE & SALE (APS)
This is sometimes known as an “Offer” and it’s the document that buyers create when they want to purchase a home. This document includes:
- the dollar amount they’re offering for the house
- the date they’d like to close on the house
- any conditions they’re including on their offer
The buyer and seller can go back and forth with negotiations until they come to an agreement that is satisfactory for everyone.
Related: How To Sell Your Home for the Most Money Possible
AGREEMENT TO LEASE (ATL)
Similar to an Agreement of Purchase & Sale, this is a document that outlines everything agreed upon when a tenant signs a new lease with a landlord. This document will outline:
- what the monthly rent payments will be
- the start and end dates of the lease
- what is included by the landlord and what the tenant is responsible for.
AMENDMENT
After an Agreement of Purchase & Sale or Agreement to Lease has been signed by all parties, there may be amendments (changes) that need to be made to these contracts. Perhaps the closing date needs to change, or maybe another name needs to be added to the contract. This document is signed by all parties, agreeing to change any detail on an APS or ATL.
APPRAISAL
When an offer is put on a house, the buyer’s financial institution (mortgage provider) may wish to perform an appraisal on the house. This is to ensure the home is worth the amount being paid for it. A professional appraiser will come look at the property and provide a document that states what they assess the home’s value to be.
BUYER REP AGREEMENT (BRA)
Every buyer should sign a Buyer Rep Agreement with their REALTOR®. This is done before shopping for a new home.
This document outlines how long the real estate agent will be representing the buyer, what kind of property they’ll be shopping for, and where.
It also confirms the commission the agent will be paid (usually by the sellers) when the property is purchased.
BUYER WALKTHROUGH
Buyers may wish to see the home they’ve purchased again before it closes. They are usually entitled to one or two walkthroughs of the property before moving day. This is a great time for the buyers to take measurements, snap photos or just look around the house one more time.
CLOSING DAY
This is the date that the property is taken out of the seller’s name and transferred to the buyer’s name. It’s also sometimes known as Moving Day!
Related: Getting Properly Prepared For Closing Day
CONDITIONAL OFFER/CONDITIONALLY SOLD
When a buyer puts an offer on a house, they may include some conditions that need to be fulfilled before the deal is firm.
Some conditions might include:
- home Inspection: the buyer wants a home inspector to ensure the house is in good condition
- financing: the buyer wants to double-check with their mortgage institution to ensure they’ll be able to get financing for this home
When a conditional offer is presented, there is a due-date before which these conditions must be fulfilled.
After that date, the buyer will commit to purchasing the home and it goes from being “Conditionally Sold” to “Sold Firm”.
Related: Home Buyers Tip: The Difference Between A Conditional & Firm Offer
CONFIRMATION OF COOPERATION
This document is presented alongside an offer and it outlines which agent is working on behalf of the seller, and which one is working on behalf of the buyer. It also details the commissions each agent will receive with this deal.
FREEHOLD
If a home is not subject to any condo fees or road fees, it is considered Freehold. Most detached homes are freehold properties, but you may find some townhouses or condominiums have additional monthly fees that must be paid to a condo corporation.
FINTRAC
All buyers and sellers must provide valid identification before a real estate transaction can take place.
A drivers license, passport, or other official government ID can be used for this purpose.
Your agent will fill out an Identification Form for the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to be kept on file with your sale or purchase.
IRREVOCABLE
When an offer or amendment etc. is submitted to another party for their consideration, there is a due date upon which the terms must be agreed upon. This due date is called an Irrevocable.
After this time/date passes, the offer/amendment/etc. is no longer considered valid and the deal is no longer on the table.
LISTING AGREEMENT
Sellers who are ready to list their house will need to sign a Listing Agreement with their REALTOR®. This is a package of paperwork that includes:
- a document outlining the official address of the property being listed
- the price being asked for
- how long the agent agrees to list the property for
- a data sheet that outlines all the details, room measurements etc. of the property
As the seller, you will be provided a copy of this listing agreement for your files.
Related: Why You Should Use a REALTOR® When Buying or Selling A Home
MLS® LISTING
Any property that is listed on the Multiple Listing Service (MLS®) will have an MLS® Listing that includes all the information that the agent has on the property.
This is helpful to other agents who are showing the house, because it gives them details about your home, the price being asked, the recent property taxes, and more pertinent information.
NOTICE OF FULFILLMENT (NOF)
When a buyer puts a conditional offer on a home, they have stated there are some conditions they’d like to fulfill before they commit to purchasing the property.
These conditions (e.g. a home inspection) need to be completed by a pre-determined date in order for the sale to become firm and binding. A Notice of Fulfillment is a document that states a particular condition has now been fulfilled and completed.
SELLERS DIRECTION
Some sellers may have instructions for any offers they receive. For instance, they may want a 48 Hour Irrevocable to consider any offers that come in. Or, they may want to hold offers until a particular date when they can review any and all offers at one time.
A Sellers Direction outlines when that date/time will be for this sale.
TITLE SEARCH DATE
This is usually two weeks before the intended closing date. Lawyers must check that there are no claims or liens of any kind against the property before the house switches over into the new buyer’s name.
This check must be done by the Title Search Date as outlined on the Agreement of Purchase & Sale.
WAIVER
If a buyer submits a conditional offer on a home, but then later decides they don’t want to bother fulfilling those conditions (e.g. they decide not to do the home inspection after all), then they Waive that condition with this document.
Every condition on an offer must be accounted for, either with a Waiver or a Notice of Fulfillment, before the house is sold firm.
THE MORE YOU KNOW THE BETTER
The more you know about important terms used in the real estate industry as a buyer and seller, the easier your real estate transaction will be.
