Real Estate Terms Explained in Plain English

The main contract used to buy or sell a property. It records the price, deposit, closing date, conditions, included items and other obligations. Once accepted, it can create binding legal duties, so obtain legal advice before relying on wording you do not understand.

An Ontario real estate agent or broker who works through a brokerage to assist a buyer. Services may include property searches, comparable-sale review, offer preparation, negotiation and transaction coordination. The representation agreement should explain the scope, term and compensation.

A client relationship between a buyer and a real estate brokerage. The written agreement should state the services, duties, geographic and property scope, duration, cancellation terms and what the buyer may owe the brokerage.

Movable items that are not permanently attached to the property, such as certain appliances, curtains or furniture. Any item that is expected to remain should be identified clearly in the agreement.

The date the transaction is scheduled to complete and ownership transfers. Lawyers, lenders and brokerages coordinate documents and funds before closing; access is normally provided after legal completion, not at a guaranteed time of day.

An offer that contains one or more conditions that must be satisfied or waived by the stated deadline. Financing, inspection and condominium-document review are common examples. The exact rights and consequences depend on the agreement wording.

The dates and times by which steps under an agreement must be completed, such as accepting an offer, delivering a deposit, satisfying a condition or closing. Missing a deadline can change or end contractual rights, depending on the wording.

Money paid according to the accepted agreement and normally credited toward the purchase price on closing. The amount, due date, holder and consequences of failing to complete the transaction are important legal and financial questions.

The person or organization named in the agreement to receive and hold the buyer's deposit in trust until completion or another outcome allowed by the agreement.

An offer with no remaining conditions. Once accepted, it generally creates a binding agreement, so the buyer should understand financing, inspection, legal and closing risks before submitting it.

A visual assessment of accessible parts of a property by an inspector. It can identify concerns and areas needing specialist review, but it does not guarantee that every hidden defect will be found.

Items that the agreement says will remain with or be removed from the property. Appliances, fixtures, mirrors, curtains, shelving and rental equipment should be described clearly to reduce closing disputes.

The deadline stated in an offer until which the person making the offer agrees not to withdraw it. Acceptance must be completed and communicated as required by the agreement before that deadline. The legal effect depends on the wording and circumstances.

The registered description used to identify a parcel of land in the land-registration system. It may include plan, lot, block or part numbers and can differ from the street address.

A written notice stating that a condition has been satisfied according to the agreement. It differs from a waiver because the party is saying the condition was fulfilled rather than giving it up. The form and deadline must match the agreement.

Wording used when an agreement or condition is treated as having no further effect. The consequences depend on the exact clause, notices delivered, deadlines and surrounding facts.

Clauses that make an offer dependent on a stated event or review, such as financing, inspection, sale of another property or lawyer approval. The wording, deadline and method of fulfilment matter.

The date the buyer is entitled to possession under the agreement. It is often the closing date, but the agreement and lawyer's closing process determine when access is actually available.

The amount the buyer agrees to pay for the property in the Agreement of Purchase and Sale. It is separate from closing adjustments, legal fees, land transfer tax and other transaction costs.

Equipment or fixtures that are rented, leased or subject to a lease-to-own contract rather than owned by the seller. The agreement should identify them and whether the buyer is expected to assume the contract.

A phrase used to trigger an obligation after an offer is accepted. In an agreement, it may set a specific deadline for delivering the deposit or taking another step, so the exact wording and time should be checked.

A written document used when a party gives up the benefit of a condition or right under an agreement. A waiver can make an agreement firm and may be difficult to reverse, so the legal and financing consequences should be understood before signing.

A buyer visit permitted by the agreement before closing. It may be used to measure, plan moving or check the property's apparent condition and included items. It is not a substitute for an inspection or legal remedy.

The price advertised on the listing. It may be set near estimated market value, above it or below it as part of a strategy. It is not proof of what the property will sell for.

Compensation for brokerage services as set out in a representation agreement. The amount, applicable tax, services, payment terms and any buyer-brokerage obligations should be reviewed before signing.

Recently sold properties used to help estimate a property's likely sale range. Useful comparables are similar in location, property type, size, condition, features and timing; no single sale proves value.

The number of days a listing has been marketed under the reporting method being used. It can help describe pace, but interpretation depends on relisting, price changes, property type, area and current competition.

An accepted sale agreement with no remaining conditions. It is still subject to completion on the closing date, including legal transfer of title and funds.

The public asking price shown on a listing. It can be a marketing choice and should be considered separately from the evidence-supported sale-price range.

A seller representation agreement with a brokerage. It should describe services, duties, price, term, cancellation and holdover provisions, compensation and other seller obligations.

A reasoned estimate of what a property may sell for under current conditions, based on comparable sales, current competition, condition, location and likely buyer response. It is an estimate, not a guaranteed sale price.

The sale price divided by a listing price and shown as a percentage. It can be misleading without knowing whether the property was relisted or strategically underpriced, so use it with other evidence.

An Ontario agent or broker who represents a seller through a brokerage. Work may include pricing analysis, preparation, marketing, showing coordination, offer review and transaction management, as defined in the representation agreement.

Preparing a property to present its space and features clearly. It may involve decluttering, cleaning, repairs, lighting, furniture editing or rented furnishings. The appropriate level depends on the home, buyers, cost and timeline.

The total repayment period used to calculate mortgage payments. A longer amortization can lower the regular payment but generally increases total interest, assuming the same rate and payment pattern.

A professional opinion of property value that a lender may request. A low appraisal can affect the amount a lender will advance and may increase the buyer's required cash.

A transaction where a buyer transfers contractual rights in a purchase agreement before taking title, subject to the agreement and builder or seller requirements. Income-tax and GST/HST consequences can apply and require legal and tax advice.

A gain that may arise when property is sold or considered sold for more than its adjusted tax cost, subject to transaction expenses and tax rules. Whether real-estate profit is a capital gain or business income depends on the facts.

Amounts allocated between buyer and seller on the statement of adjustments, such as prepaid property taxes, condominium fees or utilities. The lawyer calculates the transaction-specific figures.

Costs due in addition to the purchase price or down payment. They can include land transfer tax, legal fees, title insurance, adjustments, inspection, appraisal, insurance and moving costs. Confirm actual amounts with the relevant professionals.

The portion of the purchase price not covered by the mortgage. The deposit is normally credited toward it at closing, but the two terms are not interchangeable.

A First Home Savings Account is a registered plan that may allow an eligible first-time home buyer to make deductible contributions and qualifying tax-free withdrawals for a first home. Eligibility, participation room and withdrawal rules must be checked with CRA.

Under current insured-mortgage rules, at least one borrower may qualify as a first-time home buyer based on the applicable ownership, occupancy or separation tests. This definition can differ from FHSA, HBP and land transfer tax definitions, so check the rule for the specific program.

A mortgage whose interest rate stays the same for the agreed term. Payments are generally easier to predict, but ending or changing the mortgage before the term expires may create a prepayment penalty.

A federal and provincial rebate framework that may return part of the GST/HST paid on an eligible new or substantially renovated home. Eligibility and amounts can depend on use, price, agreement date and who claims the rebate.

A CRA program that may allow an eligible participant to withdraw from an RRSP to buy or build a qualifying home. The current limit, eligibility, purchase deadline and repayment rules must be checked with CRA before relying on the funds.

A mortgage covered by mortgage default insurance for the lender. It is commonly required when the buyer has less than a 20% down payment and the property and borrower meet insurer and lender requirements.

With less than 20% down, a 30-year insured amortization may be available when at least one borrower qualifies as a first-time buyer or the property is a qualifying newly built home. Otherwise, the insured maximum is generally 25 years. With 20% or more down, the lender sets the available maximum amortization.

Standard high-ratio mortgage insurance is generally available only when the purchase price or lending value is below $1.5 million and the borrower, property and loan meet current insurer and lender requirements. At $1.5 million or more, the minimum down payment is generally 20%.

A tax generally paid by the buyer when an interest in Ontario land is transferred. A Toronto property may also attract municipal land transfer tax. Refunds or rebates use separate eligibility rules.

The mortgage amount divided by the property value or purchase price, expressed as a percentage. Lenders and mortgage insurers use LTV when assessing down payment, insurance and lending risk.

For a home priced at $500,000 or less, the federal minimum is 5%. Above $500,000 but below $1.5 million, it is 5% of the first $500,000 plus 10% of the balance. At $1.5 million or more, it is generally 20%. A lender may require more.

A lender's approval of the borrower, property and final mortgage file, subject to the lender's conditions. It may require income, down-payment, credit, appraisal, insurance and property documents.

Insurance that protects the lender when an insured borrower defaults. In Canada it may be provided through CMHC, Sagen or Canada Guaranty. It is commonly required for a high-ratio mortgage, subject to the lender's and insurer's current borrower, property and loan requirements.

The document and registration process used to remove a mortgage or charge from the property's title after the secured debt has been paid or otherwise satisfied.

The charge for mortgage default insurance. It is generally calculated using the insured loan amount and loan-to-value ratio and may be added to the mortgage principal. CMHC, Sagen and Canada Guaranty publish their own current premium schedules and program rules.

A feature that may allow a borrower to transfer an existing mortgage rate, terms and conditions to a new property, subject to lender approval and the contract. Porting may reduce or avoid a penalty but is not automatic.

A preliminary review that may estimate how much a lender could consider and sometimes hold a rate. It does not guarantee final approval for a particular property or amount.

The interest rate used in the mortgage calculation. The rate should be considered with the term, payment frequency, prepayment options, penalties, portability, qualification and lender conditions.

A qualification test that assesses whether a borrower could manage payments at a prescribed qualifying rate above or different from the contract rate. Current rules depend on the lender and mortgage type.

The length of the current mortgage contract before renewal or repayment, such as a fixed or variable term. It is different from amortization, which is the longer repayment schedule used to calculate payments.

A charge that may apply when a borrower pays more than the permitted prepayment amount, pays off the mortgage early, refinances or breaks the mortgage before the term ends. The calculation depends on the mortgage contract.

The amount a borrower may pay toward a mortgage above the regular payments without a prepayment penalty. The permitted amount, timing and method are set by the mortgage contract and vary by lender.

A housing unit that may qualify for designation as a principal residence under Canadian tax rules when ownership, occupancy and other conditions are met. A family unit can generally designate only one property for a particular year.

A Canadian income-tax exemption that may eliminate or reduce a capital gain on a qualifying principal residence. The sale must still be reported and the property designated as required by CRA.

A closing adjustment that allocates property taxes already paid or still owing between buyer and seller. The lawyer calculates it using the closing date and available tax information.

A mortgage whose interest rate can change during the term, usually in relation to the lender's prime rate. Depending on the product, the payment may change or the portion going to principal may change.

Properties available for sale at a stated point in time under the data source's reporting rules. The number should be segmented by area and property type before drawing a local conclusion.

Total dollar value of sales divided by the number of sales. A small number of unusually high- or low-priced transactions can move the average, so it should not be used alone.

A descriptive term for conditions where neither buyers nor sellers appear to have a broad advantage. Individual neighbourhoods, price ranges and property types can behave differently from the regional label.

An estimate of the price of a typical home with defined attributes in a market segment. It is produced through a Home Price Index model and differs from the average or median of the homes that happened to sell in one period.

A descriptive term for conditions with relatively more supply or weaker demand, giving buyers more choice or negotiating room. It does not mean every seller must accept a discount.

The middle sale price after transactions are ordered from lowest to highest. It is less affected than the average by a few extreme sales, but still depends on the mix of homes sold.

A Canadian housing-price measure that tracks benchmark homes and adjusts for differences in housing attributes. It can provide a more consistent view of price trends than a simple average or median.

An estimate of how long current listings could take to sell at the recent sales pace. Higher values generally indicate more buyer choice; lower values generally indicate tighter supply.

Properties newly added to the market during a stated period under the data source's reporting method. Compare new listings with sales, active inventory and prior periods for context.

Statistics adjusted to reduce predictable seasonal patterns, such as typical changes between winter and spring. Seasonally adjusted and unadjusted figures answer different questions and should not be mixed in the same comparison.

A descriptive term for conditions where demand is strong relative to available supply. It can support faster sales or stronger offers, but price, condition and local competition still matter.

Sales-to-new-listings ratio: sales divided by new listings for a stated period. It is one indicator of market balance and should be interpreted with active inventory, property type, geography and reporting methodology.

Regular common expenses paid by condominium owners for shared operations and services. Buyers should review what is included, current fees, arrears, the budget, reserve-fund information and possible increases or special assessments.

A notice identifying building, property or code-related deficiencies that may require investigation or corrective work.

Items attached to the property and generally treated as part of it, subject to the agreement. Because disputes can arise over mounted or built-in items, the agreement should state any inclusion or exclusion clearly.

A deadline in the agreement by which the buyer's lawyer may raise specified title-related objections or requisitions. Its exact effect depends on the contract and should be explained by the lawyer.

A resale-condominium package containing information about the unit and corporation, including governing documents, finances, reserve-fund information, common expenses and certain legal matters. Buyers should have legal counsel review it.

An insurance policy that may cover specified title, ownership, fraud, survey or closing risks, subject to exclusions and policy wording. The lawyer can explain the coverage and whether it is appropriate.

A lawyer's examination of registered ownership and interests affecting the property before closing. It helps identify title matters that may need to be addressed before ownership transfers.

A contractual requirement that the property be delivered without occupants or possessions as specified in the agreement. It is especially important where tenants or other occupants are involved and requires legal advice.

A formal requirement from a municipality or other authority directing that work, repairs or compliance steps be completed on a property.

An individual registered as a broker under Ontario law and employed by a brokerage to trade in real estate. A broker has completed the qualifications required for that registration category.

The broker responsible for overseeing a registered real estate brokerage and helping ensure that its operations and registrants comply with Ontario real estate requirements.

The registered business through which Ontario brokers and salespersons trade in real estate. Representation agreements are made with the brokerage, even when one agent is the buyer's or seller's main contact.

The real estate brokerage representing the buyer under a representation agreement. Its services may include property searches, due-diligence support, offer preparation, negotiation and transaction coordination, as set out in the agreement.

A person receiving services, including representation, under a representation agreement with a brokerage. The brokerage and agent owe the duties required by the agreement and Ontario law.

A brokerage that works with the listing brokerage in a transaction, commonly while representing the buyer. The Confirmation of Cooperation and Representation records its role and how it may be paid.

A situation where personal, financial or professional interests could interfere—or appear to interfere—with objective service to a client. Ontario rules require relevant conflicts to be disclosed, and consent may be required before the brokerage continues.

Older Ontario materials may describe a customer relationship with a brokerage. Under the current TRESA framework, customer relationships are not permitted. A person is generally either a client under a representation agreement or a self-represented party.

A form of Ontario representation where one or more named agents represent the client's best interests. The brokerage and its other agents have different duties described by Ontario rules and the agreement.

A high level of loyalty and care owed within a representation relationship. In practical terms, the brokerage and representative must protect the client's interests, avoid undisclosed conflicts, keep required information confidential and follow lawful instructions within the agreement and Ontario law.

A clause that may create compensation obligations after a representation agreement expires or ends, usually when the client completes a transaction involving a property introduced during the agreement. Its duration and financial effect should be explained before signing.

The real estate brokerage representing the seller and handling the listing. Its role may include marketing the property, arranging showings, presenting offers and advising the seller.

A situation where a brokerage or designated representative represents more than one client with competing interests in the same transaction. It is not permitted unless each affected client gives the required consent.

A separate account used by a brokerage to hold trust money such as a buyer's deposit. Trust money is not the brokerage's operating money and is subject to regulatory requirements.

The Real Estate and Business Brokers Act, 2002 was the former name of Ontario's real estate-services statute. Current documents use the Trust in Real Estate Services Act, 2002, or TRESA. Older courses, forms and decisions may still refer to REBBA.

The Real Estate Council of Ontario, the provincial regulator for registered real estate agents, brokers and brokerages. RECO administers Ontario real estate-services legislation, maintains a public register and handles regulatory matters.

A contract between a client and a real estate brokerage that sets out the representation and services to be provided, payment terms, when the agreement begins and ends, and other rights and responsibilities. Review the exact agreement before signing and obtain legal advice when needed.

An individual registered as a salesperson under Ontario law and employed by a brokerage to trade in real estate. Ontario consumers often use real estate agent as the everyday term for a registered salesperson or broker.

A person in a real estate trade who is not a client of a brokerage and is representing their own interests. An agent representing another client may provide only the limited assistance permitted by Ontario rules.

The Trust in Real Estate Services Act, 2002, Ontario's consumer-protection legislation governing registered real estate agents and brokerages. It includes rules for representation, disclosure and conduct.

A required document attached to many Ontario new-home purchase agreements that sets out critical dates, permitted extensions, delay protections, disclosure items and certain termination conditions. It should be reviewed with a real estate lawyer.

Parts of a condominium property shared by owners, such as hallways, elevators, structure, piping or amenities. The declaration and other governing documents allocate maintenance, repair and cost responsibilities.

A foundational document that helps create the condominium corporation. It describes unit boundaries, common-expense proportions, use restrictions and repair or maintenance responsibilities, subject to Ontario condominium law.

Common elements owned by the condominium corporation but reserved for the exclusive use of one or more units, such as some balconies, terraces, parking spaces or lockers. Rights and responsibilities depend on the declaration.

The period when a buyer may occupy a new condominium unit before the condominium is registered and title transfers. Construction may continue, and the buyer does not yet own the unit.

A monthly amount paid to the builder during interim occupancy. It can include interest on the unpaid balance, estimated municipal taxes and projected common expenses. It is not a mortgage payment.

A builder-led inspection of a new home or condominium unit before possession or occupancy. It records items that are incomplete, damaged, missing or not operating and provides an orientation to the home's systems.

A mandatory condominium-corporation account used for major repairs and replacement of common elements and assets. The balance alone does not establish financial health; expected projects, contributions and the funding plan also matter.

An extra charge to condominium owners, often used when the corporation needs funds beyond the regular budget and reserve plan. The reason, amount, payment schedule and status-certificate disclosure require careful review.

Ontario's statutory new-home warranty is provided by the builder and backstopped by Tarion. Coverage can begin before possession and continue through separate one-, two- and seven-year periods, subject to limits, exclusions and claim requirements.

MPAC's estimate of a property's value as of the legislated valuation date, using mass-appraisal methods and property information. It is not the same as today's likely sale price or a property-specific market evaluation.

A registered or legally recognized right affecting land, often allowing a person, utility or neighbouring property to use part of another property for a stated purpose. Easements can run with the land and require lawyer review.

The Municipal Property Assessment Corporation, which assesses and classifies Ontario properties. Municipalities use MPAC assessment information as part of calculating property taxes; MPAC does not set the municipal tax rate.

A surveyor-prepared graphic representation showing the precise location of legal property boundaries based on field measurements. It can also show structures or other features, depending on the plan and purpose.

A notice from MPAC showing a property's assessed value and classification as of the applicable valuation date. It is not a property-tax bill; the municipality uses assessment information when calculating taxes.

A number used in Ontario's automated land-registration system to identify and track a parcel record. It is not the same as a municipal assessment roll number or a personal identification number.

A municipal assessment identifier associated with a property for assessment and taxation purposes. It is different from a land-registry PIN and should be copied carefully when paying taxes or using MPAC services.

An additional assessment MPAC may issue after a qualifying change such as new construction, an improvement or a change in property class or use. It can result in taxes applying for a prior or current period.

A written change to an existing agreement signed by the required parties. It may change a date, price, condition, name or other term. An amendment should identify the original agreement clearly and state exactly what is being changed.

The legal principle commonly summarized as buyer beware. It places substantial responsibility on the buyer to inspect and investigate a resale property, subject to contractual protections, misrepresentation, concealment and legally required disclosure.

One of two or more written offers on the same property at the same time. Ontario buyers who submitted offers are entitled to know the number of competing offers, while the seller decides whether any offer content will be shared.

A transaction document used to record how the brokerages and parties are represented and how the brokerages are cooperating. It does not replace the buyer or seller representation agreement and should match the actual relationship.

A report containing credit or other personal information that may be obtained or referred to in connection with a real estate transaction, subject to applicable consent and privacy requirements.

A response that rejects the original offer and proposes different terms, such as price, closing date, conditions or inclusions. The counter-offer has its own acceptance deadline and can create a new binding agreement when properly accepted.

A hidden physical defect that may not be discoverable through a reasonable inspection. Disclosure duties depend on the facts, including whether the seller knows of a defect that makes the property dangerous or unfit for habitation. Legal advice may be required.

A fact that could affect a client's decision to buy or sell, or the terms they would accept. What is material depends on the client and transaction. Ontario representatives must take reasonable steps to determine and disclose material facts to their client.

A false, inaccurate or misleading statement or omission that can affect a real estate decision. Consequences depend on the facts, wording, reliance and law involved. Representatives must provide accurate information and correct known errors.

A written agreement in which parties agree to end a contract and address matters such as the deposit and continuing obligations. Signing a release can affect legal rights, so each party should obtain legal advice before relying on it.

A summary record used in some Ontario offer processes to document key offer information without replacing the full offer. Brokerages must retain the records required by law, and RECO may use offer records when confirming the number of competing offers.

An Ontario competing-offer process where a seller chooses to direct that some offer content be shared. The seller controls what is shared, identifying information cannot be disclosed, and buyers should not assume that price or every term will be revealed.

A physical defect that is visible or reasonably discoverable through an ordinary inspection, such as obvious damage or staining. Buyers remain responsible for appropriate inspection and investigation, and sellers must not actively conceal defects.

An offer submitted before or outside a seller's stated delayed-offer process. It is commonly called a bully offer. The seller's representative must follow the seller's clear written directions and Ontario notification requirements.

A seller-completed statement about known property information, sometimes called an SPIS. Its intended use matters. If it is prepared for buyers, Ontario representatives have disclosure and delivery obligations when interested buyers request it.

An attachment used to add transaction-specific clauses, conditions or details to an Ontario Agreement of Purchase and Sale. A schedule forms part of the agreement, so every clause, deadline and conflict with the main form should be reviewed before signing.

An additional schedule often prepared by a brokerage, seller, builder or other party. Its content is not automatically standard or favourable to either side. The clauses must be read with the main agreement and other schedules, with legal advice where appropriate.

Consent that may be required from a seller's spouse in some Ontario property transactions, including where family-law rights affect the disposition of the property. A lawyer should confirm whether it is required.

A non-physical circumstance that may affect how a particular buyer feels about a property, such as a past event associated with it. Ontario does not have one universal list of stigmas; buyers should identify concerns that matter to them and ask specific questions.

Urea formaldehyde foam insulation, an insulation product used in some older buildings. Ontario agreements may contain a seller representation about whether UFFI was installed or is known to be present.

A lender serving borrowers who may not meet a traditional bank's standard requirements. Alternative products can have different documentation, pricing, fees and renewal risks, so the complete cost and exit plan should be compared carefully.

A standardized annual rate intended to reflect the cost of mortgage borrowing, including interest, compounding and required fees. APR can help compare products that have different rates or charges, but the underlying assumptions must be accurate.

A mortgage with limits on early repayment beyond the contract's prepayment privileges. Paying out, refinancing or transferring it before the term ends may trigger a penalty calculated under the agreement.

The total borrowing cost disclosed for the mortgage term, including interest and applicable fees required by the disclosure rules. It is different from the principal being repaid and should be reviewed with the payment schedule and contract risks.

A realistic plan for repaying, refinancing or replacing a short-term mortgage when its term ends. FSRA emphasizes exit planning for private mortgages because renewal is not guaranteed and rates, fees or enforcement risk may be high.

The Financial Services Regulatory Authority of Ontario. FSRA licenses and regulates Ontario mortgage brokerages, mortgage brokers, mortgage agents and mortgage administrators. Banks and some other providers may operate under different regulatory frameworks.

A revolving credit facility secured by home equity. Interest is generally charged only on the amount used, and the rate is often variable. Minimum payments may not reduce principal, and the borrowing remains secured against the home.

A mortgage combining more than one rate structure, such as fixed and variable portions. Each component can have separate payment, renewal and prepayment rules, so the product must be assessed as a complete package.

A mortgage where scheduled payments may cover interest without reducing principal during the stated period. The full principal remains owing unless separate payments are made, so the end-of-term repayment and refinancing plan are critical.

A business licensed by FSRA to receive mortgage payments and administer mortgage terms on behalf of lenders or investors. Administration can include recordkeeping, payment monitoring and enforcement steps allowed by the agreement.

An Ontario mortgage agent licensed to deal with lenders such as banks, credit unions and other financial institutions approved under the Level 1 framework. The agent works through one licensed mortgage brokerage and under broker supervision.

An Ontario mortgage agent permitted to deal with the full range of mortgage lenders, including alternative and private lenders, through one licensed mortgage brokerage and under broker supervision.

An individual licensed by FSRA to arrange mortgages through a licensed mortgage brokerage. A broker can supervise mortgage agents and may work with traditional, alternative and private lenders within the permitted licence framework.

A business licensed by FSRA to carry out mortgage brokering activities in Ontario. It employs or authorizes mortgage brokers and agents, supervises their work and must provide required relationship, fee, risk and cost disclosures.

A lender document setting out the proposed mortgage amount, rate, term, conditions, fees, required documents and expiry or funding requirements. It is not the registered mortgage instrument and may remain conditional until every lender requirement is met.

A mortgage that generally permits repayment in part or in full before the term ends with fewer restrictions or penalties. Open mortgages may have different rates or pricing, so flexibility should be compared with total cost.

An individual, corporation or mortgage investment entity lending money secured against real estate outside the traditional bank or credit-union channel. Private financing can involve higher rates, fees, shorter terms and stricter enforcement provisions.

A mortgage funded by a private lender rather than a traditional institutional lender. It is often a short-term solution and may use interest-only payments, higher fees and property value as a major lending factor. A realistic exit strategy is important.

Replacing or changing mortgage financing, often to alter the amount, rate, lender, amortization or access to equity. Refinancing can involve qualification, appraisal, legal work, discharge costs and a prepayment penalty on the existing mortgage.

A mortgage product generally available to older homeowners that allows borrowing against home equity without regular principal payments. The balance and accumulated interest are usually repaid when the home is sold, the borrower moves or the estate settles it.

Ontario mortgage-brokerage rules generally provide a borrower at least two business days to review required disclosures before entering the mortgage agreement or signing the mortgage instrument, unless the borrower chooses to reduce or waive the period in writing.

The condominium owners' annual meeting. Typical business includes financial statements, the auditor's report, director elections and other corporation matters. Proper notice and quorum are required.

A condominium corporation containing common elements but no condominium units. Ownership is attached to separate parcels of tied land, whose owners share and fund the common elements.

A form of property ownership in which an owner holds title to a unit and shares an interest in common elements through a condominium corporation. The declaration, description, by-laws, rules and status certificate help explain the specific rights and obligations.

The owner-elected group responsible for governing the condominium corporation, making decisions at properly called board meetings and overseeing finances, maintenance, records, insurance and management.

An amount the condominium corporation seeks to recover from a unit owner for a cost it says is attributable to that unit or owner. The authority, process and amount depend on the Condominium Act and governing documents.

The legal entity created when a condominium is registered. The corporation manages common elements, collects common expenses, maintains required records, obtains insurance and is governed by an elected board under Ontario condominium law.

A statutory security interest a condominium corporation may register against a unit for unpaid common expenses and certain related amounts. A lien can affect refinancing or sale and requires prompt legal attention.

A less common Ontario condominium form where owners purchase a leasehold interest in a unit and common elements but do not own the underlying land. Occupancy rights end when the ground lease expires.

A storage space associated with a condo. It may be separately owned, assigned, rented, licensed or available for exclusive use, so the governing and title documents should be checked.

A freehold parcel legally tied to an ownership interest in a common elements condominium corporation. The parcel cannot normally be transferred separately from the related common-elements interest.

A parking space associated with a property or condo. It may be separately owned, assigned, rented, licensed or available for exclusive use. The status certificate, declaration, title and agreement should be checked.

A prescribed certificate sent to condominium owners during the fiscal year with required information about the corporation, including governance, finances, insurance and reserve-fund matters.

A standard condominium intended to grow in registered phases. Additional units and common elements are added to the original corporation as later phases are completed and registered.

A person or company that manages the day-to-day operations of a property or condo corporation. Responsibilities can include maintenance coordination, records, budgeting, owner or tenant communication and contractor oversight.

A person appointed in the required form to attend, count toward quorum or vote for an owner at a condominium owners' meeting, according to the authority given in the proxy document.

The minimum participation required for a meeting to proceed and make decisions. The applicable threshold depends on the type of condominium meeting and whether it is a repeated attempt.

A formal agreement commonly required when an owner proposes an addition, alteration or improvement to common elements. Approval, registration, cost and maintenance responsibilities depend on the Condominium Act and corporation documents.

The most common Ontario condominium type, with individually owned units and jointly owned common elements. The declaration and description establish the unit boundaries and each owner's shared interest.

The components and finishes the condominium corporation's insurance treats as the standard insured unit. Anything beyond that standard may be an improvement requiring the owner's insurance. The standard-unit definition is corporation-specific.

A condominium owners' meeting held when the developer no longer controls a majority of units. Owners elect the post-developer board and important corporation documents are transferred to the new board.

An Ontario condominium where units may be parcels of land rather than finished suites. Owners may build or own homes on their units while sharing private roads, services or amenities through the corporation.

The person or entity undertaking the construction work and supply of materials needed to complete a new home. Builder and vendor can be different legal entities, and both roles have responsibilities under Ontario's new-home framework.

A Tarion process used to assess whether submitted warranty items are covered and whether the builder's response is adequate. Fees, access, deadlines and evidence requirements may apply.

Compensation that may be available under the Tarion delay warranty when a builder moves beyond a firm date without an allowed exception. Eligibility, evidence, limits and timing depend on the Addendum and warranty rules.

For a new condominium, the later transaction when the condominium has registered and title to the unit transfers to the purchaser. It follows interim occupancy and is when the mortgage and final closing funds are typically completed.

A date set under the Tarion Addendum when the builder expects the home to be ready. A later delay can trigger compensation unless an allowed exception, such as unavoidable delay or mutual agreement, applies.

The Home Construction Regulatory Authority, Ontario's regulator for licensed new-home builders and vendors. HCRA licensing is separate from Tarion's administration of the statutory new-home warranty program.

The latest date stated in the Addendum by which the builder must provide closing or occupancy before the purchaser's contractual termination period may arise, subject to the Addendum rules.

A time-limited right under the Addendum that may arise when the builder does not provide closing or occupancy by the outside date. The purchaser must follow the exact notice and deadline requirements.

The first part of the Tarion Addendum listing the important tentative, firm, delayed and outside closing or occupancy dates, notice deadlines and the purchaser's potential termination period.

A Tarion form used to submit eligible new-home warranty items within the applicable reporting period. Different forms and deadlines apply at different stages of warranty coverage.

An anticipated date in a new-home Addendum that may be extended if the builder follows the applicable notice and timing rules. It is less certain than a firm date.

An extraordinary event recognized by the Addendum that can suspend or extend critical dates if the builder follows the required notice process. The event and permitted extension are governed by the warranty framework.

The person or entity selling a previously unoccupied new home. The vendor is responsible for providing statutory warranty coverage and the required purchase-agreement Addendum.

An additional self-contained residential unit located in a primary home or permitted ancillary structure under Ontario and municipal rules. Zoning, registration, building, fire, parking and conservation-authority requirements can still apply.

Municipal authorization required before specified construction, alteration, demolition or change-of-use work begins. Permit approval addresses the Building Code and applicable law but does not guarantee the absence of every property issue.

A local decision-making body that commonly hears minor-variance and consent or severance applications. Procedures, notice, evidence, appeal rights and local requirements vary by municipality.

A building, fence, driveway or other improvement extending onto neighbouring land, a municipal road allowance or another parcel. A survey and lawyer review may be needed to confirm its location, rights and possible remedies.

The ratio of total floor area in buildings to the lot area, calculated under the applicable planning or zoning definition. It is used as a measure of development density and can differ from lot coverage.

Planning approval that authorizes part of a property to be separated into a new parcel or allows certain boundary, easement or long-term-interest transactions. Conditions must be satisfied before the consent is finalized and registered.

A use that was lawfully established before a zoning rule changed and may be allowed to continue despite no longer conforming. Expansion, interruption, rebuilding and change-of-use rights require municipal and legal confirmation.

The portion or percentage of a lot covered by buildings and structures, calculated under the applicable zoning definition. Municipal rules determine what is included and the maximum permitted coverage.

Permission for a property-specific exception from a zoning by-law requirement without changing the by-law itself. Approval normally comes through the local Committee of Adjustment after notice and a hearing.

Municipal authorization or confirmation that specified occupancy requirements have been met before a building or part of it is occupied. The exact document and process depend on the project and municipality.

A municipality's broad policy document describing how land should be used and how growth, housing, transportation, infrastructure and community services should be planned. It guides, but does not replace, detailed zoning rules.

A formally approved and registered plan creating multiple lots, blocks, roads or other lands. Approval considers servicing, access, planning policy, environmental matters and the suitability of the proposed development.

The required minimum distance between a building or structure and a lot line, street or other feature under the zoning by-law. Different setbacks can apply to front, rear, interior-side and exterior-side yards.

A municipal by-law regulating permitted land uses and development standards such as building type, height, setbacks, lot coverage and parking. Current zoning and any site-specific exceptions should be confirmed with the municipality.

A tax calculation starting with the property's cost and adding or subtracting specified amounts, which may include acquisition costs and qualifying capital improvements. Maintenance and current repairs are generally not added in the same way.

A tax deduction that may allow the cost of eligible depreciable rental or business property to be deducted over time. Claiming CCA can affect later tax results and some principal-residence elections, so accounting advice is important.

A cost that generally provides a lasting benefit, such as acquiring or substantially improving property. It is usually added to capital cost or deducted over time rather than fully deducted as a current-year operating expense.

A change between personal, rental or business use of all or part of a property. CRA may treat the changed portion as disposed of and reacquired at fair market value, subject to available elections and exceptions.

An ordinary recurring cost that generally maintains a rental property rather than creating a lasting improvement. Its tax treatment depends on the facts and CRA rules; the size of the payment alone does not decide the category.

A tax rule that treats a property as sold even when no ordinary sale occurred. Events such as certain changes in use can create a deemed sale and immediate reacquisition at fair market value.

The price a property would reasonably be expected to bring in an open and unrestricted market between informed, willing parties dealing at arm's length. CRA uses FMV in several deemed-disposition and change-in-use rules.

The amount received or considered received when property is sold or otherwise disposed of, subject to the tax rules. It is used with adjusted cost base and eligible selling expenses to calculate a capital gain or loss.

A lender authorized to submit or administer mortgage-insurance business under an insurer's program. The lender remains responsible for its own credit decision and must also satisfy the insurer's requirements.

The supported value expected after proposed construction or improvements are completed. Insurers and lenders may use it to set financing limits and determine whether advances require progress inspections or validation.

The property's supported value in its current condition before proposed improvements are completed. An insurer or lender may compare as-is value, improvement costs and as-improved value when reviewing renovation or construction financing.

Canada Guaranty is a Canadian private mortgage default insurer. It provides mortgage-insurance products through lenders and mortgage professionals and offers borrower programs subject to its current underwriting rules.

A mortgage-insurance premium added to the mortgage principal rather than paid entirely in cash at closing. Because it becomes part of the loan, interest is charged on that added amount.

Canada Mortgage and Housing Corporation is a federal Crown corporation. Among its housing functions, CMHC provides mortgage loan insurance to approved lenders and publishes Canadian housing research, market information and homebuying resources.

A mortgage with a loan-to-value ratio of 80% or less at origination. It is also called a low-ratio mortgage and does not require borrower-paid mortgage default insurance by law, although a lender may separately insure some loans.

An assessment of a borrower's likelihood and ability to meet credit obligations. A lender or insurer may review credit history, credit score, income, debts, down-payment sources, repayment patterns and other application information.

Income-based ratios used to compare required housing and debt payments with gross income. GDS measures qualifying housing costs; TDS adds other debt obligations. They are screening measures, not guarantees that a mortgage is affordable.

A partial refund of a mortgage-insurance premium that may be available when an insured home meets the insurer's current energy-efficiency program requirements. CMHC, Sagen and Canada Guaranty each publish their own eligibility and application rules.

The percentage of gross household income used for qualifying housing costs. The calculation generally includes mortgage principal and interest, property taxes, heat and the applicable share of condominium fees or site rent.

A mortgage-qualification method that allows an insurer or lender to use an eligible percentage of gross rent when calculating debt service ratios. The percentage and treatment of taxes, heat and the mortgage payment depend on the current program.

A mortgage with a loan-to-value ratio above 80% at origination. Canadian federally regulated lenders generally require mortgage default insurance for this type of residential purchase mortgage.

Failure to meet a material obligation under the mortgage agreement, such as making required payments. Default can lead to lender enforcement, an insurer claim and continuing borrower liability, depending on the facts and law.

A mortgage is delinquent when required payments have not been made according to the loan agreement. The exact reporting threshold can vary by lender, insurer or regulatory purpose.

A decision by the mortgage insurer on an application submitted through a lender. It is separate from the lender's final mortgage approval and may remain subject to conditions, documents, property review and closing requirements.

A request by an insured lender for payment under a mortgage-insurance policy after a covered borrower default and the required loss-mitigation or enforcement process. Coverage and payment depend on the policy and insurer requirements.

An insurer feature that may allow existing mortgage-insurance coverage to move to a new property, subject to the lender, insurer and transaction rules. A premium may still apply when the new insured loan is larger.

The insurer's review of the borrower, property, loan structure and supporting documents against its current policies. An insurer may approve, decline or require additional information or conditions.

An organization that insures a lender against specified losses when a borrower defaults on an insured mortgage. In Canada, mortgage default insurance may be provided through CMHC or private insurers such as Sagen and Canada Guaranty.

Another common Canadian term for mortgage default insurance. It protects the lender rather than the homebuyer, although it can allow an eligible borrower to purchase with a smaller down payment and access insured financing.

A qualification method using rental revenue after eligible operating expenses. A positive or negative net amount may be added to or deducted from qualifying income under the applicable lender and insurer rules.

A Canadian mortgage-qualification abbreviation for principal, interest, property taxes and heating costs. Insurers and lenders may also include part of condominium fees, site rent or other required housing costs under their current rules.

Insurance a lender may obtain on a group or portfolio of mortgages, including some conventional mortgages that did not require borrower-paid default insurance at origination. It is primarily a lender funding and risk-management arrangement.

A mortgage-insurance premium that may apply to the additional insured borrowing when an existing insured mortgage or insurance coverage is ported to a higher loan amount. The insurer's current schedule and eligibility rules govern.

A portion of approved construction or improvement financing released as work reaches defined stages. The lender or insurer may require inspections, documents or validation before each advance.

The interest rate used to test whether a borrower can support the mortgage payment. It may be higher than the contract rate under current insured- or uninsured-mortgage qualification rules.

Sagen is a private-sector Canadian mortgage default insurer. It provides mortgage insurance to residential mortgage lenders, along with programs for eligible homebuyers and insured borrowers. Sagen was formerly associated with the Genworth name in Canada.

The remaining mortgage-related debt and permitted costs after enforcement or sale proceeds are applied. Mortgage default insurance protects the lender; it does not necessarily remove the borrower's responsibility for a shortfall.

The percentage of gross household income used for qualifying housing costs plus other debt obligations, such as vehicle loans, credit cards and lines of credit. Lenders and insurers use it as one part of mortgage qualification.

Mortgage insurance applied to a specific mortgage when it is originated or submitted to the insurer. High-ratio purchase mortgages are typically insured transaction by transaction.