As a first-time homebuyer in Calgary, you may not be familiar with certain terminology that your real estate agent uses when discussing the nature of buying a home. We’ve compiled a glossary of common language used in real estate transactions that will (hopefully) help you feel more comfortable with the terminology used by your real estate agent!
Attached Goods are items attached to the real property and are part of the land. They belong to the buyer. Attached goods include kitchen appliances, a hot tub, shelving in a closet, and much more.
A Compliance Certificate is a stamp issued by the city which says the improvements made on a property comply with the local building bylaws and requirements.
A Comparative Market Analysis (CMA) uses sales and listings in the neighbourhood (both active and expired) to determine a potential selling price for the property.
Conveyance describes transferring the seller’s title to the buyer and indicates the necessary steps to complete the transfer.
A Counteroffer is an offer made by the seller back to the buyer, altering any number of terms or conditions of the offer as originally written.
An Encroachment is an intrusion built or placed onto an adjoining property. It also includes eaves or soffits that overhand on the adjoining land.
An Encroachment Agreement is an agreement that allows the encroachment to remain. The development owner who encroaches onto the adjoining property is granted the right to enter onto that property to maintain or repair the construction.
A Contingency is a condition in the purchase offer that must be met for the sale to proceed. Typical contingencies include home inspection, appraisal, and financing contingencies.
A Lock Box holds the key to a home for sale so that a REALTOR® can get into the house after receiving permission from the listing agent.
Market value is the basis for the listing process of a home. This value is the meeting point of the highest price a reasonable buyer would pay and the lowest price a reasonable seller would accept.
Mortgage Pre-Approval is an approval for a mortgage based on the borrower’s credentials. A written pre-approval protects the borrower by specifying the mortgage term, interest rate, and maximum loan amount. If mortgage rates rise, the pre-approved rate remains intact; if it drops, the borrower receives the lower rate. Learn more about pre-approval here.
Mortgage Pre-Qualification is a tentative approval for a mortgage based on the borrower’s credentials. It is for a fixed period and subject to the borrower supplying their supporting documentation to the lender, providing their financial position has stayed the same. Once a property has been purchased, the property must also meet the lender’s underwriting requirements.
Negotiations occur when an offer is made, and the terms and conditions of the offer are not satisfactory to the buyer or the seller. This dispute resolution occurs between REALTORS® and works to satisfy all parties involved in the transaction.
After you make a down payment, the rest of the money you owe on your home is called the Principal, which is what you’ll be paying off over the lifetime of your mortgage.
Title insurance is a policy protecting a lender’s or owner’s interest in real property from various types of unexpected or fraudulent declarations of ownership.
Are you a first-time homebuyer in Calgary in need of a REALTOR®?
Buying your first home is both an exciting and stressful time. Having a Calgary REALTOR® you feel comfortable working with is essential to a smooth experience. Realty Unleashed is an independent real estate brokerage in Edmonton and Calgary. We have a team of REALTORS® who want to make your home-buying journey as smooth as possible. We have helped many first-time homebuyers in Calgary and Edmonton purchase their first home, and we’d love to help you, too! Reach out to us on the form below, and one of our real estate agents will get back to you soon!
