Sometimes in the Real Estate world there are terms used that the average person may not know or quite understand, so let’s look at a few of them.

Amortization: The period of time it takes to reduce a debt to zero when payments are made regularly. Amortization periods are 15, 20, 25 or 30 years.

Chattels: Articles of moveable personal property (ie: dishwasher, fridge, dehumidifier, etc.)

Closing Costs: Costs and expenses associated with closing a real estate transaction. Such costs can include paying for title insurance, legal fees, appraisal fees, etc. It is important to remember these costs are over and above the purchase price of the property.

CMHC: Is an acronym for Canadian Mortgage and Housing Corporation. A crown corporation that administers the National Housing Act for the Federal government and it encourages the improvement of housing and living conditions for all Canadians. CMHC also creates and sells mortgage loan insurance products typically requires when a borrower has less than 20% equity or down payment and it must be paid in advance (or it can be added to the mortgage)

Comparative Market Evaluation (CMA): An approach for estimating the value of a property, based on the comparison of like properties within the same area as the subject.

Conditional Offer: An offer that is subject to specified conditions such as financing. There is always a time period that the condition must be met.

Latent Defect: a problem that is no obvious but may manifest itself at a later point in time, such as lead paint or bad wiring.

At any point during the course of a Real Estate transaction you should always feel 100% confident with the entire process, and everything that is happening. Never be afraid to ASK! Ask as many questions as you need to. It is so important to have a skilled and experienced Realtor® helping you with your transaction. Your Realtor® is truly your guide during the entire process and will help you with a successful sale!