Real Estate Glossary

The total period over which a mortgage is repaid through scheduled payments. In Canada, the maximum amortization for insured mortgages is 25 years (30 years for first-time buyers purchasing new builds as of late 2024). Longer amortization lowers monthly payments but increases total interest paid.

A professional assessment of a property's market value conducted by a licensed appraiser, usually required by the lender before approving a mortgage. If the appraisal comes in below the purchase price, the buyer may need to increase their down payment or renegotiate.

An independent provincial agency that determines the assessed value of every property in British Columbia each year. The assessed value is used to calculate municipal property taxes and may differ significantly from market value.

A standardized price indicator used by Canadian real estate boards that represents the price of a 'typical' home in a given area, adjusted for property attributes. Unlike average or median prices, benchmark prices filter out distortions from luxury or low-end sales.

BC legislation enacted in 2023 that requires municipalities to allow multi-unit housing on single-family lots. Depending on lot size and transit proximity, up to 3, 4, or 6 units may be permitted. This policy aims to increase housing supply across Metro Vancouver.

A licensed real estate agent who represents the buyer in a transaction. In BC, a buyer's agent owes fiduciary duties to the buyer, including loyalty, confidentiality, and full disclosure of material information.

The various fees and expenses paid on top of the purchase price when completing a real estate transaction. In Vancouver, these typically include Property Transfer Tax, legal fees, title insurance, home inspection, appraisal, and GST on new builds.

Insurance required by federally regulated lenders when the buyer's down payment is less than 20% of the purchase price. Provided by CMHC, Sagen, or Canada Guaranty, the premium (ranging from 2.8% to 4% of the mortgage) is added to the loan balance. Available for properties up to $1.5 million.

A report prepared by a real estate agent that estimates a property's market value by comparing it to similar recently sold, active, and expired listings in the area. In Vancouver, a CMA considers location, size, age, condition, strata fees, and recent market trends.

The date when legal ownership of a property transfers from the seller to the buyer. In BC, this is when the buyer's lawyer or notary registers the title transfer at the Land Title Office and the purchase funds are released to the seller.

Clauses written into an offer to purchase that must be satisfied before the sale becomes firm. Common subjects in Vancouver include financing approval, home inspection, title review, and strata document review. Buyers typically have 5 to 10 business days to remove subjects.

The number of days a property is listed for sale before going under contract. Low DOM indicates strong demand, while high DOM may signal overpricing or reduced buyer interest. In a balanced Vancouver market, the average DOM is around 20 to 30 days.

The portion of the purchase price paid upfront by the buyer. In Canada, the minimum is 5% on the first $500K, 10% on the portion between $500K and $1.5M, and 20% on any amount above $1.5M. For a typical $800K Vancouver condo, the minimum down payment is $55,000.

A situation where one agent or brokerage represents both the buyer and seller in the same transaction. In BC, dual agency is now prohibited — agents must act as either a buyer's agent or a seller's agent, never both, to avoid conflicts of interest.

A set of provincial and federal programs designed to help first-time buyers. In BC, these include the First Time Home Buyers' Program (PTT exemption for homes up to $500K, partial exemption up to $525K), the federal First Home Savings Account (FHSA), and the Home Buyers' Plan (HBP) allowing RRSP withdrawals up to $60,000.

Federal legislation (Prohibition on the Purchase of Residential Property by Non-Canadians Act) that restricts non-citizens and non-permanent residents from purchasing residential property in Canada. Originally enacted in 2023 and extended through 2027, with certain exemptions for work permit holders and refugees.

A zoning metric that controls building density by defining the maximum total floor area permitted relative to the lot size. For example, an FSR of 0.7 on a 4,000 sq ft lot allows up to 2,800 sq ft of building floor area. FSR is a key factor in Vancouver development feasibility.

A professional examination of a property's physical condition, including structure, roof, plumbing, electrical, HVAC, and more. In Vancouver's competitive market, some buyers waive inspections to strengthen their offer, though this carries significant risk.

A federal requirement that all mortgage applicants must qualify at the higher of their contract rate plus 2%, or the Bank of Canada's qualifying rate (currently 5.25%). This ensures borrowers can handle potential rate increases.

A residential building containing 3 to 6 units on a single lot, typically built to look like a large house. Under BC's Bill 44, multiplexes are now permitted on most single-family lots across the province, opening new development and investment opportunities.

The amount a seller takes home after deducting all costs associated with the sale, including real estate commissions, legal fees, mortgage payout penalties, outstanding property taxes, and any required repairs or credits.

The formal legal document used to make an offer on a property in BC. It includes the purchase price, deposit amount, completion and adjustment dates, included items, and any subjects. Once accepted by the seller, it becomes a binding contract.

A corporation that a licensed BC real estate agent can form to receive their commission income. PRECs offer tax-planning advantages, including income deferral and income splitting. When you see 'PREC' after an agent's name, it indicates they operate through a corporation.

A form where the seller discloses known defects and issues with the property, including water damage, structural problems, pest infestations, and environmental hazards. In BC, sellers are not legally required to provide a PDS, but most buyers expect one.

A provincial tax paid by the buyer when property changes hands in BC. The rate is 1% on the first $200K, 2% on the portion from $200K to $2M, 3% on the portion from $2M to $3M, and 5% above $3M. First-time buyers may qualify for an exemption on homes up to $500K.

A mandatory 3-business-day cooling-off period for residential real estate purchases in BC, introduced in 2023. Buyers who rescind during this period must pay a penalty of 0.25% of the purchase price to the seller.

A provincial tax targeting property owners who do not pay income tax in BC or leave homes vacant. The rate is 2% for foreign owners and satellite families, 0.5% for Canadian citizens and permanent residents who are not BC tax residents. Principal residences and long-term rentals are exempt.

A form of property ownership in BC where individual units within a building or complex are privately owned, while common areas (lobbies, hallways, amenities) are shared. Strata owners pay monthly fees and are governed by a strata corporation and bylaws.

The process of waiving the conditions (subjects) in an accepted offer, making the contract firm and binding. In Vancouver, subject removal typically happens within 5 to 10 business days. Once subjects are removed, the buyer's deposit becomes non-refundable if they fail to complete the purchase.