Rita  Asadorian

Rita Asadorian

Broker

SUTTON GROUP QUANTUM REALTY INC., BROKERAGE*

Office:
905-822-5000
Email Me

Common Real Estate Terms Explained

HOLDING OFFERS: a selling strategy when a seller sets a fixed date to receive and review offers from interested buyers

PREEMPTIVE OFFERS: the purpose of a pre-emptive offer is to present the seller with an offer that they feel is good enough or better than what the seller was anticipating. The goal is that the seller will want to accept it right then and there and forgo the offer date.

CLOSING DAY: When you take legal possession and finally get to call your new house your home.

CONDITIONS: A condition is an action documented in a clause in the agreement that the buyer must waive or perform by an agreed-upon time before the sale becomes binding. For example, depending on their plans for the property, buyers may consider making an offer conditional on a satisfactory home inspection.

STATUS CERTIFICATE REVIEW: The status certificate review is more or less like the inspection of a house: you look for red flags. When reviewing a status certificate, a knowledgeable lawyer will identify any potential issues that could result in a substantial increase in common expenses or any other unpleasant surprises in the future. (for condos and townhomes)

FINANCING CONDITION: A financing condition is a clause in your offer to purchase that gives you a period of time to confirm you are able to get mortgage approval for the home you want to buy. That time frame is usually five to seven business days.

INSPECTION CONDITION: A home inspection clause is a provision in a buyer agreement that states that the sale of the property is contingent on the results of a home inspection. If the home inspector finds any major problems with the property, you have the right to back out of the sale.

CHATTELS INCLUDED: Under an Agreement of Purchase and Sale (APS), the Buyer and Seller can agree to leave certain “moveable” items behind. These items are referred to as “chattels.” The most common chattels are home appliances such as fridges, stoves, dishwashers, microwaves, washers, and dryers.

DEPOSIT: A deposit is money you submit during the offer process when trying to secure a property you want to buy. This shows the seller that you are serious about the deal, and it's considered a show of good faith.

VENDOR TAKE-BACK MORTGAGE: A vendor take-back mortgage happens when the seller of the home extends a loan to the buyer for some portion of the sales price. The seller retains equity in the home and continues to own a percentage equal to the amount of the loan until the vendor take-back mortgage is paid in full.

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