Real Estate Glossary from A to Z

After almost 2 years of regularly posting the Real Estate Glossary for each individual letter, we finally have completed the alphabet. The definitions where taken from different public sources, both printed and online. Some of its content might need reviewing, as the real estate terminology may change, but for the most part I believe it to be pretty accurate.

Click on the correspondent letter to view the definitions:

A . B . C . D . E . F . G . H . I . J . K . L . M . N . O . P . Q . R . S . T . U . V . W .  Y . Z

Ps: Even though we called it the Real Estate Glossary, it also contains a lot of Financial & Mortgage Terms.
Just so you know.

Feel free to use it as a reference, when you need it.

Describing Homes: what’s a 3 1/2 and all those numbers means.

If you are new to Montreal, you’ve probably seen the descriptions for the living space, apartments or homes, signs with 2 ½, or 5 ½ as opposed to “one bedroom condo/home” or “3 bedroom apartment” sort of thing. If you haven’t figured it out yet, here is a quick (and hopefully clear) explanation.

Understanding the way we describe apartments in Montreal can be quite simple once you keep these tips in mind.

First and foremost, remember that the “1/2″ half part, always refers to a bathroom.
After that, every room is counted.

For example: Read more

Real Estate Glossary: Y

Year-End Statement
A mortgage summary or report that is sent to the borrower at the end of each year. The statement shows the amount of taxes and interest paid on the mortgage during the year, as well as the remaining loan balance.

Year-To-Year Tenancy
A periodic tenancy in which the rent is reserved from year to year.

Yield to Maturity (YTM)
The internal rate of return on an investment. The YTM generally considers all investment returns and the timing of each return.

Real Estate Glossary: W

Waiver
The deliberate and voluntary relinquishment or surrender of a claim, right, or privilege.

Walk-through
The buyer’s final inspection of a property which is being purchased is called a walk-through. This final inspectiongenerally takes place on the day of closing or one day prior to ensure all the conditions of the sale have been met.

Warranty
In real estate, warranty refers a document certifying clear title a property.

Witness
An individual who signs his or her name to a document for the purpose of attesting to its authenticity. For example, a witness is usually required to sign a deed, will or other legal document.

Workout
A type of mortgage where basic terms such as interest rate, term, and monthly payment are altered to prevent foreclosure. This is not a typical practice in Canada.

Wraparound Mortgage- [Updated]
A form of secondary financing in which a seller extends to a purchaser a junior mortgage which wraps around and exists in addition to one or more superior mortgages. Under a wrap, a seller accepts a promissory notefrom the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance.  {source: Wikipedia}

Real Estate Glossary: V

Valuation
The act or process of assessing value or price of a property through an appraisal.

Variable Interest Mortgage
A mortgage product where the interest rate can change or vary during the loan term. The variance in the interest rate usually depends on a specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.

Variable Interest Rate
Percentage paid by a borrower for the use of funds. This interest rate moves up or down periodically due to changes in other interest rates.

Variable Rate Mortgage
A mortgage product where the interest rate is adjusted periodically based on a standard financial index. Also called an “Adjustable-rate Mortgage.” CanEquity has access to the best Variable rate/below prime mortgages in Canada.

Vendor Take Back
In order to sell a property, the seller will provide all or some of the financing to ensure the transaction.

Verification of Employment
Confirmation from a place of employment that verifies a loan applicant is being truthful about where he or she works and about the salary he or she earns.

Void
Something that is void has no validity or effect under the law meaning it is null. For example, a contract can be rendered void.

Voidable
When an individual or party involved in a contract is entitled to renege or retract the contract at his or her discretion.

Real Estate Glossary: U

Umbrella Mortgage
A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.

Underwriting
To support or agree to (a decision, for example). In real estate, underwriting refers to the analysis of the risk involved for a lender to grant a mortgage loan and whether or not the risk is acceptable. Underwriting involves a property evaluation as outlined in the appraisal report, and an evaluation of the borrower’s ability and willingness to repay the loan.

Unearned Income
This type of income can include funds that are gained from interest, dividends, investments, or capital gains as opposed to income that is earned by working for a salary, hourly wage, or gratuity.
Read more

Real Estate Glossary: T

Takeout Mortgage Loan
A long term mortgage loan that is advanced to a borrower on the completion of construction or in compliance with any other conditions in the loan commitment. The funds are typically used to pay off or take out the construction lender.

Tangible Personal Property
Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal property whereas stock certificates and franchises only represent value and are therefore intangible property.

Tax Deduction
An allowable (by government) expense that can be subtracted from income before calculating income tax. Read more

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