Real Estate Terms - Part 2 of 4

Balance Due Completion

The amount of money the purchaser will be required to pay the vendor to complete the purchase once all the adjustments have been made.

Balloon Payments

A payment or payments made to the principal over and above the required payment(s).

Blended Payments

A loan which is repaid through equal and consecutive installments that include interest and principal.

Brokerage Fee

A fee charged a mortgage broker to arrange for a loan.

Build To Suit

In commercial terms, the construction of a building to meet the specific requirements of a large tenant or anchor tenant who has previously agreed to lease the premises.

Closing Date

specified date on which the sale of a property becomes final and the new owner can take possession.

Caveat

A notice registered against the title by a person claiming an interest in the land which can potentially prevent all dealings with the land.

Ceiling Price

The maximum price a purchaser is willing to pay for a property.

Closing Costs

Addition costs involved in the purchase of a home, such as legal fees, transfer fees, and disbursements, that are payable on the closing date. Closing costs typically range from 2%-4% of a home's selling price.

Closing Statement

A statement showing the amount to be received or paid out by the purchaser or vendor.

Completion Date

The date the vendor is entitled to the net proceeds of the sale and the purchaser is able to obtain the title.

Commission

The remuneration agreed to by the seller and the real estate broker/agent as stated in the listing agreement. It is payable to the broker/agent on closing and shared, if applicable, with the co-operating agent(s).

Conditional Offer

An offer to purchase the home that is subject to certain conditions. These conditions typically include financing; approval of strata documentation, home inspections or in some cases the sale of an another home. There is usually a time limit in which the specified conditions must be satisfied.

Part 2 of 4 - Click here to view Part 3 of 4