Real estate, defined.

Every industry has its jargon. Here are the terms you'll see most often when you're buying, selling, or renting in the GTA.

Buying & offers

Bidding war

When multiple buyers compete for the same property. The seller's agent usually sets an offer presentation date and reviews all offers at the same time, in private. The seller either picks one, counters one, or rejects everything.

Closing date

The date you legally take possession of the property. The seller's lawyer transfers title, your lender wires the mortgage funds, and you get the keys. Typically 30 to 60 days after a firm offer.

Conditional offer

An offer contingent on specific things being verified within a deadline. Common conditions: financing approval, home inspection, and status certificate review for condos. If any condition fails, you can walk away with your deposit back.

Cooling-off period

A 10-day window after signing a new-build condo agreement during which you can cancel for any reason and get your deposit back in full. Applies only to brand-new builds, not resale.

Deposit

Money you put down with your offer to show you're committed. In the GTA this is usually 5 percent of the offer price, held in trust by the listing brokerage until closing.

Firm offer

An offer with no conditions attached. Once the seller accepts it, you're legally obligated to complete the purchase. Firm offers are more competitive than conditional ones, especially in bidding wars.

Offer presentation date

A specific date and time set by the listing agent when all offers will be reviewed at once. Common on competitive listings. Your agent has to submit your offer before the deadline.

Status certificate

A document package for a condo unit. Includes the building's financial statements, reserve fund balance, any pending special assessments or lawsuits, bylaws, and rules. Always review one before firming up a condo offer.

Mortgage

Amortization

The total number of years over which your mortgage is paid off. Most Canadian mortgages have a 25-year amortization. New rules allow up to 30 years for some first-time buyers and new builds.

CMHC insurance

Mortgage default insurance that protects the lender (not you) when your down payment is less than 20 percent. The premium gets added to your mortgage balance rather than paid upfront.

Fixed rate

Your mortgage interest rate is locked for the entire term. Your payment stays the same every month regardless of what rates do in the market. Most Canadian buyers choose 5-year fixed terms.

High-ratio mortgage

A mortgage where your down payment is less than 20 percent of the purchase price. Requires CMHC mortgage insurance, which gets added to your mortgage balance.

Mortgage broker

A licensed professional who shops your mortgage application across multiple lenders to find the best rate and terms. The lender pays the broker's fee, not you.

Pre-approval

A written commitment from a lender for a specific mortgage amount at a specific rate, valid for up to 120 days. Locks in your rate against future increases while you shop.

Pre-qualification

An informal estimate of what you might be able to borrow based on basic information. Not a commitment. Less useful than a pre-approval.

Stress test

A federally required calculation that qualifies you at a higher interest rate than your contracted rate (currently the greater of 5.25 percent or contract plus 2 percent). Limits how much you can borrow.

Term

The length of your current mortgage contract. Most Canadian mortgages have terms of 1 to 5 years. At the end of your term, you renew or refinance at then-current rates.

Variable rate

Your mortgage interest rate moves with the Bank of Canada's policy rate. Some variable mortgages keep the payment the same and shift the principal-to-interest split. Others fluctuate the actual payment amount.

Property types

Condo apartment

A unit in a multi-storey building owned as part of a condominium corporation. You own the inside of your unit and share common areas (lobby, hallways, amenities) with other owners. Monthly condo fees cover building expenses.

Condo townhouse

A row home unit that's part of a condominium corporation. You own the inside, share common elements with other unit owners, and pay monthly condo fees. Often cheaper than freehold townhouses but with shared maintenance.

Detached

A standalone home on its own lot with no shared walls. The most expensive property type per square foot in most GTA neighbourhoods.

Freehold townhouse

A row home that you own outright, including the land it sits on. No condo fees. You're responsible for your own maintenance and insurance.

Maintenance fees

Monthly fees that condo owners pay to cover building expenses: utilities (sometimes), repairs, amenities, staff, insurance, and contributions to the reserve fund.

Reserve fund

Money a condo corporation sets aside for future major repairs (roof, elevators, plumbing systems). A healthy reserve protects you from special assessments down the road.

Semi-detached

A home that shares one exterior wall with a neighbour. Each side has its own ownership and lot. Generally cheaper than detached, more space than a townhouse.

Special assessment

A one-time charge that condo owners pay when the reserve fund can't cover an unexpected major repair. Special assessments can range from a few hundred to tens of thousands of dollars per unit.

Legal & closing

Adjustments

Prorated amounts owed at closing for things the seller paid in advance, like property tax, utility bills, and condo fees. Your lawyer calculates these on closing day.

Closing costs

Fees and taxes due at closing beyond your down payment. Typically 2 to 4 percent of the purchase price. Includes land transfer tax, legal fees, title insurance, and adjustments.

HST

The 13 percent harmonized sales tax. Applies to new builds and some commercial purchases. Resale residential homes are generally exempt. New homes may qualify for an HST rebate.

Land transfer tax

A tax charged when property changes ownership. Ontario charges a provincial LTT on every home purchase. Toronto adds a municipal LTT on top, so buying in Toronto can cost nearly double what buying elsewhere in Ontario does.

Real estate lawyer

A licensed lawyer who handles the legal side of your transaction. Required for every Canadian real estate purchase. Your lawyer reviews contracts, conducts title searches, manages closing funds, and registers the property in your name.

Title insurance

A one-time insurance policy that protects you against defects in the property's title: fraud, undisclosed liens, survey issues, and similar problems. Usually $300 to $500 for residential properties.

Rental

Last month's rent deposit

The deposit landlords can legally collect at lease signing, in addition to first month's rent. It's held by the landlord and applied to your final month of tenancy. No other deposits (security, damage, pet) are legal in Ontario.

LTB (Landlord and Tenant Board)

The Ontario tribunal that hears disputes between landlords and tenants. Handles applications for rent increases above the guideline, evictions, harassment claims, and damage disputes.

N1 form

The official Ontario form a landlord uses to give 90 days written notice of a rent increase. The increase can only take effect once every 12 months and must follow the provincial guideline (unless approved by the LTB).

N12 form

The official form a landlord uses to give 60 days notice that they (or their immediate family member) intend to move into the unit. Requires one month's compensation paid to the tenant, and the family member must actually move in for at least 12 months.

Residential Tenancies Act (RTA)

The Ontario law that governs most residential rentals. Covers rent increases, evictions, repairs, security deposits, and tenant rights. Overrides anything in a lease that contradicts it.

Standard lease

The standard residential lease form (Form 2229E) Ontario landlords must provide for most rentals. If your landlord doesn't provide one, you can legally withhold one month's rent until they do.