BC Real Estate Glossary for Buyers and Sellers

Understanding BC Real Estate Terms

Real estate transactions involve financial, legal and property-related terminology that may be unfamiliar to buyers and sellers. This glossary explains common terms used when purchasing or selling property in Burnaby and throughout the Lower Mainland.

The definitions below provide general information only. Your lawyer, notary, mortgage professional, home inspector or other qualified professional should provide advice relating to your specific transaction.

Amortization Period

The total period over which scheduled mortgage payments are calculated. An amortization period is different from a mortgage term and may extend beyond several individual mortgage terms.

Appraisal

A professional opinion of a property’s market value. A lender may require an appraisal before approving financing.

Assessed Value

The value assigned to a property by BC Assessment for property-tax purposes. Assessed value is not necessarily the same as current market value.

Benchmark Price

An estimated price for a typical property in a particular area and category. It is used to track market trends but does not determine the value of a specific property.

Chattels

Movable personal property that is not permanently attached to the home, such as freestanding appliances, furniture or window coverings. Items included in a sale should be identified clearly in the Contract of Purchase and Sale.

Comparative Market Analysis

An evaluation prepared using recent comparable sales, current listings, market conditions, location, features and property condition to help estimate a reasonable market value.

Completion Date

The date when the purchase funds and legal ownership of the property are transferred.

Conditions or Subjects

Requirements written into an offer that must be satisfied or waived before the transaction becomes firm. Common subjects include financing, inspection, document review and insurance.

Conventional Mortgage

A mortgage that generally has a down payment of at least 20% and does not require mortgage default insurance.

Deposit

Money provided by the buyer as security for the transaction. The amount, deadline and handling of the deposit are established in the Contract of Purchase and Sale.

Depreciation Report

A report prepared for a strata corporation that evaluates major building components and estimates the timing and cost of future repairs and replacements.

Easement

A registered legal right allowing another person or organization to use part of a property for a particular purpose, such as access or utility services.

Encumbrance

A registered claim, charge or restriction affecting a property’s title, such as a mortgage, lien, easement or restrictive covenant.

Fixtures

Items permanently attached to the property that are normally included in the sale unless specifically excluded in the contract.

Fixed-Rate Mortgage

A mortgage with an interest rate that remains fixed for the agreed mortgage term.

Form B Information Certificate

A strata document containing important information about a strata lot, including strata fees, amounts owing, approved special levies, parking, storage and other required disclosures.

Home Inspection

A visual examination of a property’s accessible systems and components by a qualified home inspector. An inspection can identify conditions requiring further investigation, maintenance or repair.

Mortgage Default Insurance

Insurance that protects the mortgage lender if the borrower defaults. It is generally required when the buyer’s down payment is less than 20%, subject to the lender’s and insurer’s eligibility requirements.

Mortgage Pre-Approval

A preliminary assessment from a mortgage lender or broker estimating how much financing a buyer may qualify for. Final approval normally depends on the borrower’s updated financial information and the specific property.

Mortgage Term

The period during which the mortgage agreement, interest rate and conditions remain in effect. At the end of the term, the mortgage may be renewed, renegotiated or paid out.

Possession Date

The date and time when the buyer is entitled to take possession of the property. This may be different from the completion date.

Property Disclosure Statement

A document in which a seller may disclose known information about the property. Buyers should not treat it as a replacement for inspections, document review or independent professional advice.

BC Property Transfer Tax

A provincial tax that may be payable when a purchaser acquires an interest in property registered through the BC Land Title Office. Certain exemptions or refunds may be available to qualifying purchasers.

Real Estate Development Marketing Act Rescission Period

For certain residential properties in British Columbia, buyers may have a statutory right to rescind the purchase agreement within the applicable period, subject to the legislation, regulations and required rescission fee.

Special Levy

An additional amount approved by a strata corporation to pay for an expense that is not adequately covered by the operating fund or contingency reserve fund.

Strata Fees

Regular payments made by strata owners toward shared expenses such as insurance, maintenance, management, utilities and contributions to the contingency reserve fund.

Subject Removal

The process through which a buyer confirms in writing that specified conditions have been satisfied or waived. Once all subjects are removed, the contract generally becomes firm and binding.

Survey Certificate

A document prepared by a British Columbia land surveyor showing property boundaries and the position of buildings or improvements in relation to those boundaries.

Title Search

A search of the property’s registered title showing the legal owner and registered charges, liens, easements, covenants or other interests affecting the property.

Variable-Rate Mortgage

A mortgage with an interest rate that may change during the term based on movements in the lender’s applicable reference rate.

Need Help Understanding a Real Estate Term?

Every real estate transaction is different. If you are buying or selling property in Burnaby or elsewhere in the Lower Mainland, contact Robert Almeida of RE/MAX Crest Realty for straightforward guidance.

Call 604-862-8000 or use the contact form to discuss your real estate plans.