I often get asked about different real estate terms. My purchasers or sellers that I am helping don't always use the same terminoligy that I am used to. While it's important to "speak the same language" I also need them to understand some common, frequently used terms from my real estate world!
Here are a FEW (of many ... you can get the ENTIRE list here) terms that I wanted to fill you in on the definition of. This may help you in your search, whether it be now, in the near future or somewhere down the road.
Adjustment Date: The day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of either the purchaser or the vendors. This is usually (but not always) the same as the possession date.
Blended Mortgage Payments: Equal or regular mortgage payments, consisting of both a principal and an interest component.
Closing Costs: Expenses in addition to the purchase price for buying and selling a property.
Conventional Mortgage: A first mortgage issued for up to 75 per cent of the property's appraised value or purchase price, whichever is lower.
Debt Service Ratio: The percentage of a borrower's income that can be used for housing costs. Gross Debt Service (GDS) Ratio is the amount that a lender will permit a borrower to use from his/her gross income in order to qualify for a loan for housing costs, including mortgage payment and taxes (and condominium fees, when applicable). Total Debt Service (TDS) Ratio is the maximum percentage of a borrower's income that a lender will consider for all debt repayment (other loans and credit cards, etc.) including a mortgage.
Easement: A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
Lien: Any legal claim against a property, filed to ensure payment of a debt.
Open Mortgage: A mortgage that can be prepaid or renegotiated at any time and in any amount, without penalty.
Statements of Adjustments: Closing statements in a real estate transaction which set out the sources of funds which make up the purchase price, adjustments to and from the purchase price, the final amount required from the purchase and the amount due to the vendor. Lawyers will prepare a statement for the vendor and the purchaser.
Title Search: A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller's ownership claim.
As mentioned, this is a shortened list provided by the FVREB. You can get the whole list here.
I hope this has helped! Let me know if you have any questions!
Till next time ...