Real Estate Terms Part One

Buying or selling a home can feel overwhelming—especially when real estate conversations start sounding like a whole new language. From listings and offers to conditions and closing dates, industry terms get used quickly and often without much explanation. That’s why understanding the words is so important when navigating the real estate market.

In Real Estate Terms: Part One, we’re breaking down some common real estate words and phrases you’re likely to hear during the buying or selling process. Whether you’re a first-time buyer, a seasoned homeowner, or just starting to explore your options, hopefully these definitions help you along the way!

Easement: A legal interest in a property owned by another person or company for a specific, limited purpose. For example, a public utility company may have an easement that lets them pass through a property.

Freehold: A form of homeownership where the homeowner buys the right to have full and exclusive ownership of a home and the land that it sits on for an indefinite period.

Land Transfer Tax: A tax charged by many provinces and municipalities (usually a percentage of the purchase price) that the buyer must pay upon closing. *First-time home buyers in Ontario can be exempt or eligible for a refund of up to $4,000 on Land Transfer Tax. 

Counteroffer: An offer made by the seller of a home after rejecting an offer made by a potential buyer. The counteroffer usually changes something from the original offer, such as the price or closing date.

Leasehold: A form of homeownership where the homeowner buys the right to have full and exclusive ownership of a home and the land that it sits on for a definite period.

Title Insurance: Insurance against losses or damages that could occur because of anything that affects the title to a property. For example, a defect in the title or any liens, encumbrances or servitudes registered against the legal title to a home.