The Ultimate Dictionary of Real Estate Terms You Should Know

Real estate transactions come with their own vocabulary. Here’s a quick-reference glossary of terms you’re likely to encounter, explained in plain language.

Financing terms

Amortization period — The total length of time it will take to pay off your mortgage in full, typically 25 to 30 years.

Down payment — The portion of the purchase price you pay upfront, not financed through your mortgage.

Mortgage pre-approval — A lender’s conditional commitment to lend you a certain amount, based on your financial information, before you start house-hunting.

CMHC insurance — Mortgage default insurance required for down payments under 20%, provided by the Canada Mortgage and Housing Corporation or a private insurer.

Transaction terms

Conditional offer — An offer to purchase that includes one or more conditions (such as financing or home inspection) that must be satisfied before the deal becomes firm.

Firm offer — An offer with no conditions, or one where all conditions have been satisfied or waived.

Closing date — The date ownership of the property officially transfers to the buyer.

Title search — A review of public records to confirm the legal ownership of a property and identify any liens or encumbrances.

Listing terms

MLS® — The Multiple Listing Service®, a cooperative system used by REALTORS® to share information about properties for sale.

Days on market (DOM) — The number of days a property has been actively listed for sale.

Comparable sales (comps) — Recently sold properties similar in size, condition, and location, used to help estimate a home’s market value.

Property terms

Survey — A legal document showing the boundaries, dimensions, and any easements on a property.

Zoning — Municipal rules governing how a property can be used (residential, commercial, mixed-use, etc.) and what can be built on it.

Have a term you’d like explained?

If you come across a term that isn’t covered here, send me a message — I’m happy to walk through anything that’s unclear as part of your buying or selling process.