Terms to know when buying or selling a home

When it comes to real estate, there is no shortage of terminology and plenty of room for confusion. Here is a list of a few common real estate terms you'll hear at least once during your home buying and selling process:

• Fixed-rate Mortgage: The mortgage rate and payment you make each month will stay constant for the term of your mortgage.

• Variable-rate Mortgage: The mortgage rate set by your lender will change with the prime lending rate. These loans may be beneficial if there is a sudden fall in lending rates, but higher interest rates will mean larger monthly payments.

• Amortization: The number of years it takes to repay the entire amount of the mortgage.

• Title/Title Search: Title is the legal evidence of ownership in a property. A Title Search is 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.

• Conditions: Provisions to an Agreement of Purchase and Sale between the seller and buyer that must be met before the sales transaction can be completed.

• Multiple Listing Service (MLS): A system for relaying property information. This service offers the widest exposure to properties listed for sale.

Patricia Verge, president of the Ontario Real Estate Association explains that buyers and sellers don't need to be overwhelmed by any of the terms. Instead they should focus on the big picture and let their Realtor work through the details.

“If you have a clear idea of your needs and go into the process with realistic expectations, the result will be very rewarding,” says Verge. “Talk to your Realtor about the best way to get the information you need to make a buying or selling decision that is right for you and your family.”

More information is available at www.wedothehomework.ca.

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