AGENT: A person who is authorized by a broker to trade real estate. For example, Don and Adam are licensed agents, our brokerage is Bosley Real Estate Ltd.

AMORTIZATION: Refers to the period of repaying a debt through periodic payments on the principal and interest.

APPRAISAL: An estimated value. Financial institutions appraise properties to determine the amount of a mortgage.

APPRECIATION: The amount a property increases in value over time.

BUYER'S MARKET: Refers to a market where there are more properties for sale than there are buyers - the lack of demand may drive prices down, which is good for buyers.

CAPITAL GAIN: Refers to the difference between the original price paid for a property and the price for which it is sold. There are often tax implications when this is in effect.

CHATTELS: Refers to removable items that would not normally be included in the sale of a home, such as portable dishwashers, laundry appliances, or portable microwaves.

CLOSING DATE: The date on which the real estate transaction is legally complete and is registered in the Land Registry.

COUNTER-OFFER: Used in price negotiation. One party may accept an offer, or make a counter-offer of a different price.

DEBT SERVICE RATIO: Refers to the percentage of a borrower's gross income that can be used to service mortgage payments and realty taxes.

DEED: The document that states ownership of a property.

DEPOSIT: A payment made to ‘hold' a property until inspections are performed. Usually 5-10% of the total price.

DOWN PAYMENT: A cash amount that makes up the difference between the price and the amount being financed.

EQUITY: The difference between the market value and the mortgage or liens against a property.

FIXTURES: Permanent improvements or items become fixtures when they are attached to the property, becoming part of it. Wall to wall carpeting is an example.

LAND TRANSFER TAX: payment to the Provincial Government  (and in Toronto, the Municipal Govt) for transferring ownership of a property.

LIEN: A claim on a property to ensure payment of a debt.

LISTING AGREEMENT: The contract between a seller and their broker authorizing the broker to list his/her property for sale.

LISTING BROKER: The realtor that represents the seller.

MORTGAGE: A contract between a borrower (buyer) and a lender (usually a bank). The borrower puts the property up as collateral against the mortgage debt. There are many types of mortgages and terms-ask your realtor for details.

MORTGAGE TERM: Refers to the amount of time the borrower has to repay a loan to the lender.

MULTIPLE LISTING SERVICE (MLS): A computerized networking system for realtors.

PRINCIPAL: the amount originally borrowed.

REALTOR: A trademarked name that describes agents who have membership in their local real estate board as well as the Canadian Real Estate Association.

SELLING BROKER: The realtor that represents the seller.

SURVEY: A document with all the details about a given property. A survey will include the boundaries, legal description, and any improvements.

TITLE: The legal evidence of ownership of a property.

VENDOR: The seller

ZONING REGULATIONS: Governmental guidelines that regulate how a property may or may not be used.