REAL ESTATE TERMS

Property Types

1. Detached Home:
A standalone residential property, not attached to any other structures.

2. Condominium (Condo):
A type of housing where individuals own their unit within a larger building or complex, sharing common areas and amenities.

3. Townhouse:
A multi-level residential property attached to other units on one or both sides, often with its own entrance and outdoor space.

4. Co-op (Housing Cooperative):
A type of housing where residents collectively own the building and share responsibilities for its maintenance and operation.

5. Laneway House:
A small detached dwelling located in the rear yard of a single-family residential property, often used as a rental unit or additional living space.

 

Legal and Financial

6. MLS (Multiple Listing Service):
A database used by real estate agents to list properties available for sale or rent.

7. MLS® Home Price Index (HPI):
A tool used to measure changes in real estate prices over time, providing insight into market trends and fluctuations.

8. Property Transfer Tax (PTT):
A tax levied by the British Columbia government on the transfer of real estate property.

9. Land Lease:
A legal agreement where the land is leased rather than owned, commonly found in leasehold properties.

10. Deposit:
A sum of money paid by the buyer to the seller upon the acceptance of an offer, demonstrating the buyer's commitment to the transaction.

11. Closing Costs:
Additional expenses incurred by the buyer or seller during the transfer of property ownership, such as legal fees, title insurance, and property taxes.

12. Foreign Buyer's Tax:
A tax imposed on foreign individuals or entities purchasing residential real estate in certain areas, including Vancouver.

13. Empty Homes Tax:
A tax imposed on properties in Vancouver that are not used as a primary residence or rented out for a certain period of time each year.

14. Capital Gains Tax:
Tax on the profit earned from the sale of a property, calculated based on the difference between the sale price and the purchase price, adjusted for any improvements or depreciation.

15. Speculation and Vacancy Tax:

A tax levied on properties in certain areas of British Columbia, including Vancouver, that are left vacant for a significant portion of the year.

16. Foreign Ownership Disclosure:
Requirements for property owners to disclose their residency status, citizenship, and other information to government authorities, aimed at tracking foreign ownership in the real estate market.

 

Regulatory and Governance

17. Strata:
A legal structure governing condominiums and townhouses, including rules, regulations, and fees for maintenance and shared amenities.

18. Zoning:
Regulations that govern land use and development, specifying permitted uses, building requirements, and restrictions.

19. Heritage Property:
A building or site with historical, cultural, or architectural significance, often subject to preservation regulations.

20. Building Permit:
Authorization from the local municipality allowing construction or renovation work to be carried out on a property, ensuring compliance with building codes and regulations.

21. Strata Council:
A group of elected owners responsible for managing and overseeing the affairs of a strata corporation, including budgeting, maintenance, and enforcement of bylaws.

22. Easement:
A legal right granted to a person or entity to use another party's property for a specific purpose, such as access to utilities or passage through a driveway.

23. Air Rights:
The legal right to use the space above a property, allowing for the construction of buildings, bridges, or other structures that extend into the airspace.

24. Real Estate Bubble:
A period of rapid and unsustainable growth in real estate prices, often fueled by speculation and investor demand, followed by a subsequent decline or market correction.

25. Real Estate Investment Trust (REIT):
A company that owns, operates, or finances income-generating real estate properties, offering investors an opportunity to invest in a diversified portfolio of real estate assets.

26. Zoning Bylaws:
Local regulations governing land use, density, setbacks, building heights, and other development parameters within specific zones or districts.

 

Transaction and Contractual

27. Pre-sale:
The sale of a property before it is completed or ready for occupancy, often during the construction phase.

28. Assignment:
Transferring the rights to purchase a pre-sale property to another party before its completion.

29. Lease Agreement:
A legally binding contract outlining the terms and conditions of a rental arrangement between a landlord and a tenant.

30. Real Estate Commission:
A fee paid to real estate agents or brokers for their services in facilitating the sale or lease of a property.

31. Title Search:
An examination of public records to verify the ownership history, encumbrances, and other legal issues affecting a property's title.

32. Escrow Account:
A designated account held by a third party, such as a lawyer or title company, to hold funds or documents during a real estate transaction until all conditions are met.

33. Vendor Takeback Mortgage:
A financing arrangement where the property seller provides financing to the buyer, typically as a second mortgage, to facilitate the sale transaction.

34. Assignment Clause:
A provision in a real estate contract allowing the buyer to transfer their rights and obligations under the contract to another party.

35. Home Inspection:
A thorough examination of a property's condition, systems, and structure conducted by a qualified inspector to identify any potential issues or defects.

 

Development and Construction

36. Land Assembly:
The process of combining multiple adjacent properties into one parcel of land for redevelopment purposes, often undertaken by developers.

37. Building Permit Drawings:
Detailed architectural and engineering plans submitted to municipal authorities for approval before commencing construction or renovation projects.

38. Rain Screen Technology:
Building envelope systems designed to manage moisture infiltration and prevent water damage in multi-story structures, particularly relevant in Vancouver's rainy climate.

39. Geothermal Heating:
Energy-efficient heating and cooling systems that utilize heat from the earth's subsurface to regulate indoor temperatures, reducing reliance on traditional fossil fuels.

40. Building Code Compliance:
Adherence to building codes and standards established by municipal, provincial, or national authorities to ensure the safety, durability, and performance of structures.

41. Building Code Variance:
Permission granted by regulatory authorities to deviate from specific building code requirements due to unique circumstances or alternative compliance measures.

42. Density Transfer:
A planning mechanism that allows developers to transfer unused density rights from one property to another, often in exchange for public amenities or affordable housing contributions.

43. Development Cost Charges (DCC):
Fees levied by municipalities on developers to help fund the cost of infrastructure improvements necessitated by new development projects.

44. Building Envelope:
The physical shell or exterior enclosure of a building, including walls, windows, doors, and roof, designed to protect the interior space from external elements.

45. Architectural Control Committee (ACC):
A committee responsible for reviewing and approving proposed changes or additions to the exterior appearance of properties within a strata development to maintain aesthetic consistency.

46. Density Bonus:
Incentives offered by municipalities to developers in exchange for incorporating affordable housing units, green spaces, or other community benefits into their projects.

47. Passive House Design:
An energy-efficient building standard focused on minimizing energy consumption and maximizing indoor comfort through advanced insulation, airtight construction,

and heat recovery ventilation.

 

Market Analysis and Valuation

48. BC Assessment:
An independent government agency responsible for determining the assessed value of properties in British Columbia for the purpose of property taxation.

49. Mortgage Stress Test:
Regulations requiring borrowers to qualify for a mortgage at a higher interest rate than the one they will actually pay, intended to assess their ability to afford repayments in the event of interest rate increases.

50. CMHC (Canada Mortgage and Housing Corporation):
A government agency that provides mortgage loan insurance, housing research, and market analysis.

51. Real Estate Investment Group (REIG):
A collective investment vehicle where multiple investors pool their resources to purchase and manage real estate properties, sharing profits and risks.

52. Underwriting:
The process of evaluating a borrower's creditworthiness and property value to determine their eligibility for a mortgage loan.

53. Capitalization Rate (Cap Rate):
A measure of a property's investment return calculated by dividing its net operating income by its purchase price or value.

 

Tenant-Landlord Relations

54. Rent Control:
Regulations imposed by the government to limit the amount by which landlords can increase rents on residential properties, aimed at protecting tenants from excessive rent hikes.

55. Home Equity Line of Credit (HELOC):
A revolving line of credit secured by the equity in a homeowner's property, allowing them to borrow funds for various purposes, such as renovations or investments.

56. Landlord-Tenant Regulations:
Rules and laws governing the rights and responsibilities of landlords and tenants in rental properties, including eviction procedures, rent increases, and maintenance obligations.

57. Rental Pool:
A management arrangement where individual units in a property are collectively rented out by a management company, with profits shared among the unit owners.

58. Leasehold Property:
Real estate held under a lease agreement, where the lessee has the right to use and occupy the property for a specified period, typically subject to payment of rent and other lease terms.

59. Net Operating Income (NOI):
A measure of a property's profitability calculated by subtracting operating expenses from gross rental income.

60. Landlord-Tenant Arbitration:
A dispute resolution process where disagreements between landlords and tenants are mediated by a neutral third party to reach a mutually acceptable resolution.

 

Sustainability and Environmental

61. Green Building Standards:
Guidelines and certification programs promoting energy efficiency, sustainability, and environmental responsibility in building design and construction.

 

Miscellaneous

62. View Property:
A property with scenic views, such as waterfront, mountain, or city skyline views, often commanding higher prices.

63. Livable Area:
The total habitable space within a property, excluding areas such as garages, basements, and storage rooms.

64. Leaky Condo Crisis:
A period in the late 20th century when many condominium buildings in Vancouver experienced significant water ingress and structural problems, leading to costly repairs and litigation.

65. Walkability Score:
A numerical rating assessing the pedestrian-friendliness of a neighborhood based on factors such as proximity to amenities, street connectivity, and pedestrian infrastructure.

66. Shared Equity Mortgage:
A mortgage arrangement where the lender provides funds for a portion of the property's purchase price in exchange for a share of its future appreciation.

67. Title Insurance:
Insurance coverage protecting property owners and lenders against financial losses arising from defects in the title or ownership of a property.

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