Amortization: The period of time, usually 15, 20, or 25 years required to reduce a debt to zero when stipulated payments are made regularly.
Appraisal: A process for estimating the market value of a property.
Architectural Controls: The regulation or guidelines of land developers for the placement of homes on lots, exterior elevations, exterior design details including finishes, colors, etc.
Building Permit: A certificate that must be obtained from the city by the property owner or contractor before a building can be erected or repaired. It must be posted in a conspicuous place until the project is completed and passed as satisfactory by a city building inspector.
Closing Costs: Costs in addition to the purchase price of a home, such as legal fees, transfer fees, utilities, interest adjustements, taxes, and disbursements that are payable on the closing date.
Closing Date: The date on which the sale becomes final, the title is transferred, and the purchaser takes possession of the property.
Closing Meeting: A meeting in which all final money matters are settled, documents are executed, and keys are authorized for release.
Conditional Offer: An offer to purchase that is subject to certain conditions, such as arranging a mortgage or selling a current home.
Construction/Builders Allowance: The amount of money allocated for your selection of lighting fixtures, floor coverings, plumbing fixtures, appliances, etc.
Construction Schedule: An outline of construction activities that guides sub-trades and suppliers in planning and coordinating their activities throughout the stages of construction.
Deed: A legal document that shows the transfer of ownership from seller to buyer. It is registered as evidence of ownership.
Defects: Items that have been installed and completed but require additional work to meet the quality standard. These are normally cosmetic defects regarding fit, finish, or appearance.
Deficiencies: Items in the contract that have not been completed at the time of orientation.
Deposit: A sum of money provided by the purchaser to the builder as a means of binding a contract for the purchase and sale of a house.
Easements: A right of access across your property to repair, replace, or install utilities. Permanent structures cannot be located on easements.
Exterior Elevations: Detailed, scaled, and dimensional drawings of the roof and exterior wall of your home, showing the front, sides, and rear profiles of your home and indicating the location and types of exterior finishing materials to be used.
Holdback: An amount of money retained by a construction lender or owner until satisfactory completion of the work performed by a contractor.
Interior Floor Plans: A scaled-down overview for each level of the home, including the basement.
Lot Grades: The engineering design level (or elevation) of the house on a lot in relation to the sidewalk, road, lane, and adjacent property.
Lot Plan/Grade Slip: A scaled-down drawing of the lot showing the orientation and location of your new home, and the distance to the home from the front, back, and side property lines.
Maturity Date: The last day of the term of the mortgage agreement.
Mortgage: A mortgage is security for a loan on the property that you own.
Mortgage Loan Insurance: If you have a high ration mortgage, your lender will require mortgage loan insurance, available from CMHC.
Orientation: A meeting between purchaser and builder to walk through the house, and to review and confirm that work on your home is complete and satisfactory.
Possession Certificate: A certificate signed by the purchaser at the end of orientation, which indicates approval and/or notes any defects and deficiencies.
Purchase Agreement: An agreement for the construction of a home and the purchase of land
Purchase Price: The agreed-upon price of your new home and lot, plus GST, less any applicable amount of GST rebate granted by the federal government to new homebuyers for homes under $450,000.
Real Property Report: A legal document that clearly illustrates the location of all visible public and private improvements relative to property boundaries.
Seasonal Deficiencies: Items resulting from a delay in exterior work due to inclement weather.
Warranty: A promise, either written or implied, that the material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by the builders themselves.
Zoning: Regulations established by local governments regarding the location, height, and use for any given piece of property within a specific area.
