Sale Price – is the price the Seller has agreed to sell the Property to the Buyer for, also Purchase Price.
Sale Proceeds – is the net amount of funds that are ultimately paid to the Seller after all of the Seller’s costs of the sale have been paid. Typical deductions from the Purchase Price are Realtor Commissions, Mortgage Payouts and Legal Fees.
Seller – is the person(s) or company shown on the Title as the legal owners of the Lot. The Seller’s Realtor will obtain a copy of the Title when contacted by a Seller to ensure the person they are dealing with has the authority to List the Property and to ensure they have the correct Legal.
Seller’s Lawyer – is the lawyer, retained by the Seller to act for the Seller See What Does a Seller’s Lawyer Do?
Seller’s Mortgage – is the financing that the Seller has on the Property and is a debt owed by the Seller to the Seller’s Lender as registered against Title. The Seller’s Mortgage/Line of Credit must be discharged from Title (unless the Buyer has agreed to assume the Seller’s Mortgage, see Assumption of Mortgage). These terms are taken care of by Trust Conditions and Undertakings exchanged between the Seller’s Lawyer and Buyer’s lawyer. The protection that both the Seller and Buyer have through their Lawyer’s Trust Conditions and Undertakings is a key part of having a Lawyer retrained for your Real Estate Transaction.
Seller’s Real Estate Company – is the real estate company the Seller’s Realtor works for and with whom the Seller signs a Listing Agreement respecting the Property.
Seller’s Realtor – is the realtor, hired by the Seller to market the Property and provide advice to the Seller respecting the sale of the Property.
Selling Realtor – is the realtor who found the Buyer for the Property and is responsible for preparing the initial Offer to Purchase.
Statement of Adjustments – is the statement prepared by the Seller’s Lawyer setting out the various credits that exist between the Buyer and Seller (such as Taxes, Condo Fees, Residential Association Fees, etc.). This statement will indicate the Cash to Close due from the Buyer to the Seller on Closing Date. Please see the sample Statement of Adjustments.
Subject To Clause – is a term that indicates that the Offer to Purchase is not Firm and that there are conditions which must be satisfied, either by the Seller, but generally by the Buyer before the Offer to Purchase becomes binding on both the Buyer and Seller. Typical “Subject To” clauses are Subject to Financing, Subject to a Home Inspection, Subject to an Appraisal or Subject to my Lawyer reviewing and approving the Condo Documents or my Lawyer reviewing and approving this Contract.
Subject To a Home Inspection – is typically used when purchasing an older House and the Buyer has some concerns with the condition of the House. Typically in the Contract, the Condition is written to allow the Buyer to either back out of the Contract if the property has too many problems or too expensive to repair, or allows the Buyer a reduction in Purchase Price. As an example, if the problem(s) are less than $1,000.00 to fix, the Buyer has to complete the Contract; if the problem(s) are more than $1,000.00, the Buyer can either back out of the Contract or negotiate a different Purchase Price. The dollar amount you choose is up to the Buyer and Seller to negotiate and agree to. The Buyer must be satisfied with the Home Inspection Report and remove this Condition for the Contract to become a Firm Contract.
Subject To an Appraisal – is used by a Buyer, who is not getting a Mortgage, to satisfy themselves that what they are offering for the Property is indeed below or at the Market Value and is used by a Buyer, who is getting a Mortgage, to satisfy the Lender that the amount of money the Buyer wishes to borrow is appropriate to the value of the Property. The Buyer must be satisfied with the Appraisal and remove this Condition.
Subject To Financing – is the most common “Subject To” clause and means that a Lender must approve financing and provide a commitment letter for the Buyer to purchase the Property. The Buyer must be satisfied with the Financing terms and remove this Condition.
Subject To my Lawyer Reviewing and Approving the Condo Documents – indicates that the Buyer of a Condo would like the Buyer’s Lawyer to review the relevant Condo Documents and then provide his opinion to the Buyer as to whether they are reasonable. Assuming they are, the Buyer’s Lawyer will generally provide a written opinion to the Buyer’s Real Estate Company that the Condo Docs are reasonable and advise the Buyer that it is appropriate to remove this condition. Depending on what is involved, the Buyer’s Lawyer may charge an additional fee for this service. The Buyer must be satisfied with the Condo Docs and remove this Condition.
Subject to my Lawyer Reviewing and Approving the Contract – indicates that the Buyer would like the Buyer’s Lawyer to review the Contact and then provide his opinion to the Buyer as to whether the Contract is acceptable. Assuming it is, the Buyer’s Lawyer will generally provide a written opinion to the Buyer’s Real Estate Company and advise the Buyer that it is appropriate to remove this condition. Depending on what is involved, the Buyer’s Lawyer may charge an additional fee for this service. The Buyer must be satisfied with the Contract and remove this Condition.
Subject to my Lawyer Reviewing and Approving the Encumbrances Registered on Title – indicates that the Buyer would like the Buyer’s Lawyer to review all registrations on Title and then provide his opinion to the Buyer as to whether the Contract is acceptable. Assuming it is, the Buyer’s Lawyer will generally provide a written opinion to the Buyer’s Real Estate Company and advise the Buyer that it is appropriate to remove this condition. Depending on what is involved, the Buyer’s Lawyer may charge an additional fee for this service. The Buyer must be satisfied with the Contract and remove this Condition.
Subject to the Sale of my Current Property – indicates that the Buyer would like to have a Frim Contract on the sale of their existing property, in order for the Buyer to be able to complete this Purchase. The Buyer must be satisfied with the Sale terms of their existing Property and remove this Condition.
Tax Installment Payment Plan (TIPP) – See Property Taxes.
Tenants in Common – is one way for two or more people to be registered on the Title to a Property in their names. If the Property is held as “Tenants in Common”, then when one of the owners dies, his interest in the Property passes according to his Will (or on Intestacy if there is no Will, but really, you need a Will, why don’t you have a Will? Please contact me so we can get a Will prepared for you, this will save your loved ones and/or beneficiaries a lot of time and expense). Whether Tenancy in Common or Joint Tenancy is best, depends on your particular circumstances. You should discuss with your Lawyer which is best for you.
Term – is the length of time the Lender has agreed to finance the purchase of the Property and loan the Principal Amount for. A term is typically from 1 to 5 years.
TIPP – See Property Taxes.
Title – refers to the document obtained from the Land Title Office respecting the Lot which sets out the Registered Owner, Legal Description and Charges registered against the Lot. Also called a Certified Certificate of Title (CCT).
Title Insurance – is insurance which the Buyer obtains to protect both the Buyer and his Lender, or it can be purchased to only protect the Lender or it can be purchased to protect the Lender only or the Buyer only. Some Lenders require Title Insurance, so it can be mandatory. Generally, Title Insurance is purchased to protect the Lender and for an additional cost, can protect the Buyer. If there is a problem with the Lot or some title defect, the Title Insurance Company will remedy the defect. A typical example would be where a garage encroaches into the adjoining property and is not fully contained within the Lot. The Title Insurance Company would remedy this. Title Insurance costs approximately $150 to protect the Lender and $200 to protect both the Lender and the Buyer.
Title Insurance Closing – is a process using Title Insurance that allows the Buyer to have Possession of the Property, the Seller to receive the Sale Proceeds and the Realtors to receive their Commission before Title is registered in the name of the Buyer or the Mortgage is registered against the Title.
Total Cost of the Purchase – is the total cost to the Buyer to acquire the Property and includes the Purchase Price, Buyer’s Legal Fees and if applicable: an Appraisal, a Home Inspection Report and Title Insurance as well as any Adjustments. The Buyer may also have to pay GST.
Transfer – see Transfer of Land
Transfer Documents – are the documents typically used in a Real Estate Transaction and include the Transfer of Land, Statement of Adjustments, etc. Also see Closing Documents.
Transfer of Land – is the document, prepared by the Sellers Lawyer which is executed by the Seller and which is filed at the Land Title Office to effectively transfer the Property from the Seller to the Buyer.
Trust Cheque – is a Lawyer’s cheque usually prepared by the Buyer’s Lawyer made payable to the Seller’s Lawyer for the Cash to Close and is generally delivered to the Seller’s Lawyer or directly deposited to the Seller’s Lawyer’s trust account.
Trust Conditions – Are conditions imposed by the Seller’s Lawyer on the Buyer’s Lawyer to ensure that the Seller’s interest in the Property is protected until the Seller has been paid the Purchase Price in full. A lawyer cannot breach a Trust Condition that is imposed on him and he accepts it.
Turnaround Time – is the number of business days the Land Title Office needs to register a Transfer of Land from the time it arrives at the Land Title Office until it is registered. It could vary from a few days to 3 weeks, or so.
Unattached Goods – See Attached Goods, Chattels.
Unconditional Offer – is a term used by Realtors to indicate an offer has been made for the Property and there are no “Subject To” conditions contained in it. If it is accepted by the Seller, then there will be a Firm Contract.
Undertakings – refers to the promises made between the Seller’s Lawyer and Buyer’s Lawyer. A lawyer cannot breach an undertaking that he gives. They are the foundation that: allows a Seller to sign a Transfer of Land without having received the Sale Proceeds, a Lender to advance the Mortgage Proceeds to the Buyer’s Lawyer without the Mortgage being registered on Title in the name of the Buyer and allow the Buyer to give the Balance to Close to the Buyer’s Lawyer.
Utilities – refers to the Municipal charges for services they provide to the Property such as water, sewer and garbage collection, which are adjusted on Closing Date. Utilities can also refer to the services you connect for gas, hydro and cable-internet. These items are not adjusted and are left to the Seller to cancel these services and for the Buyer to sign up for them.
Waiver of Conditions – is generally a document prepared by the Buyer’s Realtor waiving one or all of the Subject To Clauses. When all of the Subject To Clauses are waived, you have a Firm Contract.
Walk Through – is what happens on that happy day when the Buyer obtains possession of the Property. The Buyer and the Buyer’s Realtor take a “walk through” of the Property to ensure it meets the terms of the Contract.
Western Conveyancing Protocol – is an arrangement between the law societies of western Canada that stands in place of Title Insurance and allows Buyer’s Lawyers and Seller’s Lawyers, who agree to be bound by the Western Conveyancing Protocol to proceed with completing a sale without the Transfer of Land being registered.