Speaking the Language of Real Estate
By Amit Paul - New Dream Homes and Condos Magazine
I’ve been getting requests as of late to provide definitions for real estate terms. I hope this list covers a few of the more common ones.
Condo townhome versus freehold townhome
A condo townhome legally falls under the condo structure. You own a percentage of the condo rather than your particular unit. The main difference for buyers is that this type of townhome comes with maintenance fees. A freehold townhome is like a semi-detached or a detached home, except that it’s connected to at least two other townhome properties.
Maintenance fees
These are the monthly fees payable to a condo corporation. It’s important to understand what these fees include (heat, hydro, water, common elements, etc.). In cases where heat and/or air conditioning is included but hydro is not, confusion may arise. If your hydro meter is billed directly to you, the amount of air conditioning and/or heat you use is tied to your hydro bill. So why say it’s included? For sake of clarity, the builder or Multiple Listing Service should not, in fact, say that.
Buyer’s agent versus agent/realtor
No major difference here other than the fact that a buyer’s agent refers to a realtor acting specifically for the buyer. It’s important to know that those who say they specialize in a buyer’s agency are more often than not speaking on behalf of frequency of practice rather than on education or license.
Property taxes
The annual taxes payable to the government based on the size and assessed value of the real estate that you own. They’re important to factor in when calculating your cost of ownership.
Deposit
The down payment for the unit of real estate that a buyer is purchasing or selling. This money can also be arranged to go towards the down payment percentage of your mortgage.
Loft
A type of condo unit that, unfortunately, has garnered too many definitions. For all intents and purposes, this is a term that has been coined by many builders and used where it really shouldn’t be. Don’t assume that a loft is necessarily going to boast 15-foot ceilings, exposed brick, or an open concept. It may have eight- or nine-foot ceilings, a relatively normal layout, and a clever marketing plan instead.
Square footage
Technically this number should refer to the amount of living space above ground level. That means that finished basements don’t count. In the case of condos, it’s important to determine whether the balcony has been included in this figure.
