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Real Estate Terms Cheat Sheet: What Every Buyer and Seller Should Know
Andra Arnold • October 28, 2025
Your realtor might use words that feel like jargon: “contingency,” “comps,” “assignment sale.” But those terms carry real meaning as they can affect your risks, budget, and decision-making.
Whether you're listing your home in Guelph or making an offer, this guide explains the key terms you’ll hear, so you know what’s happening behind the scenes.
Keep reading to learn what to add to your “must-know” list if you’re buying or selling property in Guelph.
Buying and Selling Basics
Before diving into financing or contracts, you should understand how the process starts. The following terms form the foundation of every real estate transaction.
Listing
When a home officially hits the market, it’s available for buyers to view and make offers on.
MLS® (Multiple Listing Service)
A national database where realtors share property listings. It ensures your home gets maximum visibility among buyers and agents.
Offer
Your written proposal to purchase a property, including price, terms, and conditions.
Counteroffer
When the seller responds to your offer with new terms, like a higher price or a different closing date.
Closing Date
The official day that ownership transfers. It’s the day you pay, sign, and receive the keys.
Offer Expiry Date
The date and time your offer is no longer valid if the seller hasn’t accepted.
Back-Up Offer
An offer on a property that’s already under contract, in case the first deal falls through.
Subject-To Clauses
Conditions attached to an offer, like “subject to financing” or “subject to inspection.”
Open House
A scheduled period where prospective buyers can tour a home without an appointment.
Financing and Mortgage Terms
Money talks, and in real estate, it’s crucial to understand the financing language. These terms shape your budget and your long-term costs.
Pre-Approval
A lender’s confirmation of how much you can borrow, based on your income and credit.
Down Payment
The amount you pay upfront, typically between 5% and 20% of the home’s price.
Amortization Period
The total time it’ll take to pay off your mortgage in full, usually 25 years.
Pre-Qualification
An initial estimate from a lender on how much you might qualify to borrow before full approval.
Mortgage Term
The length of time your mortgage agreement (interest rate and conditions) is in effect, usually 1–5 years.
Interest-Only Mortgage
Payments only cover interest for a set period; principal remains the same.
Refinancing
Replacing your current mortgage with a new one, often to get a lower rate or access equity.
Fixed vs. Variable Rate
- Fixed: The interest rate stays the same for the term.
- Variable: The rate fluctuates in response to market changes.
CMHC Insurance
A mandatory insurance premium if your down payment is under 20%, protecting the lender.
Market and Pricing Terms
Pricing can make or break a deal. Knowing these terms helps you understand market trends and how realtors price homes in Guelph.
Comparables (“Comps”)
Homes that recently sold in your area that are similar in size, style, and condition — used to determine fair value.
Appraisal
An independent estimate of a property’s worth, typically required by lenders before approving a mortgage.
Fair Market Value
What a home would reasonably sell for in current market conditions.
Bidding War
When several buyers compete for the same home, it often drives up the final sale price.
List Price vs. Sale Price
The list price is the asking price; the sale price is what it ultimately sells for.
Contract and Condition Terms
This is where deals are made or broken. These terms define the legal and contractual framework that protects the buyer and the seller.
Conditions (or Contingencies)
Clauses that must be met before the deal closes, like securing financing or passing a home inspection.
Deposit
A good-faith payment submitted with your offer, held in trust until closing.
Home Inspection
A detailed check of the property’s structure, systems, and safety before finalizing the deal.
Status Certificate
For condos, this document outlines financial health, bylaws, and upcoming costs of the condo corporation.
Title Search
A legal review confirming ownership and ensuring no outstanding liens or disputes on the property.
Property Types and Ownership Terms
Not all homes are owned or structured the same way. These terms explain the primary distinctions between property types and ownership models.
Freehold
You own the home and the land it sits on. You have full ownership and complete control.
Condominium (Condo)
You own your individual unit while sharing ownership of common spaces and amenities.
Detached, Semi-Detached, Townhouse
- Detached: No shared walls.
- Semi-Detached: One shared wall.
- Townhouse: Shares walls on both sides.
Equity
The portion of your home’s value that you truly own (your down payment plus any appreciation, minus what you owe).
Assignment Sale
Selling your rights to a property before it officially closes. Assignment Sale is common in pre-construction deals.
Legal and Regulatory Terms
This is the fine print that seals the deal. Knowing these terms helps you navigate the legal side of buying or selling a home in Ontario.
Offer to Purchase / Agreement of Purchase and Sale
The binding contract outlines the price, terms, and conditions between the buyer and seller.
Land Transfer Tax
A provincial tax due when ownership changes hands, paid by the buyer at closing.
Disclosures
Information sellers must legally share about property issues or defects.
Zoning
Rules set by the city that dictate how you can use the property (residential, commercial, or mixed-use).
Closing Costs
All the additional fees due at closing, such as legal fees, land transfer tax, and title insurance. This is typically around 1–4% of the sale price.
Realtor and Brokerage Terms
Behind every deal is a professional guiding the process. These terms outline the roles and responsibilities of realtors and brokerages in the Guelph real estate market.
Realtor vs. Real Estate Agent
All Realtors are licensed agents, but not all agents are Realtors. Realtors belong to a professional association and follow a strict code of ethics.
Brokerage
The company a realtor works under. They handle legal, administrative, and trust-account responsibilities.
Dual Agency
When a single realtor represents both the buyer and seller — something to approach carefully due to potential conflicts of interest.
Commission
The fee a realtor earns for representing a client. It’s often a percentage of the sale price.
Master the Terms, Master the Market
Knowing these real estate terms helps you make confident, informed decisions, from understanding your mortgage options to reading your purchase agreement.
If you’re planning to buy or sell in Guelph, Andra Arnold & Associates makes the process simple, transparent, and stress-free.
Reach out today and let a trusted Guelph realtor walk you through every step with expert advice that gets real results.
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