P

P.I.T.H. (Principal, Interest, Taxes and Heating)
The costs that are used to calculate the Gross Debt Service ratio (GDS).

Power of Sale
The right of a mortgagee (the lender) to force sale of the property.

Principal
The amount of money borrowed to purchase the home. Mortgage payments consist of payment against the principal plus the interest the lender is charging for the borrowed money.

Property Disclosure Statement
This form enables sellers to disclose known material latent defects and other defects. The form also serves as a checklist for buyers enabling them to address concerns about the property’s condition on the spot. The BC Real Estate Association developed the form.

Property Taxes
Location and the value of the property as determined by BC Assessment affect this levy. Local government determines the rate of taxation. Property taxes are payable on an annual basis.

Property Transfer Tax
Payment to the provincial government for transferring the property from the seller to the buyer. In BC it is 1% on the first $200,000 and 2% on the balance. In the 1994 provincial government's budget, the PTT was eliminated for first-time buyers under certain circumstances. (See the 'Government Grants and Programs' page on my website)


R

Rate Commitment 
A lenders commitment to offer to hold a specific rate for a certain length of time. Rate commitments can vary from 30 to 180 days.

Real Estate Broker
A brokerage that represents a principal in a real estate trade.

REALTORS®
Real estate professionals licensed by the Real Estate Council of BC who are members of a Real Estate Board and the British Columbia and Canadian Real Estate Associations. Only these professionals can call themselves REALTORS®.

Refinance
To pay in full and discharge a mortgage with the proceeds of a new mortgage.

Rights-of-Way
These are indicated on title and the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc. No permanent structure may be build on a right-of-way.


S

Seller's Market
A market condition where there are a higher number of buyers than homes available to purchase. Houses will typically sell faster and at a higher price.

State of Title Certificate
A copy of the title which lists charges against a property, e.g. liens, mortgages, rights-of-way, etc.

Statements of Adjustments
Closing statements in a real estate transaction which set out the sources of funds which make up the purchase price, adjustments to and from the purchase price, the final amount required from the purchase and the amount due to the seller. Lawyers will prepare a statement for the seller and the buyer.

Strata Common/Limited Common Property 
The portions of a strata development owned in common (shared) by the unit owners, e.g. grounds, pool, exercise room, lobby, etc. 

Strata or Condominium Fees
Payments made by owners of condominiums or townhouses to the property management of a complex that is allocated to pay expenses such as maintenance, repairs and management costs.

“Subject-to” Clause
A statement of a condition to be fulfilled before the Contract of Purchase and Sale will become firm and binding; must include a specific deadline for removal.

Survey
A document that shows the property boundaries and measurements, specifies the location of buildings on the property, and indicates any easements or encroachments.


T

Tax Hold Back 
When your property taxes are included with your mortgage payments, your lender will withhold funds from your disbursement to cover interim or final taxes payable to the municipality. The amount depends on the month that the mortgage was funded and the dates when interim and final taxes are due. Tax hold backs are used to pay for the current year's taxes while your monthly tax installments are accumulated in an account to pay the tax bills for the following year.

Tenant
An individual who occupies land or tenement under a landlord.

Tenure
A method of land holdings for a temporary period of time.

Title
The legal evidence of ownership in a property.

Title Search
A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property and no questions regarding the seller’s ownership claim.


U

Underwriting
The assessment of loan applications based on: the value of real property, a borrowers credit worthiness and ability to pay and the lending guidelines of the lender.

Utility Taxes
Examples may include water, sewer and garbage (may include recycling levies).

V

Vendor
A seller of a property.


W

Working with a REALTOR® Brochure
A brochure given to prospective buyers and sellers that explains the different kinds of agency relationship that may be entered into with a REALTOR®.


Z

Zoning Regulations
Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.

Adjustment Date to Counter Offer

Debt Service Ratio to Lump Sum Prepayment

Market Value to Operating Costs