MORTGAGE – OPEN
A mortgage that can be prepaid or renegotiated without penalty.
MORTGAGE – VARIABLE RATE
A mortgage for which payments are fixed but whose interest rate changes in relation to fluctuating market interest rates; if mortgage rates go up, a larger portion of the payment goes to interest; if rates go down, a larger portion of the payment is applied to the principal.
MORTGAGE – VENDOR TAKE-BACK
When the seller offers to lend the buyer funds in order to help facilitate the purchase of the property.
The mortgage amount initially borrowed or the portion still owing on the mortgage; the money used to pay down the balance of the loan.
PROPERTY DISCLOSURE STATEMENT
A document completed by the seller that serves as a checklist for buyers and enables them to address concerns about the property’s condition. Submission of the form is required before any listing is placed on the Okanagan Mainline Real Estate Board’s Multiple Listing Service® (MLS®) system.
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. Certain exemptions are available for first-time buyers.
Real estate professionals licensed by the Real Estate Council of BC who are members of the Okanagan Mainline Real Estate Board and the British Columbia and Canadian Real Estate Associations.
STATEMENTS OF ADJUSTMENTS
Closing statements in a transaction which set out the sources of funds making 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 prepare statements for the seller and buyer.
STATE OF TITLE CERTIFICATE
A copy of the title which lists charges against a property — e.g. liens, mortgages, rights-of-way, etc.
STRATA COMMON PROPERTY OR COMMON ELEMENTS
The portions of a strata development owned in common (shared) by the unit owners, e.g. pool exercise room, lobby, etc. A strata fee is charged to every unit owner for the use of the common property.
Stress testing is a best practice risk management tool. Stress tests are not predictions or forecasts, they involve searching out extreme “what if” scenarios that have a very remote chance of happening, and planning for them. “SUBJECT-TO” CLAUSE
A statement of a condition to be fulfilled before the contract will become firm and binding; must include a specific deadline for removal.
The legal evidence of ownership of a property.
An examination of the ownership documents ensuring there are no liens or other encumbrances on the property and no questions regarding the seller’s ownership claim.
A tax on public service businesses; may include the supply of water, sewage, garbage disposal and natural gas.
WORKING WITH A REALTOR® BROCHURE
A brochure given to prospective buyers and sellers that explains the different kinds of agency relationships that may be entered into with a Realtor.
Guidelines set and enforced by municipal governments regulating how a property may or may not be used.