Glossary

Real Estate Terms You Should Know

Certified Cheque (Bank Draft)
A certified cheque or bank draft is guaranteed by the issuing bank. The bank verifies that sufficient funds are available and sets them aside. Because the funds are secured, a certified cheque cannot “bounce” and is treated similarly to cash in real estate transactions.

Completion (Closing) Date
The date when legal ownership transfers from the seller to the buyer. On this day, the buyer’s lawyer or notary transfers the remaining purchase funds to the seller’s lawyer, and the title is registered with the Land Title Office.

“As Is, Where Is” Clause
A clause stating that the buyer accepts the property in its current condition and location, without warranties or representations from the seller regarding condition.

Covenants
Legally binding restrictions registered on title that limit how a property can be used. Covenants may restrict building size, subdivision, use of land, or other activities, and remain in effect for future owners.

Date of Acceptance
The date when both buyer and seller sign the Contract of Purchase and Sale and agree to all terms and conditions.

Deposit
A deposit is paid by the buyer (typically 5% in BC, but this varies) and held in the brokerage’s trust account. It demonstrates commitment to the purchase and forms part of the purchase price.

Easement
A registered right allowing another party to use a portion of your land for a specific purpose, such as utilities, drainage, or access. Easements remain on title.

Freehold Property
Ownership of both the building and the land it sits on. Most detached homes in Vancouver are freehold properties.

Strata (Maintenance) Fees
Mandatory monthly payments made by strata owners to cover maintenance, insurance, and upkeep of common property. Healthy strata finances are important for long-term property value.

Legal Description
The formal identification of a property registered with the Land Title Office, used in legal documents.

Leasehold Property
In a leasehold arrangement, the buyer owns the building but leases the land for a fixed term (often 99 years). Financing can be more restrictive, and resale value may be impacted by the remaining lease term.

Parcel Identifier (PID)
A unique nine-digit number assigned to each property in British Columbia. It appears on title documents and tax notices.

Possession Date
The date the buyer receives the keys and takes physical possession of the property. This is usually after the completion date.

Statutory Right-of-Way
A registered charge on title allowing a utility company or authority to install and maintain infrastructure (such as power lines or sewer pipes) on the property.

Secondary Suite (“Mortgage Helper”)
A self-contained living area within a home, including bedroom, bathroom, and kitchen facilities. A suite is considered legal if constructed with proper permits and approvals.

Survey
A detailed drawing showing property boundaries, structures, easements, and encroachments. In many cases today, title insurance replaces the need for a new survey.

Title Search
A review of public records to confirm ownership and identify any registered charges, liens, or restrictions on the property. This is conducted by your lawyer or notary before completion.

Oleg Tsaryov

West Vancouver and North Vancouver REALTOR®