Reference
BC Real Estate Buyer Glossary
Searchable, plain-language definitions of common British Columbia real estate terms you may encounter as a buyer.
Accepted Offer
An offer that has been signed and accepted by the seller, subject to any conditions written into the contract. Until conditions are removed, the contract may not yet be firm.
Agency
The legal relationship between a real estate professional and a client, in which the professional is authorized to represent the client in a real estate transaction. The nature of agency and the duties owed should be disclosed and explained in writing.
BCFSA – Agency ↗Adjustment Date
The date used to calculate the division of property taxes, utilities, and other costs between the buyer and seller. It is often, but not always, the same as the completion or possession date.
Appraisal
An independent professional estimate of a property's value, typically prepared by a licensed appraiser. An appraisal is one opinion of value and may differ from a list price or assessed value.
BC Assessment
The provincial Crown corporation that produces assessed values used for property taxation purposes. An assessed value is not the same as market value.
BC Assessment ↗Completion Date
The date the transfer of title is registered at the Land Title Office and the purchase legally completes. Money and documents are typically exchanged through lawyers or notaries on this date.
Condition
A requirement that must be satisfied for a contract to become firm. Also called a subject clause. Common conditions include financing, inspection, and the sale of another property.
Contract of Purchase and Sale
The written agreement between buyer and seller that sets out the terms of the transaction, including price, dates, conditions, and included items. Once conditions are removed, it becomes a binding contract.
Deposit
A sum of money provided by the buyer, usually held in trust, as evidence of their commitment to the contract. The amount and timing are negotiable terms within the offer.
Depreciation Report
A strata document that assesses the condition of common property and estimates future repair and replacement costs. It can help buyers understand a strata's long-term maintenance planning.
Disclosure
The seller's obligation to disclose known material information about the property. In BC, sellers commonly complete a Property Disclosure Statement. Disclosure obligations should be discussed with a real estate professional and a lawyer.
Form B
A strata certificate that provides key information about a strata lot, including the unit's entitlement, current strata fees, and any outstanding amounts owing. Buyers of strata properties commonly review a Form B.
Inspection
A professional review of a property's condition, typically performed by a licensed home inspector. An inspection is one input into a buyer's due diligence and does not guarantee the absence of defects.
List Price
The price at which a property is offered for sale. It is a marketing decision that may be informed by analysis, but it is not a guarantee of the eventual sale price or a statement of what a buyer should pay.
Market Value
An estimate of what a property might sell for in the current market, based on factors such as comparable sales, condition, location, and market conditions. It is an opinion that may change over time and is not a guarantee.
Mortgage Pre-Approval
A preliminary indication from a lender of the financing they may provide, subject to conditions. Pre-approval is not a guarantee of final financing and does not bind a buyer to a specific purchase price.
Offer Price
The amount a buyer offers to pay in a Contract of Purchase and Sale. It is one term among many and does not by itself determine the strength of an offer.
Possession Date
The date the buyer takes possession of the property and receives the keys. It is often the same as or shortly after the completion date, but the dates are negotiated separately.
Property Disclosure Statement
A standard form on which a seller discloses known information about the property's condition. It is not a warranty, but it can help inform buyers and reduce disputes.
Special Levy
A one-time charge levied by a strata corporation to fund a specific repair or project. Buyers of strata properties should be aware of any current or proposed special levies.
Strata
A form of property ownership in which individuals own their unit and share ownership of common property. Strata properties are governed by a strata corporation and have specific documents and rules.
Strata Fees
Regular contributions paid by strata lot owners toward the maintenance and operation of common property. The amount is tied to the unit's entitlement and the strata's budget.
Subject Clause
A condition written into an offer that must be satisfied or removed by a specified date for the contract to become firm. Also referred to as a condition.
Subject Removal
The act of removing (waiving) conditions by the deadline in the contract. When a buyer removes subjects, the contract becomes firm and binding.
Title
The legal record of ownership of a property, registered at the Land Title and Survey Authority of British Columbia. Title transfers to the buyer on the completion date.