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Common terms defined

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DOM refers to how many days condo is on the market


A while back I wrote an article defining various common real estate terms. Due to the positive response, I thought I’d add to that list.


Financing clause: Virtually a necessary part of any offer, this clause is in to protect the buyer. In plain English, the buyer is given, normally, five business days to arrange a suitable mortgage. If such a mortgage cannot be obtained, the buyer is able to nullify the deal.


Inspection clause: Allows for a professional home inspection before the deal is complete. This is where items like the life expectancy of the roof, appliances, etc., and condition of the electrical, plumbing, and so on, are looked at by trained eyes. Normally, if the inspection reveals major deficiencies, the buyer and seller are free to come to an agreement on how the issues will be resolved. If no resolution follows, the buyer is free to walk away.


Status certificate: Applying only to condo properties, this document is the blueprint of your unit as well as the condo corp. If there are any foreseeable or current serious issues, this document will normally reflect them. Your offer should be conditional on successful review of this document by your lawyer. It is usually provided at the expense of the seller.


Sold conditionally: This term refers to a property that has an accepted offer and is currently in the conditional period. In other words, the deal is done so long as the buyer can arrange financing and the home passes the inspection. In this market it is rare for a deal to fall through.


DOM: On your MLS listings, this number refers to how many days the property has been on the market. The current average for the GTA is 31 days. The hottest areas are less and some areas are more. This stat can indicate a less-than-desirable property if the number is way past the average and the listing has not changed since it was posted.


Power of sale: Refers most commonly to a property in which the owner has gone into default and the property is being sold by the lending institution, or the place where the former owner took out a mortgage. There are many myths and realities associated with this type of property, but that’s a topic for a different day!


Basement apartment: This can get complex. Ideally, it would refer to a legal basement apartment, properly structured and meeting all municipal requirements. Nine times out of 10, the listing will read something like “no guarantee on retrofit status.” This means that the basement apartment is not a legal one, and you would be renting it out at your own risk. Again, a complicated topic that could have an entire article dedicated to it!


That’s all for now, but if you have other terms or general questions you’d like answers to, feel free to e-mail Amit at amitp@rogers.com.



amitp@rogers.com

 
 
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