Searching For a New Home?
There’s Some Lingo To Learn
These definitions are not technical or legal, but will help you better understand the home-buying process.
The number of years you have to make mortgage payments. At the end of the amortization period, your mortgage is finished and the bank no longer has any claim to it.
The company responsible for construction of your condominium or home. The builder buys the serviced lots from the developer, and is responsible for digging the hole, pouring the foundation, construction and finishing the project. In most cases, the builder does not subdivide the land, bring in services or grade the land. The developer does this (see Developer). Some builders are also developers.
The date upon which title to the home is transferred from the builder to the buyer. On this day, the house is legally yours and you can move in.
Those areas in a condominium development that are enjoyed by all residents. They may include fitness facilities, meeting rooms, saunas, barbecue areas, etc.
The condominium corporation owns and operates the condominium and the lands. The corporation is comprised of all ownership within the complex. The corporation is responsible for orderly operations of the condominium, including arranging the maintenance and keeping money in reserve funds for future common area repairs.
The sum of money given to the builder to hold your unit and begin construction of your home.
The company responsible for taking raw land, bringing in the services (sewers, water, etc.), building the roads and grading the land to efficiently drain surface water. The developer then sells these lots to the builder. Sometimes the same company takes on the role of developer and builder (also see Builder).
The total amount of money you put down on the home when you take ownership.
DRAFT PLAN APPROVAL
The plan of the subdivision must have this approval in order for the builder to legally sell lots. Draft plan approval means the municipality has approved the developer’s plan for the community subject to the developer fulfilling certain obligations set down by the municipality.
A form of land ownership which gives the purchaser exclusive title to the land purchased. Exclusive ownership means exclusive responsibility for the maintenance and expenses of the property.
The lending institution will quote you a percentage rate. Whatever rate you are given, you must pay this portion of your principal to the institution each year. These payments are what you give the institution in exchange for lending you money. The amount is calculated into monthly payments and added to the amount of principal you must pay off each month. This total is your monthly payment.
PREDELIVERY INSPECTION -PDI
This is an inspection of a new house or condo done by the purchaser in the company of the builder’s representative. It should be done three to five days before you take occupancy. Everything that is not to your satisfaction should be noted on the builder’s PDI Report Form and on the Tarion Warranty Program certificate.
our principal is the portion of your monthly payment which goes to ward paying off your mortgage.
A builder cannot get a building permit for construction of a house unless the plan of subdivision is registered. Once a plan is registered, you know that the design and standards presented by the developer have been approved by the municipality (also see Draft Plan Approval).
This is a sheet given out by new-home sales agents stating the standards the home will be built to, such as type of flooring to be used, the electrical systems and the type of heating systems, etc.
The trades often hired out to other companies to assist them in completing their work (also see Trades).
The builder often hires other companies (trades) to construct the home, install heating and plumbing and finish the home.