Real Estate Jargon Explained: What Your Realtor, Lawyer, & Mortgage Broker are Saying in Layman's Terms

Buying or selling a home can feel like learning a whole new language. Between your Realtor, Real Estate Lawyer, and Mortgage Broker, it’s easy to get lost in a sea of acronyms and industry lingo. Don’t worry — Team Metherall’s got your back! 

Here's a simple breakdown of common Real Estate terms and what they really mean, so you can navigate your next move with confidence.

🏠From Your Realtor

👊Firm Offer: This means the buyer is offering to purchase the home without any conditions (like financing or a home inspection). It’s binding — once accepted, both parties are locked in.

👍Conditional Offer: This is an offer that includes one or more conditions (e.g., subject to financing or home inspection). If the conditions aren’t met within the specified time frame, the deal can be cancelled without penalty.

📈Comparative Market Analysis (CMA): This is your Realtor’s way of determining the value of your home based on similar properties that have recently sold in the area. It helps sellers price their homes accurately — and helps buyers avoid overpaying.

🔢Multiple Offer Situation: When more than one buyer submits an offer on the same property, it’s known as a bidding war. Your Realtor will guide you through strategies to come out on top — or to walk away wisely.

⚖From Your Real Estate Lawyer

🔎Title Search: Before you take possession of your new home, your lawyer will conduct a title search to make sure the seller actually owns the property and there are no legal claims or liens against it.

💵Disbursements: These are the out-of-pocket expenses your lawyer pays on your behalf — like title insurance, land transfer tax, and registration fees. You'll see them listed on your final statement of adjustments.

📃Statement of Adjustments: Think of this as the final invoice. It outlines what you owe or are owed at closing, including pre-paid property taxes, utility bills, and any deposits already made.

🚚Closing Day: This is the day you officially become the owner (or no longer are, if you’re selling). The lawyer transfers funds, registers the property in the new name, and releases the keys.

🏦From Your Mortgage Broker

☑️Pre-Approval: This is a lender’s estimate of how much you can afford to borrow. While not a final guarantee, it gives you a strong sense of your budget — and can strengthen your offer.

📅Amortization Period: This is the total length of time it will take to pay off your mortgage in full — often 25 or 30 years in Canada.

🔣Fixed vs. Variable Rate: A fixed-rate mortgage means your interest rate won’t change during the term. A variable-rate mortgage can fluctuate with market interest rates — it might save you money, but comes with risk.

💱CMHC Insurance: If your down payment is less than 20%, you’ll need mortgage default insurance, often provided by the Canada Mortgage and Housing Corporation (CMHC). It protects the lender, not the borrower.

Real Estate transactions are some of the biggest financial decisions you’ll ever make — and you deserve to understand every step. If you’re ever unsure about what something means, ask! A good Realtor, lawyer, or mortgage broker will be happy to explain things clearly and help you feel in control.

At Team Metherall, we’re proud to serve Georgina and surrounding areas with honesty, clarity, and real local expertise. Whether you're buying your first home, upsizing, or selling a long-time family property, we're here to help decode the details — and guide you home.

Team Metherall Real Estate
Generations of Expertise, Working for You!
RE/MAX All-Stars Realty Inc., Brokerage 
TeamMetherall.com
(905) 476-6060