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Glossary

Adjustment Sheet +
Amortization +
Building Manager +
Certificate of Location +
Closed Mortgage +
Condo Association Board +
Condo Fees +
Contingency Fund +
Declaration of Co-Ownership +
Deed of Sale +
Divided Co-Ownership +
Down Payment +
Fixed-Rate Mortgage +
General Meeting for Condo Owners +
Gross Square Footage +
Home Buyers’ Plan +
Home Equity Line of Credit +
Home ownership program +
Interest +
Land Registry +
Mortgage +
Mortgage Deed +
Mortgage Insurance +
Net Square Footage +
Open Mortgage +
Preliminary Contract (purchase promise) +
Principal +
Term +
Transfer Tax (welcome tax) +
Undivided Co-Ownership +
Variable-Rate Mortgage +
Variable-Rate Mortgage +
Warranty Plan +

Adjustment Sheet

Sheet that details the balance due and additional costs, including condo fees and contribution to the condo’s working capital fund, which need to be given to the notary at the signing of the deed of sale.

The time required to repay the loan in full. 

The building manager’s role is to oversee all the functions of a building (e.g. maintenance, collect condo fees, respond to emergency calls, etc.) They are supervised by the condo association board of directors.

The location certificate is a document, comprising a report and a plan, that is drawn up by a surveyor and gives details regarding the property titles, the land registry, and the laws and regulations that may affect it.

A closed mortgage must be repayed with constant payments. However, financial institutions allow a certain percentage of the loan to be repaid each year without penalty.

A board of directors made up of elected owners whose mandate is to represent the interests of all owners as well as oversee the building manager. 

Fees paid by all condo owners, usually on a monthly basis, that cover costs related to building maintenance and upkeep (e.g. landscaping, maintenance of common areas, etc.) as well as contingency funds.

Reserve fund allocated for general work as well as major repairs to common areas of the building.

Notarized document which includes the rules of the building, identifies the common areas and the private ones, as well as a quote for the condo fees to be payed and the number of votes needed at general meetings.

Notarized document that makes the sale of a property official.

The divided co-ownership includes the private areas that are for the exclusive use of condo owners (the interior of their condo) and the common areas that belong to all owners such as hallways, the terrace, etc. 

Initial amount deposited by the purchaser of a property. This amount is deducted from the sale price to determine the mortgage loan. The down payment is a percentage (e.g. 5%, 10%, 20%) of the price of a property.

Mortgage loan where the interest rate is fixed for a predetermined period (e.g. 3% for a period of 5 years). 

Official gathering (usually on an annual basis) of all condo owners or their representative. The owners may decide on building rules and regulations, as well as hold an election to choose a condo association board of directors for the building.

Total area including half of the interior walls and the total thickness of the exterior wall. According to the Quebec standard, this measurement is used when a condo is sold by the plan. 

The Home Buyers’ Plan (HBP) is a financing option for the down payment that permits future homeowners to withdraw up to $25 000 in any calendar year from their Registered Retirement Savings Plan (RRSP), no withholding tax, to buy or construct a home. 

A very flexible type of loan used to finance other purchases. Only those owners who borrowed less than 80% of the value of their property can benefit.

Municipal program that gives financial assistance to first-time buyers (who meet certain criteria) of new property. The criteria are based on the purchase price and the number of people who will live there.  

An amount paid on top of the principal of the mortgage loan. It is applied as an annual percentage of the loan. 

Public registry that identifies all property lines within a municipality using a unique number.

Contract on a property, in an amount equal to the loan, which guarantees the financial institution loan repayment. 

Notarized document confirming a mortgage for buying a property. 

Insurance provided by the CMHC (Canada Mortgage and Housing Corporation) that allows reimbursement for the financial institution should the buyer not be able to meet their obligations. It is required if the down payment is less than 20%.

Total area indicated on the location certificate and calculated by a surveyor, from the inside walls out to and excluding the interior columns (if applicable).

An open mortgage allows for total repayment of the principal at any time prior to maturity, without any penalties.

Contract between two parties (the buyer and the seller) that defines the obligations of the buyer and seller. It also constitutes the buyers intention to buy the property. This contract is required by the Civil Code of Québec.

The amount of money that is borrowed for a loan.

Period in which the interest rate, the type of loan and the payment terms are in effect (e.g. 5 years). 

A municipal tax, applied by most municipalities in Québec, when a new property is purchased.

Each owner has a share in the entire building but no owner can claim any area of the building to be theirs.

Mortgage loan where the interest rate varies according to the market conditions.

Mortgage loan where the interest rate varies according to the market conditions.

A warranty that covers the completion of construction work, repairs for defects during the first year, hidden defects for the first three years and major defects for up to five years.