Glossary

Getting accustomed to real estate terminology can sometimes feel like learning a whole new language. To help, we created a glossary of both Ourboro specific and general real estate terms. With some help from definitions, real-world examples, and context around why each term is important, you’ll be fluent in no time.

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  • a

  • The amortization period is the length of time it will take a homeowner to pay off their mortgage, including interest.... Read More

  • b

  • Beneficial interest is defined as an individual's right to benefit from a property or asset, regardless if they are... Read More

  • c

  • A closed mortgage means that the terms a homeowner agrees to when they sign their mortgage contract can not change... Read More
  • Closing costs are the various legal and administrative costs paid at the time of purchase and sale of a home.  Read More
  • A co-investment is the name given to both the homebuyer’s and Ourboro’s down payment contributions towards, or... Read More
  • The Complimentary Home Maintenance Program gives Ourboro co-owners access to professional home maintenance on a regular... Read More
  • Co-ownership, also known as shared ownership, is when one or more parties enter an agreement to buy and own a property... Read More
  • A co-ownership agreement is a legal agreement between all co-owners of a property. This agreement establishes the rights... Read More
  • A credit check is a process used to determine an individual’s creditworthiness. Read More

  • d

  • A down payment is the amount of money a homebuyer puts towards purchasing their home on closing day, while their... Read More

  • e

  • In traditional real estate, equity is the value of the homeowner’s ownership share in the property. Read More

  • f

  • Fair market value is the price that a buyer and seller agree to for a given asset or property. Read More
  • A fixed rate mortgage has an interest rate that will remain the same over the mortgage term. Read More
  • Future value is a financial concept that refers to the value of an asset at a specific point in the future, given a... Read More

  • g

  • A guarantor is someone who agrees to pay a mortgage or loan if the original borrower cannot, usually because they do not... Read More

  • h

  • The Homeowner’s Advance Fund (HAF) is a pool of funds set aside for Ourboro homeowners to withdraw from when they may... Read More

  • i

  • An inspection condition is a clause included in an Agreement of Purchase and Sale that states that the offer is... Read More

  • j

  • Joint tenancy is a form of co-ownership, used when two or more individuals have equal ownership rights and obligations... Read More

  • k

  • Knob and tube wiring is a type of electrical wiring that was widely used until the 1940s. Read More

  • l

  • A landlord is someone who owns and rents out real estate - such as homes, condos, apartments, and land - to tenants with... Read More
  • A real estate listing is a detailed description of a property that is for sale, including information such as the... Read More

  • m

  • A mortgage is a loan used to purchase or refinance a property with the property itself serving as collateral on the... Read More
  • ​​A mortgage broker acts as an intermediary between the homebuyer receiving the mortgage and the mortgage lender.  Read More
  • A mortgage pre-approval is a process in which a lender evaluates a potential borrower's creditworthiness and confirms... Read More
  • A mortgage principal repayment is the amount paid by the co-owner towards their mortgage principal that is returned to... Read More

  • n

  • Negative amortization occurs when the monthly payments a homeowner makes toward their mortgage are not enough to cover... Read More

  • o

  • An open mortgage is a mortgage that allows repayment of the principal loan amount at any time, without penalty. Read More

  • p

  • Professional Co-ownership is a form of co-ownership but, instead of being between two or more individuals, it is formed... Read More

  • q

  • Qualifying ratios are benchmarks used by lenders to determine the maximum amount of debt a borrower can take on,... Read More

  • r

  • Real estate agents help clients that are looking to buy or sell property. Read More
  • A Renovation Credit is the amount paid back to a co-owner from the property’s sale proceeds to cover expenses paid when... Read More

  • s

  • Sale proceeds are the money that a seller receives from the sale of a home. Read More
  • When selling a property co-owned with Ourboro, closing costs are generally the co-owner’s responsibility. Read More

  • t

  • A property’s title is the legal way of saying who owns the property and has the rights to it. Read More

  • u

  • Underwriting is the process a lender takes to assess the risk associated with approving a mortgage loan application. Read More

  • v

  • A variable rate mortgage is a mortgage with an interest rate that may change periodically, based on the market conditions. Read More

  • w

  • A walkthrough is one of the last steps a buyer will take before they close on their new home. Read More

  • x

  • The X-factor is a unique or intangible quality that a property has, setting it apart from others on the market. Read More

  • y

  • Yield is a key metric used by real estate investors to evaluate the return on investment of a property. Read More

  • z

  • Zoning refers to the permitted uses of land in a specific area, as well as any applicable restrictions or requirements... Read More