If you’re buying a home for the very first time, the process may seem a little daunting. After all, buying a home is probably one of the biggest investments you’ll ever make. It helps to have a REALTOR® on your team — someone who speaks the language of real estate very well. I have provided below a couple of real estate terms and definitions to help you along the way in buying or selling your home.
Equity: The difference between the price for which a home can be sold and the mortgage(s) on the property. Equity is the owner’s “stake” in a property.
Lien: Any legal claim against a piece of real estate, filed to ensure payment of a debt.
Vendor-Take-Back Mortgage: When sellers use their equity in a home for sale to provide some or all of the mortgage financing in order to sell the property.