Cash to Mortgage:
When buyer assumes the outstanding principal amount of the existing mortgage on a property and pays the balance of the purchase price in cash.

Certificate of Location:
A document specifying the exact location of the property and describing the type and size of the house including additions.

Certificate of Search:
A document verifying the transactions registered against the property ­ e.g. mortgages, sales, etc.

Client:
The person being represented by an agent.

Closed Mortgage:
A mortgage that cannot be prepaid, renegotiated or refinanced during its term, except with compensation or breakage costs.

Closing:
The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met, and the deed to the property is transferred from the seller to the buyer.

Closing Costs:
Expenses in addition to the purchase price for buying and selling a property. Standard closing costs include adjustments for prepayment of taxes, utilities and condominium common expenses, if any, made by the vendor; property land transfer taxes; property insurance; and legal/notary fees.

Closing Date:
The date on which the title and keys to the property are transferred from the seller to the buyer and the money is paid.

CMHC (Canada Mortgage and Housing Corporation):
A Crown corporation providing information services and mortgage loan insurance.

Commission:
An amount agreed to by the seller and the real estate broker/agent and stated in the listing agreement. It is payable to the broker/agent on closing and shared, if applicable, among those salespeople involved in the sale.

Commitment:
A pladge, promise or affirmation of agreement which is binding in law.

Common Elements:
The portions of a condominium development owned in common (shared) by the unit owners.

Compensation:
Payment or reward for performance of service.

Conditional Offer:
An offer to purchase subject to specified conditions. These conditions could be the arranging of a mortgage, a satisfactory inspection, or the selling of a present home. A time limit in which the specified conditions must be met should be stipulated in the offer to purchase.

Condominium:
Shared ownership in property. Owners have title (owner-ship) to individual units and a proportionate share in the common elements.

Convertible Mortgage:
A fixed rate mortgage which offers the same security as a closed mortgage, but which can be converted to a longer, closed mortgage at any time without penalty.

Contract:
A legally binding agreement between two or more capable persons for consideration or value, to do or not to do some lawful and genuinely intendent act. If for the sale of real estate, it must be in writting. All contracts are affected by the law of contract.

Counter Offer:
One party's written response to the other party's offer during negotiation of a real estate purchase between buyer and seller.

Covenant:
An agreement contained in a deed and creating an obligation. It may be positive, stipulating the performance of some act. It may be negative or restrictive, forbidding the commission of some act.

CREA (Canadian Real Estate Association):
A national association representing the real estate industry on federal public policy matters, providing member services and education.