February 5, 2025

Real estate glossary: Terms you need to know

Navigating the real estate world in Canada can sometimes seem complex. It’s easy to get lost among all the technical terms, abbreviations and legal concepts—especially if you’re new to the field. This complete real estate glossary has been designed to help you better understand real estate jargon in Canada.

Whether you’re a first-time buyer , seller , tenant or simply curious, here you’ll find clear definitions with contextualized examples to help you navigate the world of real estate with confidence.

Financial terms
Terms related to the real estate journey
Documentation and legal terms
Real estate professionals
Property-related terms
Mastering real estate vocabulary to navigate your real estate project with confidence

Financial terms

Discover all the terminology related to the financial side of a real estate transaction.

Bank approval or final approval:

Bank approval is the agreement of a financial institution to grant a loan, usually a mortgage , after analyzing the applicant’s financial situation, including income, debts, credit history and the value of the property.
Example: Mary wants to buy a house for $350,000. The bank approves a $280,000 loan, provided she pays a down payment of $70,000.

Amortization:

Amortization is the time you take to repay the entire loan, usually in monthly payments or weekly payments, which cover the principal and interest. Most mortgages are amortized over 25 years.
Example: For a 25-year loan, a portion of the first payments will go mostly to paying the interest, while over the years a larger portion will repay the principal.

Credit score:

A credit score evaluates an individual’s creditworthiness based on their financial history. It helps financial institutions determine the risk of lending money. A high credit score indicates a good ability to repay.
Example: Before buying a condo, Marc checks his credit score to meet the bank’s criteria.

Borrower:

A borrower is someone who receives a loan and undertakes to repay it with interest, under specific conditions.
Example: The borrower signs a mortgage loan to buy a home and agrees to repay the loan.

Credit check:

A credit check , or pre-rental screening, is a verification of an individual’s financial history. It is used to assess their ability to repay a debt or comply with a lease.
Example: A landlord carries out a credit check on a potential tenant before accepting them for their apartment.

Equity:

In real estate, equity represents the net worth that an owner holds in their property, i.e., the difference between the market value of the property and the remaining balance of the mortgage or associated debts.
Example: Marie owns a house valued at $400,000 and has $250,000 left to repay on her mortgage. Her home equity is therefore $150,000.

Capital gain:

Capital gain is the profit realized when an asset, such as a property, is sold at a price higher than what it was bought for. This gain is generally taxable, with some exceptions, such as in the sale of a principal residence.
Example: Paul bought a condo for $200,000 and sold it 5 years later for $250,000. His capital gain is therefore $50,000. If it was his principal residence , this gain is not taxable.

Credit history:

A credit history is a record of an individual’s financial habits, which lenders use to assess their creditworthiness.
Example: Before approving Julien’s mortgage loan, the bank consults his credit history, which shows regular payments.

Mortgage or mortgage loan:

A mortgage is a loan secured by a property, such as a house. The borrower undertakes to repay the loan amount with interest over a specified period. If the borrower fails to meet the repayment terms, the lender can seize the property to recover the money owed.
Example: Caroline takes out a $300,000 mortgage to buy a house. She undertakes to repay the loan over 25 years, with monthly payments covering both the principal and interest.

Down payment:

A down payment is a sum paid in advance when buying a property, usually a percentage of the purchase price.
Example: When Lucie bought her $400,000 home, she paid an $80,000 down payment before obtaining a loan to cover the rest.

Pre-approval:

Pre-approval is a process whereby a bank or lender assesses a borrower’s ability to obtain a loan before they find a property. This involves checking their finances, income and credit. A pre-approval gives a clear idea of how much a borrower can afford to spend.
Example: Before looking for a home, Marc gets pre-approval for a $300,000 mortgage, thus determining his budget.

Discharge:

A discharge is an official document issued by a creditor (such as a lender or owner) confirming that a debt has been fully repaid. In real estate, it is often used to declare that a mortgage loan or rent amount has been fully paid.
Example: After repaying his entire mortgage, Michel receives a discharge from his bank , certifying that the balance of the loan has been settled and that the debt has been closed.

Accelerated payment:

An accelerated mortgage payment involves choosing a shorter instalment frequency—if offered by the lender—which reduces the total interest and the amortization period.
Example: Roger took out a mortgage with monthly payments of $1,500. Wanting to repay his loan more quickly, he opted for accelerated payments of $750 every two weeks. Thanks to this method, Roger makes an additional monthly payment each year, reducing the total term of his mortgage and the interest paid over the long term.

Penalty:

A penalty is a sum that the borrower must pay in the event of non-compliance with the terms of a contract, such as an unauthorized prepayment.
Example: Léa has accepted a job offer abroad and has to sell her house quickly. By repaying her mortgage before the end of the term, she faces an $800 penalty imposed by the bank.

Prepayment:

Prepayment is the spontaneous payment of some or all of a loan before the scheduled maturity date. It may result in penalties, as specified in the contract.
Example: Amélie inherited a large sum and decided to repay her mortgage five years before the end of the term. While this action spared her from paying interest over the long term, her bank imposed a $2,000 penalty for the prepayment.

Mortgage insurance:

Mortgage insurance is a type of insurance that protects the lender in the event of default by the borrower. Mortgage insurance is mandatory when the borrower puts less than 20% down on the purchase of their home.
Example: Marie bought her first home with a 10% down payment. Due to the low down payment, she purchased mortgage insurance from CMHC to protect her lender.

Mortgage renewal:

Mortgage renewal occurs at the end of the initial term of a mortgage loan, when the borrower must either renew their loan with their current institution, negotiate new terms or change lender. This makes it possible to adjust interest rates, terms and other conditions according to the borrower’s current financial situation and the market conditions.
Example: At the end of his mortgage term, Mathieu compared the offers and got a better mortgage rate.

Open or closed term:

The term of the loan is the period during which your mortgage contract is in force. Amortization covers the entire loan repayment period, often 25 years, while the term is usually two, three or five years, for example. An open term allows the borrower to repay the loan at any time, without penalty, offering more flexibility. By contrast, a closed term limits prepayments and imposes penalties, but generally offers a lower interest rate.
Example: Alana opts for an open term because she plans to sell her house in a few years.

Terms related to the real estate journey

Learn more about the terminology used when searching, selling or renting a property.

QPAREB:

The mission of the Quebec Professional Association of Real Estate Brokers is to support, train, inform and defend the interests of members, while promoting and developing the practice of real estate brokerage. The QPAREB also works to promote the profession, protect consumers and maintain the credibility of the Quebec real estate market.
Example: Marie, a real estate broker, is a member of the QPAREB. Thanks to the association, she benefits from ongoing training, professional tools and legal support to better support her clients and stay up to date on trends in the Quebec real estate market.

Home insurance:

Home insurance protects against loss due to damage or destruction of property, covering risks such as fire, theft or water damage.
Example: Before moving into her new home, Sophie takes out a home insurance policy that covers the risks of fire, theft and damage caused by bad weather, thus offering financial protection in the event of a disaster.

Lease:

A lease is a legal contract between an owner (lessor) and a tenant that sets out the conditions for renting a property. It specifies the duration of the lease, the amount of rent, the responsibilities of the tenant and the landlord, as well as other important conditions.
Example: In order to rent an apartment, Emma signs a one-year lease with the apartment’s owner. This lease indicates the amount of monthly rent, the rules regarding repairs and the renewal policy at the end of the contract.

Centris:

Centris is a technology company specializing in real estate. It offers the website Centris.ca, an online platform for searching and publishing real estate listings in Quebec. The platform includes residential and commercial properties and is used by real estate brokers to advertise offers on the market.
Example: Julie uses Centris.ca to search for houses for sale in the Montreal area . She creates an account and compares the prices of different houses, saves the property sheets and shares her favourites with her real estate broker.

Comparable:

A property sold in the same area as a property for sale with similar characteristics.
Example: Pierre’s real estate broker consults comparable properties in his client’s neighbourhood to help determine a competitive price .

Counter-offer:

A proposal made in response to an initial offer , generally to modify certain conditions, such as the price or the terms of the contract. A counter-offer may be accepted, rejected or even lead to a new negotiation.
Example: After receiving an offer to purchase, the seller makes a counter-offer by increasing the sale price by $10,000.

Real estate brokerage:

Real estate brokerage refers to the activity of connecting buyers and sellers of real estate, with the aim of facilitating the transaction. The real estate broker, whether specialized in selling or renting, acts as an intermediary, offering advice, property valuation and support services throughout the sale or purchase process.
Example: Claire decides to sell her house and contacts a real estate broker to help her. The broker explains the various steps of the sale process, assesses the property, and lists the property online on Centris.ca to attract potential buyers.

Declarations by the Seller:

The Declarations by the Seller is a document in which the seller provides information on the condition of the property, including known problems and improvements made.
Example: Before selling his house, Marc completes the Declarations by the Seller form, mentioning the recent renovations done to the roof. This gives the buyer a clear idea of the condition of the property before making a decision.

Market valuation:

A market valuation is an estimate of the value of a property on the real estate market. It is based on factors such as location, size, condition of the property, prices of comparable properties and local market conditions.
Example: Before putting her house up for sale, Claire asks a real estate broker for a market valuation. The broker analyzes recent sales in the neighbourhood and suggests an estimated price of $350,000 for her property.

Municipal assessment:

A municipal assessment is the value assigned to a property by a municipality to calculate property taxes. It is based on objective criteria such as the size, location and characteristics of the building, but may differ from the market value.
Example: Sophie owns a house valued at $250,000 by the municipality in 2020. After Sophie added an in-ground pool and renovated the kitchen, the municipality conducted a new assessment in 2024, valuing the property at $300,000.

Exclusions and inclusions:

In real estate, inclusions refer to items or conditions included in a sale, such as appliances or lighting, while exclusions specify what is deliberately omitted, such as certain furniture or equipment. These details are formalized in the sale contract or the Declarations by the Seller form.
Example: When selling her home, Sophie specifies that all household appliances, such as the fridge and stove, are included in the transaction, while the pergola is excluded, as it will be removed before the sale.

Home staging:

Home stagingis a decorative process aimed at showcasing the advantages of a property with a view to selling it more quickly and at a better price.
Example: Before selling her apartment, Caroline hires a home staging professional who reorganizes the furniture, adds neutral accessories and repaints the walls with light colours. This makes the space more welcoming and attracts more buyers during showings.

Pre-purchase inspection:

The pre-purchase inspection is a complete examination of the visible and accessible components of a property carried out by a building inspector prior to purchase.
Example: Thomas makes a purchase offer conditional on a pre-purchase inspection. During the inspection, major cracks are discovered in the foundations, enabling him to renegotiate the price or withdraw his offer.

Leasing with an option to purchase:

Leasing with an option to purchase (rent-to-own) is a contract that allows a tenant to rent a property with the possibility of buying it at the end of the lease under terms previously agreed to between the parties.
Example: Sophie signed a rental agreement with an option to purchase for a house that she has been renting for two years. Thanks to this agreement, she will be able to buy it at a predetermined price when she is ready to become a homeowner.

Tenant:

A tenant is a person or entity who rents real estate, such as an apartment or a house, from an owner (landlord) in exchange for paying rent. The tenant has the right to use and enjoy the property during the term of the lease, subject to compliance with the terms of the rental agreement.
Example: Sophie rents an apartment and pays rent to the owner of the building.

Landlord:

A landlord is the owner of a property that they lease to a tenant. The landlord is responsible for maintaining the property and must ensure that it is in good condition for rental. The landlord receives the rent from the tenant and may establish the terms of the rental agreement.
Example: Pierre is the landlord of a residential building. He receives the monthly rent from the tenants and pays a mortgage on the property. He is responsible for maintaining the building.

Short-term rental:

Short-term rental refers to the leasing of real estate for a relatively short period, usually from a few days to a few months. This type of rental is often used for holidays or temporary stays.
Example: Sarah rents an apartment in Montreal for two days to attend a convention as part of her work.

Long-term rental:

Long-term rental involves an agreement to lease a property for a long period, often for 12 months or more.
Example: Marc signs a 12-month lease to rent an apartment, with a commitment to pay monthly rent, and the landlord must maintain the property in good condition.

Rent:

Rent is the amount of money that a tenant periodically pays to a landlord in exchange for the use of real estate, such as an apartment or a house. The amount of rent is generally agreed at the start of the lease and is normally paid monthly.
Example: Each month, Claire pays her landlord $1,200 in rent for the apartment she occupies.

Marketing:

Marketing includes all the actions to make a property available for sale or rental, while promoting it to potential buyers or tenants.
Example: Jean hired a real estate broker to market his apartment. The broker takes professional photos, writes an attractive description, and creates a property sheet on Centris.ca to maximize its visibility.

OACIQ:

The OACIQ is the body that regulates and supervises the profession of real estate broker in Quebec and ensures the protection of the public. It provides training, ensures that brokers comply with ethical and professional standards, and issues the necessary licences to brokers to operate legally.
Example: Before starting work as a real estate broker, Marc must obtain his licence from the OACIQ, which verifies that he has completed the appropriate training and complies with the legal requirements of the profession.

Average sale price:

The average sale price is the average amount at which properties sell in a given market over a specific period of time. It is calculated by dividing the total sum of sales by the number of properties sold, providing a general indication of the value of the properties in the area.
Example: In a given neighbourhood, the average sale price of houses over the past six months is $350,000, which gives a general idea of the price at which houses are sold in that area.

Median sale price:

The median sale price is the price that divides the property market into two equal parts: half of the properties were sold at a higher price, and the other half at a lower price. Unlike the average sale price, the median price is not influenced by extreme sales, making it a more accurate indicator of market value.
Example: In one neighbourhood, the sale prices of the five homes sold recently were $250,000, $300,000, $350,000, $400,000, and $1,000,000. The median sale price is $350,000, as it is the price in the middle of this distribution.

Listing:

A listing is the term used for an advertisement or registration of a property for sale or rent, usually on an online platform or in a real estate directory. It includes details about the property, such as its description, price, location, photos, and other relevant information.
Example: Claire’s real estate broker publishes a listing of her house on Centris.ca. The advertisement includes photos, a description of the property and the asking price, making it easy for potential buyers to find the information.

Inspection report:

The inspection report is a document that describes the condition of a property after an inspection, identifying defects and problems to be repaired.
Example: An inspection report of a house identifies cracks in the foundations, enabling Sophie to negotiate a lower price.

Remuneration:

Remuneration is the compensation that a real estate broker receives for their services, usually in the form of a commission on the sale or lease of a property.
Example: Julie, a broker, helped a client to close the sale of their house. Her remuneration is a percentage of the house’s sale price.

Rental income:

Rental income corresponds to all rents received by an owner in exchange for renting their property(ies), whether it is a residence, commercial premises or a building.
Example: Paul’s rental income from renting out his duplex covers his mortgage payments and generates a surplus each month.

Tribunal administratif du logement (TAL):

The TAL is a government body in Quebec responsible for resolving disputes between tenants and landlords on matters such as rent increases, lease terminations and repairs.
Example: Marie filed an application with the Tribunal administratif du logement to challenge a rent increase that she considered unreasonable.

Welcome tax:

The welcome tax , also known as property transfer duties, is a sum payable to your municipality when you purchase a property. This tax helps fund various public services, such as road maintenance, parks, infrastructure, and more.
Example: Safia bought a property in Montreal for $535,000. She will have to pay $6,258 as a welcome tax.

Municipal taxes:

Municipal taxes are annual amounts imposed by a municipality on property owners to pay for local services, such as road maintenance, waste collection, public safety and infrastructure.
Example: Julien’s municipal taxes on his home are $3,200 this year, including water services and sewer charges.

School taxes:

School taxes are amounts collected annually from property owners to fund school boards and educational services offered in their region.
Example: Mélanie’s school taxes for her duplex are $850 this year, helping to fund local schools.

Documentation and legal terms

Buying, selling or renting real estate involves legal obligations. Below are the most common legal terms in real estate in Canada.

Deed of sale:

Official document signed during the real estate transaction, transferring ownership of a property from the seller to the buyer. It details the terms of the sale, the price and the information relating to the property.
Example: When the deed of sale is signed with the notary, Marc officially becomes the owner of the house that he purchased.

Cadastre:

The cadastre is an official register that contains detailed information on land properties, such as land boundaries, surface areas, owners and tax values. It is used to identify, locate and value real estate for tax and legal purposes.
Example: Before buying a property, Julie consults the land register to check the exact boundaries of the lot and ensure that there are no conflicts with neighbouring properties.

Certificate of location:

A certificate of location is a document prepared by a land surveyor that specifies the exact dimensions of a property, its boundaries, and the construction’s compliance with municipal by-laws. The certificate is often required when selling a property to confirm that the property complies with zoning and construction standards.
Example: When selling her house, Isabelle must provide a certificate of location to prove that the house is built within the boundaries of her lot and complies with the city’s by-laws.

Real estate brokerage contract:

A real estate brokerage contract is a legal agreement between a real estate broker and a client (buyer, seller, tenant) that defines the services that the broker will provide. This contract also specifies the broker’s remuneration, usually in the form of a commission on the sale or lease of a property.
Example: Marie signs a real estate brokerage contract with a broker to sell her house.

Legal warranty:

A legal warranty is a protection offered by law, from the seller of a property to the buyer, covering hidden defects. However, the seller may choose to sell without legal warranty , for example in the event of succession.
Example: When buying his condo, Marc benefits from the legal warranty that protects against hidden defects. If, a few months after the purchase, he discovers problems with humidity and mould in the walls, he can ask the seller to compensate him, as these defects were present but not visible at the time of the sale.

Promise or offer to purchase:

A promise to purchase is a legal document in which a buyer offers to purchase a property at a certain price and under specific conditions. If the seller accepts this promise, it becomes a binding contract. This document often includes conditions, such as financing approval or inspection of the property.
Example: Julie submits a promise purchase on a house she wishes to buy. She offers a price of $350,000, provided that the inspection reveals no major problems. If the seller accepts, the promise becomes a conditional promise to purchase.

Conditional promise to purchase or CPP:

A conditional promise to purchase , commonly referred to as a CPP, is an offer to purchase that includes specific conditions that must be met before the transaction is completed, such as obtaining financing, conducting a satisfactory inspection, or the sale of the buyer’s current property. If these conditions are not met, the buyer may withdraw without penalty.
Example: Marie makes a conditional promise to purchase for a home, subject to obtaining a mortgage loan and conducting a satisfactory pre-purchase inspection. If the inspection reveals major problems or if Marie is unable to obtain financing, she can cancel the purchase at no cost.

Encroachment:

Encroachment occurs when a structure or part of a building (such as a wall, fence or garage) exceeds a property’s boundaries and encroaches on a neighbouring lot. This can lead to conflicts between owners and sometimes requires adjustments or legal remedies.
Example: Jean notices that his neighbour has built a garage that slightly encroaches on his lot. This encroachment will have to be settled legally, either through an amicable agreement or in court to define the rights of each owner.

Land register:

The land register is a public register that records information about real estate properties, such as the title deeds, mortgages and servitudes, ensuring the security of transactions.
Example: Before Claire purchased a house, her notary consulted the land register to verify that there were no legal encumbrances or issues associated with the property.

Property assessment roll:

A document containing municipal valuations of all properties in a municipality for taxation purposes.
Example: Marie consults her city’s property assessment roll to find out the estimated value of her property, allowing her to check how much property tax she will have to pay.

Servitude:

A servitude is an encumbrance imposed on a property, the servient land, in favour of another property or person, the dominant land. Common servitudes include the servitude of right of way and servitude of view.
Example: Paul and Sophie are neighbours. Paul wants to enlarge his house by adding a large panoramic window on the wall facing Sophie’s property. However, this window could overlook directly onto Sophie’s private courtyard, potentially impacting her privacy. To resolve the situation, Paul and Sophie establish a servitude of view, which will be recorded in the title deeds.

Title deed:

The title deed is a legal document that proves that a person is the legal owner of a property. It contains information about the property, such as its location, boundaries and associated rights.
Example: Before signing the deed of sale, the notary verifies the title deed to ensure that there are no outstanding mortgages or disputes over the property.

Apparent defect:

A visible defect in a property, which the buyer or a building inspector can observe during a visit.
Example: During the showing, Marc notices cracked tiles on the roof. This apparent defect should be considered before purchasing the property.

Hidden defect:

A hidden defect is a non-apparent defect in property, existing before the sale, which makes the use of the property difficult or impossible and which has not been disclosed by the seller.
Example: After buying her home, Sophie discovered a crack in the foundation hidden behind a finished wall. This hidden defect results in water infiltration and requires costly repairs.

Real estate professionals

A real estate transaction often involves several professionals, each playing a key role in the smooth process of the sale, rental, or purchase.

Land surveyor:

A professional specializing in land measurement, verifying property boundaries and preparing certificates of location.
Example: Before selling his house, the seller hires a land surveyor to obtain a certificate of location. During the review, the surveyor discovers a servitude on the neighbouring property that allows a third party to pass through part of the land. The seller informs the buyer of this servitude so that they are fully aware of it before finalizing the sale.

Listing broker:

A listing broker is a real estate professional responsible for listing properties for sale on a website, such as Centris.ca. They represent a seller and are responsible for marketing the property, including creating the advertisement, managing showings, negotiating offers, and monitoring the transactions. Their primary role is to ensure that the property is well presented and available to potential buyers, while complying with real estate regulations.
Example: Louise wants to sell her house and enlists a broker to help her. The broker creates the advertisement, ensures that all information is accurate and lists the property on Centris.ca so that it is visible to as many potential buyers as possible.

Collaborating broker:

A collaborating broker is a real estate broker who represents a buyer interested in a property to help them complete the real estate transaction.
Example: Jean is a collaborating broker and works with another broker to help a buyer find a property. When a house matching the buyer’s criteria is found, Jean works with the seller’s broker to arrange a showing and negotiate the offer, ensuring that both parties are well represented and that the transaction goes smoothly.

Mortgage broker:

A mortgage broker is a professional who helps borrowers secure financing for the purchase or refinancing of a property. They act as an intermediary between clients and financial institutions (banks, caisses populaires, private lenders).
Example: Marc wants to buy his first home, but he is not sure which financial institution would offer him the best rate. He uses a mortgage broker, who analyzes his financial situation, compares the offers of the various banks, and presents him with several advantageous financing options.

Building inspector:

A building inspector is a qualified professional who assesses the general condition of a property as part of a real estate transaction. Their role is to check the structure, systems (plumbing, electrical, heating, etc.) and any other visible elements of the building to ensure that there are no major defects that could affect the safety or value of the property.
Example: When buying a house, Sophie hires a building inspector to carry out a full inspection of the property. The inspector discovers that the roof requires major repairs. This information enables Sophie to negotiate the sale price.

Notary:

In real estate, the notary plays a key role in drafting the deed of sale and the mortgage deed and ensures that the transaction complies with all legal requirements.
Example: When buying his house, Thomas consults a notary to formalize the transaction and sign the deed of sale. The notary ensures that all documents are in order and that the property can be legally transferred to the new owner.

Property-related terms

In this section, we will explore the essential terms related to property and its components, to help you better understand the key concepts when buying, selling, or updating your property.

1½, 2½, 3½:

Term for an apartment, the first digit of which indicates the number of rooms, excluding the bathroom, which is indicated by the “½”.
Example: A 2 ½ consists of a main room (living room) and a bedroom, with a kitchen or a bathroom.

Drain field:

An area of land where sewage from a septic system is filtered and treated before being discharged into the environment. It is important that this area is well maintained to avoid soil and water contamination.
Example: Before buying a house in the countryside, Julien ensures that the drain field is located far from any source of drinking water and that it complies with environmental standards to avoid any pollution problem.

Water heater:

An apparatus used to heat water in a home, enabling the supply of hot water for cooking, showers and other household needs. There are electric, gas or heat pump models.
Example: When Sophie called the insurance company to update her file, she learned that some insurance policies do not cover water heaters that are more than 10 years old in case of failure. She therefore decides to replace it quickly to avoid any problems with her insurance coverage.

Turnkey:

Term for a house that is fitted out and ready to be inhabited. This means that the buyer can enter the house as soon as the keys are handed over, without having to carry out any additional renovations or install amenities.
Example: Marc and Claire are hesitating between a turnkey home, which is ready move into but expensive, and another home to renovate, which is more affordable but requires time and effort.

Divided condo, condominium, or co-ownership:

A type of co-ownership where each owner owns their unit exclusively, but also has a share of the common areas such as the land, corridors and communal facilities. The management and maintenance costs of the common areas are shared between the co-owners.
Example: When visiting a divided condo, Marie learns that the maintenance of the roof and outdoor spaces is shared between the co-owners and that a contingency fund is in place to cover these expenses. She is reassured to know that costs are shared and that there is a contingency fund to anticipate any repairs, ensuring proactive and sound management of expenses over the long term.

Undivided co-ownership:

Shared ownership between several individuals. The co-owners own an undivided share of a property. This means that they cannot physically separate the private portions of the building, but they share the entire property.
Example: Julie and Jacinthe decide to become owners and buy a duplex together. They share the entire building, with no formal division of each unit.

Cottage:

A holiday home, often located in a natural environment such as in the mountains, near a lake or in the woods. Cottages are generally used as a secondary residence.
Example: Claire and her husband bought a cottage in Mont-Tremblant, where they spend their winter holidays skiing and summer holidays relaxing on the patio.

French drain:

An underground drainage system designed to drain excess water around a building. A French drain is often installed around foundations to prevent moisture problems in basements.
Example: Before finalizing the purchase of a house, the building inspector recommends installing a French drain around the basement to avoid any water infiltration during the wet months.

Septic tank:

A septic tank is an individual sewage system used to treat wastewater from a house that is not connected to the municipal sewer system. It separates solids, liquids and fats, while breaking down organic matter via natural bacteria.
Example: When they bought their country house, Julie and Marc discovered that the property was not connected to the municipal sewer system. They therefore had the existing septic tank inspected to ensure it was functional and fit for their needs. They also plan to have it drained regularly to avoid any overflow or environmental problems.

Sump pump:

A sump pump is a device used to evacuate water, usually in a basement or garage, to prevent the accumulation of water or moisture.
Example: When they bought their new home, Julie and Marc had a sump pump installed in the basement to ensure water was discharged during heavy rains.

Pyrite:

In real estate, pyrite is a problem when present in the foundations of houses, as it can react with moisture and air and expand, causing damage to concrete structures, especially foundations.
Example: When buying a house, Marc discovers the presence of pyrite in the foundations by way of a specialized test.

Skylight:

A skylight is an opening often located on the roof or walls of a building, allowing natural light inside.
Example: Sophie’s kitchen has been equipped with a skylight to brighten up the room without having to add windows.

Income property:

An income property is a property that generates income, typically by offering several rental units.
Example: Jean bought an income property with four apartments, enabling him to finance his mortgage with the rents received.

Single storey or bungalow:

A single-storey house is a single-family home where all the spaces are on the same level, without a second floor.
Example: The single-storey house that Claire bought has large panoramic windows and an open layout with a lot of natural light.

Townhouse:

A townhouse (or row house) is a type of dwelling aligned with other houses, sharing party walls.
Example: As a first-time buyer, Thomas decided to buy a townhouse, which is cheaper than a detached property. This type of house is adjoined to two other units.

Mezzanine:

A mezzanine is an intermediate and partial platform installed in a high-ceiling room and often open to the rest of the house.
Example: The house that Sophie wants has a mezzanine, which is perfect for setting up her home office.

Semi-detached:

A semi-detached house is a dwelling connected to another by a single wall, often with similar styles and layouts.
Example: Sylvie has just acquired a newly built semi-detached house, perfect for her needs, as she did not want a large yard to maintain.

Retaining wall:

A retaining wall is a structure constructed to retain or contain masses of earth. It is mainly used on sloping terrain or in places where it is necessary to prevent erosion or landslides. This type of wall makes it possible to stabilize the ground and create usable flat areas, such as gardens, walkways or parking lots.
Example: Alejandro and Leïla bought a house perched on a beautiful sloping lot overlooking a lake. However, soil erosion caused by heavy rains threatened the access to their patio meaning they couldn’t make the most of their yard. To remedy this, they had a natural stone retaining wall built along the slope.

Iron ochre:

Iron ochre is an orange deposit caused by a chemical reaction between water, iron and certain bacteria in the soil. It can block a house’s drains, such as the French drain, causing water and moisture problems.
Example: When buying a house, Julie discovers that the French drain is clogged with iron ochre, causing moisture problems in the basement. She plans to get the necessary work done to correct the situation.

Common areas:

Common areas refer to spaces and facilities shared by all occupants of a building, such as entrance halls, stairs, lifts, corridors, car parks and gardens. These areas are under the collective responsibility of the co-owners or tenants and their maintenance is generally organized by a syndicate or property management company.
Example: In the building where Marie lives, the common areas include the main entrance, the staircase, the corridor leading to the apartments, and the garden at the back of the building. All these areas are maintained by the co-ownership syndicate and are accessible to all residents.

Private areas:

Private areas refer to the areas of a property that are reserved for the exclusive use of an owner or tenant. They generally include interior rooms such as bedrooms, living room, kitchen, as well as outdoor spaces such as a garden or patio, where these are specifically associated with the unit concerned.
Example: Jean’s condo includes private areas such as his bedroom, living room and balcony, which he has the freedom to arrange as he wishes. On the other hand, common areas, such as the entrance hall and stairs, are shared with other residents of the building.

Artesian well:

An artesian well is a borehole made in a pressurized groundwater table, which allows water to rise naturally to the surface or with minimal pumping. This type of well is often used to provide drinking water to homes located in rural areas or far from municipal water supply systems.
Example: Marc is considering buying a house with an artesian well. Before making a decision, he plans to have an inspection done to check the water quality and ensure that the pump is functioning properly. He also inquires about the annual maintenance required to guarantee safe drinking water at all times.

Ground floor:

The ground floor refers to the first floor of a building, located at ground level, directly accessible from the outside. It is often used for living spaces, such as living rooms, kitchens and offices.
Example: In Mary’s house, the ground floor includes a large bright living room, an open kitchen and a storage space. This floor is where she spends most of her time with her family.

Principal residence:

The principal residence is the accommodation where a person usually lives on a permanent basis. This is the address where an individual resides most of the year and where they have registered with the tax and administrative authorities.
Example: Claire and Louis live in a house in the suburbs, where they live all year-round with their children. This house is their principal residence because it is where they spend most of their time.

Secondary residence:

A secondary residence is a property that is not used as a principal residence, but serves as a place for holidays, relaxation or as an investment. It can be occupied temporarily during certain periods of the year, such as in summer or during holidays, and is generally not permanently inhabited.
Example: Isabelle and Paul bought a lakeside cottage where they spend their weekends and summer holidays. Although their main home is in town, this property allows them to relax away from the hustle and bustle of the city during their leisure time.

Shoebox:

Shoebox houses are modest-sized houses that began to appear in the 1960s, particularly in Montreal neighbourhoods such as Villeray, Parc-Extension and Saint-Michel. These houses, often single storey and rectangular, were designed to be economical and functional and were built with local materials. Their name comes from their compact, shoebox-like shape.
Example: Marco recently bought a shoebox house, which has retained its traditional elements over the years: two symmetrical windows with a central entrance door, a brick façade with a crown, and a small porch at the front.

Vermiculite:

Vermiculite is a mineral often used to insulate houses built before 1990, particularly in attics. However, some vermiculite insulation may contain asbestos, which poses a health risk if disturbed.
Example: During the inspection of her future home, Sarah discovered vermiculite in the attic. She had tests carried out to make sure it did not contain asbestos before finalizing the purchase.

Crawl space:

A crawl space is an unoccupied space, usually located between the ground and the ground floor of a house. This often narrow space is designed to protect the building structure from soil moisture, facilitate ventilation and allow access to mechanical or plumbing systems. Unlike a basement, it is not intended to be habitable.
Example: During the inspection of their new home, Emilia and Marc found that the crawl space was well ventilated and easily accessible, allowing them to check the plumbing and prevent any moisture problems.

Mastering real estate vocabulary to navigate your real estate project with confidence

Now that you are familiar with the key real estate terms, you can confidently navigate your buying, selling, or renting process. Of course, there are many other terms to explore, but these provide an excellent starting point for anyone looking to deepen their knowledge!