Buying or selling a home can feel easier when common real estate terms explained in plain language are part of the conversation from the start.
Real estate comes with many words that sound familiar but carry specific meaning.
Terms like subjects, deposit, completion, possession, strata fees, title, and market value can affect your timeline, your costs, and your confidence.
Here is a simple guide to help you understand the language before you make a move.
Why Real Estate Terms Matter
Real estate decisions move quickly.
When you understand the key terms, you can ask better questions, compare options more clearly, and feel more prepared before signing documents.
This is especially helpful for first-time buyers, sellers who have not moved in years, and anyone comparing different property types in Greater Victoria.
For more buyer guidance, visit:
https://www.fabergroup.ca/buy-with-us/
MLS
MLS stands for Multiple Listing Service.
It is the system REALTORS® use to list and share properties for sale. MLS listings usually include the price, property details, photos, room measurements, taxes, strata information if applicable, and showing instructions.
List Price
The list price is the asking price set by the seller.
It is not always the final sale price.
A home may sell below, at, or above the list price depending on market conditions, buyer demand, property condition, pricing strategy, and negotiation.
Offer
An offer is a written proposal from a buyer to purchase a property.
It usually includes:
- Purchase price
- Deposit amount
- Subject conditions
- Completion date
- Possession date
- Included items
- Terms and timelines
Once signed and accepted, the offer becomes a contract.
Subjects
Subjects are conditions that must be satisfied before the buyer is fully committed to the purchase.
Common subjects may include:
- Financing
- Home inspection
- Insurance
- Title review
- Property disclosure review
- Strata document review
- Sale of the buyer’s current home
Subjects give the buyer time to complete due diligence before moving forward.
Subject Removal
Subject removal is the point when the buyer removes their conditions in writing.
Once subjects are removed, the contract becomes firm.
This is an important step. Before removing subjects, buyers should feel comfortable with their financing, inspection, documents, insurance, and any other important review items.
Deposit
A deposit is money the buyer provides after an accepted offer, usually within the timeline written into the contract.
The deposit shows commitment to the purchase and is typically held in trust.
If the sale completes, the deposit forms part of the buyer’s purchase funds. If the buyer does not complete after the contract is firm, there may be serious legal and financial consequences.
Completion Date
The completion date is the day legal ownership transfers from the seller to the buyer.
This is also when the seller is paid and the buyer’s mortgage funds are advanced.
In most cases, the buyer does not receive keys on the exact moment of completion. That usually happens on possession.
Possession Date
The possession date is when the buyer gets access to the home.
This is the exciting day most people think of as moving day.
Completion and possession can happen on the same day, but they are often scheduled separately.
Adjustment Date
The adjustment date is used to calculate shared costs between the buyer and seller.
These may include property taxes, strata fees, utilities, rent, or other prepaid expenses.
For example, if the seller has already paid property taxes for the year, the buyer may reimburse the seller for the portion that applies after completion.
Title
Title refers to legal ownership of the property.
A title search can show important details such as ownership, legal description, registered mortgages, easements, covenants, rights of way, or other charges.
Reviewing title helps buyers understand what is registered against the property before completing the purchase.
Property Disclosure Statement
The Property Disclosure Statement, often called the PDS, is a form completed by the seller.
It provides information about the property based on the seller’s knowledge.
Buyers should review it carefully, but it should not replace inspections, document review, or professional advice where needed.
Appraisal
An appraisal is an estimate of a property’s value, often requested by a lender.
The lender may want to confirm the home supports the mortgage amount being requested.
An appraisal is different from a home inspection. It is focused on value, not the physical condition of every part of the home.
Home Inspection
A home inspection is a visual review of the property’s condition.
The inspector may review major systems such as the roof, foundation, plumbing, electrical, heating, exterior, attic, and interior components.
The goal is not to find a perfect home.
The goal is to understand what you are buying.
Strata
A strata property is a form of ownership often used for condos, townhomes, and some duplex-style homes.
When you buy a strata property, you own your individual unit and share responsibility for common property.
This may include hallways, elevators, roofs, landscaping, parking areas, exterior walls, or shared amenities.
Strata Fees
Strata fees are monthly payments made by owners in a strata corporation.
These fees help cover shared costs such as insurance, maintenance, landscaping, management, repairs, utilities, and contributions to the contingency reserve fund.
Lower strata fees are not always better. The key is whether the strata is collecting enough money to maintain the building properly.
Contingency Reserve Fund
The contingency reserve fund is money set aside by the strata for future repairs and major expenses.
A stronger reserve fund can help reduce the risk of sudden costs, but it should always be reviewed alongside the building’s age, maintenance history, depreciation report, and upcoming projects.
Special Levy
A special levy is an extra amount owners may need to pay for a specific expense.
This can happen when the strata needs to fund a major repair, upgrade, or shortfall.
Special levies are not always a red flag, but buyers should understand why the levy exists, how much it costs, and whether more costs may be coming.
Depreciation Report
A depreciation report is a planning document for strata properties.
It helps estimate future repair and replacement costs for common property items.
This may include roofs, windows, elevators, parkades, siding, plumbing systems, and other shared components.
It helps buyers understand the longer-term health of the building.
Market Value
Market value is what a buyer is willing to pay and a seller is willing to accept in the current market.
It is influenced by recent comparable sales, property condition, location, inventory, buyer demand, interest rates, and timing.
Market value is not always the same as assessed value.
Assessed Value
Assessed value is the value assigned by BC Assessment for property tax purposes.
It can be helpful context, but it does not always reflect current market value.
A property can sell above or below assessed value depending on recent sales and current buyer demand.
Closing Costs
Closing costs are the extra costs buyers should prepare for beyond the purchase price.
These may include:
- Property Transfer Tax, if applicable
- Legal fees
- Title insurance
- Home inspection
- Insurance
- Appraisal fee, if required
- Adjustments
- Moving costs
Before writing an offer, buyers should understand their full budget, not just the down payment.
Pre-Approval
A mortgage pre-approval gives buyers an early idea of what they may be able to borrow.
However, it is not a final mortgage approval.
Final approval usually depends on the property, lender review, appraisal if required, income verification, debt levels, and other financial details.
Firm Sale
A firm sale means all conditions have been removed or there were no conditions in the offer.
At that point, both sides are expected to complete according to the contract.
This is why due diligence before subject removal is so important.
Why Clear Language Helps
Real estate should not feel confusing.
When real estate terms explained clearly become part of the process, buyers and sellers can make better decisions with less stress.
The right guidance helps you understand what each step means, what questions to ask, and what needs attention before you move forward.
For seller guidance, visit:
https://www.fabergroup.ca/sell-with-us/
Final Thoughts
You do not need to know every real estate term before buying or selling.
However, you do need the right people helping you understand what matters when it matters.
A clear process can make the experience feel less rushed and more manageable.
If you are buying or selling in Greater Victoria and want plain-language guidance from start to finish, our team is here to help.
Michael B., 5-Star Review, via Google
“Excellent experience with Faber group! Zach is an amazing young professional, he is very knowledgeable and explained everything to me (a first time buyer) very well. Towards the end I got to work with Cal as well who was also very kind and professional. I would certainly recommend Faber group.”
Faber Real Estate Group
Royal LePage Coast Capital Realty
📞 250-244-3430
📧 scott@fabergroup.ca
ℹ️ Scott Faber Personal RealEstate Corporation
ℹ️ Cal Faber Personal Real Estate Corporation
Vanessa Wood, Zachary Parsons, and Sophie Taylor
“Building Lasting Relationships, One Home at a Time.”
