Real Estate Glossary

The share of the homes on the market that sell in a given month — sales divided by active listings. It is the inverse of months of supply: a 20% absorption rate means about five months of supply. Higher means a faster, tighter market.

The number of homes listed for sale at a point in time. Our market pages count it from the live MLS® feed and use it, with the recent sales pace, to calculate months of supply.

The date on which property taxes, utilities, and other prepaid or owing costs are divided fairly between buyer and seller, usually the closing date. Your lawyer's Statement of Adjustments shows the exact math.

The written confirmation, signed before an offer is made, of exactly who represents you in a transaction and how — as a full client, a lighter-touch customer, or under dual agency. See our Offer Package guide for the full breakdown.

The legal contract between buyer and seller — price, closing date, deposit, and any conditions. Once both sides sign it (and any conditions are met or waived), it's binding. Sometimes called an "Offer to Purchase" before it's accepted.

A formal, signed change to an already-accepted Agreement of Purchase and Sale — a new closing date, an added condition, a price adjustment after an inspection. Any change to a binding deal goes through one; a verbal understanding isn't enough. See Conditional to Firm.

The total length of time it would take to pay off your mortgage completely if you kept the same payment schedule the whole way through — commonly 25 years, though longer terms exist for some buyers. Not the same as your mortgage term (see below).

The attachment to the Agreement of Purchase and Sale where specific conditions — financing, inspection, and so on — are written out, each with its own deadline. See The Offer Package.

A licensed appraiser's professional estimate of a property's market value, usually ordered by your lender to confirm the home is worth what you're paying before they approve the mortgage.

A sale where the seller won't make repairs or give credits for issues found during inspection — you're buying the property in its current condition. Still worth a Property Condition Disclosure Statement and inspection so you know what "as-is" actually means.

A market where supply and demand are roughly even — neither buyers nor sellers have a strong pricing advantage. Sits between a buyer's market and a seller's market.

A short-term loan that covers the gap when your sale closes after your purchase — using the equity from your current home before it officially sells to fund your new down payment.

A brokerage is the licensed real estate company a REALTOR® works under. A Broker (or Broker of Record) is the individual who holds the higher-level license and legal responsibility for that brokerage's trades.

The REALTOR® representing the buyer's interests in a transaction — negotiating on their behalf, advising on offer strategy, and owing them a duty of loyalty. Distinct from the listing (seller's) agent.

A market with more homes for sale than buyers to purchase them, generally giving buyers more negotiating leverage on price and conditions.

A surveyor's drawing showing a property's exact boundaries, buildings, and any encroachments. Lenders and lawyers often require a current one before closing, especially if none exists on file or the property has changed.

Movable personal property that is not included in a home sale unless specifically listed — appliances the seller plans to take, furniture, etc. The opposite of fixtures. Always confirm inclusions and exclusions in writing.

The fees due at closing beyond the purchase price itself — legal fees, deed/mortgage registration, title insurance, and adjustments. NL buyers pay no separate land-transfer tax, unlike many other provinces. See our full closing costs guide for current ranges.

The date ownership and the keys legally transfer from seller to buyer — when the deed is registered and the balance of funds changes hands. Distinct from the possession date, though they're usually the same day.

Mortgage default insurance, required by federally regulated lenders when your down payment is less than 20% of the purchase price. Protects the lender, not you, but it's what makes low-down-payment purchases possible. CMHC is one insurer; Sagen and Canada Guaranty are others.

A REALTOR®'s report comparing a property to similar recently sold, active, and expired listings to estimate a realistic list or offer price. More detailed than an automated online estimate.

An accepted offer that still has one or more conditions attached — financing approval, a satisfactory inspection, sale of another property, etc. Not yet binding until every condition is met or waived. Becomes a firm sale once conditions clear.

The legal entity that owns and manages a condominium building's common areas, collects condo fees, and maintains a reserve fund for major repairs. Buying a condo means buying into this shared structure, not just your unit.

A seller's (or buyer's) response to an offer that changes one or more terms instead of accepting or rejecting it outright. Each counter is a new offer with its own irrevocable date, not an edit to the old one.

Provincial land in NL that hasn't been privately deeded — applied for directly through the provincial government rather than purchased from a private owner. See our land & cottage buying guide for the Grant vs. Licence to Occupy distinction.

The number of days a listing has been actively for sale. A useful signal of market temperature, though a single listing's DOM can be affected by price, condition, or seller circumstances that have nothing to do with the broader market.

The legal document that transfers ownership of real property from seller to buyer. In NL, deeds are registered with the Registry of Deeds rather than tracked through a land-titles system.

The land-ownership system NL uses: instruments affecting title (deeds, mortgages, etc.) are registered on a public record to establish and protect ownership. Different from the Torrens (land-titles) system used in several other provinces, where the government's register is itself the conclusive proof of title.

Money the buyer puts down as good-faith commitment when an offer is accepted, held in trust (usually by the listing brokerage) and applied against the purchase price at closing. Distinct from the down payment — a deposit is part of it, paid earlier.

An arrangement where one brokerage represents both the buyer and seller in a transaction, but two different individual agents within that brokerage are each formally designated to represent one side only — avoiding a single agent representing both.

Out-of-pocket expenses your real estate lawyer pays on your behalf during closing — registration fees, courier costs, title searches — separate from their own legal fee, but usually itemized together on your final bill.

The portion of the purchase price you pay upfront from your own funds, with the rest financed by your mortgage. The minimum required percentage depends on the purchase price and whether the mortgage is insured.

One individual REALTOR® representing both the buyer and the seller in the same transaction. Requires informed written consent from both parties, since the agent's duty of full disclosure and negotiation on each side's behalf is inherently limited.

A legal right for someone other than the property owner to use part of the land for a specific purpose — a utility company's right to run power lines, or a neighbour's right-of-way access. Registered against the property title and passes to future owners.

Any registered claim, lien, or restriction against a property's title that could affect its transfer or value — a mortgage, easement, or unpaid tax lien are all encumbrances. Your lawyer's title search identifies these before closing.

Funds or documents held by a neutral third party (often the lawyer or brokerage) until specific conditions of a transaction are satisfied — most commonly your deposit, held in trust until closing.

A listing agreement where one brokerage has the sole right to market and sell the property for a set period, versus an open listing where multiple brokerages can compete to find a buyer.

The most complete form of property ownership available — you own the land and everything on it outright, subject only to municipal/provincial regulation, with no time limit. Most residential purchases in NL are fee simple. Contrast with a Crown land Licence to Occupy, where the Crown retains ownership.

A federal anti-money-laundering requirement: real estate professionals, lawyers, and lenders must verify the identity of buyers and sellers using government-issued ID before completing a transaction. Applies nationwide, not just in NL.

An accepted offer with no remaining conditions — the deal is fully binding on both parties and is now working toward closing. The opposite of a conditional sale.

Federal and provincial programs that help first-time buyers — the FHSA and Home Buyers' Plan withdrawal being the two biggest in NL today. See our FHSA & HBP guide for how each works.

A mortgage where the interest rate stays the same for the entire term, so your payment amount doesn't change even if market rates move. Contrast with variable-rate.

Items permanently attached to a property that are included in the sale by default — built-in cabinetry, light fixtures, a hardwired garage door opener. The opposite of chattels. "Permanently attached" is sometimes a genuine grey area, which is why a written inclusions/exclusions list matters.

Two debt-ratio calculations lenders use to decide how much mortgage you qualify for. Gross Debt Service (GDS) compares your housing costs to your income; Total Debt Service (TDS) adds in your other debts (car loans, credit cards, etc.). Both have maximum thresholds lenders won't exceed.

The Crown land tenure type that gives you full title to the land — requiring a survey, but resulting in ownership rather than a lease-like arrangement. Contrast with a Licence to Occupy.

An amount withheld from a payment (often on new construction or renovation contracts) until specific work is confirmed complete, or a portion of sale proceeds held back pending resolution of an outstanding issue at closing.

A federal program letting first-time buyers withdraw funds from their RRSP tax-free to put toward a down payment, repayable over 15 years. Often used alongside the FHSA. See our combined guide.

In NL, HST does not apply to the sale price of a resale home, but it does apply to the service fees you pay along the way — legal fees, home inspection, appraisal. New construction is different: HST applies to the price of the new build itself, with a federal rebate available on qualifying homes. See our HST rebate guide.

The written list in an Agreement of Purchase and Sale spelling out exactly which chattels are included in the sale price and which the seller is taking with them. The single most common source of last-minute closing disputes when it's vague.

A common condition in an APS giving the buyer a set window to have a professional home inspection done, with the right to walk away or renegotiate if it turns up serious issues.

A tax some provinces charge on the purchase price when property changes hands. NL does not have a land transfer tax — buyers here pay modest deed and mortgage registration fees instead, which is meaningfully cheaper on a typical purchase.

A form of property tenure where you own the right to use the property for a fixed term but not the underlying land itself — the land reverts to its owner (often the Crown, or a private landholder) when the lease ends. Uncommon for typical NL residential purchases but relevant on some Crown land and a small number of leasehold condo developments.

A Crown land tenure type closer to a long-term lease than ownership — the Crown retains title, and it's generally restricted to specific uses like a remote cottage with no road access. No survey required, unlike a Grant. See our land & cottage buying guide.

A legal claim registered against a property as security for a debt — a mortgage is technically a lien, as is an unpaid contractor's claim or overdue property tax. Must typically be cleared before a sale can close.

The contract between a seller and their brokerage authorizing the brokerage to market and sell the property, spelling out commission, term length, and marketing commitments.

The price a seller and their REALTOR® set to market the home at, based on a Comparative Market Analysis. The eventual sale price can land above, at, or below the listing price depending on demand.

The median is the middle sale — half sold for more, half for less — and it shrugs off one unusually expensive or cheap home. The average adds every sale and divides, so a single high sale in a small community can pull it up sharply. Our market pages show both; in small markets, trust the median.

The rate NL municipalities use to calculate property tax — expressed as dollars owed per $1,000 of assessed value. The Municipal Assessment Agency (MAA) sets your property's assessed value; your town's council sets the mil rate. See our property tax rates guide for current town-by-town rates.

CREA's benchmark-price measure. Instead of averaging whatever happened to sell, it tracks the price of a typical home with fixed attributes over time, so month-to-month changes reflect price movement rather than a different mix of homes selling. Our main market-statistics pages embed NLAR's HPI dashboard.

The cooperative database REALTOR® members use to share listing information with each other, giving every listing maximum exposure to every other member's buyers. MLS®, REALTOR®, and related marks are certification marks owned by CREA and used only by CREA members.

How long it would take to sell every home currently listed at the recent pace of sales: active listings divided by average monthly sales over the last 12 months. Under 5 months is generally a seller's market, 5–7 balanced, 7 or more a buyer's market — the cut-offs our market pages use. In small communities a couple of listings can swing it, so we withhold the verdict below 15 sales a year.

A licensed professional who shops your mortgage application across multiple lenders to find the best rate and terms, rather than representing just one bank. Different from a mortgage agent at a single bank, who can only offer that bank's products.

A lender's conditional commitment to lend you a specific amount at a specific (often rate-held) interest rate, based on a full review of your income, debts, and credit. Stronger than a pre-qualification, which is just a rough estimate.

The length of your current agreement with your lender — commonly 1 to 5 years — after which you renew, renegotiate, or switch lenders. Not the same as the amortization period, which is the full payoff timeline.

A situation where a seller receives more than one offer at the same time, giving them the option to negotiate with multiple buyers or set a deadline for best offers.

Every headline figure on our market pages, reports and social cards is a resale. A sale counts as new construction when the home sold within a year of being built, or was listed as new, under construction or to be built; those sales are shown on their own in each market page's What's Selling section. New builds typically sell at a premium (a $517,000 median versus $346,000 for resale across NL in 2026), so mixing them in would inflate the resale median in communities with active subdivisions.

A federal HST rebate available on qualifying new-construction homes and substantial renovations in NL, reducing the effective HST cost. See our full guide for eligibility and current thresholds.

A mortgage that can be paid off, in whole or in part, at any time without a prepayment penalty — usually at a higher interest rate than a closed mortgage in exchange for that flexibility.

The price a listing first went on the market at, before any price reductions. Comparing it to the current list price (or eventual sale price) tells you how a listing has moved.

Transferring your existing mortgage — rate, term, and remaining balance — to a new property when you move, instead of breaking it and starting fresh. Can save on penalties but isn't available with every lender or in every situation.

The date and time the buyer actually gets the keys and can move in. Usually the same day as closing, but occasionally negotiated separately (e.g., a seller staying a few extra days as a tenant).

A rough, informal estimate from a lender of what you might be able to borrow, based on self-reported information rather than a full credit and income review. A useful first step, but not a firm commitment — get pre-approved before house-hunting seriously.

A form some (not all) sellers voluntarily complete, disclosing known issues with the property — a leaky roof, past water damage, etc. Not a substitute for a professional inspection, and a seller who hasn't lived in the home may have less to disclose.

The sold price divided by the home’s finished floor area, shown as the median across recent resale homes on our market pages. It lets you compare communities and styles of house without size getting in the way — useful when a median price alone would be skewed by a couple of very large or very small sales. Only about half of listings record a floor area, so a figure always says how many sales it is built on: fewer than 10 is flagged as a limited sample, and under 5 is not shown at all. It also leaves out land, waterfront and garages, which are in the sold price but not the square footage, so acreage and waterfront homes read high.

Part of the closing Statement of Adjustments — the buyer reimburses the seller (or vice versa) for property taxes already paid or still owing, prorated to the closing date.

NL's provincial legislation governing how REALTORS® and brokerages must conduct real estate trades — licensing, trust accounting, disclosure, and conduct rules. Administered provincially; NLAR is the industry association, not the regulator itself.

A trademarked term for a real estate professional who is a member of the Canadian Real Estate Association (CREA) and bound by its Code of Ethics. Not every licensed real estate salesperson is automatically a REALTOR® — membership is a separate step.

The NL government registry recording all land titles issued directly by the Crown, separate from the Registry of Deeds, which handles private land transactions. Relevant when a title search touches Crown-originated land.

NL's public registry of private land transactions and deeds, part of the province's deeds registration system. Where your lawyer registers your deed and mortgage at closing, establishing your ownership on the public record.

A condominium corporation's savings account for major future repairs — roof replacement, elevator overhaul, etc. — funded by condo fees. A poorly funded reserve fund can mean a large surprise special assessment for owners; ask to see the reserve fund study before buying a condo.

A contractual right giving someone (often a tenant, family member, or neighbouring landowner) the first opportunity to buy a property before the owner can sell to anyone else, on the same terms offered elsewhere.

A specific type of easement giving someone the legal right to cross part of a property to access another piece of land — common on rural and waterfront NL properties where a lot doesn't have direct road frontage.

Homes sold in a month as a share of homes newly listed that month — the CREA measure of whether demand is keeping up with fresh supply. Under 40% favours buyers, over 60% favours sellers, in between is balanced. Our pages show a rolling three-month figure because a single month swings on a handful of sales.

The final sale price expressed as a percentage of the original (or final) list price — a common market-temperature indicator. Above 100% means homes are selling for more than asking, on average.

The REALTOR® representing the seller's interests — pricing strategy, marketing, and negotiating on their behalf. The counterpart to a buyer's agent.

A market with more buyers than available homes, generally giving sellers pricing leverage and shorter days on market.

An on-site wastewater treatment system (tank + leaching field) used where a property isn't connected to municipal sewer — common across rural NL. See our well & septic guide for what to inspect before buying.

The minimum distance a building must be from a property line, road, watercourse, or shoreline under municipal or provincial regulation. Waterfront and Crown land purchases in NL both have specific setback rules worth confirming before you build. See our waterfront guide.

The official notice a listing brokerage files with NLAR once a sale completes — how a transaction officially enters the sold record on MLS®. See Firm to Keys.

The final accounting document from your lawyer showing every credit and debit between buyer and seller at closing — deposit already paid, property tax proration, and the exact balance owing.

Another way of describing a conditional offer — "subject to financing," "subject to inspection," etc. Each condition has its own deadline, and missing one without addressing it can let the other side walk away or hold you to the deal.

A one-time-premium insurance policy protecting against title defects, fraud, and certain survey issues that a title search might not catch — commonly recommended by lawyers on NL closings.

Your lawyer's review of a property's ownership history and any registered encumbrances (liens, easements, mortgages) at the Registry of Deeds (and Registry of Crown Titles where relevant) before closing, to confirm the seller can legally transfer clear ownership.

A mortgage where the interest rate moves with the lender's prime rate, so your cost of borrowing (and sometimes your payment) can rise or fall over the term. Contrast with fixed-rate.

A financing arrangement where the seller (rather than a bank) lends the buyer part of the purchase price, secured by a mortgage registered against the property. Less common, but occasionally used on land, cottage, or unique properties.

A registration-gated section of a REALTOR® website (like our own sold listings section) that can show sold prices and other information to registered, identity-verified consumers that can't legally be shown publicly.

The form used to formally clear a condition on a deal — with a separate box for whether it was satisfied (actually met) or waived (given up without being confirmed). See Conditional to Firm for why the distinction matters.

Private groundwater supply used where a property isn't on municipal water — common across rural NL. Potability and yield testing before closing is strongly recommended and often a financing condition. See our well & septic guide.

Everything from January 1 to the most recent complete month, compared against the identical window the year before. Our social cards, PDF reports and emails all use the same complete-month window so the numbers match; the live website page also shows the partial current month, labelled as such.