Real estate agents glossary

Short, plain-English definitions of the terms you'll meet when choosing a real estate agent provider in Ontario.

What is a bully offer?: A bully offer is an offer to purchase a property submitted before the seller has announced an official offer presentation date, typically intended to pressure the seller into accepting before other competing offers arrive.
What is a buyer representation agreement?: A written contract between a buyer and a real estate brokerage in Ontario that sets out the agent's duties, the term of representation, and the commission structure.
What is a cap rate?: Cap rate (capitalization rate) is the ratio of a property's annual net operating income to its purchase price, used to compare the return on investment across different real estate purchases.
What is a closing date?: The closing date is the day on which ownership of a property transfers from the seller to the buyer and the buyer gains legal possession and control of the property.
What is a comparative market analysis?: A comparative market analysis (CMA) is an estimate of a property's market value based on the prices of comparable properties that have sold recently in the same area.
What is a conditional offer?: A conditional offer is a purchase agreement where the buyer's obligation to complete the sale depends on the satisfaction of specific conditions, such as securing financing or passing a home inspection.
What is a deposit in Ontario real estate?: A sum of money provided by a buyer and held in trust by a brokerage to demonstrate commitment to a conditional real estate purchase; it is applied toward the purchase price at closing or forfeited if the buyer withdraws without meeting the agreement's conditions.
What is a listing agreement?: A listing agreement is a contract between a property owner and a real estate brokerage that grants the broker the right to market and sell the property, typically for a set commission and term.
What is a REALTOR?: A REALTOR is a real estate professional who holds membership with the Canadian Real Estate Association (CREA) and uses the trademarked REALTOR designation, going beyond provincial licensing requirements to follow CREA's code of ethics and standards.
What is a status certificate?: A status certificate is an official document issued by a condo corporation that details the property's financial condition, reserve fund status, and governing rules.
What is an Agreement of Purchase and Sale?: The Agreement of Purchase and Sale (APS) is the legally binding contract that sets out all terms and conditions between a buyer and seller in a real estate transaction, including purchase price, deposit, closing date, and conditions precedent.
What is an assignment sale?: An assignment sale transfers the buyer's rights and obligations under a pre-construction purchase agreement to another party before the unit closes, requiring the builder's written approval.
What is an offer date?: An offer date is a specific deadline set by the seller on which all purchase offers for a property will be reviewed and compared simultaneously.
What is dual agency in real estate?: Dual agency occurs when one real estate brokerage represents both the buyer and the seller in the same transaction, permitted in Ontario only with full written disclosure and informed consent from both parties.
What is land transfer tax?: Land transfer tax is a provincial tax charged on the sale price of real property in Ontario, calculated at progressive rates, plus an additional municipal tax in Toronto, with exemptions available to first-time homebuyers.
What is MLS (Multiple Listing Service)?: MLS (Multiple Listing Service) is a collaborative database system operated by regional real estate boards where member brokerages list properties for sale and access listings from other members.
What is multiple representation in Ontario real estate?: Multiple representation is when a single brokerage represents both the buyer and the seller in a real estate transaction in Ontario, with full disclosure and written consent from both parties.
What is occupancy period (interim occupancy)?: The occupancy period is the time between when a buyer moves into a new condo unit and when the title legally transfers from the builder to the owner, typically accompanied by monthly occupancy fees paid to the builder.
What is OREA?: The Ontario Real Estate Association (OREA) is the self-regulatory organization that oversees real estate professionals in Ontario, establishes standard transaction forms, and manages continuing education requirements.
What is RECO?: RECO (Real Estate Council of Ontario) is the provincial regulatory body that licenses real estate professionals, sets conduct standards, and handles complaints against agents and brokers in Ontario.
What is Tarion?: Tarion is Ontario's mandatory new home warranty corporation that provides statutory protection to home buyers against construction defects and builder non-performance.
What is the difference between a salesperson, broker, and broker of record?: A salesperson is an individual agent licensed to work under a broker's supervision, while a broker of record is the registered entity responsible for trust accounts and compliance. In Ontario, these represent two of three main registration levels, along with brokers.
What is title insurance?: Title insurance is a one-time premium paid at closing that protects the buyer and lender against financial loss from title defects, liens, or ownership claims that existed before purchase.
What is TRESA?: TRESA is Ontario's Trust in Real Estate Services Act, 2002, the primary law requiring real estate registrants to maintain separate trust accounts, keep detailed records, and protect client funds throughout transactions.