Straightforward answers. No fluff. Just the terms that matter.
If you’re just starting your home buying or selling journey, chances are you’ve already come across a few head-scratching real estate terms. From “amortization” to “title,” it’s like learning a new language. But knowing what these terms mean can save you time, money, and stress—especially when you’re navigating one of the biggest financial decisions of your life.
This glossary breaks down the most common real estate terminology used in Alberta, with definitions sourced directly from the Real Estate Council of Alberta (RECA). Whether you’re buying your first home or listing your current one, this guide is here to make real estate feel a lot less intimidating.
Source: RECA Glossary of Terms
Real Estate Terms You Should Know
A
Amortization
The time it takes to fully pay off a mortgage, including both principal and interest. In Canada, amortization periods typically range from 25 to 30 years.
Appraisal
An unbiased estimate of a property’s value, usually required by your lender before final mortgage approval.
Associate
A licensed real estate professional in Alberta who works under a brokerage. Every Realtor you meet is either an associate or a broker.
B
Broker
The person in charge of managing a brokerage. Brokers supervise associates and ensure legal compliance.
Brokerage
The licensed real estate company that employs associates and brokers. When you hire a Realtor, you're actually hiring the brokerage they represent.
C
Closing Costs
The fees paid at the end of a transaction, including legal fees, title insurance, and tax adjustments. These are in addition to your down payment.
Condominium
A type of homeownership where you own your individual unit and share ownership of common areas like hallways and amenities.
Condo Fees
Monthly payments by condo owners to maintain the building, shared spaces, and reserve funds.
D
Deposit
A sum paid by the buyer when the offer is accepted. It’s held in trust until closing and counts toward the purchase price.
E
Encumbrance
A registered claim or restriction on the property (like a lien or easement) that could impact your ability to sell or use it.
F
Foreclosure
A legal process where the lender takes possession of a property after the borrower fails to make mortgage payments.
L
Listing Agreement
A contract between a seller and a brokerage that gives the brokerage permission to market and sell the home.
M
Mortgage
A loan used to purchase property. You repay the loan (plus interest) over time, and the property serves as collateral.
Mortgage Broker
A licensed individual who shops around with different lenders to help you find the best mortgage rate and terms.
P
Pre-Approval
A lender’s estimate of how much you can borrow, based on your financial information. It gives you a clear home shopping budget.
Principal
The original loan amount borrowed, before interest is added.
R
Real Estate Council of Alberta (RECA)
The regulatory body that licenses and governs Alberta’s real estate professionals. They’re here to protect consumers like you.
Real Property Report (RPR)
A legal document that shows property boundaries and structures. It’s often required in resale transactions.
S
Subject to Financing
A common condition in offers stating that the deal only goes through if the buyer secures financing.
T
Title
A legal document that confirms who owns the property. During closing, title is transferred from seller to buyer.
W
Walk-Through
The final check buyers do before possession. It ensures the home is in the condition agreed upon in the contract.
Why This Matters
Understanding these terms won’t just help you feel more confident—it could prevent costly mistakes. And if you ever find yourself unsure about something? That’s what I’m here for.
Still have questions? Let's make it easier. Call or text at (780) 232-2064.
✅ FAQ: Real Estate Terms—Ask Me Anything
What’s the difference between a broker and a Realtor?
A broker manages a brokerage and supervises other agents. A Realtor is a licensed professional (broker or associate) who is a member of the Canadian Real Estate Association and adheres to a specific code of ethics.
Is an RPR required when selling my home in Edmonton?
In most resale transactions, yes. An updated Real Property Report (RPR) with municipal compliance is often required by the buyer’s lawyer before closing.
How much are closing costs in Alberta?
Closing costs typically range from 1.5% to 4% of the purchase price and include legal fees, title insurance, and tax adjustments.
Do I need a mortgage pre-approval before house hunting?
Yes—especially in Edmonton’s competitive market. Pre-approval shows sellers you're serious and helps you avoid looking at homes outside your budget.
Are condo fees negotiable?
No. Condo fees are set by the condo board and reflect the building’s maintenance and reserve fund needs. But knowing what's included can help you compare buildings more effectively.
Final Thoughts
If you’re feeling more confident already—good. That’s the goal.
Real estate doesn’t have to feel complicated when you have the right people (and the right info) in your corner. Bookmark this page or share it with someone who's starting their real estate journey.
Got a question I didn’t cover here? I’m only a message away. Visit pabianrealty.ca to connect or book your free home evaluation, or call/text me at (780) 232-2064.
Source: This glossary is adapted from the Real Estate Council of Alberta (RECA) to help educate Alberta home buyers and sellers.
