In the market for a new home first-time buyers? Well, there are a few things you're going to have to first understand as a buyer/seller in terms of Real Estate "Lingo". Look no further though readers, because with this article, I've taken responsibility to help define a few keywords that'll give you a better understanding of the home-buying process with the ABC's of Real Estate.

Amortization Period
The number of years the borrower (AKA you) have to make payments to your mortgage. At the end of your amortization period, your mortgage will be finished, and the bank will no longer have claimi over your mortgage or its hands in your pocket (or atleast the pocket where you keep your mortgage).

Builder
The company responsible for construction of your Condo unit or Home. Builders will usually buy the serviced lots from the developer, and are then responsible for digging the hole, pouring the foundation, construction, and completion of the project. In most cases, the builder does not subdivide the land, bring in services, or grade the land as this is usually the job of Developers.

Closing Date
The date upon which title to the home is transferred from the seller/builder to the buyer. On this day, the house is legally yours and you may move in. First-time homebuyers often make the mistake of not understanding when the Closing Date is! Ask questions constantly, and consult your Real Estate agent to ensure you and your family aren't left homeless for a month before your new home is ready to move-in.

Common Areas
The area in a condominium development that are enjoyed and shared by all residents. These can include but are not limited to Fitness Centres, Gyms, Party Rooms, Indoor Pools, Barbecue Areas, etc.

Condominium Corporation
The condominium corporation owns and operates the condominium and the lands. The corporation is comprised of all ownership within the complex. The corporation is responsible for orderly operations of the condominium, including arranging the maintenace and keeping money in reserve funds for future common area repairs. Condominium Corporation is essentially the Community of residents that live in the Condominium.

Deposit
The sum of money given to the builder to hold your unit AND begin construction of your home.

Developer
The company responsible for taking raw land, arranging services (water, sewers, etc.), road construction, and grading the land to efficiently drain surface water. The developers will ultimately sell their lots to the builder. Sometimes, the same company takes on the role of Developer and Builder.

Down Payment
The total amount of money YOU put down on the home when you take ownership

Draft Plan Approval
The plan of the subdivision must have this approval in order for the builder to legally sell lots. Draft plan approval means the municipality has approved the developer's plan for the community subject to the developer fulfilling certain obligations set down by the municipality.

Freehold
A form of land ownership which gives the purchaser exclusive title to the land purchased. Exclusive ownership means exclusive responsibilty for the maintenance and expenses of the property.

Interest
Your lending institution will quote you a percentage rate. Whatever rate you are given, you will be expected to pay this portion of your principal to the institution each year. These payments are what you give the institution in exchange for their service of lending you money. The amounts are generally calculated into monthly payments and added to the principal amount you must pay off each month. The total is your monthly payment.

Pre-Delivery Inspection (PDI)
A thorough inspection of a new house or Condo done by the purchaser in the company of the builder's representative. It should be done three to five days before you take occupancy. Everything that is not to your satisfaction should be noted on the builder's PDI Report Form and on the Tarion Warranty Program Certificate. Remember the three cardinal rules Homebuyers, "ASK QUESTIONS. INQUIRE. Avoid Headaches!"

Principal
The portion of your monthly payment which goes towards paying off your mortgage is your principal payment.

Registered Subdivision
A builder cannot get a building permit for construction of a house unless the plan of subdivision is registered. Once a plan is registered, you know that the design and standards presented by the developer have been approved by the municipality.

Specification Sheet
This wonderous sheet is given out by new home sales agents stating the standards the home will be built to, such as type of flooring to be used, the electrical systems, the type of heating systems, etc.

Subtrades
The trades often hire out to other companies to assist them in completing their work

Trades
The builder often hires other companies to construct the home, install heating and plumbing and finish the home. These hired companies are for the trades. 

*The above article was taken from the NEW CONDO GUIDE for the month of Jan-Feb 2012. Find the full article and many more at www.HomeTrader.ca