Glossary
Real Estate Terms in Ontario, Plainly Explained
Irrevocable, firm, holdover, status certificate, assignment — the words that show up in every Ontario deal, defined the way I'd actually explain them, not the way a glossary would.
None of these are complicated once someone actually explains them. They only sound intimidating because they usually show up for the first time inside a document you are being asked to sign quickly.
What does “irrevocable” mean on an offer?
It is the deadline the offer stays open for. Submit an offer with a 5pm irrevocable and you cannot withdraw it before 5pm just because something better came up, and the other side cannot sit on it past that time either — after it, the offer simply expires on its own if nobody has signed.
What is the difference between “firm” and “conditional”?
A conditional deal still has at least one condition outstanding — financing, a home inspection, a lawyer's review, a status certificate review. Once every condition is satisfied or waived in writing, the deal is firm: both sides are bound, and backing out at that point has real consequences.
What is a deposit, and is it the same as a down payment?
No. The deposit is money submitted with the offer (or shortly after it firms up) that shows you are serious, and it is held in the brokerage's real estate trust account, not handed to the seller. It counts toward your down payment at closing. The down payment is the full amount you are putting toward the purchase price, separate from your mortgage.
What is a holdover clause?
A period after a listing agreement ends during which the seller can still owe commission if they sell to a buyer the agent introduced during the listing. It exists so an agent's work on a listing cannot be undone by simply waiting out the contract. Know the length of it before you sign, not after you have a new agent and an old buyer reappears.
What is a status certificate?
A package a condominium corporation provides on request, covering its finances, reserve fund, by-laws, insurance and any legal proceedings it is party to. It is the main way a buyer — through their lawyer — actually checks the health of the building behind a unit, not just the unit itself.
What does “assignment” mean in a pre-construction deal?
Selling your agreement of purchase and sale itself, before your own closing, so the buyer essentially steps into your position with the builder. It needs the builder's consent, usually at a fee, and the agreement itself has to actually permit it — assignment is a permission the builder grants, not an automatic right you hold.
What is Tarion, and what does it actually cover?
Ontario's new home warranty program for newly built and pre-construction homes, covering defined categories of defects for set periods after closing — it is not a general insurance policy against anything going wrong. What is covered, and for how long, depends on the category of defect, which is exactly why reading the actual warranty documents matters more than assuming it is covered.
What is land transfer tax, and is there a rebate for first-time buyers?
A tax paid on closing, calculated on the purchase price, in addition to Ontario's provincial tax if the property is inside the City of Toronto. First-time buyers may qualify for a rebate on part of it, provincially and in Toronto, but the thresholds and amounts change — ask your lawyer to confirm what currently applies to your purchase rather than relying on a number you read somewhere.
A few of these come up in more depth elsewhere — the status certificate especially is worth the longer read before you waive a condition over it, and if you are weighing a condo against a townhome in Milton specifically, this is the distinction that actually matters. If a term from an actual offer in front of you is not here, ask me directly — that is always faster than a search.
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If this raised a question specific to your situation, the fastest way through it is a short conversation — free, no obligation.
REALTOR® · Durrani Real Estate Group
Century 21 Property Zone Realty Inc., Brokerage