Understanding key terminology is the first step toward a smooth real estate transaction. Explore our glossary below for clear, straightforward definitions of the most common terms used in British Columbia real estate.

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Acceptance

Once all parties have agreed to the price, dates, and terms and have signed the Contract of Purchase and Sale, you have an accepted offer. The property status moves to a pending sale, meaning the seller cannot accept other offers.

Bank Draft

A secure payment method guaranteed by your bank, confirming the money is available for a specific transaction. In BC, a bank draft is the standard and typically required way to pay your deposit when buying a home.

BC Financial Services Authority (BCFSA)

The provincial government agency that regulates British Columbia’s financial services sector, including real estate. BCFSA handles mandatory licensing, sets education standards, enforces real estate laws, and protects consumers across BC.

British Columbia Real Estate Association (BCREA)

The provincial professional association representing BC’s real estate boards and REALTORS®. Beyond basic provincial licensing through BCFSA, board certification through BCREA holds agents to higher ethical standards, provides access to the MLS® system, standard legal contracts, and ongoing professional education.

Building Envelope

The physical barrier separating a building’s interior from the outside environment—including the exterior walls, roof, windows, and doors. If a building envelope fails to keep water out, it leads to rain penetration issues, historically referred to in BC as a "leaky condo."

Bylaws

The legally binding rules created by a strata corporation that govern day-to-day living in a condo or townhome community. Bylaws regulate common property use, maintenance responsibilities, noise, pets, rentals, and age restrictions.

Completion

Also known as closing day, this is the day when everything falls into place. It’s when your purchase is finalized, money changes hands, and the title to the home is transferred into your name. Usually, it’s just a day or two before you get the keys to your new place.

Deposit

When you make an offer to purchase a property, you’ll need to include a deposit to secure it. The deposit is usually around 5% of the purchase price. This deposit will be held in trust until the purchase closes, at which point it will become part of your down payment.

Down Payment

The initial cash investment you make, usually around 5-20% of the total home cost and is needed to secure a mortgage. In Canada You can’t borrow the down payment due to lending rules , but you can receive it as a gift from a family member or take it from your RRSP.

Mortgage

Most people think of a mortgage as a loan, and in simple terms, it is. But technically, a mortgage is not a loan. It is a security investment that you give to your lender and a document that protects the lender’s interests in your property.

Offer

When you make an offer on a property, you’re telling the seller that you want to purchase their home at a specific price, with particular terms, and on a certain day. This is put in writing using a formal Contract of Purchase and Sale.

Recission

In BC, homebuyers have irrevokable legal right to a  period of time after the offer is accepted where you can cancel the contract for any reason. The length is three-day rescission period for lived-in homes and a seven-day period for pre-sales.

Subjects

Subjects are conditions written into the contract that must be satisfied in order to complete the property sale. The subject removal period gives you time to complete your due diligence while the seller is legally commited to you.