KARAKTER Realty · Reference

Calgary real estate glossary.

One hundred and one Calgary and Alberta real estate terms — defined plainly, with local context. Use the letter index to jump to any term, or follow the deep-link anchor (§) to share a specific definition.

A

§ Absorption Rate

The pace at which available listings are sold in a given period; calculated as monthly sales divided by active listings. CREB uses absorption rate to classify Calgary sub-markets as a buyer's, balanced, or seller's market. A rate above 60–70% is generally considered a seller's market in Calgary.

§ Active Listings

The total count of properties currently listed for sale on MLS in Calgary or a given sub-market at any point in time. Active listings are a primary supply measure tracked and published monthly by CREB. Rising active listings alongside flat sales signals a softening market.

§ Amortization

The total length of time over which a mortgage is repaid through regular blended principal-and-interest payments. In Canada, insured mortgages (less than 20% down) are capped at 30 years (raised from 25 years for first-time buyers on new construction in August 2024). Conventional mortgages can amortize up to 30 or in some cases 35 years. A longer amortization lowers monthly payments but dramatically increases total interest paid.

§ AREA (Alberta Real Estate Association)

The provincial trade association representing REALTORS® across Alberta. AREA develops standard contract forms used on every residential transaction in Alberta, advocates for property owners and the profession at the provincial legislature, and coordinates education requirements with RECA. All Calgary REALTORS® belong to AREA through their local board.

§ Arm's-Length Transaction

A sale between unrelated parties — strangers — where each acts independently and in their own self-interest, establishing a price that reflects genuine fair market value. Non-arm's-length sales (between family members, corporations and their shareholders, etc.) may attract CRA scrutiny and must be disclosed on land title transfer documents in Alberta.

§ Average Price

The arithmetic mean of all residential sale prices in a given period and geography. The average is more volatile than the benchmark price because a handful of high-value luxury sales can skew it significantly upward. CREB publishes both average and benchmark prices; most economists prefer the benchmark as a market-health indicator.

B

§ Bare Land Condo

A condominium form in Alberta where the unit boundaries are defined by land parcel lines rather than walls. The owner typically holds a specific lot and any structure on it, while sharing ownership of common roadways, landscaping, and amenities with other unit owners. Bare land condos are common in Calgary's suburban townhouse developments and lake communities.

§ Benchmark Price

CREB's preferred price metric — the price of a statistically "typical" home of a given type (detached, semi-detached, row, or apartment) in Calgary, adjusted for quality and features using the MLS® Home Price Index (HPI) methodology. Unlike average or median price, it controls for shifts in the mix of homes selling, making it a more reliable measure of true price change over time.

§ Bi-Level

A Calgary housing form common in communities built during the 1970s–1990s, where the main entry sits at grade between two half-levels. The upper level contains the main living spaces and the lower level is partially below grade but features full-height windows — distinguishing it from a split-level or a full-basement bungalow. Bi-levels often appeal to buyers seeking abundant square footage at lower price points.

§ Bifurcated Closing

A transaction structure where a single real estate deal closes in two legally distinct stages — common in complex estate or commercial scenarios, or when one party's financing requires a staggered timeline. In residential Alberta transactions it may appear when a condo conversion or new-build phase delivers units sequentially. Requires careful coordination between both parties' lawyers and lenders.

§ Bridge Financing

Short-term lending provided by a lender to cover the period between a buyer's new home closing and the receipt of sale proceeds from their existing home. Calgary lenders typically require a firm (condition-free) sale agreement before advancing bridge funds. Interest rates on bridge loans are higher than conventional mortgage rates, and the cost accumulates daily, making timeline precision essential.

§ Bridge Loan

See Bridge Financing. A bridge loan is the specific debt instrument extended by the lender; bridge financing is the broader strategy. In Calgary practice these terms are used interchangeably. The loan is secured against the equity in the departing property and repaid in full on its completion date.

§ Bully Offer

An offer submitted before a seller's announced offer-review date, designed to preempt competing buyers by offering an attractive price — often above asking — under a tight irrevocable deadline. In Alberta, sellers have no legal obligation to accept or even review a bully offer before their set date, but may choose to do so. They are common in Calgary's competitive inner-city and SW markets during low-inventory periods.

§ Bungalow

A single-storey detached home, highly prized in Calgary's inner-city communities such as Altadore, Killarney, Mount Royal, and Rosedale for their large 50-foot lots and redevelopment potential. Older bungalows on desirable inner-city lots often sell for land value alone, with buyers planning infill development. Prices range widely from under $700,000 in the NE to over $1.5M in premium inner-city SW communities.

§ Buy-First Strategy

A move-up approach where a homeowner secures and closes the purchase of their new home before listing or completing the sale of their current property. It offers housing certainty — avoiding the stress of finding a rental in between — but requires either significant home equity, bridge financing, or the ability to carry two mortgages temporarily. Most viable when a seller's market ensures a quick sale of the departing home.

§ Buyer's Market

A Calgary market condition where supply exceeds demand — typically characterized by more than 4 months of supply across the relevant property type and area. In a buyer's market, buyers have leverage to negotiate on price, request conditions, and take their time. Calgary's NE apartment and condo segment periodically enters buyer's market conditions even when detached properties are tight.

C

§ Capital Gains

The profit realized on the sale of a capital asset above its adjusted cost base. In Canada, gains on a principal residence are fully exempt from tax via the principal residence exemption. Gains on investment properties, rental properties, or secondary real estate are taxable — as of 2024, two-thirds of capital gains above $250,000 are included in the seller's taxable income (the inclusion rate increased from one-half). Alberta has no provincial capital gains tax beyond the federal rate.

§ Certificate of Title

Alberta's authoritative legal document — maintained in the provincial Torrens land title system — recording the registered owner(s), the full legal description of the parcel, and every registered encumbrance including mortgages, caveats, easements, and restrictive covenants. The certificate of title is the definitive proof of ownership in Alberta; a buyer's lawyer performs a title search at Alberta Land Titles before completion to verify a clean transfer.

§ Closed Mortgage

A mortgage that cannot be fully repaid or broken before the term ends without incurring a prepayment penalty, typically the greater of three months' interest or the Interest Rate Differential (IRD). Closed mortgages carry lower interest rates than open mortgages in exchange for restricted flexibility. They are the predominant mortgage type chosen by Calgary homeowners and can still allow limited annual prepayment privileges.

§ Closing Costs

All buyer-side expenses beyond the purchase price incurred on or before possession day in Alberta. In Calgary, typical closing costs include legal fees ($1,200–$2,000), the Alberta land title transfer fee (sliding scale based on purchase price), title insurance ($200–$400), mortgage registration fee, and home inspection fees. Alberta has no land transfer tax, unlike Ontario and British Columbia, which is a meaningful buyer advantage. Budget 1.5–2% of purchase price for closing costs.

§ CMHC Insurance

Mortgage default insurance required by federal law in Canada when a buyer's down payment is less than 20% of the purchase price. Canada Mortgage and Housing Corporation (CMHC) is the dominant insurer, alongside Sagen and Canada Guaranty. As of December 2024, the maximum insured purchase price was raised to $1.5 million. Premiums range from 2.8% to 4.0% of the insured loan amount and are typically added to the mortgage. Alberta does not charge provincial sales tax on CMHC premiums, unlike Ontario and Quebec.

§ Collateral Mortgage

A mortgage registered against a property for an amount greater than the actual loan — often 100–125% of the property's appraised value — allowing the lender to secure future advances or other debts without a new title registration. While convenient for accessing HELOCs and additional credit, a collateral mortgage cannot be transferred ("ported") to another lender at renewal without a legal discharge and re-registration, which incurs legal costs.

§ Community Association

A non-profit organization operating within a defined Calgary neighbourhood that manages community halls, outdoor rinks, sports programs, and social events. Membership fees are voluntary and typically modest ($25–$60/year). A strong, active community association is a genuine quality-of-life signal and can affect neighbourhood desirability — an important factor in markets like Altadore, Beltline, and Varsity.

§ Completion Day

The date on which legal title transfers from seller to buyer at the Alberta Land Titles Office and the mortgage lender advances funds to the seller's lawyer. Completion day in Alberta often coincides with possession day, but it is common to close the sale one business day before possession to allow funds to clear. The exact relationship between completion and possession dates is negotiated in the purchase contract.

§ Competing Offers

A situation in which two or more buyers submit offers on the same property simultaneously, commonly called a multiple-offer scenario or bidding war. In Alberta, sellers may choose to disclose the existence of competing offers to all parties (though not their specific terms), or keep them confidential. Competing offers are common in Calgary's inner-city and SW detached markets when inventory is below 2 months of supply.

§ Conditional Offer

An offer to purchase that includes one or more conditions — most commonly financing approval and satisfactory home inspection — that must be waived or fulfilled before the deal becomes firm and binding. In Alberta, conditions typically have a 3–10 business day fulfillment period. If conditions cannot be waived, the buyer may exit the contract, recovering their deposit.

§ Condominium Plan

The registered survey plan in Alberta that legally defines the boundaries of individual condominium units and the common property shared by all unit owners. The plan must be approved by Alberta Land Titles before any unit can be individually titled and sold. Buyers should review the condominium plan alongside the corporation's bylaws, reserve fund study, and financial statements before removing conditions.

§ Conventional Condo

The standard condominium form in Alberta where unit boundaries are defined by the interior surfaces of walls, floors, and ceilings. Unit owners share ownership of the land and all common property with the condominium corporation. Monthly condo fees cover common-area maintenance, reserve fund contributions, and often utilities. Conventional condos dominate Calgary's apartment and inner-city townhouse inventory.

§ Conventional Mortgage

A mortgage where the buyer's down payment is 20% or more of the purchase price, meaning mortgage default insurance (CMHC) is not required. While avoiding CMHC premiums saves a significant sum, conventional mortgages still require stress-test qualification. Conventional mortgages can be obtained for purchase prices above $1.5 million, where insured financing is unavailable regardless of down payment.

§ Counter-Offer

A seller's or buyer's response to an offer that changes at least one material term — price, possession date, chattels included, or conditions — thereby voiding the original offer and creating a new legal offer requiring fresh acceptance. In Alberta, counter-offers are signed on the original purchase contract with amendments initialed by all parties, or on a separate addendum. Multiple rounds of counter-offers are common in price negotiations.

§ Court-Ordered Sale

A property sale mandated by an Alberta court — most commonly in mortgage foreclosure (judicial sale), estate disputes, or matrimonial property division. The court supervises the process and approves the final sale price to ensure creditors or estate beneficiaries are treated fairly. Buyers purchasing a court-ordered sale receive the property free of many claims but must accept it "as-is," with limited disclosure from the selling estate or foreclosing lender.

§ CREB (Calgary Real Estate Board)

The local trade association for REALTORS® in Calgary and the surrounding area, including Airdrie, Okotoks, Cochrane, and High River. CREB operates the Calgary MLS® system — the dominant marketplace for residential real estate in the region — and publishes detailed monthly market statistics by property type, quadrant, and community. CREB statistics are widely cited by media, economists, and analysts tracking Calgary's housing market.

D

§ Days on Market (DOM)

The number of calendar days a listing is active on MLS before an accepted conditional or unconditional offer is submitted. CREB tracks median and average DOM by property type and community as a key market-health indicator. In a healthy Calgary seller's market, detached homes often sell within 14–28 days; in softer conditions, DOM can extend to 60–90+ days. Properties that expire and relist reset their DOM counter.

§ Debt Service Ratio (GDS/TDS)

Federal benchmarks lenders use to assess mortgage affordability. The Gross Debt Service (GDS) ratio is the share of gross household income consumed by housing costs (mortgage principal and interest, property taxes, heating, and 50% of condo fees) — the maximum is typically 39%. The Total Debt Service (TDS) ratio adds all other debt obligations (car loans, credit cards, student loans) and is capped at 44%. Both are calculated at the stress-test qualifying rate.

§ Deemed Disposition

A CRA rule treating a property as if it were sold at fair market value at a specific triggering event — most commonly at the owner's death or when they emigrate from Canada — triggering a capital gains calculation even without an actual sale. In Calgary estate planning, deemed disposition at death is a key consideration for properties that are not a principal residence, such as revenue properties or recreational properties.

§ Deposit

Funds submitted with or shortly after an accepted offer in Alberta — typically 1–5% of the purchase price — held in trust by the selling brokerage until completion. The deposit forms part of the buyer's down payment and demonstrates good faith. In Alberta, if a buyer defaults after conditions are waived, the seller may have a legal claim to the deposit as liquidated damages, subject to the terms of the purchase contract.

§ Detached Home

A freehold residential property that stands alone on its own titled lot with no shared walls; the dominant ownership form in Calgary's suburban communities from Tuscany in the NW to Auburn Bay in the SE. Detached homes are the property type tracked as Calgary's benchmark price headline figure by CREB, and have consistently commanded a price premium over attached forms.

§ Divorce Sale

The sale of a property necessitated by marriage or Adult Interdependent Partnership breakdown. The sale may be agreed upon in a separation agreement or ordered by an Alberta court under the Matrimonial Property Act. Divorce sales often involve competing interests, emotional complexity, and tight court-ordered timelines. Both parties must sign all listing and sale documents, and sometimes a court order substitutes for a non-cooperating spouse's signature.

§ Down Payment

The portion of the purchase price a buyer pays upfront from their own funds (or an eligible gifted amount). In Canada, the minimum down payment scales by price: 5% on the first $500,000, 10% on the portion from $500,000 to $999,999, and a blended minimum emerges. For homes $1M–$1.5M (insured since December 2024), different rules apply. For homes above $1.5M, 20% minimum with no CMHC insurance available. Alberta has no additional down payment requirements beyond the federal minimum.

§ Dower Act

Alberta legislation granting a spouse or Adult Interdependent Partner (AIP) the right to remain in and access the matrimonial home, regardless of who holds registered title. Before an owner can sell or mortgage the matrimonial home, the non-owning spouse or AIP must sign a written consent or release. Failure to obtain dower consent can void the sale. This is an Alberta-specific protection — most other provinces have superseded similar laws with matrimonial property legislation.

§ Duplex

A residential building containing two separate, self-contained dwelling units, either stacked vertically (up-down) or side-by-side (front-back). Common in Calgary's inner-city infill corridors like Inglewood, Marda Loop, and Montgomery, where they offer entry into established neighbourhoods at a lower price point than a full detached home. Each unit may be separately titled or held together on one parcel under a single owner.

E

§ Encroachment

When a structure — fence, deck, garage, overhanging eaves, or shed — extends beyond a property's legal boundary onto a neighbouring parcel or a public right-of-way. Encroachments are revealed by an Alberta Real Property Report (RPR). Sellers are responsible for resolving encroachments or obtaining a registered encroachment agreement before possession; unresolved encroachments can delay or kill a transaction.

§ Environmental Site Assessment (ESA)

A study evaluating whether a Calgary property has been contaminated by prior industrial use, underground storage tanks, dry-cleaning chemicals, or hazardous materials. A Phase I ESA reviews historical records and does no soil sampling; a Phase II involves physical testing. ESAs are standard for commercial properties and are sometimes requested on residential infill lots in areas with industrial history (e.g., near Manchester, Crossroads, or East Village).

§ Equity

The difference between a property's current market value and the outstanding balance on any mortgages or lines of credit secured against it. Equity builds through mortgage principal paydown, property value appreciation, and capital improvements. In Calgary's 2020–2026 market cycle, many homeowners saw equity double as benchmark prices rose 40–60% from pandemic-era lows. Equity is the engine that powers upsizing and portfolio growth.

§ Estate Sale

The sale of a property forming part of a deceased person's estate in Alberta. A grant of probate (if a will exists) or grant of administration (if intestate) must be obtained from Alberta's Court of King's Bench before the executor or administrator can legally sign a purchase contract on behalf of the estate. Estate sales often involve as-is conditions and limited seller disclosure since the executor may have no personal knowledge of the property's history.

§ Executor

The individual or institution named in a deceased person's will to administer the estate in Alberta, including managing, listing, and selling real property. The executor must first obtain a grant of probate confirming the will's validity before exercising authority over titled property. An executor owes a fiduciary duty to the estate's beneficiaries to achieve fair market value when selling real estate — working with an experienced REALTOR® is essential.

F

§ Firm Offer

An unconditional offer — one with no outstanding conditions — that becomes a binding contract immediately upon the seller's acceptance. Neither party can exit without legal consequences (typically forfeiture of the deposit at minimum, and potentially a lawsuit for specific performance). In Calgary's competitive markets, subject-free firm offers are often required to win in multiple-offer situations, particularly on desirable inner-city or SW detached homes.

§ Fixed-Rate Mortgage

A mortgage where the interest rate is locked for the entire term — commonly 1, 2, 3, or 5 years in Canada — providing payment certainty regardless of Bank of Canada rate movements. The 5-year fixed has historically been the most popular Canadian mortgage term. Fixed rates are priced off Government of Canada bond yields, not directly off the Bank of Canada policy rate, so they can rise even when the policy rate is stable.

G

§ Grant of Administration

A court order in Alberta appointing an administrator to manage and distribute the estate of a person who died without a valid will (intestate). The administrator has the same authority as an executor but is appointed by the court rather than named in a will. A grant of administration must be registered at Alberta Land Titles before the administrator can transfer title of any real property in the estate.

§ Grant of Probate

A court order from Alberta's Court of King's Bench confirming that a deceased person's will is valid and authorizing the named executor to administer the estate. Probate is required before an executor can legally sell or transfer titled real estate on behalf of the estate. The process typically takes 3–6 months in Alberta, which buyers of estate properties should factor into their timeline expectations.

H

§ HELOC (Home Equity Line of Credit)

A revolving credit facility secured against the equity in a homeowner's property, allowing draws and repayments at any time up to the approved credit limit. Canadian regulations cap the HELOC portion of a readvanceable mortgage at 65% of the home's appraised value. HELOCs are popular in Calgary for funding renovations, bridge financing, or investment property down payments. The rate is variable, tied to the lender's prime rate.

§ Holdover Clause

A listing-agreement provision requiring a seller to pay the listing brokerage's commission if the property sells to a buyer who was introduced to the property during the active listing period, even if the sale occurs after the listing has expired. The holdover period in Alberta typically ranges from 30 to 90 days. It protects brokerages from sellers who let a listing expire and then transact privately with a buyer the brokerage found.

§ Home Inspection

A visual assessment of a Calgary property's major structures, systems, and components — including roof, foundation, electrical panel, plumbing, HVAC, attic insulation, and exterior drainage — conducted by a licensed inspector. A home inspection condition (typically 5–7 business days) is standard in Alberta purchase contracts. Inspectors in Alberta are licensed by RECA. Buyers should attend the inspection in person and receive a written report.

I

§ Infill

New residential construction on previously developed or vacant lots within established Calgary neighbourhoods, typically replacing a single older bungalow with two or more new semi-detached or detached homes. Calgary's inner-city communities — Altadore, Killarney, Renfrew, Capitol Hill — have seen significant infill activity since 2010, raising neighbourhood density and walkability. Infill zoning rules are governed by the City of Calgary's land use bylaw and district plans.

§ Irrevocable Date

The date and time specified in an offer by which the seller (or buyer, in a counter-offer scenario) must formally accept the offer, or it expires automatically. In Alberta, the irrevocable period is legally binding — the offeror cannot withdraw the offer before this deadline without risking damages. Setting a tight irrevocable date (e.g., the next business day at noon) creates pressure in a competitive situation.

J

§ Joint Tenancy

An Alberta co-ownership structure in which two or more owners hold equal, undivided interests in a property with a right of survivorship — on the death of one joint tenant, that owner's interest passes automatically to the surviving joint tenant(s) outside the estate, bypassing probate. Married couples and most Adult Interdependent Partners hold their matrimonial home in joint tenancy. Severance — a sale, a court order in divorce, or a unilateral written declaration registered against title — converts the interests into a tenancy in common with no survivorship right. Determining whether title is held jointly or in common is a critical first step in every Calgary estate sale and divorce sale.

L

§ Land Title

Alberta operates under the Torrens system of land title registration — a government-guaranteed system where the certificate of title is conclusive evidence of ownership. Unlike older deed-based systems, a buyer in Alberta does not need to trace a chain of title going back decades; the current registered title, as confirmed by a title search at Alberta Land Titles, is definitive. The Province guarantees the accuracy of the register and compensates for errors.

§ Land Title Transfer Fee

The government fee levied by Alberta when property title is transferred from seller to buyer. The fee is calculated on a sliding scale tied to the property's fair market value — as of 2026, approximately $5.50 per $5,000 of value (or fraction thereof) for the title transfer, plus a separate mortgage registration fee on the same scale applied to the mortgage amount. The buyer pays this fee. Alberta charges no land transfer tax, making total closing costs significantly lower than Ontario or BC.

§ Laned Home

A detached or semi-detached Calgary home with a garage accessed from a rear alley rather than a front driveway, preserving the street-facing façade for landscaping and curb appeal. Laned homes are the dominant new-build form in developing Calgary communities like Livingston, Belmont, and Glacier Ridge. The lane-accessed garage allows a wider, more attractive front elevation and easier snow removal from the rear.

§ List-to-Sale Ratio

The final sale price expressed as a percentage of the original list price; a ratio above 100% indicates the property sold above list — common in Calgary during multiple-offer scenarios. A well-priced home in a balanced Calgary market typically sells at 98–100% of list. KARAKTER's average list-to-sale ratio consistently exceeds 98%, reflecting precision pricing strategy rather than underpricing to manufacture offers.

§ Land Title Search

See Title Search.

M

§ Matrimonial Home

Under Alberta's Dower Act, the residence ordinarily occupied by a married couple or Adult Interdependent Partners as their family home. The non-owning spouse or partner has the right to remain in the home and must provide written consent before the registered owner can sell, mortgage, or otherwise dispose of the property. A REALTOR® or lawyer must confirm dower status at the outset of every Alberta listing.

§ Matrimonial Property Act (Alberta)

Alberta legislation governing the division of property — including real estate — upon separation or divorce of married spouses or Adult Interdependent Partners. It establishes a presumption of equal division of all property acquired during the marriage, including equity growth on pre-marital properties. Couples negotiating a separation agreement or property division order must understand the Act's implications before listing or buying real estate.

§ Median Price

The middle sale price when all transactions in a given period and geography are ranked from lowest to highest — half of sales fall above and half below. The median is less distorted by outlier luxury sales than the average price and is used by Statistics Canada and CMHC in national housing affordability analyses. In Calgary, the detached median price and the CREB benchmark price track closely but can diverge when the mix of sales shifts toward higher or lower price ranges.

§ MLS (Multiple Listing Service)

The cooperative real estate database operated by CREB in the Calgary area where licensed REALTORS® share listing data, enabling broad market exposure for sellers and comprehensive property searches for buyers. All MLS® listings in Canada are also syndicated to Realtor.ca, the national portal operated by the Canadian Real Estate Association (CREA). Only licensed REALTORS® can list properties on MLS; private sellers cannot access the system directly.

§ Months of Supply

The number of months it would take to exhaust the current inventory of active listings at the current monthly sales pace (active listings ÷ monthly sales). CREB uses months of supply as its primary market-condition indicator: under 2 months = strong seller's market; 2–4 months = balanced; above 4 months = buyer's market. In early 2026, Calgary's overall residential market sat near 2 months of supply, indicating seller's-market conditions.

§ Mortgage Stress Test

Canada's federally mandated rule requiring all mortgage applicants — whether insured or conventional — to qualify at the higher of their contract interest rate plus 2.0%, or the regulatory floor rate (currently 5.25%). This means a buyer offered a 4.5% mortgage must prove they can afford payments at 6.5%. The stress test was introduced by OSFI in 2018 to ensure borrowers can withstand rate increases, and it significantly reduces maximum purchase power compared to qualifying at the contract rate alone.

N

§ New Listings

Properties newly added to MLS in a given month; the primary supply-side indicator tracked by CREB alongside active listings. New listings surge typically follow spring (March–May) and fall (September–October) seasonal patterns in Calgary. A sudden spike in new listings without a corresponding rise in sales rapidly shifts the market toward buyer conditions, even if months of supply were previously tight.

O

§ Offer to Purchase

The legal contract — formally called a Real Estate Purchase Contract (REPC) in Alberta — in which a buyer makes a binding offer to purchase a property at specified terms including price, possession date, deposit amount, included items, and any conditions. AREA provides the standard REPC form used across Alberta. Once signed by both buyer and seller, the REPC is a legally enforceable contract.

§ Open Mortgage

A mortgage that can be repaid in full, in part, or renegotiated at any time without a prepayment penalty. Open mortgages carry significantly higher interest rates than closed mortgages — often 1–2% above comparable closed rates — in exchange for maximum flexibility. They are most useful for borrowers who expect to sell or pay off their mortgage within the term, such as those awaiting proceeds from an estate or investment liquidation.

P

§ Possession Date

The agreed date on which the buyer receives keys and physical access to the property in Alberta, as specified in the purchase contract. Possession is typically set at noon on the agreed date, giving the seller time to vacate. Possession day and completion day are often the same in Alberta, but may be split by one day to allow the buyer's lawyer to confirm funds have been received before releasing keys.

§ Porting a Mortgage

Transferring an existing mortgage — including its interest rate and remaining term — from a sold property to a newly purchased one, without triggering a prepayment penalty. Porting is attractive when the existing rate is below current market rates. Canadian lenders allow porting but impose conditions: the buyer must qualify for the ported mortgage on the new property, the new property must be approved as security, and the port must typically close within 90 days of the original property's sale.

§ Pre-Approval

A lender's conditional commitment to lend a specified maximum amount at a locked interest rate for a set period — typically 90–120 days — based on the borrower's income, credit history, and stated assets. A pre-approval is not a guarantee of final mortgage approval (which requires a satisfactory appraisal of the specific property purchased), but it establishes a credible price ceiling and signals serious intent to Calgary sellers. In competitive markets, a solid pre-approval letter is often a prerequisite to showing intention.

§ Prepayment Privilege

The contractual right under a closed mortgage to make additional lump-sum payments or increase regular payment amounts without triggering a penalty. Canadian lender offerings vary: most allow 10–20% of the original principal as an annual lump-sum, plus the ability to increase regular payments by 10–20%. Calgary buyers with variable bonuses, commission income, or rental revenue should prioritize strong prepayment privileges when shopping for a mortgage.

§ Probate

The court process in Alberta of legally validating a deceased person's will and authorizing the executor to manage and distribute the estate assets, including real property. The Court of King's Bench in Calgary issues the grant of probate after reviewing the original will and confirming no valid challenges exist. Without probate, an executor cannot sign a purchase contract or transfer title for real estate owned by the deceased. Buyers of estate properties should expect 3–6 months for probate before an unconditional sale can close.

§ Property Disclosure Statement (PDS)

A standard Alberta Real Estate Association form in which sellers disclose known material latent defects affecting the property — such as foundation issues, water damage, previous grow operations, urea formaldehyde insulation, or asbestos. Sellers are not required to disclose patent (visible) defects. Buyers may rely on the PDS but should still conduct their own inspections; an incorrect or incomplete PDS can expose sellers to misrepresentation claims.

R

§ Radon

A naturally occurring radioactive gas produced by the decay of uranium in soil and rock, which can seep through foundations into buildings and accumulate to dangerous levels. Calgary sits in a moderately elevated radon zone, and Health Canada recommends testing all homes. The action level is 200 Bq/m³; if exceeded, mitigation (sub-slab depressurization) typically costs $1,500–$3,500 and reduces levels by 80–99%. Radon testing is increasingly a buyer-requested home inspection add-on in Calgary.

§ Real Property Report (RPR)

An Alberta-specific survey document — legally prepared by a licensed Alberta Land Surveyor — showing the property boundaries, all structures on the property, and their relationship to those boundaries and any registered easements or setback requirements. Sellers in Alberta are expected to provide an RPR with a current municipal compliance stamp (confirming bylaw compliance) prior to or on possession day. Without an RPR with compliance, buyers may require title insurance to cover the gap.

§ RECA (Real Estate Council of Alberta)

The provincial regulatory body that licenses, governs, and disciplines all real estate professionals in Alberta under the Real Estate Act — including REALTORS®, condominium managers, and mortgage brokers. RECA sets education requirements (including mandatory continuing education), investigates complaints, and can suspend or cancel licences. Every licensed Calgary REALTOR® is regulated by RECA. Buyers and sellers can verify a REALTOR®'s licence status on RECA's public registry.

§ Rescission

The legal cancellation of a contract, restoring all parties to their pre-contract positions. In Alberta real estate, rescission of a firm purchase contract is rare and requires either mutual written agreement of all parties, a court order, or a specific contractual right (such as a developer's right to rescind a pre-sale). British Columbia introduced a statutory right-of-rescission cooling-off period for residential buyers; Alberta has not adopted a similar provision as of 2026.

§ Row House

A series of three or more attached homes sharing side walls but each with its own front-door entry and typically a private rear yard. Row houses may be freehold (each on its own titled lot) or registered as a bare-land or conventional condominium in Alberta. They represent a mid-point between detached and apartment living, common in Calgary's inner-city and newer suburban communities, and are tracked as a distinct property type in CREB's benchmark statistics.

§ RPR Compliance

A stamp or letter from the City of Calgary (or relevant municipality) confirming that all structures shown on a Real Property Report comply with the applicable land use bylaw, including setbacks, lot coverage, and approved uses. Sellers must obtain compliance before closing in most Alberta transactions; non-compliance triggers a required resolution — removal of the offending structure, a development variance, or the buyer accepting title insurance in lieu of compliance.

S

§ Sales-to-New-Listings Ratio

Monthly sales volume divided by new listings in the same period; a fundamental market-balance indicator. CREB considers a ratio above 60% a seller's market and below 40% a buyer's market for the Calgary residential market. Ratios between 40–60% indicate balanced conditions. In early 2026, Calgary's overall sales-to-new-listings ratio was tracking near 62%, sustaining mild seller's-market conditions across most property types.

§ Sell-First Strategy

A move-up approach in which a homeowner completes the sale of their existing property before purchasing a new one — eliminating any financing overlap or bridge loan requirement. The trade-off is that the seller may need to arrange temporary rental accommodation between closing dates, which can be stressful and costly in Calgary's tight rental market. It is the lower-financial-risk strategy and preferred by buyers with limited equity or who need proceeds to qualify for the next purchase.

§ Seller's Market

A Calgary market condition where demand outpaces supply — typically characterized by fewer than 2 months of supply across the relevant property type and area. Seller's market conditions produce faster average days on market, multiple competing offers, above-list sales prices, and reduced buyer negotiating power on conditions. Calgary's inner-city detached and SW quadrant markets frequently operate as seller's markets even during broader balanced conditions in the overall city.

§ Semi-Annual Compounding

The Canadian legal standard for mortgage interest compounding, mandated under the Interest Act, where interest compounds twice per year rather than monthly (as in the US) or daily. This means the stated annual mortgage rate understates the effective annual rate slightly, requiring an equivalent monthly rate conversion. KARAKTER's mortgage payment calculator uses Canadian semi-annual compounding to produce accurate payment figures.

§ Semi-Detached

Two homes built as a mirrored or complementary pair, sharing one common (party) wall, each on its own separately titled lot. Often called a half-duplex in Alberta. Semi-detached homes offer a price point between detached and row housing, and are common in Calgary's inner-city infill market as well as newer suburban communities. CREB tracks semi-detached benchmark prices separately from detached and row.

§ Simultaneous Close

A coordinated closing in which a homeowner's existing property sale and their new purchase complete on the same calendar day — the most common structure for Calgary upsizers. The seller's lawyer receives sale proceeds in the morning and uses them to fund the purchase in the afternoon. Simultaneous closes require precise coordination between two real estate transactions, two legal teams, and two sets of lenders; a single delay can cascade into both deals.

§ Single-Family Detached

Synonymous with detached home — a standalone residential dwelling on its own parcel of land, with no shared walls and full freehold ownership. Single-family detached is the benchmark property type used in CREB's headline monthly market statistics and the form most Calgarians aspire to as their primary residence. The term is used interchangeably with "detached" across CREB reports, CMHC data, and Statistics Canada housing surveys.

§ Subject-Free Offer

An offer to purchase with no conditions attached — no financing condition, no inspection condition, no sale-of-buyer's-home condition. Synonymous with a firm offer, it is legally binding upon the seller's signature. Subject-free offers are standard in Calgary multiple-offer scenarios on desirable properties and require buyers to perform all due diligence — financing and inspection — before submitting. Working with an experienced REALTOR® to manage pre-offer risk is essential.

T

§ Tenants in Common

An Alberta co-ownership structure in which two or more owners hold defined fractional interests (50/50, 75/25, three-way splits — any allocation) in a property with no right of survivorship. On the death of a tenant in common, that owner's fractional share passes through their estate to their named beneficiaries (or via intestacy under the Wills and Succession Act) rather than to the surviving co-owners. Tenancy in common is the standard structure for unmarried co-purchasers, sibling-inherited property, parent-child arrangements, and post-divorce arrangements where former spouses temporarily continue to hold title together. Compare with Joint Tenancy.

§ Title Insurance

A one-time-premium insurance policy purchased at closing that protects the buyer (and their lender) against title defects, fraud, forgery, survey irregularities, zoning violations, encroachments, and undisclosed encumbrances not discovered before closing. In Alberta, title insurance is frequently used as an alternative to a current RPR with compliance, acceptable to many lenders and lawyers. Major providers include FCT and Stewart Title; premiums typically range from $200–$500 depending on purchase price.

§ Title Search

A review of the Alberta Land Titles registry — conducted by the buyer's lawyer — to confirm the registered owner, verify the legal description, and identify all registered encumbrances including mortgages, caveats, easements, utility right-of-ways, and restrictive covenants. The title search is a mandatory step in every Alberta real estate transaction and must be completed before funds are advanced and title is transferred. Results inform whether title insurance or specific condition resolution is required.

§ Townhouse

A multi-storey attached dwelling — typically two or three storeys — sharing party walls with adjacent units, each with a private entry and often a small yard or patio. In Calgary, townhouses are most commonly registered as bare-land or conventional condominiums, with a monthly condo fee covering exterior maintenance, landscaping, and reserve fund contributions. They bridge the gap between apartment condos and detached homes in both price and lifestyle.

§ Transfer of Title

The legal process by which ownership of a property is formally registered from seller to buyer at the Alberta Land Titles Office, completing a real estate transaction. The buyer's lawyer prepares a Transfer of Land document, which is electronically submitted to Alberta Land Titles after receiving mortgage funds and confirming all conditions are met. Alberta's Torrens system guarantees the accuracy of the resulting registration.

V

§ Variable-Rate Mortgage

A mortgage whose interest rate fluctuates with the lender's prime rate, which closely tracks the Bank of Canada overnight policy rate. In Canada, most variable mortgages maintain a fixed monthly payment while the interest/principal split adjusts with rate changes; when rates rise sharply (as in 2022–2023), payments may become interest-only or trigger a "trigger rate" that forces payment increases. Variable rates are typically offered at prime minus a discount (e.g., prime − 0.75%).

§ Vendor Take-Back Mortgage (VTB)

An arrangement where the seller of a property acts as the lender, financing a portion of the purchase price for the buyer, secured by a registered mortgage on the sold property. VTBs are uncommon in standard Calgary residential transactions but appear in commercial real estate, rural properties, and situations where buyers face financing gaps. They allow sellers to earn interest income and can facilitate a sale that otherwise wouldn't close.

W

§ Waiver

A signed document in which a buyer formally waives (removes) a condition in a purchase contract, converting a conditional offer into a firm, binding agreement. The waiver must be delivered to the seller or seller's agent before the condition deadline or the contract terminates. In Alberta, a waiver is irrevocable once delivered — a buyer who waives conditions and then changes their mind loses their deposit and faces potential legal action for breach of contract.

§ WETT Inspection

A Wood Energy Technology Transfer inspection assessing the installation, clearances, chimney, and code compliance of a wood-burning fireplace, insert, stove, or outdoor fire feature. Most Alberta home insurers require a current WETT inspection report before insuring a home with a solid-fuel appliance; without it, a buyer may find their insurance voided. WETT inspections in Calgary cost $150–$350 and are performed by WETT-certified inspectors, who are sometimes distinct from general home inspectors.

§ Wills and Succession Act (Alberta)

Alberta legislation that governs the creation, validity, and interpretation of wills, and the rules for distributing property when a person dies intestate (without a valid will). For real estate, the Act determines who inherits property and in what shares when no will directs otherwise, and it establishes the priority of claims. Estate sales in Calgary must be conducted in compliance with this Act, and its intestacy provisions often surprise families who assumed a spouse would inherit everything automatically.

Z

§ Zoning

The City of Calgary's land use bylaw system that designates what types of structures and activities are permitted on each parcel of land — residential, commercial, industrial, or mixed-use — and within each residential designation, what forms (detached, semi-detached, multi-unit, etc.) are allowed. Zoning is critical context for evaluating infill potential, secondary suite legality, short-term rental eligibility, and redevelopment opportunities. Calgary updated its land use bylaw in 2024 to allow secondary suites city-wide in residential zones.

This glossary is published for general education only and does not constitute legal, mortgage, or tax advice. Real estate law, CMHC rules, and Alberta legislation change over time; always confirm current rules with your REALTOR®, lawyer, and mortgage broker. KARAKTER Realty is licensed under the Real Estate Council of Alberta (RECA).