Real Estate Terms Every Buyer & Seller Should Know in BC

Real Estate Terms Every Buyer & Seller Should Know in BC

By Omeed Ghafori | Fraser Valley REALTOR® — Century 21 Coastal Realty

Buying or Selling Real Estate in BC? Here’s What You Need to Know.

Whether you’re a first-time buyer, seasoned investor, or planning to sell your home in Surrey, Langley, or White Rock — understanding key real estate terms can help you feel more confident during the process.

As a local REALTOR® with Century 21 Coastal Realty, I always take the time to explain these terms to my clients — but here’s a helpful guide you can reference anytime.

1. Subject Clauses (Conditions)

In British Columbia, subject clauses (often just called "subjects") are conditions that protect the buyer or seller during a real estate transaction.

Common Buyer Subjects:

• Subject to financing approval

• Subject to home inspection

• Subject to property disclosure statement review

• Subject to strata document review (for condos/townhouses)

• Subject to title search

Why Are Subjects Important?

Subjects allow you time to perform due diligence before being fully committed to the purchase. I always strongly recommend including subjects to protect my buyers — especially in today’s uncertain market.

2. Deposit

Once your offer is accepted, the buyer provides a deposit (typically within 24-48 hours) — this shows good faith and is held in trust until completion. In BC, this is often 5% of the purchase price but can vary.

3. Completion Date vs Possession Date

• Completion Date: The day the legal transfer of funds and ownership happens at the Land Title Office.

• Possession Date: The day the buyer gets the keys (usually 1-3 days after completion).

4. Property Disclosure Statement (PDS)

This is a document completed by the seller disclosing known defects or issues with the property. It’s an important subject condition for buyers to review.

5. Title Search

A title search confirms legal ownership and checks for any charges, liens, easements, or covenants registered against the property.

6. Strata (For Condos & Townhomes)

In BC, strata refers to properties with shared ownership of common spaces. Important documents include:

• Strata Minutes

• Depreciation Report

• Bylaws & Rules

• Financial Statements

7. Multiple Listing Service (MLS®)

MLS® is the online platform REALTORS® use to list properties for sale. It includes listing details, photos, and price history.

8. Sales-to-Active Listings Ratio

This is a key market indicator.

• Buyer’s Market: Under 12%

• Balanced Market: 12% - 20%

• Seller’s Market: Over 20%

As of March 2025, the Fraser Valley is firmly in a buyer’s market with an 11% ratio — meaning more inventory and negotiation power for buyers.

9. Benchmark Price

This is the typical price of a "typical" home in a given area — used to track market trends.

10. Closing Costs

Additional costs buyers should budget for:

• Property Transfer Tax (PTT)

• Legal Fees

• Title Insurance

• Home Insurance

• Moving Costs

Final Thoughts from Omeed Ghafori

Buying or selling real estate in BC is a big decision — and understanding the terminology can help you feel informed and confident every step of the way.

As your local real estate expert in Surrey, Langley, and White Rock, I’m here to guide you through the process with personalized advice and clear communication.

Ready to Get Started?

→ Contact me anytime for a free consultation or market evaluation!

📲 778-316-7506
🌐 www.OmeedGhafori.com
Instagram: @omeedghafori.realtor