Home Buyer Glossary: Terms to Help you Navigate the Home Buying Process, Part 3

Home Buyer Glossary: Terms to Help you Navigate the Home Buying Process

Recently we have been creating a glossary for our readers in order to demystify the home buying process. This big step can be a little daunting at times considering everything involved so we wanted to give you the tools to be able to approach the whole thing head-on! Moving forward from last month's edition, we're going to be adding some more terms to help you navigate the home buying process.   

Floorplans

Floor Plans

Floor plans are scale drawings that show the relationship between rooms, spaces, and physical features viewed from above. These drawings are usually drawn one floor at a time, with dimensions included in order to specify room sizes and wall lengths. These blueprints will sometimes include other details of fixtures like sinks, water heaters, and furnaces in order to give a clearer idea of what the finished building will look like. Floor plans are extremely useful not only to the builders but to new homeowners as well! Going over these mock-ups allows you to see the layout and ask questions about the home before anything has been built.

Freehold

Freehold

Freehold property is any property that is "free from hold" of anyone besides the owner. This means that the owner of a freehold property has the rights to the estate and can use it for their purposes, as long as it's within local regulations. If you have a freehold property you have no management fees to pay, no condo board to petition or work with, and no common areas that are shared with other owners.

High Rise

High Rise

As you may have guessed, high rises are tall, multi-storied buildings. Whereas low rise buildings are usually defined differently depending on jurisdictional height regulations, a high rise is usually easy to spot. Starting at around 7 stories and up, high rises can be used as residences, office buildings, multi use, or other functions including hotels, and retail shops. In fact, many urban areas will have a high rise with multiple purposes combined.

Interim Occupancy

Interim Occupancy

When you purchase a brand-new condo and finally get the keys to your suite, you may be surprised to find out that your new home is not yours yet. Although this is an exciting phase in the new home ownership process, it is not actually the "ownership" phase. This is called "interim occupancy" and it allows a builder to finish construction while also organizing an orderly move-in. When a building is declared fit for occupancy, condo buyers can start moving in as the builder works their way up to complete each suite. During this time, you aren't technically taking ownership yet, but you can enjoy your new home and some of the amenities. Be aware that there is a fee attributed to this period that you must pay in order to live in the condo. This fee is made up of three parts: interest on the unpaid balance of your condo, an estimate on the municipal taxes for your unit, and a projected common expense contribution meant to keep the building running.

 

With these descriptions in your back pocket, we're sure you'll be navigating the home buying process like a pro! Be sure to follow Marina Home's blog series for more of these terms, in order to keep up to date and knowledgeable about everything you can come to expect.