A B C D E F I L M O P R S Z
Appraisal (top)
The process of determining the value of a property. This
value is not always the same as the final purchase price of the
home.
Asking Price (top)
The price a
property is listed for sale by the seller. Also referred to as the 'list
price'.
Appraised Value (top)
The estimated
value of a property completed by a certified appraiser for mortgage financing.
There is usually a fee to have an appraisal done.
Agent (top)
More commonly referred to as a real estate
representative, an agent is a real estate professional who has met and satisfied
specific licensing qualifications under the Real Estate Act. The agent or
representative can negotiate and act on behalf of another in a real estate
transaction in exchange for a service fee.
Adjustment Date (top)
The adjustment of property taxes, rents, interest, and
other items on an agreed date by both parties to the real estate
transaction.
Amortization (top)
The period
of time required to pay off a loan through periodic payments of interest and
principal. Amortization periods are most often 15, 20, or 25 years
long.
Appreciation (top)
The amount an asset
such as real estate, a vehicle, or other asset has increased in
value.
Assessment (top)
An appraisal of real
estate primarily for tax purposes.
Assign (top)
To transfer a property title or interest to another
individual, for example, to assign property in one’s will to
another.
Assumable Mortgage (top)
The
purchaser may assume or take over the responsibilities and obligations of the
existing mortgage from the vendor.
Assignment (top)
A commercial agreement conveying the leasehold
interests, including the financial responsibilities, from one tenant to another.
Not synonymous with Sub-lease.
Arbitration (top)
A legal method for settling disputes between a landlord
and a tenant using a mutually agreed upon third party. Often used as a means of
avoiding court actions.
Absentee Owner (top)
A landlord that is based in a city other than the one
where the property is located.
Balance Due
Completion (top)
The amount of money the purchaser
will be required to pay the vendor to complete the purchase once all the
adjustments have been made.
Balloon Payments (top)
A payment or payments made to the principal over and
above the required payment(s).
Blended Payments (top)
A loan which is repaid through equal and consecutive
installments that include interest and principal.
Brokerage Fee
(top)
A fee charged a mortgage broker to arrange for a
loan.
Build To Suit (top)
In commercial
terms, the construction of a building to meet the specific requirements of a
large tenant or anchor tenant who has previously agreed to lease the
premises.
Closing Date (top)
A specified date on which the sale of a property becomes
final and the new owner can take possession.
Caveat (top)
A notice registered against the title by a person
claiming an interest in the land which can potentially prevent all dealings with
the land.
Ceiling Price (top)
The maximum
price a purchaser is willing to pay for a property.
Closing Costs
(top)
Addition costs involved in the purchase of a home,
such as legal fees, transfer fees, and disbursements, that are payable on the
closing date. Closing costs typically range from 2%-4% of a home's selling
price.
Closing Statement (top)
A statement
showing the amount to be received or paid out by the purchaser or
vendor.
Completion Date (top)
The date the
vendor is entitled to the net proceeds of the sale and the purchaser is able to
obtain the title.
Commission (top)
The
remuneration agreed to by the seller and the real estate broker/agent as stated
in the listing agreement. It is payable to the broker/agent on closing and
shared, if applicable, with the co-operating agent(s).
Conditional
Offer (top)
An offer to purchase the home that is
subject to certain conditions. These conditions typically include financing;
approval of strata documentation, home inspections or in some cases the sale of
another home. There is usually a time limit in which the specified conditions
must be satisfied.
Conveyance (top)
The
transfer of an interest in land from one person to another. Also includes
assignments, leases and mortgages.
Common Area (top)
The area of a commercial building or residential complex
that is used by the tenants and their guests or customers. Common areas can
include the lobby and hallways, and the cost of maintaining parking areas,
sidewalks, landscaped areas, public washrooms, and loading facilities.
Deed (top)
A document used to
transfer an interest inland from one person to another.
Dual Agent
(top)
A real estate broker or salesperson who acts as
agent for both the seller and the buyer in the same transaction. Both buyer and
seller are the agent's clients.
Debt Service (top)
The repayment of a mortgage including the interest,
principal, and any other additional charges.
Encumbrance (top)
A judgment, lien
or mortgage, or other claim registered against the title to
land.
Equity (top)
The difference between
the value of the property and the amount owing (if any) on the
mortgage.
Easement (top)
The right of use
over the property by another as allowed through an agreement or necessary
implication. Common examples include easement for the purposes of access to
adjoining land and access to public utility services/equipment.
Foreclosure (top)
A legal procedure
in which the lender/creditor obtains ownership of the property if the borrower
defaults on the mortgage loan.
Interest (top)
The cost of borrowing money for a specified period of
time. Interest is typically paid to the lender in installments along with
repayment of the principal loan amount.
Industrial Space (top)
A type of real estate best suited to the needs of a
manufacturing, assembly, warehousing or distribution type of business.
Lessee (top)
The tenant, as it
pertains to a lease agreement.
Lessor (top)
The landlord or property owner, as it pertains to a
lease agreement.
Mortgagor (top)
The property owner borrowing the money, secured by a
mortgage.
Mortgagee (top)
The person or
financial institution lending the money, secured by a
mortgage.
Management Fees (top)
The fees
paid out to a company that manages the property for the landlord.
Offer (top)
A legal document
outlining the terms under which the buyer agrees to purchase a vendor’s
property. If accepted by the vendor, it forms a legally binding contract subject
to the terms and conditions stated in the document.
Property Manager (top)
An individual
or agent who manages and supervises the day-to-day operations of a property
according to the landlord or management company.
Real Estate Board (top)
A non-profit
organization representing local real estate brokers/agents, salespeople, which
provides services to its members and maintains and operates a MLS® system in the
community.
Realtor® (top)
The trademark name
for a real estate representative who is an active member of an organization of
professionals in the real estate industry, for example, the Canadian Real Estate
Association or Real Estate Board of Greater Vancouver.
Rent (top)
The amount of rent paid to the landlord during the term
of the lease.
Second Mortgage (top)
An secondary mortgage on a property that already has an
existing or first mortgage.
Seller's Market (top)
When there are more buyers searching for homes than
there are properties for sale. In such a market, house values usually increase
and homes sell in considerably less time than slower
markets.
Survey (top)
A document that
verifies a property’s boundaries, measurements, the location of any buildings on
the property, and confirms the existence of any easements or
encroachments.
Security Deposit (top)
The
amount of money the tenant will pay the landlord before the tenant takes up
occupancy in the new leased or rented space.
Square Footage (top)
The length of a room or premises times width. This is
usually measured in feet.
Sublet (top)
When
a tenant allows a third party to take over their space and rent out the
premises, usually with the consent of the landlord.
Zoning (top)
The division of a city,
town or municipality into districts in which construction is limited to a stated
type of building and land usage, in accordance with legislative act.